The Challenges of Advancing Credit for Real Property Development in Nigeria: Interrogating the Role of the Banking Sector

Abstract

This paper examined the challenges of advancing credit for real property
development in Nigeria. It interrogated the issue of credit security in
Nigeria, particularly, as it relates to land by criticizing practices that aim
at frustrating credit advancements. Credit security systems remain
germane to issues of economic growth and development of nations as
businesses whether private or corporate may not have enough resources
to achieve their stated objectives except they are able to access external
funds sourced through loans and credit facilities to make meaningful
economic strides. Adopting the doctrinal research method, this paper
examined relevant primary and secondary sources of law, such as
statutes, case law and books in this area of law to interrogate how credit
financing can encourage real property development in Nigeria. It
examined the role of the banking sector in the advancement of credit as
well as suggested how credit security can be adequately harnessed to
improve the growth of real property in Nigeria. It found amongst others
that the advance of credit to needed firms and organizations by statutory
and other lenders is apposite to real property development. It also found
that several challenges which hamper the grant of credits for businesses
exist in Nigeria. It concluded that secured credit advances backed by
adequate and enforceable legislation conforming with international best
standards would guarantee a better development of real property in
Nigeria; and therefore, recommended both executive and legislative
imperatives to address the identified challenges.