An Appraisal of the Viability and Enforcement of Secured Lending Transactions in Nigeria

Abstract

The financial sector's role in the sustenance of various projects has made a great impact on the economy of Nigeria. This support extends to all sectors of the economy. The importance of sustaining the financial sector is evident in the various consequences of a failed financial system on the economy of a nation. Mortgage is a major part of the financial system. There is the need to ensure that the mortgage industry in Nigeria is sturdy at all times as its failure would have a massive negative impact on the economy.The central aim of this paper is to establish the practicality and challenges of enforcement of mortgage security in Nigeria. The objectives of this paper amongst others are to highlight the various methods through which mortgage institutions can enforce and realize mortgage security. The research methodology employed in this paper was doctrinal. Using primary and secondary sources, it was discovered that the challenges inherent in the enforcement and realization of mortgage security in Nigeria range from social, legal, regulatory, legislative to judicial challenges. The challenges discovered inter alia are: the herculean consent provisions under the Land Use Act, environmental liability of a lender in possession, revocation of right of occupancy without compensation to the mortgagee, protracted judicial proceedings. This paper concluded by proffering recommendations towards the eradication of the challenges to the prompt enforcement of mortgage security in * PhD (Nig), BL, Reader, Acting Head, Department of Private and Property Law, Faculty of Law, Rivers State University. Nigeria. The recommendations include: improved statutory reforms to ameliorate the consent provisions under the Land Use Act, regular environmental impact assessment, the introduction of specialized courts for property matters. The paper asserts that maintenance of a viable mortgage industry and financial sector through adequate enforcement mechanisms is critical to the success of the Nigerian economy.