Institutional Barriers and Mortgage Investment Risks in Nigeria

Abstract

Reinvention of the mortgage market through the creation of a secondary market has been identified as one of the solutions to the lack of funds that plague the Nigerian housing sector. There is however a set of institutional barriers that militate against seamless mortgage market operations in Nigeria and these obstacles will be ever present to prevent any smooth secondary market operations in the country. This paper identifies some of these barriers as the requirement of Governor’s consent, revocation of right of occupancy, mortgage registration period and cost as well as foreclosure period and the cost of foreclosure. It further reveals their nature in the present mortgage lending practice and makes recommendation to improve the practice in preparation for any secondary market operations