‘Housing finance, bane of housing sector’

The Permanent Secretary, Federal Ministry of Lands, Housing and Urban Development, Mr. George Ossai, has identified housing finance as one of the greatest challenges of the housing sector. He stated this at the round table on Asset Registry and Housing Finance organized recently by the Nigerian Institute of Advanced Legal Studies (NIALS) which took place […]

The Permanent Secretary, Federal Ministry of Lands, Housing and Urban Development, Mr. George Ossai, has identified housing finance as one of the greatest challenges of the housing sector.
He stated this at the round table on Asset Registry and Housing Finance organized recently by the Nigerian Institute of Advanced Legal Studies (NIALS) which took place at the Old Court Room, Supreme Court Complex, Abuja and chaired by Professor Deji Adekunle, DG NIALS.
One of the major setbacks in Nigeria for a world class housing finance system, according to him, was the challenging legal and regulatory environment.
His words “Our foreclosure laws and other similar laws that should enhance the system have become impediments in some ways. Where facilities advanced for housing development or purchase become delinquent, the legal processes of recovering what is owed is so discouraging”.
He mentioned however that given the challenge of funding the mortgage sub-sector due to paucity of funds and attendant high interest rates in a volatile, market-driven economy such as Nigeria, the secondary mortgage market is a veritable option for the provision of extra liquidity.
In his contribution, Oluwatoyin  Jokosenumi, head  FSS2020-PMO said that the war against corruption cannot be won if the prize for houses are out of reach.
He said that one of the greatest challenges facing Nigeria is the issue of ownership of land under the Land Use Act of 1978.
This is because “It affects infrastructural development such as housing and other mortgage products. No nation’s economy can develop without availability and adequacy of land and a well defined legal mercenary that stipulates the ownership, transfer and usage of such properties. It is therefore a necessity for a proper understanding of the Land Use Act and its enormous implications on land ownership in Nigeria”.