The Acting Managing Director and Chief Executive Officer of Infinity Trust Mortgage Bank (ITMB) Plc, Mrs. Ngozi Chukwu, has called on the government to undertake a comprehensive review of the land title registration process in Nigeria.
Chukwu who stated this in a forum recently emphasised that the current system is cumbersome, costly, and a significant barrier to the growth of the mortgage industry.
Speaking on the challenges facing the sector, Chukwu highlighted the need to reduce the cost of title registration and streamline the process to ensure it can be completed in a matter of weeks or months, rather than dragging on for several years.
“The government must reassess the entire process, making it more efficient and accessible,” she stated.
Chukwu further underscored that security remains a key responsibility of the government and should be addressed to foster business growth and stability in the housing and mortgage sectors.
She pointed out that the high cost of registering land titles at the land registry discourages individuals from engaging in formal mortgage arrangements.
“Many prospective homeowners, she noted, prefer private payment plans with developers, making payments in installments until the property is fully paid off.
“This option is often more attractive than dealing with high interest rates and exorbitant costs associated with formal title registration. “The prohibitive costs are stifling the expansion of the mortgage industry,” Chukwu added.
Another major concern raised by the ITMB CEO is the absence of unified foreclosure laws across the country.
While states such as Kaduna and Lagos have implemented foreclosure laws, many other states have not.
This inconsistency hampers mortgage banks’ ability to recover funds when borrowers default on their loans.
Chukwu explained that mortgage institutions could be tied up in court for 10 to 15 years, trying to recover their investments, which severely limits the sector’s growth.
“Insecurity is also a significant issue affecting businesses across the country, including the mortgage industry,” Chukwu noted.
She emphasized the negative impact of the lack of security on mortgage banks and the broader housing sector.
Additionally, Chukwu highlighted the persistent problem of inadequate access to long-term, affordable funds needed to support mortgage creation.
“The high cost of borrowing is exacerbated by Nigeria’s high-interest rate environment. With the Central Bank of Nigeria’s Monetary Policy Rate (MPR) nearing 27 per cent, both lending and deposit rates are unsustainably high,” she said.
She noted that the situation drives up the cost of funds, making it difficult for many Nigerians to afford mortgages. High interest rates, in turn, reduce affordability and increase the likelihood of default among borrowers.
Chukwu also pointed to the impact of inflation on the cost of housing, noting that the prices of properties have skyrocketed in recent years.
“Just a few years ago, you could find decent terrace duplexes in Abuja for N35M to N40m. Today, those same homes are priced between N200m and N250m or more,” she said.
This sharp rise in housing prices has put homeownership out of reach for the vast majority of Nigerians, compounding the housing crisis.
Chukwu stressed that the government must address the existing bottlenecks in its policies concerning mortgages.
“The registration process is too long, too expensive, and inefficient. It further complicates efforts to provide affordable housing solutions for Nigerians,” she said