An Examination of Mortgage Law and the Rights of Mortgagors Under the Nigerian Mortgage System

Nigeria's mortgage finance system is characterised by high interest rates, inaccessible housing finance, and a legal framework that inadequately protects the rights of mortgagors, particularly in cases of default and foreclosure. This study examines the legal rights of mortgagors under the Land Use Act, the National Housing Fund Act, the Mortgage Institutions Act, and recent reforms under the Federal Mortgage Bank of Nigeria. A doctrinal methodology was adopted, supported by interviews with 15 mortgage practitioners and 20 mortgagors who experienced foreclosure proceedings in Lagos and Abuja. Results indicate that the Land Use Act's vesting of all land in state governors creates significant complications for mortgage perfection and enforcement, as consent fees and delays effectively reduce the value of mortgage security. Mortgagor rights to redeem, receive notice before sale, and obtain surplus proceeds are legally recognised but poorly enforced in practice. The study concludes that mortgage law reform is essential to stimulate Nigeria's housing sector. Recommendations include removing consent requirements for primary residential mortgages, creating a Mortgagor Protection Statute that mandates pre-foreclosure mediation, and establishing a National Mortgage Registry to reduce transaction costs and fraudulent dispositions.

Keywords: mortgage law, mortgagor rights, Land Use Act, housing finance, Nigeria