Loan Recovery Practices and Debtor Rights Under the Federal Mortgage Bank Act in Abuja

Mortgage loan recovery by the Federal Mortgage Bank of Nigeria and other primary mortgage institutions in Abuja has generated a growing number of disputes involving borrower rights, procedural fairness, and the balance between creditor enforcement and debtor protection. This study examines the legal framework governing mortgage loan recovery in Abuja, evaluating the Federal Mortgage Bank of Nigeria Act, the Mortgage Institutions Act, and the procedural requirements for foreclosure and power of sale under the Property and Conveyancing Law. Using a doctrinal methodology complemented by analysis of 35 decided cases from the High Court of the Federal Capital Territory and interviews with 20 mortgage lawyers and 30 affected borrowers in Abuja between 2020 and 2024, the research evaluates the adequacy of debtor protections against wrongful foreclosure. Findings reveal that borrowers frequently lack adequate notice of recovery proceedings, that redemption rights are not consistently honoured, and that the costs of challenging recovery actions are prohibitive for middle-income borrowers. The study also examines the impact of inflation and economic instability on mortgage default rates and borrower vulnerability. Recommendations include the introduction of mandatory pre-foreclosure mediation, enhanced debtor notification requirements, the introduction of a mortgage hardship scheme, and legal aid coverage for housing disputes. Keywords: mortgage recovery, debtor rights, Federal Mortgage Bank, Abuja, foreclosure