AN APPRAISAL OF MORTGAGE AS A SECURITY FOR BANK LENDING IN NIGERIA

AN APPRAISAL OF MORTGAGE AS A SECURITY FOR BANK LENDING IN NIGERIA

Author by Prof. Pius Olanrewaju

Language: English

Abstract

By virtue of the financial intermediation role of banks, banking is the very foundation upon which the fabrics of any economy are built. This all-important role of financial intermediation is most effectively discharged through bank lending. Given this fact, bank lending will not be possible unless it is hinged upon an assurance of recouping the money lent out. Security is highly emphasized in Nigeria because of the volatile economic climate, inconsistent government policies and the paucity of credit information on borrowers which make the granting of credit more risky than it is in more developed economies. As shall be discussed subsequently, mortgage provides the best option for such security if the mortgage transaction is entered into with the right premises confirmed. It is however an admission of reality that mortgage transactions do not always secure the recouping of the money lent out due to certain defects in the transaction which shall be dealt with. This work shall appraise mortgage as a security for bank lending in Nigeria. This appraisal shall involve a definition of key terms; types of mortgages; advantages of mortgage over similar transactions; the investigation of title to the mortgage property; problems militating against mortgage as an effective security for bank lending; and requisite solutions thereto.


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