Having successfully passed the model mortgage foreclosure bill into law, Kaduna and Ogun states have put themselves at the top hierarchy of states that consider housing development important in Nigeria.
Following the footsteps of Kaduna state which has already passed the law, Ogun state has now announced that the state is foreclosure law compliant and enforcements of the law will be in order.
According to the speaker of the state House of Assembly, Olakunle Oluomo, the model mortgage foreclosure law will reduce fraud and bring sanity in the state’s mortgage sector.
This comes as cheering news to housing sector stakeholders whom have been at the forefront of the advocacy for the passing of this law in all states in Nigeria.
The model mortgage foreclosure law remains an important law for the seamless development of the housing and mortgage sector in the country.
Despite the reluctance of many states, the advocacy seems to be yielding early benefits as reports indicate that Lagos and Ekiti states are also at advanced levels of passing the bill in their respective states.
The benefits of the model mortgage foreclosure law are enormous, and some of them includes the fact that it will create an enabling environment for states to provide affordable housing for their citizens by de-risking the housing and mortgage sector and unlocking its potential for economic growth.
The law serves as an enabler for ease of doing business, an indication that such state has a receptive and improved market.
The law will also improve the business case for new investments in housing and catalyze access to finance for citizens and residents of the states.
It will increase the internally generated revenue (IGR), through taxable income to the states.
It will make provision for the establishment of mortgage board and mortgage registry; reduce the cycle-time to issue Certificates of Occupancy by delegating top government officials to sign the governor’s consent rather than the governor alone; and make land and property ownership transfer easy and bankable.
It will also help resolve amicably all issues of default and other contentions regarding mortgage payment and administration.
Some of the prominent housing sector institutions at the forefront of this advocacy includes the Nigeria Mortgage Refinance Company (NMRC) and Central Bank of Nigeria (CBN) and have been recently joined by the Federal Mortgage Bank of Nigeria (FMBN), Family Homes Funds (FHF) as well as the leading housing sector advocacy group, Housing Development Advocacy Network (HDAN).
Following the passing of the law, NMRC has commenced businesses with Kaduna state to provide affordable housing for citizens of the state, a testament to the impact of the model mortgage foreclosure law.
To make such possibilities a reality in as many states as possible, the Central Bank of Nigeria has pledged to give much needed impetus to the advocacy for the passing of the model mortgage foreclosure law nationwide.
Impressed by the latest stride in Ogun state, the Housing Development Advocacy Network has reassured Nigerians that it will take awareness campaigns to all states, emphasize to all governors in Nigeria on why they must key into passing the foreclosure Bills into law.
The Network has proudly commended Kaduna and Ogun states and their assemblies for being the first to do the right to promote effective mortgage system in Nigeria.
According to the group, this exemplary action currently makes the states the most housing and mortgage friendly states in Nigeria.
It is their hope and that of many stakeholders that these novel actions will inspire many more states to quickly join this moving train and hasten the delivery of affordable homes to millions of Nigerians in dire need of them.
