Afolabi Akindele, CEO of Adamakin Investment & Works Limited, recently highlighted a pressing problem in the real estate sector in Lagos saying that 90% of buildings in the city have no mortgage insurance.
Speaking at the 137th memorial service of Iyalode (the late Mrs. Efunroye Tinubu) in Lagos, Akindele said that mortgage insurance cannot be enforced without proper land registration, citing the case of Mrs. Tinubu’s land title, which remains embroiled in political and legal conflicts. He criticized the Lagos State Government’s refusal to honour the title, which has angered the legitimate owners of the lands.
In the same vein, Olufemi Oyedele, CEO of Fame Oyster & Co., noted that the lack of mortgage insurance stems from the fact that most buildings in Lagos are financed without mortgages.
This underdeveloped mortgage system, especially in Lagos, makes it difficult for homeowners. to access the necessary insurance. Oyedele also explained the importance of mortgage insurance in mitigating risk for borrowers, especially when borrowers make payments of less than 20%.
Akedine also spoke about the need for stronger fiscal reforms, suggesting that clearer land ownership data in Nigeria could help address many of the financial challenges in the real estate sector. However, he warned that the proposed reforms may not significantly benefit real estate as they fail to address the state’s responsibility in managing and recording land transactions.
The discussion highlights the urgent need for policy changes to strengthen Lagos’ real estate infrastructure and protect buyers and sellers in the face of ongoing land conflicts and the lack of
