Afolabi Akindele, CEO of Adamakin Investment & Works Limited, has raised an urgent issue regarding the real estate landscape in Lagos, revealing that 90% of the city’s buildings are without mortgage insurance.
During the 137th remembrance ceremony for Iyalode (the late Mrs. Efunroye Tinubu) in Lagos, Akindele stressed that mortgage insurance cannot be effective without proper land registration. He referenced the ongoing legal and political challenges surrounding Madam Tinubu’s land title, criticizing the Lagos State government for its failure to recognize the title, which has left legitimate landowners frustrated.
Similarly, Olufemi Oyedele, CEO of Fame Oyster & Co., pointed out that the absence of mortgage insurance is largely due to the fact that most properties in Lagos are purchased without the use of mortgage loans.
The underdeveloped mortgage system in Lagos poses significant challenges for homeowners seeking essential insurance. Oyedele emphasized the critical role of mortgage insurance in reducing risks for lenders, particularly when borrowers make down payments of less than 20%.
Akedine also highlighted the necessity for more comprehensive tax reforms, proposing that improved land ownership records throughout Nigeria could alleviate various financial issues within the real estate sector. However, he cautioned that the suggested reforms may not provide substantial benefits to real estate, as they do not adequately address the state’s role in managing and documenting land transactions.
This discussion highlights the pressing need for policy reforms aimed at enhancing Lagos’ real estate infrastructure and safeguarding the interests of both buyers and sellers amid ongoing land disputes and insufficient mortgage security.
