Creation of Legal Mortgages in Nigeria: A Critique

Abstract

The sudden incursion of the Land Use Act into land ownership and administration in Nigeria has not been without difficulties and controversies. Despite having been in the Nigerian legal system for almost four decades, the law has not been fully settled as to the extent to which the statute has watered down the quantum of title which a land owner or occupier has in his land.  Mortgage transaction is not left out of the lingering controversies. The nature of legal mortgage which a land owner or occupier may create in favour of a lender, would largely depend on the quantum of interest such mortgagor has in his land. Is there still a possibility of creation of mortgage of fee simple estate in Nigeria having regard to the Act? What is the maximum interest which a mortgagor may transfer to the mortgagee? Statutes dealing with mortgages, operating in different States in Nigeria, both prior and post the Land Use Act, have apparently contributed to the controversies, owing to some provisions therein which are seemingly in breach of the Act.