Afolabi Akindele, CEO of Adamakin Investment & Works Limited, recently highlighted a pressing issue within Lagos’ real estate sector—90% of buildings in the city lack mortgage insurance.
Speaking at the 137th remembrance of Iyalode (late Mrs. Efunroye Tinubu) in Lagos, Akindele emphasized that mortgage insurance cannot be viable without proper land registration, citing the case of Madam Tinubu’s land title, which remains embroiled in legal and political disputes. He criticized the Lagos State government’s refusal to honor the title, which has caused frustration for the rightful landowners.
In a similar 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 mortgage loans.
This underdeveloped mortgage system, especially in Lagos, makes it difficult for homeowners to access necessary insurance. Oyedele also elaborated on the importance of mortgage insurance in mitigating risks for lenders, especially when borrowers make down payments of less than 20%.
Akedine also touched on the need for more robust tax reforms, suggesting that clearer land ownership records across Nigeria could help address many financial challenges in the real estate sector. However, he warned that the proposed reforms might not significantly benefit real estate, as they fail to address the state’s responsibility in managing and recording land transactions.
The discussion underscores the urgent need for policy changes to strengthen Lagos’ real estate infrastructure and protect both buyers and sellers in the face of ongoing land disputes and a lack of mortgage security.
