CREATION AND PERFECTION OF A MORTGAGE TRANSACTION IN NIGERIA: AN APPRAISAL

Abstract

Mortgage transactions constitute one of the most significant methods through which lenders secure loans advanced to borrowers. In Nigeria, the creation and perfection of mortgage transactions are governed by various statutes, including the Land Use Act 1978, the Property and Conveyancing Law, the Conveyancing Act, the Companies and Allied Matters Act (CAMA) 2020, and other relevant legislations has generated numerous legal challenges, particularly concerning the requirements of Governor’s consent, perfection of security interests, priority of competing interests. The exercise of the mortgagee’s statutory power of sale and the protection of mortgagor’s equity of redemption. Despite the importance of mortgages in facilitating access to credit and economic development, several challenges continue to affect the efficiency of mortgage transactions in Nigeria. This study examines the legal framework governing the creation and perfection of mortgage transactions in Nigeria. It analyzes the essential requirements for creating valid legal and equitable mortgages, the procedures involved in perfecting mortgage interests, and the legal consequences of non-perfection. The study shows that although the Nigerian legal provides an elaborate structure for mortgage transactions, its practical implementation is undermined by administrative inefficiencies, outdated procedures, and legislative inconsistencies that discourage investment and limit access to credit.    The research adopts a doctrinal methodology relying on statutes, judicial authorities, textbooks, and scholarly articles. Findings reveal that while the perfection process enhances the enforceability and priority of mortgage interests, delays, bureaucratic bottlenecks, and high costs continue to hinder mortgage financing in Nigeria. The study concludes by recommending reforms aimed at simplifying the perfection process, promoting mortgage accessibility and supporting sustainable economic growth through an efficient and reliable mortgage financing system.