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Periodical article | Leiden University catalogue | WorldCat |
Title: | Lending on Land Mortgage on Pledge Security in Nigeria: A Minefield for Secured Lenders |
Author: | Essien, Enefiok |
Year: | 1998 |
Periodical: | African Journal of International and Comparative Law |
Volume: | 10 |
Issue: | 3 |
Period: | October |
Pages: | 496-506 |
Language: | English |
Geographic term: | Nigeria |
Subjects: | customary law land law mortgages credit pledging Law, Human Rights and Violence Economics and Trade |
External link: | https://heinonline.org/HOL/Page?handle=hein.journals/afjincol10&id=510&collection=journals&index=journals/afjincol |
Abstract: | The government in Nigeria expects meaningful private sector participation in national development. The private sector in turn requires capital for investment and has to borrow. However, the institutional lenders of capital require some real security for the capital lent. In Nigeria, the two most common landed securities for credit are the mortgage and the pledge. This article argues that the pledge and mortgage laws as they stand in Nigeria at present do not afford enough protection to the secured creditor, which is why potential borrowers do not obtain the capital they need for investment. For the secured creditor to be afforded sufficient protection, it does not suffice that the pledge or mortgage security provided fully covers the loan in the event of default, but that the pledge or mortgage must also be easily realisible. The author submits that the Nigerian law relating to the pledge of land has to be updated and the Land Use Act of 1978 amended. He also stresses the need for uniformity in secured transactions law in the country. Notes, ref. |