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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

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HOW MORTGAGES WORK IN NIGERIA by Dennis Isong 

HOW MORTGAGES WORK IN NIGERIA by Dennis Isong

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sahara Weekly Reports That Mortgages play a pivotal role in the real estate sector, allowing individuals and families to own homes without the need for substantial upfront payments. In Nigeria, as in many countries, mortgages are a common means of financing homeownership. This article aims to provide a comprehensive overview of how mortgages work in Nigeria, covering the key aspects, processes, and considerations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOW MORTGAGES WORK IN NIGERIA by Dennis Isong 

 

 

 

 

 

 

 

 

 

 

 

 

1. Types of Mortgages in Nigeria

In Nigeria, there are various types of mortgages available to suit different needs and financial situations. The most common types include:

a. Home Purchase Mortgage: This is the traditional form of mortgage used for buying a new home or property.

b. Home Equity Release Mortgage: This allows homeowners to access the equity in their property to meet other financial needs.

c. Construction Mortgage: Designed for those building their homes, this type of mortgage provides funds in stages during construction.

d. Refinancing Mortgage: Allows homeowners to replace an existing mortgage with a new one, often with better terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Mortgage Providers

Mortgages in Nigeria are typically provided by banks, mortgage banks, and other financial institutions. Some of the well-known mortgage banks in Nigeria include the Federal Mortgage Bank of Nigeria (FMBN), which focuses on affordable housing, and commercial banks like Zenith Bank, First Bank, and GTBank.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Eligibility Criteria

To qualify for a mortgage in Nigeria, individuals must meet certain eligibility criteria, which may include:

– Proof of regular income

– Good credit history

– Down payment capability

– Legal age (usually 18 years or older)

– Nigerian citizenship or legal residency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4. The Mortgage Application Process

The mortgage application process in Nigeria involves several steps:

a. Prequalification: Potential borrowers assess their financial status, calculate affordability, and choose a suitable mortgage type.

b. Documentation: Applicants provide necessary documents such as proof of income, identification, and property details.

c. Property Valuation: The lender evaluates the property’s value to determine the loan amount.

d. Credit Assessment: Lenders assess the borrower’s creditworthiness by reviewing credit reports and history.

e. Approval and Disbursement: Upon approval, the mortgage is disbursed, and the borrower takes ownership of the property.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5. Mortgage Terms and Conditions

Mortgages in Nigeria typically have terms ranging from 10 to 25 years. Interest rates can be fixed or variable, and the repayment structure can be monthly, quarterly, or annually.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6. Mortgage Insurance

Mortgage insurance is often required, especially for mortgages with smaller down payments. This insurance protects the lender in case the borrower defaults on the loan.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. Repayment and Default

Borrowers must make regular payments to avoid default. Defaulting on a mortgage can result in the lender repossessing the property, so it’s essential to honor the repayment schedule.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8. Government Initiatives

The Nigerian government has introduced several initiatives to promote affordable housing and increase access to mortgages. The FMBN, for instance, offers the National Housing Fund (NHF) scheme, which provides affordable mortgage loans to contributors.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9. Tax Implications

It’s important for prospective homeowners in Nigeria to be aware of the tax implications associated with mortgages. Mortgage interest paid on a primary residence is often eligible for tax deductions, which can help reduce the overall cost of homeownership. Tax laws and regulations may vary, so consulting with a tax professional is advisable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10. Benefits of Mortgages in Nigeria

Owning a home through a mortgage in Nigeria offers several advantages:

a. Asset Appreciation: Real estate in Nigeria generally appreciates over time, potentially increasing the value of your investment.

b. Forced Savings: Paying a mortgage every month encourages disciplined saving, as a portion of each payment goes toward building home equity.

c. Housing Security: Homeownership provides stability and security for you and your family.

d. Investment Opportunity: Owning property can open doors to real estate investment and rental income.

e. Access to Government Schemes: Many government initiatives and incentives are designed to make homeownership more accessible, particularly for low and middle-income earners.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11. Challenges and Risks

While mortgages offer numerous benefits, they also come with potential challenges and risks:

a. Interest Rate Fluctuations: Variable interest rates can lead to fluctuations in monthly payments, impacting borrowers’ budgets.

b. Economic Factors: Economic downturns can affect borrowers’ ability to make mortgage payments, leading to defaults.

c. Property Market Volatility: Real estate markets can be unpredictable, potentially affecting property values.

d. Legal and Documentation Complexities: Navigating the legal and documentation requirements of mortgages can be complex and time-consuming.

e. Default Consequences: Defaulting on a mortgage can result in foreclosure and the loss of the property.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12. Expert Advice

Before embarking on the mortgage application process in Nigeria, it’s advisable to seek expert advice. Consult with financial advisors, real estate professionals, and legal experts to ensure you make informed decisions that align with your financial goals and circumstances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041

 

 

 

 

 

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*Prophet Genesis Receives Hero’s Welcome from Thousands in Abeokuta, Ogun State, Following the Highly Successful Abeokuta Invasion 2024 Program*

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*Prophet Genesis Receives Hero’s Welcome from Thousands in Abeokuta, Ogun State, Following the Highly Successful Abeokuta Invasion 2024 Program

 

 

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Lawyer Replies Agbakoba on EFCC’s legal status

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*Lawyer Replies Agbakoba on EFCC’s legal status

*…your position based on legal sophistry than substance

 

A lawyer and former member of the House of Representatives, Kayode Oladele, has faulted the position of the former President of the Nigerian Bar Association (NBA), Dr. Olisa Agbakoba (SAN) on the legal status of the Economic and Financial Crimes Commission (EFCC), describing it as “legal sophistry “

 

Oladele’s response was a rejoinder to an interview granted by Agbakoba wherein he said EFCC lacked the powers to interfere in state affairs, and a fresh letter written by Agbakoba to the Joint National Assembly Constitution Review Committee.

 

The renewed onslaught against the EFCC is not unconnected with its bold and reinvigorated move, especially in the last one year, to investigate and prosecute some highly placed politically exposed persons like the former Governor of Kogi State, Mr. Yahaya Bello and others. Kogi State actually initiated the pending case at the Supreme Court before being joined by about 15 other states.

Oladele maintained that: “It is pertinent to state that the Economic and Financial Crimes Commission (EFCC) is a Nigerian law enforcement agency established to investigate and prosecute economic and financial crimes, such as advance fee fraud, money laundering and misapplication and misappropriation of public funds,

“With due respect, Mr. Agbakoba SAN’s position is more of legal sophistry rather than legal substance. His position does not represent the correct position of the law as it runs contrary to the long-settled position of the law as handed down by the superior courts of law including the Apex Court in Nigeria. It is settled law that Nigeria operates a co-operative federalism as opposed to dualist federalism and under co-operative federalism as practiced in Nigeria, some agencies are common agencies for both the Federal and State Government,” he said.

Oladele posited further that the view expressed by Agbakoba does not have any legal backing “and therefore unsupportable in law and practice”.

He went on further to state that, “Indeed, the EFCC is a common agency for both the Federal and State Economic and Financial Crimes, and as such, it qualifies as ‘any other authority’ to institute criminal proceedings under section 174(1)(b) and section 211(1)(b) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“Again, these statutory provisions have been given judicial considerations by the Supreme Court and the Court of Appeal, in line with my position and contrary to Mr. Agbakoba’s views or submissions on this issue.

“EFCC is expressly conferred with powers under sections 6(m), 9(2) and 13(2) of EFCC (Est.) Act to initiate criminal proceedings in any court in Nigeria for any offence bordering on economic and financial crimes, even under the Penal Code. The EFCC cannot, therefore, be faulted for initiating the instant charge in the name of “Federal Republic of Nigeria”. This is because the Federal Government of Nigeria is not synonymous with the Federation of Nigeria, or the Federal Republic of Nigeria.

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CNS Ogalla and His Exploits on War Against Oil Theft By Toby Prince

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CNS Ogalla and His Exploits on War Against Oil Theft

By Toby Prince

 

Nigeria’s vast maritime frontier stretches an impressive 84,000 nautical miles, rivalling a third of its landmass. With over 3,000 lakes and rivers, this complex terrain demands bold leadership.

 

 

President Bola Ahmed Tinubu recognised this challenge, appointing Vice Admiral Emmanuel Ikechukwu Ogalla as Chief of Naval Staff in June 2023. A seasoned navigator, Ogalla embodies the determination, discipline, and vision needed to harness Nigeria’s maritime potential.

 

Ogalla took over office on June 23, 2023, with a bold vision to transform Nigeria’s maritime security and blue economy. His comprehensive strategy, the Total Spectrum Maritime Strategy (TSMS), tackles maritime crimes and promotes economic growth.

With his vast knowledge of the maritime domain and tactical operations, Ogalla outlined a detailed agenda to combat maritime crimes and foster the growth and development of the blue economy. This agenda includes the designation of Special Courts for Maritime Crimes, Advocacy Campaigns to enlist community support, and Socioeconomic Crime Prevention Strategies.

The TSMS also focuses on enhancing naval capabilities through fleet renewal, operational readiness, and infrastructural development. Additionally, it prioritizes human capital development through personnel welfare and motivation, manpower training, and youth and sports development.

To ensure effective implementation, Ogalla’s strategy emphasizes maritime stakeholders’ engagement and interagency cooperation. By implementing these measures, the CNS aims to safeguard Nigeria’s maritime interests, promote economic growth, and enhance regional stability.

A strong believer in a highly motivated professional naval force which is capable of shaping the security outcomes within Nigeria’s maritime domain and the littorals, including land-based engagements in fulfilment of national interest, CNS Emmanuel Ogalla also, set in various measures and alternatives aimed at maintaining and equipping a professionally competent and ethical naval force, which will leverage on all the elements of national powers to effectively defend Nigeria’s maritime area against all forms of threat so as to deliver the imperatives of national security.

Consequently, to prove that all these are not about mere sloganeering and banters without effective actions, the CNS carried out various reforms and projects aimed at recapitalizing the Naval ship.

This led to the equipping of the Naval Shipyard Limited, saddled with the responsibility of constructing and fabricating small boats, big vessels and other facilities of the Navy.

This move has in no small measure reduced capital flight and enhanced, as well as encouraged the training and development of skilled manpower.

As part of his commitment and dedication to the welfare of his personnel, Vice Admiral Ogalla on several occasions personally undertook the inspection of his troops for an on-the-spot assessment of their operational readiness.

Those visits also served as a morale booster and helped to motivate the personnel.

His efficiency and effectiveness in the deployment and utilization of the Naval personnel, platforms, helicopters, and UAVs for surveillance and interdiction operations throughout the Niger Delta including the employment of both kinetics and non-kinetic measures have also led to massive and unprecedented breakthroughs and successes being recorded by the Nigeria Navy on the protection of the nation’s territorial waters, such that massive quantities of stolen products were recovered, with the dismantling of illegal refining sites, arrest of suspects, seizure of stolen products, and the disruption of oil thieves and vandals.

Consequently, with three months of intense operation of Operation DELTA SANITY; which is his brainchild, the Nigeria Navy recorded the seizure of 95 wooden boats, deactivated 119 storage tank refining ovens, and the deactivation of 447 dugout pits. The Navy also deactivated 120 illegal refining sites and sized 13 fibre boats.

Other achievements and successes recorded include the seizure of 9 vehicles and the arrest of 14 vessels and 74 criminal suspects.

Some of the arrested vessels include MT KALI, MT HABOUR SPIRIT, MT SAISNIL, MV TOKITO, MT VINILLARIS, and MT SWEET MIRI.

It is instrumental to note that, these operations have consequentially impacted climate change in the mitigation of hazardous air pollution and the curbing of sooth.

Through a policy of effective and deliberate human capacity development, as an ingredient for a highly professional and motivated workforce, he has entrenched a highly motivated professional and ethical naval force with a formidable capacity and the required competencies to defend the Country’s maritime space against threats of any kind.

A strong believer in collaboration as a key to success and sustainability, the CNS partners with agencies such as NIMASA, NPA, NDLEA, NOSDRA, and NEMA, as well as many foreign partners, including holding Bilateral meetings and talks with the American chief of Naval Service, Operation (CNO).

This extensive work has brought about trust, confidence building, synergy and operational successes. The Total Spectrum Strategy has led to the Zero Piracy Rating Status of Nigeria by the International Maritime Bureau.

Through his commitment to the ideals of the Tinubu Presidency, the Nigerian Navy has supported land operations in all the geopolitical zones of the country, winning the war against evil and ensuring a crime-free Nigeria.

The Nigeria Navy under his watch, through the strategy of Maritime Domain Awareness Capacity, not only ensured the compliance of its personnel to civility, and activated deterrent measures to curb negligence and unprofessional conduct of personnel but also provided all year-round situation awareness of Nigeria’s maritime domain extending to the limits of the Exclusive Economic Zone.

Through the use of its Maritime Domain Awareness Facilities, the Navy has enhanced early detection and swift response to incidences within the maritime environment.

With the capitalization of 2 XSeaward Defense Boats (SDB); constructed locally, the various Platforms, thereby ensuring and supporting its anti-piracy, anti-CoT, anti-IUU and anti-illegal drugs, combined with the acquisition of 2nd Offshore Survey Vessels, 2 by 32m FPBs and helicopters (NNS CHALAWA, P196-Seaward Defense Boat, NNS ZUR P195 – Seaward Defense Boat and NNS OCHUZOR Survey Vessels and the delivery of 2 by 76m OPVs from Turkey, the Nigeria Navy remains the most dominant in the Gulf of Guinea (GoG) and the 4th largest in Africa.

Presently, under Vice Admiral Ogalla, the Nigerian Navy has over 50 capital ships and several hundreds of boats to cover the maritime space and internal waters. While the capital ships are used to patrol the sea, the small vessels carry out routine patrols also.

His non-kinetic approach has brokered several peace initiatives amongst communities and deepened community-military harmony within Nigeria’s Oil/Gas littoral area.

Not leaving out the welfare of the personnel, Vice Admiral Emmanuel Ogalla, has also demonstrated leadership and empathy by ensuring the construction of 50 units of 3 bedrooms, 128 units of 2 bedrooms and 120 units of 2 bedrooms apartments in Galadimawa, Asokoro Abuja, Lagos, Calabar and Port-Harcourt.

With an eye on sustainability, intellectual development and research, the Chief of Naval Staff on the 1st of June, 2024 launched the International Maritime Institute (IMION), an institution which will serve as a confluence for maritime discourse, the scintillation of ideas, and a vehicle for the articulation of maritime strategy on the African Continent.

With the launch of this crowning glory, the CNS intends to decimate, with a single shot, an institution which will also serve as a think-tank for maritime strategic thinkers, practitioners and allies with a far-reaching benefit of enhancing effective interaction, idea sharing and research into maritime strategic affairs affecting not only the Gulf of Guinea but the rest of the world, in such thematic areas as, maritime and ocean governance, maritime security, law enforcement, hydrography, blue economy, and climate change amongst others.

Under Ogalla’s visionary leadership, Nigeria’s war against oil theft has witnessed unprecedented success. His bold strategies, collaborative approach, and commitment to personnel welfare have transformed the Nigerian Navy into a formidable force. The Total Spectrum Maritime Strategy has yielded remarkable results, significantly boosting national security and contributing to global maritime stability. Ogalla’s efforts have solidified his legacy as a champion of maritime security and economic growth, earning the confidence of Nigerians and international partners alike.

Prince wrote this piece from Abuja.

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