Press Releases

Fashola Signs Law Establishing State Mortgage Board
• Expresses commitment to provision of affordable housing for Lagosians

Aug 23, 2010 - Lagos State Governor, Mr. Babatunde Fashola (SAN), Monday signed into law a bill establishing the Lagos State Mortgage Board with a commitment that his administration would ensure the provision of affordable housing for all categories of Lagosians.

The six-member Board chaired by the Commissioner for Finance, Prince Rotimi Oyekan, is to, among other functions, "generate a conducive environment to enable access to mortgage as well as protect Lagosians and the State Government from the evil practices that will not enhance good living conditions for the people".

In his remarks shortly before assenting to the bill, Governor Fashola, who described the occasion as momentous, said with the coming into effect of the Law, the difficulties hitherto encountered by lawyers in the interpretation of the State's old and outdated Conveyance Law of 1881 would be overcome.

"It is the most momentous step we have taken in our effort to provide affordable housing for the people of Lagos; momentous because as a lawyer, I know that in the Bar one of the difficulties encountered in the prosecution of cases pertaining to mortgage was to find the Conveyance Law of 1881", the Governor said pointing out that not only was it difficult to interpret, it was also scarce.

Pointing out that not many lawyers have a copy of the Law, Governor Fashola declared, "When something as important as that becomes a matter of hide and seek, it becomes difficult to arrive at justice. So many lawyers approach the case blindfolded".

"The signing of this bill is also a fulfillment of a promise made by us to the people at inception that we will find a permanent solution to the need for affordable housing for the people. It is not that we are unable to build houses but there is need to build houses that are affordable so that the low income people will also have access to decent homes", the Governor said.

According to the Governor, "the missing word is not lack of houses but lack of affordable and sustainable housing delivery. That is what we intend to solve as long as we remain leaders of this State. This is why we started with the Law because some may ask why the law? If there is no institutional framework, there is no regulatory framework; there can't be a uniform practice".

"Until we create a system of mortgages that ensures that once you have a job, you can own a house that is the only way we think that we will begin to deliver a sustainable housing for this State and for this country. This is the only way everyone can have shelter; this is the only way people can have shops; this is the only way we can stop corruption and other malpractices", Governor Fashola said.

Citing the example of Britain which, according to him, has disbursed more that one billion Pounds as mortgage loan this year, Governor Fashola declared, "This is what the new law seeks to achieve; to create long term funding that allows not only the State Government to build and sell to people on a mortgage basis but to encourage members of the private sector who are into real housing estate development to be able to build knowing that there is somebody that will guarantee the uptake and collect the money back over a long term".

"That is the only way our people can own their own homes; that is the only way in which they can own their shops knowing that they can pay over a period of convenience as long as they are commercially active. This is one of the most critical tools that our country needs to stop the tide of corruption. If we want public officers, if we want people to resist temptation of being corrupt we must provide there basic needs which is shelter and we must provide it in a sustainable way and also tie it to their work and their income in a manner that encourages them to remain productive if they want to keep that home", the Governor said.

Governor Fashola noted that although the mortgage scheme launched earlier for public servants and other members of the private sector in the State suffered some buffeting as a result of the global financial crisis, Government would soon announce a policy to modify it to enable the Government roll out a housing plan for the State.

"But between then and now, we have established a mortgage registry to register all mortgages and I can tell you, very categorically that I have monitored transactions in that registry since its establishment about two and half years ago and we have seen gradual but progressive increase in the number of mortgages that are already being registered. It tells us that we are doing the right thing", the Governor said.

He said the Government has also created a mortgage division in the State's High Court Judiciary "to ensure that there is expeditious consideration of mortgage cases as a stimulus to property owners to ensure that mortgage transactions are not held up in long litigations so that recovery and repossession and settlement of disputes are accelerated" adding that it has helped to shore up investment in real estate.

The Governor thanked the Attorney General and Commissioner for Justice, Mr. Olasupo Sasore (SAN) and staff of the Ministry of Justice for the commitment to work leading to the presentation of the Executive Bill to the House of Assembly. He also expressed gratitude to the House of Assembly and to the Special Adviser on Political and Legislative Powers for the consideration given the bill.

Earlier, while introducing the bill, the Special Adviser on Political and Legislative Powers, Hon. AbdulHakeem AbdulLateef, said the bill has a total of 69 sections adding that under the Law, the Board is encouraged to negotiate mortgages on behalf of the less privileged among other provisions.

Also present at the brief ceremony were the Attorney General and Commissioner for Justice, Mr. Olasupo Sasore, the Commissioner for Finance, Prince Rotimi Oyekan among other members of the Board and members of the State Executive Council as well as other top government functionaries.