By Naomi Uzor

The Group Managing Director/CEO of Skye Bank, Mr Kehinde Durosinmi-Etti, has urged lawmakers to restrict the requirement of governor’s consent on land transaction as it is unnecessary for mortgages, subleases and other land transfers.

Speaking at the third business environment roundtable organised by Lagos Chamber of Commerce and Industry (LCCI), tagged “Use of landed properties as collateral: challenges and solution”, Durosinmi-Etti, said in reviewing the Land Use Act, lawmakers should restrict the requirement of governor’s consent to assignment only, as the consent is unnecessary for mortgages, subleases and other land transfers in order to make transactions in land less cumbersome and also to facilitate economic growth.

“In canvassing the amendments, fourteen in all, officials of PTCLR and senior government officials stated that its passage will make land a much more easily convertible asset that could be used with less hindrance to raise capital for ventures in other areas of the economy. According to them, it would also facilitate increased investment in agriculture and strengthen the mortgage industry” he stated.

He said, his position aligns with that of professional surveyors, valuers, and bankers, who opines that fourteen amendment to the Act may amount to putting a new wine in an old bottle, as it may have inadvertently reinforced the problems inherent in the old Act entirely and registration of all transactions vested in land should be made mandatory in appropriate land registries.

He said as desirable as use of technology for driving efficiency and transparency is, governments should seek to conduct enduring re-orientation of its officials, especially those involved with land administration matters, adding that appropriate sanctions should be meted out to officials adjudged to have used their positions to foster personal interest through outright corruption or creation of deliberate red-tape to frustrate interested parties.

“State government in conjunction with federal government, should seek to reduce the very high fees payable on landed property related transactions to encourage its use as collateral. Whereas state governments could be encouraged to reduce the fees to reflect economic realities (with opportunity to revise as dictated by emerging developments in the economy), appropriate legislations should be revised to make certain charges such as capital gains tax and stamp duties less burdensome” he stated.

The President of LCCI, Otunba Femi Deru said the private sector has continued to suffer from poor access to finance and this has weakened the sector and having negative effects on the economy as a whole.

“We call on all authorities involved in the management of lands and landed properties to perfect their functions and make documentation on land easy and transparent to all concerned. We want to have the banks explain to us what they require from customers who intend to use their lands as collateral for loan.

The government agencies that manage land ownership and usage should also tell us what they expect people to do to make their landed properties acceptable as collateral” he said.