BD-OAA Legal Business Summit sees convergence of law, policy and advocacy

With focus on the promotion of law and economic development, Businessday (LegalBusiness unit) teamed up with commercial law firm, Olisa Agbakoba and Associates to host the first ever LEGAL BUSINESS SUMMIT in Lagos Nigeria, with the theme ‘Waking Up Dead Capital’ – the Intersection between law and economic development.

The event which took place at the Civic Centre in Victoria Island, Lagos brought together actors in key sectors of the economy, business operators, policy makers, regulators and legal practitioners to engage in a highly interactive discussion on maximizing values from property assets and access to mortgage amongst other related issues. The discourse centered on the need to establish a housing/mortgage policy to drive a mortgage system, which would support the average Nigerian and low-income earners.

Highlighting two vital elements to the growth of the mortgage industry in Nigeria namely, contract enforcement and foreclosure laws, the panel of discussants established that the key to unlocking dead capital in the housing sector was efficient laws and regulations; which cater to the need of the average Nigerian.

Some critical challenges to the growth of the sector were also identified. According to the panel, these included a lack of documentation and evaluation, over-regulation, unreliable legal structures and institutions, lack of contract enforcement, inadequacy and shortfalls in foreclosure laws, inappropriate titling of land documents, constraints in the informal sector, amongst other things, all of which have left the sector ‘investment-unfriendly’ to local and foreign investors.

Speaking on the panel, the Group Managing Director and Chief Executive Officer of Access Bank Plc., Herbert Wigwe noted simply that a viable legal framework and enforceability was the direct answer to waking up dead capital. “An unreliable legal system makes for an unfriendly business environment and this is grossly unattractive to investors of any kind– be it local or foreign”, he said.

Echoing these views, the Managing Director, Nigeria Mortgage Refinancing Company (NMRC), Sonnie Ayere reiterated the need for efficient mortgage and foreclosure laws which, according to him, are currently inadequate.

Speaking directly to the NMRC however, the Managing Director, Asset Management Corporation of Nigeria (AMCON), Mustapha Chike-Obi, observed that the organisation was too narrow to fulfill its purpose. He however, commended the emergence of the NMRC and its drive to invigorate the mortgage market, though the NMRC’s approach of lending (as a liquidity facility) without taking credit risks.

Osaro Eghobamien, SAN, Managing Partner, Perchstone & Graeys underscored the significance of creating confidence in investors. “We must establish a confluence between law, policy and economic development. With the NMRC and the ‘Uniform Underwriting Standards for Mortgage Loans, regulators are able to check defaults and other critical challenges militating against the development of the mortgage sector in Nigeria,” he said.

It was generally agreed that whilst the government has proved itself unable to provide housing for citizens, the uniform underwriting standards guiding mortgage loans, if effectively implemented, would provide the solution required for this growth.

Discussions were followed by contributions from a wide range of participants drawn amongst key sectors of the economy. At the end of the session, which has been described as highly engaging, there emerged a consensus amongst the panel and participants that the law plays a significant role in economic reforms and development outcomes and as such, proactive legal and institutional frameworks are particularly conducive for economic growth. They noted also, that Nigeria has been weighed down by weak a legal regime, with property unable to create value.

Submissions and conclusions have been efficiently articulated and forwarded to opinion and policy leaders within government, public and private sector.