Government must tackle land use act to ease home ownership – Mr Simon Ogwu
Government must tackle land use act to ease home ownership – Mr Simon Ogwu: The Executive
Director and Chief Operating Officer of AG Mortgage Bank, Mr. Simon Ogwu, has urged the government
to look into Land use Act and titling to address the difficulties in land ownership to aid people achieve
their dreams of homeownership. Mr Ogwu stated this this as a guest on Housing Today, on solid 100.9 FM.
AG Mortgage Bank has been in business for the past two decades and has made significant contributions
to housing development in Nigeria. However, Mr. Ogwu noted that collaboration was essential in this
business, and the bank was not in competition with anyone. He explained that they believed in providing
mortgage solutions to Nigerian consumers and that this required the bank to collaborate with various
partners, such as Copen Group, a leading housing agency in Nigeria. Mr. Ogwu pointed out that collaboration
was necessary as it allowed them to access the necessary skills and resources for delivering value in
the housing value chain.
Government must tackle land use act to ease home ownership – Mr Simon Ogwu: the mortgages
One major challenge to providing mortgages in Nigeria is the Land Use Act, which makes land title
registration a difficult and time-consuming process. Mr. Ogwu stressed the need for collaboration
with government agencies responsible for titling and mortgage registration in Nigeria to overcome this
challenge. He also noted that the new policy change by the Federal Government of Nigeria would allow
people to access 25% of their retirement savings account funds, which could be used as equity for obtaining mortgages. This initiative would ease the challenge of delays in payment, which could lead to building material costs going up.
According to Mr. Ogwu, to obtain a mortgage using RSA funds, a potential homeowner should approach
their Pension Fund Administrator (PFA) and request their RSA account. They can then approach any mortgage bank, such as AG Mortgage Bank or Copen Group, to obtain an offer letter for a property within their budget. Once they have identified the property they want to buy, they can request their PFA to calculate their 25% equity contribution and apply for it. It takes only one month for AG Mortgage Bank to be authorized and release the funds.
The RSA Fund
Mr. Ogwu noted that it takes 60 months or five years for someone who is contributing to be eligible to access their RSA funds. He also emphasized that a husband and wife could apply jointly for their individual 25% on the same property.
AG Mortgage Bank’s initiative to allow Nigerians to use their retirement savings account funds to obtain mortgages for homeownership is a significant development. It is a step towards reducing the housing deficit in Nigeria and providing affordable housing solutions to Nigerians. Collaborations with government agencies and housing providers are essential to overcome challenges in providing mortgages, and Mr. Ogwu’s passion for serving humanity and serving God is an inspiration to all.