Nasarawa Govt Cautions Banks on Collaterals
Written by admin on March 2, 2015
Nasarawa State government has called on commercial banks in the state to disallow the use of land documents other than the newly introduced Certificate of Occupancy (C of O) as collateral for bank loans.
The state government, through the ministry of Lands and Urban Development, met last week with the executives of commercial banks and announced a policy shift on collaterals involving its land titles, just as it unveiled the newly introduced certification by the administration of Governor Umaru Tanko Al-Makura.
The State Commissioner of Lands and Urban Development, Sonny Agassi who hosted the interactive meeting with the banks at the ministry’s headquarters in Lafia, unveiled the newly introduced C of O, said policy shift was meant to advise against accepting Rights of Occupancy (RsofO) and other land documents other than the certificate, adding that the C of O is the only registered land document recognised by the laws of the land to serve as collateral for facilities from the banks.
Also, Project Manager of Nasarawa Geographic Information Service (NAGIS), Alh Ibrahim Jibril Usman and Ali Al-Makura, a former bank executive, now an aide to the governor, informed the bankers of the reversed trend that compelled banks to go for other documents, than the legal one.
“The governor, in barely three years, has signed and issued over 500 CsofO and still counting, as against the less than 600 issued by four previous administrations since the creation of Nasarawa”.
The banks urged the ministry to communicate the new policy to them in writing, so they could forward same to their headquarters for the notice of their respective legal departments.
The banks present at the interactive; Zenith, Guarantee Trust Bank, First Bank, Union Bank, Fidelity Bank, Unity Bank, United Bank of Africa, Diamond Bank, First City Monument Bank, Eco Bank, Mainstreet Bank, Keystone Bank, and Access Bank.