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Crucial For Capital Formation
“In our basic economics, land is a very important asset to capital formation… you can’t start a bank, you can’t start a business, you can’t farm; you can’t even extract crude oil without identifying a particular piece of land or oil well (embedded in land). So it’s the basics of capital formation, it’s the basics of prosperity; it’s the basics of economic well-being and the basics for job,” said Babatunde Fashola, the erstwhile governor of Lagos State, at the signing into law in January 2015 of a Bill to consolidate all land-related laws in the State.
As a valuable investment vehicle and collateral for obtaining credit, property is a catalyst for growth. However, property-backed investments and transactions (such as leases, mortgages, and assignments) can only be properly and securely concluded, where the relevant property transaction is appropriately registered in a depository, usually called the “lands registry”, for ease of verification. Indeed, countries where property registrations are governed by investment-friendly and seamless legal and regulatory frameworks enjoy favourable perception from investors globally.
Crucial For Capital Formation is an initiative of the law firm, Idowu Odubanjo & Associates (IOA),
DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and IOA. Specialist legal advice should be sought about the readers’ specific circumstances when they arise.