The Managing Director of Union Homes Savings and Loans Plc, a subsidiary of Union Bank of Nigeria Plc, Mr. Ekundayo Austine Aikhorin, has declared the readiness of the company for the expected consolidation of the mortgage banking industry in Nigeria, with a call on the relevant regulatory authorities to initiate urgent moves in that direction.

Aikhorin made this call in Lagos, last week, at the formal handing over of 50.54 hectares of land in Ajah to Union Homes by the Olumegbon Chieftaincy family, owners of the land, for development of residential estate. He said averred that with the success of the consolidation exercise in the banking and insurance industries, it is necessary to now focus the searchlight on the mortgage sector because of the importance of housing and the role the primary mortgage institutions (PMIs) play in the development of the sector, “there are over 80 PMIs in Nigeria, most of them in names only. We believe there should be consolidation in the mortgage banking sector to separate the men from the boys.”

He asserted that Union Homes got listed on the Nigerian Stock Exchange (NSE) in order to pro-actively position it for the desirable re-capitalisation and consolidation in the mortgage banking sector for big ticket transactions, such the acquisition of the Ajah piece of land. “Till date, Union Homes is the only mortgage finance institution listed on the NSE and we have since raised our capital base through a highly successful rights issue, which raked in over N5 billion in fresh funds. We are poised to do more and we will bring our experience to bear on the scheme of things as being demonstrated through today’s event, which will result in the transformation of this land,” he stated.

Speaking at the formal hand over ceremonies of the land in Ajah, the Oba of Lagos, HRH Rilwan Akiolu I, who was present as a member of the Olumegbon family, which is his maternal home, said that the land had been under protracted litigation since 1896 until December 2002, when the Supreme Court ruled in favour of the Olumegbon family. He said that Union Homes was invited to develop the land because of its reputation in the housing finance sector, noting that the 50.54 hectares being handed over was just a portion of the land, with over a hundred hectares still remaining.
The royal father urged Union Homes not to focus on profit alone while developing the land, but to try and put social amenities and utilities in place for potential residents, in addition to creating possible openings for low income earners.

The piece of land was formally handed over by the Olumegbon of Lagos/Asalu land, Chief Fatai Lawal, who is also the Head of the Olumegbon Family, in the presence of the Oba of Lagos and Alhaji Lateef Olumegbon, a Director of Olumegbon Chieftaincy/Ajah Investment and Property company. Union Homes was established in 1994, focusing on the provision of mortgage banking services, building of estates or funding of estate developers, and supporting investors in housing schemes. In Lagos alone, it has financed notable housing projects including Oniru Private Estate; Exxon-Mobil Housing Estate; Regal Seaview Estate; and Northern-Foreshore Estate, all in Lekki. This is apart from several other middle income housing estates within Lagos and outskirts. It has also financed many housing projects across the country.