LEGAL PRINCIPLE: LAND LAW — Statutory Right of Occupancy — Governor’s Consent — Further Advances on Same Property — No Fresh Consent Required
PRINCIPLE STATEMENT
The Governor's consent is for the alienation of legal title to the property for the period of the mortgage transaction. No further consent is necessary just because further loans have been obtained upon the same collateral.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Owoniboys Tech. Services Ltd v. Union Bank of Nig. Ltd (2003) NLC-1681999(SC) at pp. 30–31; Paras B–D.
"The Governor's consent as indicated in exhibit 4 has nothing to do with the amount of loan; the consent is for the alienation of the legal title in the property to the respondent (the mortgagee) in compliance with Ss.22 and 26 of the Land Use Act, 1978, for the period of the mortgage transaction. So, no further consent was necessary just because further loans had been obtained upon the same collateral."
EXPLANATION / SCOPE
Further advances on the same collateral do not require fresh Governor’s consent. The principle applies to land law. The consent applies to the alienation, not the loan amount. The rule promotes efficiency. The original consent suffices. The principle is well-established.
