Wike vs Naval officer: Why Nigerian banks no longer trust land as collateral
Wike vs Naval officer: Why Nigerian banks no longer trust land as collateral
Nigerian banks in global ranking risks for banks number of banks Nigerian financial institutions against synthetic securitisation some African peers in Brand Equity Rankings negative opening balance Improved liquidity drives Nigerian banks to deposit N2.3trn Banks deposit N5.2trn at 26.50 percent interest
A viral video showing Federal Capital Territory (FCT) Minister, Nyesom Wike, in a heated confrontation with military officers over a disputed parcel of land in Abuja has done more than spark social media banter—it has ripped the veil off a far deeper crisis in Nigeria’s financial system: banks are quietly abandoning land and property as collateral, opting instead for trust-backed and government-guaranteed financial instruments.
The footage, which has dominated online conversations, appears humorous to many. But for banks, investors, and financial analysts, the incident represents a textbook example of why land—once considered the strongest form of collateral—has become one of the riskiest assets in Nigeria’s credit market.
A senior bank executive, who spoke to the Nigerian Tribune on condition of anonymity, expressed shock at how lightly Nigerians are taking the episode, warning that “if people truly understood how money works, they would be worried, not laughing.” According to him, the Wike-Naval officer standoff illustrates exactly why banks are tightening lending policies and rejecting landed property, especially in volatile locations like Abuja and Lagos.
“Imagine a businesswoman who owns a plaza in Abuja,” he explained. “She applies for a ₦200 million loan and presents her land documents. The bank says no—not because the land isn’t valuable, but because government revocation can wipe out that value overnight.”
He pointed to the viral video: both the FCT minister and military officials confidently asserted ownership. Such ambiguity, he said, instantly destroys the asset’s bankability.
“If that land was already pledged as collateral,” he continued, “and government or the military suddenly claims ownership, that collateral becomes worthless paper. The bank loses. The entrepreneur loses. And the economy takes the hit,” he said.
This uncertainty, experts say, has quietly fueled the collapse of countless small businesses struggling to secure financing.
Land disputes, revocations, double allocations, and politically motivated takeovers have made real estate one of the most unpredictable assets in Nigeria. Each time government revokes land titles, cancels allocations, or contradicts prior ownership claims, three pillars of economic stability weaken: business confidence and others.
