Learning Objectives

By the end of this lesson, you should be able to:

Identify and explain the criminal offences created by Part VI of the IMBL Act 2022, including practising without registration, fraudulent use of IMBLN designations, obstruction of authorised officials, and making false entries in the Register.

Describe the penalties attached to each offence, including fines, imprisonment, continuing-offence provisions, and the personal liability of corporate directors.

Explain the limitation-of-suit protections afforded to Council members and staff acting in good faith.

Define the key terms interpreted by Part VI, including mortgage broker, real estate broker, mortgage agent, and real estate agent.

Distinguish between registration and licensing, and outline the conditions, renewal process, and grounds for revocation of the annual practising licence.

Apply the Code of Conduct requirements and transitional provisions to practical scenarios, and compare the IMBL Act’s penalty regime with those of CIBN, ICAN, LPA, and MDPA.

Introduction: The Guard Rails on the Bridge

Picture the River Niger bridge at Onitsha. Two towers anchor the structure. Cables hold it up. A reinforced deck carries the traffic. But none of that matters if there are no guard rails. Parts I through V are the towers, cables, and deck. Part VI adds the guard rails.

Without Part VI, the entire framework is aspirational. There’s no criminal consequence for ignoring it. No fine for pretending to be something you’re not. No prison time for obstructing the people trying to enforce the rules.

Consider what happened to a family in Uyo, Akwa Ibom State. They approached someone calling himself a licensed mortgage broker. He collected N500,000 in fees, submitted a fabricated mortgage application to a lender, then disappeared. Under Part VI, that man committed two offences: practising without registration and fraudulent misrepresentation of professional status.

These are crimes. Prosecutable by the State. Punishable by fines and imprisonment.

CIBN criminalises unauthorised banking practice. ICAN criminalises falsely claiming to be a Chartered Accountant. ESVARBON criminalises practising as an estate surveyor without registration. The IMBL Act follows these precedents.

The most fundamental offence. If you’re not registered with IMBLN, you don’t practise.

Three elements that prosecutors must prove: that the person engaged in practice as defined by the Act; that the person was not registered (strict liability, ignorance is no defence); and that the person is either an individual or a body corporate.

Corporate liability deserves special attention. When a company practises without registration, the directors bear personal responsibility. This follows the principle of piercing the corporate veil established in Nigerian law through CAMA 2020 and reinforced by the EFCC Act 2004.

In December 2022, the Punch reported that EFCC arrested a syndicate operating from Allen Avenue, Ikeja. The syndicate had collected approximately N85 million from prospective homebuyers, claiming to arrange mortgage financing. Under the IMBL Act, every member would face prosecution for practising without registration.

The Institute confers specific designations: FIMBLN (Fellow), MIMBLN (Member), and AIMBLN (Associate). Using these without authorisation is a criminal offence. So is using the Institute’s name in a way that falsely suggests affiliation.

The protection extends beyond business cards. It covers business names, letterheads, websites, LinkedIn profiles, social media bios. If you put FIMBLN on your Instagram bio without being a Fellow, you’ve committed an offence.

International comparisons: RICS in the UK actively monitors online platforms for fraudulent use of its designations. RECO in Canada has prosecuted individuals for holding themselves out as registered real estate professionals without authorisation.

Four types:

Physical obstruction: blocking entry, refusing to open locked offices.

Documentary obstruction: refusing to produce records, hiding files.

Verbal obstruction: providing false or misleading statements during an investigation.

Constructive obstruction: deleting emails, wiping hard drives, shredding documents.

Parallel provisions exist in Section 38(3) of the EFCC Act and the NDLEA Act. The principle is the same: you can’t frustrate regulatory enforcement.

The Register is the backbone of the regulatory system. Making a false entry, or causing one to be made, is the most serious offence under Part VI.

Three ways to commit this offence: Fraud (forged qualification certificates, fabricated experience letters); False representation (lying on a registration application); Concealment (hiding relevant information, such as a prior criminal conviction).

The phrase "causes to be made" extends liability beyond the applicant. If an IMBLN staff member accepts a bribe to enter a name without proper verification, that staff member has caused a false entry to be made.

In March 2023, Blueprint newspaper reported that the National Universities Commission (NUC) uncovered a syndicate manufacturing fake university degree certificates. Anyone who used a fake certificate to get onto the IMBLN Register would face prosecution.

Fine, imprisonment for up to 2 years, or both. For first-time offenders, courts typically lean toward fines. Serial offenders face the real prospect of imprisonment. For corporate offenders, directors who authorised or permitted unregistered practice are personally liable.

Fine, imprisonment, or both. In the digital economy, a fraudulent LinkedIn profile can reach thousands of potential clients. The harm can be systemic.

Fine, imprisonment, or both. Calibrated to deter interference with the Institute’s enforcement functions. Courts take obstruction seriously because it strikes at the rule of law itself.

Fine and imprisonment. Note the conjunction. Not "or." This is the most serious offence because it strikes at the integrity of the Register itself.

If a person is convicted and continues the offending conduct, a daily penalty applies for each day after conviction. A continuing offence also triggers administrative action — the Institute can cancel any registration the person holds.

Why would the law protect Council members from lawsuits? Because without that protection, nobody would take the job. The protection isn’t absolute — it only covers acts done in good faith.

The Supreme Court defined good faith in Onagoruwa v. State (1993) as an honest belief in the correctness of the action taken, without malice or ulterior motive. The Court of Appeal reinforced this in AG Ondo v. AG Federation (2002).

Beyond good-faith immunity, the Act imposes procedural hurdles. A prospective plaintiff must give written notice (typically 1 to 3 months before filing). The suit must be brought within 6 months to 1 year. These requirements aren’t unique to IMBLN — the MDPA, LPA, and ICAN Act all contain similar provisions.

The definition is functional, not titular. If you arrange, negotiate, or facilitate mortgage transactions between borrowers and lenders, you’re a mortgage broker under the Act. A "financial consultant" who happens to arrange mortgages is a mortgage broker. The label you choose doesn’t matter. The activity determines your status.

A real estate broker is an intermediary in the sale, purchase, lease, or exchange of real property. Estate surveyors handle property valuation (ESVARBON). Real estate brokers handle transactions (IMBLN scope).

A mortgage agent acts under the supervision of a registered mortgage broker. The scope is narrower. Similar to a trainee solicitor working under a principal.

A real estate agent acts under the supervision of a registered real estate broker. Supervision requirements apply.

"The Act" refers to the IMBL Act 2022 itself.

"The Council" means the governing Council of the Institute.

"The Institute" means the IMBLN.

"The Register" means the Register of practitioners.

"The Registrar" means the person appointed to maintain the Register.

"Mortgage" is defined in accordance with established Nigerian property law.

"Practice" covers any activity falling within the professional scope defined by the Act.

Registration and licensing are not the same thing. Registration is a one-time qualification event. Licensing is an annual authorisation.

The licence serves three purposes: it ensures currency (annual licensing forces practitioners to demonstrate ongoing fitness); it generates revenue (licence fees flow into the Fund); and it provides enforcement leverage (revoking a licence is faster than deregistration).

Current registration on the IMBLN Register.

Payment of the prescribed licence fee.

Completion of required CPD hours.

Good standing with the Institute.

Professional indemnity insurance (where required).

CPD matters because the sector changes constantly. CBN guidelines shift. Land Use Act amendments take effect. The Mortgage Loans (Prohibition of Predatory Practices) Act 2022 introduced new consumer protections.

Practitioners must submit renewal applications before expiry. Late applications attract a penalty fee. If a practitioner fails to renew within the grace period, the licence lapses.

The Council can revoke a practising licence on several grounds:

Conviction for a criminal offence involving dishonesty.

A finding of misconduct by the Disciplinary Committee.

Non-compliance with licensing conditions.

Persistent failure to complete CPD requirements.

The Council is empowered to issue a Code of Conduct. Breach constitutes misconduct under Part IV (triggering disciplinary proceedings) and can lead to licence revocation under Part VI.

Practitioners must act with honesty, fairness, and transparency. In January 2023, Leadership newspaper reported that NMRC flagged several cases of inflated property valuations. A practitioner who knowingly submits or facilitates an inflated valuation breaches the integrity requirement.

You must maintain your professional skills. You must recognise the limits of your competence. A mortgage broker who doesn’t understand the difference between fixed-rate and variable-rate mortgages has no business advising clients.

Client information is confidential. Four recognised exceptions: court order, lawful regulator request, serious crime (money laundering, terrorism financing, fraud), and informed client consent.

The three most common conflict scenarios:

Dual agency: acting for both buyer and seller without informed consent.

Buyer/seller overlap: personal financial interest in a property you’re advising about.

Undisclosed referral arrangements: receiving commissions from lenders without disclosure.

Client funds must be held in a separate, dedicated client account. No commingling. In September 2021, the Punch reported on a Lagos real estate agent who commingled approximately N120 million in rental deposits with personal funds and lost them in a Ponzi scheme.

All advertising must be truthful and not misleading. Claims must be substantiated. Must comply with APCON standards. Digital advertising subject to the same standards as print and broadcast.

The Code requires CPD hours each year. Standard across Nigerian professional bodies.

The Act provides a transitional window, typically 12 months. During this period, people already practising can continue while they apply for registration.

Experienced practitioners with 10+ years of continuous practice and a clean record may qualify for deemed registration without sitting the qualifying examinations. The Financial Reporting Council (FRC) and the Chartered Institute of Taxation of Nigeria (CITN) have used similar grandfathering provisions.

The Act comes into effect on the date of publication in the Federal Gazette. Once the Gazette is printed, the Act is law. Ignorance is no excuse.

Case Study 1: The Unregistered Broker of Lekki

PrimeMortgage Nigeria Ltd operated from a serviced office in Lekki Phase 1. Instagram ads featured the IMBLN logo and listed its principal, Mr. Chidi Okoronkwo, as a Fellow of the Institute. Neither the company nor Mr. Okoronkwo was registered.

Mrs. Folake Adeyemo, a schoolteacher seeking a mortgage to purchase a flat in Ajah, contacted PrimeMortgage through Instagram. She paid N750,000 in fees. Mr. Okoronkwo submitted fabricated income documents. The application was rejected. The N750,000 was never returned.

Investigations revealed that Mr. Okoronkwo had a prior fraud conviction in Enugu State, which he had concealed when setting up PrimeMortgage. Under Part VI, Mr. Okoronkwo and PrimeMortgage face three distinct charges: practising without registration; fraudulent use of IMBLN designations; and (if he had attempted registration concealing his Enugu conviction) false entries.

Case Study 2: Obstruction at Kaduna Inspection

In November 2023, the IMBLN Compliance Unit deployed three authorised officials to inspect firms in Kaduna metropolis suspected of unregistered practice.

At Savannah Properties & Mortgage Services, the proprietor Alhaji Musa Ibrahim refused the officials entry. He tore up the written authorisation letter, shouted at the team, and threatened to call the police to have them arrested.

In April 2024, Alhaji Ibrahim was convicted on both counts: obstruction and practising without registration. The court imposed a N500,000 fine for obstruction, a N1,000,000 fine for unregistered practice, and a 6-month suspended prison sentence.

CIBN creates offences for unregistered banking practice but prosecution has been historically infrequent. CIBN has relied on the CBN as the banking sector’s primary regulator. The lesson for IMBLN: having offences on the books is one thing. Actually prosecuting them is another.

ICAN has been relatively more active in enforcement, particularly against individuals falsely claiming to be Chartered Accountants. ICAN’s approach offers a model: publicise the offences, warn the market, then prosecute high-profile cases.

The LPA has the most active enforcement record. The NBA and the Legal Practitioners’ Privileges Committee (LPPC) have pursued cases against unqualified letter writers and against individuals fraudulently claiming the rank of SAN.

The MDPA imposes the most severe penalties, with imprisonment up to 5 years. Reflects the life-and-death stakes. Just as unregistered medical practitioners endanger lives, unregistered mortgage brokers endanger families’ financial security.

Core offences are consistent across all four comparator statutes: unregistered practice, fraudulent designations, obstruction, false entries. Medical and legal professions carry higher penalties. Financial sector professions (CIBN, ICAN, IMBLN) sit in the middle tier. The IMBL Act’s penalty regime occupies a reasonable middle ground.

Part I creates the Institute and the Council. Without them, there’s no body to regulate anyone.

Part II creates the Register. Without it, there’s no distinction between qualified professionals and everyone else.

Part III defines practice rights and standards. Without it, registration is a credential with no meaning.

Part IV finances the operation. Without money, the Institute can’t function.

Part V creates accountability machinery. Without it, members can misbehave without consequences.

Part VI adds criminal consequences and the licensing system. Without it, nobody outside the profession has to respect the Act.

Remove any one Part and the structure collapses.

Summary

Part VI creates four criminal offences: practising without registration, fraudulent use of IMBLN designations, obstruction of authorised officials, and making false entries in the Register. Each carries penalties of fines, imprisonment, or both — with false entries attracting the most serious sanctions.

The Act protects Council members and staff from personal liability for acts done in good faith, subject to notice periods and time limits.

Key terms are defined functionally. A mortgage broker is defined by what they do, not by what they call themselves.

Licensing operates separately from registration. Conditions include current registration, fee payment, CPD completion, good standing, and professional indemnity insurance.

The Code of Conduct covers integrity, competence, confidentiality, conflict of interest, client-fund handling, advertising, and CPD.

Transitional provisions give the market time to adjust. 12-month window plus grandfathering for 10+ year practitioners.

Parts I through VI form an integrated regulatory architecture.

KEY TAKEAWAYS

Part VI creates four criminal offences (practising without registration, fraudulent designations, obstruction, false entries), all prosecutable by the State with penalties including fines and imprisonment of up to 2 years.

Corporate directors face personal criminal liability when their companies commit offences, following the piercing-the-corporate-veil principle in CAMA 2020 and the EFCC Act 2004.

Council members and staff are protected from personal lawsuits for acts done in good faith, but this immunity does not cover malicious or corrupt conduct.

Key terms like mortgage broker and real estate broker are defined functionally — anyone performing regulated activities falls within the Act’s scope regardless of job title.

Registration is a one-time qualification; the annual practising licence is a separate, renewable authorisation requiring CPD, fees, good standing, and PI insurance.

The Code of Conduct covers seven areas (integrity, competence, confidentiality, conflict of interest, client-fund handling, advertising, CPD), with breach triggering disciplinary proceedings and licence revocation.

Parts I through VI form one integrated regulatory system: remove any single Part and the entire architecture collapses.

Knowledge Check (10 Questions)

1. Which of the following is NOT a criminal offence created by Part VI of the IMBL Act?

   1. Practising without registration
   2. Fraudulent use of IMBLN designations
   3. Failing to attend CPD sessions
   4. Making false entries in the Register

2. What type of liability applies to a person who practises without knowing about the registration requirement?

   1. No liability (ignorance is a defence)
   2. Strict liability (ignorance is no defence)
   3. Vicarious liability only
   4. Civil liability only

3. Which of the following constitutes constructive obstruction under Part VI?

   1. Locking the office door
   2. Deleting emails and wiping hard drives before an inspection
   3. Refusing to answer questions
   4. Calling the police on inspectors

4. The penalty for making false entries in the Register differs from other Part VI offences because:

   1. It carries no imprisonment
   2. It uses the conjunction "and" (fine AND imprisonment) rather than "or"
   3. It only applies to IMBLN staff
   4. It requires a higher standard of proof

5. The good-faith immunity for Council members was supported by the Supreme Court in:

   1. AG Lagos v. AG Federation (2003)
   2. Onagoruwa v. State (1993)
   3. MDPT v. Dr. Okonkwo (2001)
   4. Fawehinmi v. NBA (1989)

6. A "financial consultant" who arranges mortgages for clients is classified under the Act as:

   1. A financial advisor exempt from the Act
   2. A mortgage broker subject to registration
   3. A mortgage agent only
   4. An unregulated professional

7. Which of the following is a condition for obtaining an annual practising licence?

   1. Minimum 5 years of practice experience
   2. Completion of required CPD hours
   3. Recommendation from two existing members
   4. Payment of a one-time lifetime fee

8. The transitional window for existing practitioners to register is typically:

   1. 6 months
   2. 12 months
   3. 24 months
   4. 36 months

9. Compared to other Nigerian professional regulatory statutes, the IMBL Act’s penalty regime:

   1. Is the most severe
   2. Is the most lenient
   3. Occupies a middle tier between CIBN (lower) and MDPA (higher)
   4. Is identical to the ICAN Act

10. The relationship between the six Parts of the IMBL Act is best described as:

    1. Six independent modules that can function separately
    2. An integrated system where removing any Part causes the architecture to fail
    3. A hierarchy where Part I is most important and Part VI is least important
    4. A sequential process where each Part replaces the previous one

Answers

Answers: 1. (c) 2. (b) 3. (b) 4. (b) 5. (b) 6. (b) 7. (b) 8. (b) 9. (c) 10. (b)

Further Reading

Investment and Mortgage Brokers and Lenders (Registration, etc.) Act 2022, Part VI.

Chartered Institute of Bankers of Nigeria Act, Cap C8, LFN 2004.

Institute of Chartered Accountants of Nigeria Act, Cap I11, LFN 2004.

Legal Practitioners Act, Cap L11, LFN 2004.

Medical and Dental Practitioners Act, Cap M8, LFN 2004.

Companies and Allied Matters Act (CAMA) 2020.

Economic and Financial Crimes Commission (EFCC) Act 2004.

Banks and Other Financial Institutions Act (BOFIA) 2020.

Mortgage Loans (Prohibition of Predatory Practices) Act 2022.

Constitution of the Federal Republic of Nigeria 1999, Section 36.

Onagoruwa v. State (1993).

AG Ondo v. AG Federation (2002).

IMBL Nigeria Certification