Nigeria’s real estate sector, a key driver of economic growth, is increasingly under threat from fraud, fake developers, and weak regulatory oversight, according to a legal expert.
A senior advocate, Oyetola Muyiwa Atoyebi, warned that widespread scams — including land duplication, fake ownership claims, and unlicensed agents — are discouraging investment in the property market.
He noted that many Nigerians, including diaspora investors, fall victim to schemes where properties are sold multiple times or projects never materialise.
The (EFCC) has also identified real estate as a major channel for financial crimes in Nigeria.
Weak regulation fueling crisis
According to the expert, the absence of effective coordination among land registries, developers, and regulatory bodies has created loopholes exploited by fraudsters.
He stressed that poor documentation, slow land registration processes, and lack of enforcement of licensing requirements have worsened the situation.
Real estate now a hub for money laundering
Beyond fraud, the sector is increasingly being used for illicit financial activities. Criminals reportedly exploit high-value property transactions to launder money through:
- Shell companies
- Proxy ownership
- Cash-based purchases
Major cities like , , and are said to be under scrutiny due to suspicious real estate investments linked to unexplained wealth.
Key steps to avoid property scams
The expert outlined practical steps for Nigerians to protect themselves:
- Verify property titles at land registries
- Ensure the property has a valid Certificate of Occupancy (C of O)
- Conduct physical inspections
- Check for legal disputes or encumbrances
- Use properly drafted contracts
- Confirm ownership documents such as Deed of Assignment
- Obtain Governor’s Consent
Call for stronger reforms
Atoyebi called for the establishment of functional real estate regulatory authorities across states and improved collaboration among stakeholders.
He also emphasized the need for:
- Digitised land records
- Strong Know Your Customer (KYC) systems
- Enforcement of Anti-Money Laundering (AML) regulations
Technology seen as solution
Digital platforms integrating land registries, banking systems, and national identity databases were identified as critical tools to track property ownership and financial flows.
According to the expert, improving transparency and accountability in the sector is essential to restoring investor confidence and ensuring the real estate industry contributes fully to Nigeria’s economic development.
