Reps Seek Stronger Regulation of Nigeria’s Housing Sector
The House of Representatives has called for stronger regulation of Nigeria’s housing and real estate sector to address fraudulent practices, protect prospective homeowners and attract investment.
The Chairman of the House Committee on Housing and Habitat, Abdulmumini Jibrin, made the call at a stakeholder conference on the proposed National Real Estate Regulatory Authority (NRERA) held in Abuja.
Jibrin said an assessment of the sector had revealed major challenges, including regulatory gaps, overlapping responsibilities among government agencies and inadequate consumer protection.
He explained that the absence of a coordinated regulatory framework had allowed some individuals to collect money from prospective homeowners without proper verification of their credentials or ability to deliver housing projects.
According to him, the proposed authority would establish clear standards for property developers and other operators, define responsibilities, strengthen accountability and provide effective dispute resolution mechanisms.
He clarified that the proposed legislation would not take over the constitutional responsibilities of state governments or the statutory functions of existing professional bodies and government agencies. Instead, it would strengthen cooperation among institutions.
The Minister of Housing and Urban Development, Dr Muttaqha Rabe Darma, expressed support for the proposed authority, saying it could improve coordination in housing development, real estate investment and mortgage financing.
He also highlighted Nigeria’s low mortgage penetration, which he said remained below 10 per cent, compared with 38 per cent in Malaysia and 40 per cent in South Korea.
Darma urged stakeholders to consider placing the proposed authority under the Ministry of Housing and Urban Development to ensure proper coordination with existing government policies.
Meanwhile, the Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated, Dr Armstrong Ume Takang, called for careful consideration of the proposed legislation’s relationship with existing laws, particularly the Land Use Act.
He warned against excessive regulation that could discourage private investment or increase government expenditure.
In his keynote address, the Speaker of the House of Representatives, Tajudeen Abbas, called for a centralised and digitised property administration system to simplify transactions and improve confidence in the real estate market.
He explained that linking property ownership records with the identities of owners, buyers and sellers would help address fraud, multiple ownership claims and disputes associated with land and property transactions.
Abbas maintained that effective regulation would protect legitimate businesses, discourage fraudulent practices and encourage long-term investment in Nigeria’s real estate sector.
The proposed National Real Estate Regulatory Authority is expected to strengthen consumer protection, promote professional standards and improve coordination across the country’s housing and real estate industry
