Less Than 10% of Properties in Nigeria Have Proper Land Titles, Says MOFI MD
Fewer than 10 per cent of properties in Nigeria have proper land titles, raising concerns about property ownership, investment security and the growth of the country’s real estate sector.
Armstrong Takang, Managing Director of the Ministry of Finance Incorporated (MOFI), disclosed this on Monday in Abuja during a stakeholder conference on the proposed legislation to establish the National Real Estate Regulatory Authority (NRERA).
The conference was organised by the House of Representatives to discuss the proposed regulatory framework for Nigeria’s real estate industry.
Takang said the lack of proper land titles was preventing many property owners from using their assets to generate additional economic value.
He explained that many Nigerians own land and buildings but cannot fully benefit from them because their ownership documents are not properly registered or recognised.
According to him, weak regulatory oversight and widespread malpractice have also reduced investor confidence and exposed property buyers to financial risks.
The MOFI managing director identified building collapses, fraudulent land transactions and the absence of a national licensing system for real estate operators as some of the major challenges affecting the sector.
He also disclosed that more than 270 deaths had been recorded from building collapses in recent years, although the actual number could be higher because some incidents were not reported.
Proposed Real Estate Authority to Strengthen Regulation
Takang said the proposed National Real Estate Regulatory Authority would help establish standards for property transactions, regulate the activities of real estate agents and developers, and protect funds paid by prospective property buyers.
He noted that stronger regulation would help address malpractice and create a more organised property market.
Abdulmumin Jibrin, Chairman of the House of Representatives Committee on Housing and Habitat, also called for a stronger regulatory framework to address challenges in the housing sector.
Jibrin explained that the Ministry of Housing and Urban Development does not have direct control over all agencies and institutions involved in housing, creating gaps and duplication of responsibilities.
He said the proposed authority would help improve coordination without taking over the constitutional responsibilities of state governments or the functions of existing professional bodies.
Minister Raises Concerns Over Low Mortgage Access
The Minister of Housing and Urban Development, Muttaqha Darma, said the Federal Government was working to address structural and institutional challenges affecting the housing sector.
He highlighted the low level of mortgage financing in Nigeria, noting that access to mortgage loans remained significantly lower than in some other countries.
According to the minister, mortgage penetration in Nigeria is below 10 per cent, compared with 38 per cent in Malaysia and 40 per cent in South Korea.
He also proposed that the new regulatory authority should operate under the Ministry of Housing and Urban Development because of its responsibility for coordinating housing policies.
House Speaker Calls for Digitised Property Administration
The Speaker of the House of Representatives, Tajudeen Abbas, called for a centralised and digitised real estate administrative system to simplify property transactions and improve confidence in the market.
Abbas said better regulation would help protect homebuyers and investors against fraudulent activities, unfair competition and exploitation.
He stressed that improving trust in property transactions was necessary to make Nigeria’s real estate market more attractive to investors.
The proposed National Real Estate Regulatory Authority is expected to provide a framework for improving transparency, accountability and professionalism across the country’s real estate industry.
