Pan-African real estate development company, Mixta Africa, has called for a balanced regulatory framework that protects homebuyers while ensuring that credible developers retain access to sustainable construction finance.
The company expressed support for the Federal Government’s proposed National Housing and Built Environment Regulation Policy and the planned establishment of a National Housing Industry Regulatory Commission.
Mixta Africa said the reforms could improve transparency, strengthen consumer protection and restore confidence in Nigeria’s housing market if they are supported by clear and enforceable implementation standards.
Speaking to journalists in Lagos, the company’s Chief Commercial Officer, Tola Akinsulire, described the proposed licensing and escrow requirements as important measures for reducing the risks faced by Nigerians purchasing homes, particularly through off-plan arrangements.
He, however, cautioned that keeping buyers’ payments in escrow accounts would not be sufficient unless the release of funds was tied to independently verified construction progress.
According to Akinsulire, qualified building professionals should certify that developers have completed agreed project milestones before money is released. The verification process, he added, should be governed by clear standards and supported by an auditable record.
“Independent verification creates a clear link between construction progress, fund release and accountability,” he said.
The company noted that off-plan payments have traditionally provided a significant portion of the working capital used by legitimate developers to execute housing projects. Consequently, restricting access to such payments without creating alternative financing arrangements could affect housing delivery.
Akinsulire explained that although escrow arrangements could safeguard subscribers’ money, they could not independently provide the capital required to undertake construction.
He urged the government and financial institutions to develop appropriately structured and competitively priced construction finance products for credible developers operating under the proposed regulatory framework.
“Escrow can protect the homebuyer, but escrow on its own does not finance construction,” he said.
Mixta Africa warned that reforms designed to protect consumers must be carefully implemented to avoid slowing down the development of new homes or worsening Nigeria’s housing supply challenges.
The firm called for sustained consultations involving the Federal Government, financial institutions, property developers, professional bodies and other housing industry stakeholders.
It said collaboration among these groups would help establish a framework that combines strong consumer protection, responsible project management, effective regulatory oversight and adequate construction financing.
Mixta Africa maintained that the success of the proposed reforms would ultimately depend on whether the government could translate them into practical and enforceable standards.
According to the company, a properly designed regulatory system could make Nigeria’s housing sector more transparent, sustainable and attractive to investors while protecting buyers and supporting the continued delivery of new homes.
