THE 20 TRICKS: HOW UNSCRUPULOUS REAL ESTATE OPERATORS ARE TAKING BILLIONS FROM NIGERIAN SUBSCRIBERS

By the Research & Economic Unit, Housing Development Advocacy Network (HDAN)

For many Nigerians, buying land or a house is the biggest financial decision they will ever make. Yet the dream of homeownership is increasingly being exploited by unscrupulous operators using sophisticated marketing, unrealistic investment promises and weak contractual protections.

THE 20 TRICKS BUYERS NEED TO WATCH

1. UNREALISTIC HIGH-RETURN PROMISES

One of the most dangerous tactics is inviting members of the public to “invest” in real estate with promises of unusually high returns, sometimes 20%, 30%, 40% or more within short periods.

Some of these schemes are structured so that money from new investors is used to pay earlier investors, creating the appearance of profitability until fresh inflows slow down.

2. SELLING LAND WITHOUT VALID TITLE

Subscribers may be offered land without proper documentation or with titles that cannot be independently verified.

3. DUPLICATE SALE OF THE SAME PLOT

The same piece of land may be sold to multiple unsuspecting buyers, creating disputes that can take years to resolve.

4. COLLECTING FULL PAYMENT WITHOUT ALLOCATION

Some subscribers make full payments but are left waiting indefinitely for their actual allocation.

5. ABANDONED OFF-PLAN PROJECTS

Developers may collect money for off-plan properties that are delayed for years or never completed.

6. HIDDEN AND UNEXPECTED CHARGES

Subscribers may discover additional charges after making payments, significantly increasing the final cost of the property.

7. REFUSING REFUNDS

Some operators make it extremely difficult for subscribers to recover their money when they decide to exit a project.

8. USING NEW PROJECTS TO FINANCE OLD ONES

Some operators launch new estates to raise money to complete older projects.

This creates a dangerous cycle:

Project B finances Project A.

Project C finances Project B.

9. CELEBRITY ENDORSEMENTS

Celebrity endorsements can create an impression of legitimacy and safety, even when buyers have not independently verified the developer or project.

10. AGGRESSIVE SALES AGENTS

Sales agents may pressure prospective buyers to make immediate payments before conducting proper due diligence.

11. “ONLY THREE PLOTS LEFT”

Artificial scarcity is often used to create urgency and discourage buyers from taking time to investigate.

12. “PRICE INCREASES TONIGHT”

Countdown promotions can pressure buyers into paying before they have verified the property, documents and contractual terms.

13. MISUSE OF “REAL-ESTATE-BACKED INVESTMENT”

Subscribers are told their investment is secured by property.

But buyers should ask:

Which specific property secures my money?

Is the title valid?

Does a legal charge exist?

Has the same asset been pledged to other investors?

14. SHOWING ONE LOCATION AND ALLOCATING ANOTHER

Some subscribers are shown one location during inspection but later discover that their allocated property is somewhere else.

15. MARKETING LAND WITH THE WRONG LAND USE

Agricultural or improperly designated land may be marketed as a residential estate.

16. ALLOCATION LETTERS THAT ARE MISTAKEN FOR LEGAL TITLE

Some buyers receive impressive allocation letters, certificates and promotional materials and assume these documents amount to legal title.

They do not.

A developer-issued allocation document cannot replace independent verification of the underlying land title.

17. UNFAIR CONTRACTS

Some agreements impose severe penalties on subscribers for late payment but provide little or no compensation when developers delay delivery for years.

18. CHANGING THE PROPERTY AFTER PURCHASE

A subscriber may buy a particular house design only to discover later that the developer has reduced the size, changed the finishes or substituted cheaper materials without meaningful consent.

19. DELAYED DELIVERY

Projects may be marketed with attractive delivery timelines, only for subscribers to wait years beyond the promised completion date.

20. FAILURE TO DISCLOSE HOW THE PROJECT IS FINANCED

Subscribers deserve to know how their money will be used and whether the project’s financial structure is sustainable.

WHAT NEEDS TO CHANGE?

Nigeria urgently needs stronger protection for real estate subscribers.

Off-plan developers should be required to disclose:

• Verified land title
• Development approvals
• Delivery schedules
• Financing arrangements

This information should be available before substantial funds are collected from the public.

Major subscriber funds should increasingly pass through escrow or controlled project accounts, with releases tied to independently verified construction milestones.

Companies inviting the public to invest for returns should also be required to demonstrate that they possess the necessary regulatory authority to solicit investments.

THE ONE RULE EVERY BUYER SHOULD KNOW

DO NOT INVESTIGATE AFTER PAYING.

INVESTIGATE BEFORE PAYING.

Before transferring money, buyers should independently verify:

• The title
• The company
• Approvals
• The contract
• The developer’s project history
• The exact location of the property

Where a company promises exceptionally high returns, prospective investors should ask the most important question:

Where exactly will the money required to pay those returns come from?

Nigeria needs genuine developers and a strong real estate industry.

But the sector cannot grow sustainably if subscribers increasingly associate property investment with deception, endless delays and lost savings.

Every fraudulent transaction damages not only the victim but also confidence in the entire housing market.

HDAN SPECIAL CONSUMER PROTECTION SERIES

In the next few days, the Housing Development Advocacy Network (HDAN) will begin spotlighting real estate developers and operators involved in documented subscriber disputes, regulatory actions, court cases and alleged fraudulent practices.

The series will examine:

• The facts of each case
• Complaints made by subscribers
• Responses from the companies involved
• Actions taken by regulators or the courts
• Warning signs prospective buyers and investors should look out for

Where allegations have not been finally determined by a court, HDAN will clearly state that fact.

THE OBJECTIVE IS SIMPLE:

To help Nigerians identify dangerous red flags, avoid questionable property schemes and protect their hard-earned money before it is too late.

The post 20 Real Estate Scams Nigerian Property Buyers Must Avoid appeared first on Housing TV Africa.

Nigeria is moving to strengthen its off-plan housing market through proposed regulatory reforms designed to improve transparency, protect homebuyers, and rebuild investor confidence in property transactions. Industry stakeholders believe the reforms could unlock greater homeownership opportunities while attracting more domestic and international investment into the real estate sector.

Off-plan housing, where buyers purchase properties before construction is completed, has become an increasingly popular financing model for developers. The approach enables developers to raise capital during construction while allowing buyers to spread payments over time. However, the market has also faced persistent challenges, including delayed project delivery, abandoned developments, and cases of fraud that have weakened public confidence.

To address these concerns, the Federal Government is proposing reforms that would require property developers to operate under stricter regulatory oversight. Among the measures being considered are mandatory licensing of developers, stronger consumer protection standards, and the introduction of regulated escrow accounts, where buyers’ funds would be securely held and released only as construction milestones are achieved.

Industry experts say these safeguards would significantly reduce the risk faced by homebuyers while encouraging greater accountability among developers. They argue that improving trust in off-plan transactions will make it easier for more Nigerians to purchase homes through flexible payment plans and provide developers with more reliable financing for new housing projects.

Stakeholders also believe the reforms could stimulate private investment by creating a more transparent and predictable real estate market. A well-regulated off-plan housing system is expected to attract institutional investors, mortgage providers, and members of the Nigerian diaspora seeking secure opportunities in the country’s property market.

Beyond consumer protection, experts say the reforms could help address Nigeria’s housing deficit by accelerating residential construction and expanding access to affordable homeownership. Improved regulation may also encourage developers to adopt better project management practices, meet delivery timelines, and maintain higher construction standards.

The proposed reforms align with the Federal Government’s broader efforts to modernise Nigeria’s housing sector through improved regulation, expanded housing finance, and increased private sector participation. Housing professionals maintain that restoring confidence in off-plan property transactions will be essential to creating a more resilient and sustainable real estate market capable of meeting the country’s growing housing demand.

The post Nigeria Moves to Reform Off-Plan Housing Market to Boost Buyer Confidence appeared first on Housing TV Africa.

The Economic and Financial Crimes Commission (EFCC) has urged the Lagos State Real Estate Regulatory Authority (LASRERA) to strengthen enforcement against fraudulent estate agents. The anti-graft agency also advised the regulator to create a denylist for individuals and companies found guilty of real estate fraud.

The recommendation came during a meeting between the Acting Zonal Director of EFCC Lagos Zonal Directorate II, ACE I Bawa Usman Kaltungo, and the Permanent Secretary of the Lagos State Ministry of Housing, Engineer Abdulhafis Gbolahan Toriola. Senior officials from LASRERA also attended the meeting.

Kaltungo said stronger regulation would help protect homebuyers, investors and property developers. He also called for regular information sharing between both agencies to improve investigations and enforcement.

EFCC Offers Investigative Support

The EFCC said it will continue to support LASRERA with investigations into fraudulent property transactions. Kaltungo explained that closer cooperation would help identify offenders faster and ensure they face prosecution under the law.

He also praised LASRERA for implementing the Lagos State Real Estate Regulatory Authority Law 2022. According to him, the law has created a stronger foundation for regulating the real estate industry in Lagos.

The commission disclosed that it is handling several cases involving alleged fake estate agents and property-related fraud. These cases involve individuals and organisations accused of misleading members of the public through illegal real estate transactions.

Lagos Reaffirms Commitment to Transparency

Engineer Abdulhafis Gbolahan Toriola said the Lagos State Government remains committed to promoting transparency, accountability and professionalism in the property market.

He noted that stronger collaboration with the EFCC would improve compliance with existing regulations. He added that the partnership would also increase public confidence in buying, selling and investing in property across the state.

Both organisations agreed to deepen their cooperation as part of efforts to reduce criminal activities within the real estate sector.

Why Stronger Regulation Matters

Property fraud remains a major challenge in Nigeria’s housing sector. Many buyers lose money through fake land sales, forged documents, multiple sales of the same property and unregistered estate operators.

These practices weaken investor confidence and slow the growth of the housing market. They also create risks for mortgage lenders, developers and genuine estate professionals.

Industry experts have consistently argued that stronger regulation can improve transparency and attract more investment into Nigeria’s real estate sector. Better enforcement can also encourage responsible housing development and strengthen consumer protection.

As Lagos continues to expand, effective regulation will play an important role in creating a safer property market. Closer cooperation between regulators and law enforcement agencies could help reduce fraud and improve confidence in real estate transactions across the state.

The post EFCC Urges LASRERA to Tighten Oversight, Denylist Fraudulent Estate Agents appeared first on Housing TV Africa.

The Real Estate Developers Association of Nigeria (REDAN) has called for the introduction of an annual certification system for real estate developers as part of broader efforts to improve professionalism, strengthen regulatory compliance, and reduce fraud in Nigeria’s property sector. The association believes regular certification will help restore public confidence and promote higher standards across the industry.

Speaking on the proposal, REDAN President Prince Akintoye Adeoye said annual certification would enable regulators to monitor developers more effectively, ensure continued compliance with industry standards, and identify operators who fail to meet professional and ethical requirements. He noted that stronger oversight is necessary to protect investors and homebuyers from fraudulent practices.

Adeoye explained that the proposed certification framework would encourage developers to maintain high standards in project execution, financial accountability, and customer service. He added that it would also make it easier for the public to distinguish legitimate developers from unregistered operators responsible for many cases of property fraud, project abandonment, and substandard construction.

According to him, Nigeria’s real estate industry requires a more structured regulatory framework that promotes transparency, accountability, and professionalism. He urged the Federal Government and relevant regulatory agencies to work closely with REDAN and other stakeholders to develop and implement a sustainable certification and monitoring system for developers nationwide.

The REDAN president also stressed the importance of enforcing existing building regulations, planning approvals, and professional standards to reduce building collapses and improve the quality of housing delivery. He said certification should complement broader reforms aimed at strengthening governance within the housing and construction sectors.

Industry experts believe that introducing annual certification for developers would improve consumer protection, increase investor confidence, discourage fraudulent activities, and contribute to the long-term growth and sustainability of Nigeria’s real estate market.

The post REDAN Advocates Annual Certification for Real Estate Developers appeared first on Housing TV Africa.

The Federal Competition and Consumer Protection Commission (FCCPC) has sealed the Abuja offices of Ochacho Real Estate and TI’Bilon Construction and Facility Management Company over allegations of regulatory non-compliance and failure to hand over fully paid housing units to customers.

The commission disclosed the development in a statement shared on its official social media platform on Thursday, stating that the enforcement action formed part of ongoing efforts to protect consumers from unfair practices in Nigeria’s real estate sector.

According to the FCCPC, both firms allegedly failed to comply with repeated directives issued by the commission regarding complaints from subscribers who had completed payment for housing units but were yet to receive possession of their properties.

The commission said the affected companies repeatedly ignored compliance notices directing them to address the complaints and fulfil their obligations to buyers.

As a result, the regulatory agency moved to seal their offices pending compliance.

“The sealed offices will remain shut indefinitely until both organisations fully fulfill their outstanding obligations to the affected consumers,” the commission stated.

The FCCPC explained that the action was taken under Section 150(4) of the Federal Competition and Consumer Protection Act (FCCPA), 2018, which grants the commission authority to enforce compliance and take action against organisations that fail to obey regulatory directives.

The development highlights growing concerns over consumer complaints in Nigeria’s real estate sector, where delays in property delivery and disputes involving off-plan housing subscriptions have continued to generate scrutiny from regulators.

The commission reiterated its commitment to consumer protection and warned operators across sectors against practices that undermine consumer rights or violate regulatory standards.

The post FCCPC Seals Abuja Offices of Ochacho Real Estate, TI’Bilon Over Alleged Failure to Deliver Homes appeared first on Housing TV Africa.

The Nigerian Communications Commission and the Central Bank of Nigeria have jointly launched a new portal designed to track fraudulent and suspicious phone lines, in a move aimed at strengthening consumer protection and curbing electronic fraud.

The initiative, unveiled alongside the signing of a Memorandum of Understanding between both regulators, is expected to improve transparency and deepen collaboration between the telecommunications and financial sectors.

Speaking at the signing ceremony, the Executive Vice Chairman of NCC, Aminu Maida, described the agreement as a critical step toward enhancing regulatory coordination in Nigeria’s digital ecosystem.

He noted that the increasing reliance on mobile numbers for identity verification and financial transactions makes closer cooperation between regulators essential.

According to Maida, the Telecoms Identity Risk Management System portal will provide financial institutions with real-time access to the status of phone numbers used in transactions.

“The platform aggregates data on recycled or churned lines and flags numbers linked to suspicious activities. This enables banks to verify whether a line is active, swapped, disconnected, or reassigned,” he said.

He added that the system would significantly strengthen efforts to combat fraud, particularly those executed through mobile channels.

Beyond fraud detection, Maida highlighted the portal’s role in improving consumer protection, noting that issues such as failed airtime recharges and transaction disputes would now be resolved faster through coordinated regulatory actions.

On his part, the Governor of the Central Bank, Olayemi Cardoso, said the partnership would enhance cooperation in areas such as regulatory approvals, technical standards, and financial innovation.

He explained that the agreement aligns with the bank’s broader objective of building a secure, inclusive, and resilient financial system.

Cardoso also announced the establishment of joint committees focused on payment systems, consumer protection, and the operation of the new portal, to ensure continuous engagement and proactive responses to emerging risks.

The collaboration, according to both agencies, places consumer safety at the forefront while supporting innovation and boosting confidence in Nigeria’s digital financial services space.

The post NCC, CBN Launch Portal to Track Fraudulent Phone Lines appeared first on Housing TV Africa.

The Nigeria Civil Aviation Authority has directed Overland Airways to refund passengers who were wrongly charged Value Added Tax (VAT) on flight tickets purchased before January 1, 2026.

The directive followed clarification issued by the Nigeria Revenue Service regarding the implementation of the new tax regime affecting airline tickets.

Passengers had lodged complaints after reports emerged that some travellers, including an elderly woman, were compelled to pay VAT at airport counters in 2026 despite purchasing their tickets in 2025—before the new tax provisions took effect.

The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, confirmed in a statement that the issue had been resolved following regulatory engagement with the airline and the tax authorities.

According to Achimugu, tickets purchased before January 1, 2026, were not subject to the new VAT rules and should not have attracted additional charges at check-in.

He explained that regulatory clarification became necessary after the airline implemented the VAT requirement based on its interpretation of the new fiscal policy.

Following the clarification from the Nigeria Revenue Service, Overland Airways agreed to correct the situation and initiate refunds for affected passengers.

The controversy had sparked concerns among travellers, particularly during the December peak travel period, as many described the additional VAT charges as unexpected and financially burdensome.

The NCAA’s intervention reinforces its consumer protection mandate and underscores the importance of proper regulatory guidance in implementing fiscal policy changes within Nigeria’s aviation sector.

The post Overland Airways to Refund Passengers Over Pre-2026 VAT Error appeared first on Housing TV Africa.

The Central Bank of Nigeria (CBN) has directed all banks, payment service banks, and other regulated financial institutions to immediately withdraw any advertisement or promotional material that violates consumer-protection and fair-marketing standards.

The directive was issued in a circular released on Thursday and signed by Olubunmi Ayodele-Oni on behalf of the Director of the CBN’s Compliance Department.

According to the circular, a recent industry-wide review revealed widespread inconsistencies in how financial institutions interpret disclosure, transparency and fair-marketing requirements under the Consumer Protection Regulations 2019 and the 2000 Guidelines on Advertisements by Deposit-Taking Institutions.

The apex bank noted that several institutions continue to publish adverts that exaggerate benefits, conceal important information, distort risks, or rely on unaudited financial data. It warned that such practices mislead consumers, distort fair competition, and erode confidence in the financial system.

The CBN reaffirmed that all marketing communications must be factual, clear, balanced, and transparent, adding that any form of comparative, superlative or de-marketing statements — whether direct or implied — is prohibited.

It also banned promotional incentives such as lotteries, prize draws, lucky dips, and other chance-based inducements, saying they may push consumers into financial decisions without fully understanding the associated risks.

Stricter Compliance Requirements Introduced

Under the new guidelines, financial institutions must now notify the CBN before releasing any advert or promotional content. The notification must include:

• Duration of the advert

• Creative content to be aired or published

• Intended demographic and geographic targets

• Written confirmation of clearance by internal legal and compliance units

• Evidence that the product or service being advertised has been approved by the CBN

However, the bank clarified that this notification process does not serve as approval or endorsement; institutions remain fully responsible for ensuring regulatory compliance.

The CBN also ordered banks and financial institutions to immediately withdraw any advert that fails to meet the required standards. Within 30 days, they must submit a compliance attestation jointly signed by the Managing Director/CEO, Executive Compliance Officer and Chief Compliance Officer.

A follow-up industry-wide review will begin in January 2026, and the CBN warned that sanctions will be applied to institutions that violate the rules in line with the Banks and Other Financial Institutions Act (BOFIA) 2020 and the Consumer Protection Regulations.

The apex bank reiterated its commitment to promoting fairness, transparency and responsible marketing in Nigeria’s financial system.

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The House of Representatives has summoned Central Bank of Nigeria (CBN) Governor Olayemi Cardoso and chief executives of major commercial banks to explain widespread complaints of arbitrary deductions and excessive charges levied on customers’ accounts.

The resolution followed a motion raised by Hon. Muktar Shagaya (APC, Kwara) during Tuesday’s plenary, which highlighted the growing burden of unexplained banking fees faced by millions of Nigerians.

Shagaya accused commercial banks of routinely applying multiple and unjustified charges, including SMS alert fees, card maintenance costs, interbank transfer fees, and account maintenance deductions, many of which, he argued, contravene existing CBN regulations.

“Nigerians are being short-changed through opaque and often duplicated charges. These practices not only erode trust in the banking system but also undermine efforts to deepen financial inclusion,” he said.

In response, the House mandated its Committee on Banking Regulations to convene an investigative hearing within four weeks, summoning both the CBN Governor and bank executives to account for the practices and present a plan for reform.

Lawmakers also called on the CBN to urgently publish a simplified, publicly accessible list of approved bank charges and enforce sanctions against any institution found violating those guidelines.

Additionally, the Federal Competition and Consumer Protection Commission (FCCPC) was directed to launch a nationwide awareness campaign to educate customers on their rights and mechanisms for seeking redress against exploitative banking practices.

The development comes amid growing public frustration over rising living costs, record inflation above 30 percent, and the naira’s continued depreciation, factors that have amplified scrutiny of financial institutions and regulatory oversight.

Analysts say the move signals increasing legislative pressure on regulators to tighten consumer protection measures in Nigeria’s banking sector.

The post Reps Summon CBN Governor, Bank CEOs Over Arbitrary Charges appeared first on Housing TV Africa.

This warning came during a recent stakeholder forum in Lagos. The event was titled “Boosting the Building Industry Value Chain with Standard Roofing Sheets.” Industry leaders, government officials, and building professionals attended.

Theresa Ojomo, Director of SON Lagos Office, explained that many local manufacturers and installers are ignoring the Nigerian Industrial Standards. She said roofing sheets must meet strict rules for thickness, strength, and chemical composition. Painted and stone-coated sheets are also expected to follow these guidelines.

Ojomo warned that without proper coating, roofing sheets break down quickly. Rain and weather exposure can lead to leaks, roof collapse, and chemical pollution. In some cases, these chemicals can get into water supplies.

SON recently destroyed a batch of imported roofing sheets that failed quality checks. These products did not meet the required thickness or chemical composition.

Cletus Igbojionu from the Association of Secondary Aluminium Producers of Nigeria also spoke at the forum. He said poor wooden support and climate change make the problem worse. He added that windy rain can expose weak roofing, no matter the thickness of the sheet.

To fix this, his group has started training carpenters and installers. They must now earn a MANCAP certificate from SON before working professionally.

Ifeanyi Okeke, Director-General of SON, was represented at the event by Talatu Ethan, Director of Corporate Affairs. Ethan said SON is working with industry partners to improve product quality. She noted that roofing sheets are not just materials but the final layer of protection for any building.

Ethan warned that fake products can lead to serious harm, property damage, and loss of trust in honest manufacturers. She said SON is increasing enforcement through MANCAP and SONCAP programs. The agency is also checking ports to stop the entry of substandard imports.

SON has raided illegal warehouses and started legal action against those who break the rules. Ethan stressed that strong enforcement alone is not enough. She called for full cooperation from everyone in the industry.

Finally, SON is urging manufacturers, builders, importers, and installers to follow quality standards. Any product that fails to meet the rules will be seized or destroyed.

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