HDAN Calls for Regulatory Framework for Real Estate Developers, Agents in Nigeria
Weak Oversight in Real Estate Raises Risks, HDAN Demands Policy Action
The Housing Development Advocacy Network (HDAN) has called on the Federal Government to establish a comprehensive regulatory framework for real estate developers and agents in Nigeria. The appeal, made on May 1, 2026, highlights growing concerns over weak oversight, rising malpractice, and declining investor confidence in the property market.
/ You Might Also Like /
Weak Oversight Undermining Market Confidence
HDAN stated that the absence of a structured regulatory system has allowed unethical practices to persist across the real estate value chain. According to the organisation, issues such as project abandonment, misleading property marketing, and exploitation of buyers have become widespread.
The group emphasised that these gaps have eroded trust among both domestic and diaspora investors, many of whom rely on intermediaries for property transactions. Without enforceable standards, the sector continues to operate with limited accountability, increasing risks for participants.
Call for Legal and Institutional Reforms
In its recommendation, HDAN urged the Ministry of Housing to collaborate with the National Assembly and relevant agencies to develop a formal legal and institutional framework. The proposed system would introduce clear rules governing developers, agents, and property marketers, ensuring professionalism and compliance across the industry.
The group noted that effective regulation would enforce project delivery timelines, reduce fraud, and protect subscribers from arbitrary charges and contract violations. It would also establish minimum standards for entry and operations within the sector, improving overall service quality.
Structural Gaps in Nigeria’s Property Market
Nigeria’s real estate sector remains largely fragmented, with many operators functioning outside formal regulatory structures. Unlike certified professionals such as estate surveyors, a significant portion of developers and agents operate without standardised oversight.
This regulatory gap has led to recurring challenges, including delayed housing delivery, failed land allocations, and inflated transaction costs. In some cases, tenants and buyers pay fees that exceed legal limits due to weak enforcement mechanisms.
Broader Housing Reform Agenda
Beyond regulation, HDAN outlined a wider set of reforms aimed at improving housing delivery and affordability. These include accelerating the completion of ongoing government housing projects, expanding public-private partnerships, and reforming land administration systems.
The organisation also stressed the importance of promoting local building materials, strengthening housing institutions, and developing technical skills within the sector. Improved coordination among agencies such as the Federal Housing Authority and the Federal Mortgage Bank of Nigeria was identified as critical to achieving scale and efficiency.
Implications for Investment and Housing Supply
The absence of effective regulation has had direct implications for investment flows into Nigeria’s housing market. Persistent reports of financial losses, delayed allocations, and shifting project terms have discouraged participation, particularly among diaspora investors.
Stronger oversight could enhance transparency, reduce transaction risks, and attract long-term capital into the sector. For policymakers, establishing a credible regulatory environment remains essential to addressing Nigeria’s housing deficit and unlocking the economic potential of real estate.
Outlook
HDAN’s call underscores the urgent need for structural reforms in Nigeria’s property market. As housing demand continues to outpace supply, the effectiveness of regulatory interventions will play a decisive role in shaping investor confidence and sector growth.
A well-defined framework that prioritises accountability, transparency, and enforcement could reposition the real estate sector as a stable driver of economic development and urban expansion.
READ MORE
