Darma Calls for Stronger Housing Regulation to Protect Homebuyers and Boost Investor Confidence
Darma Seeks Robust Regulatory Framework for Nigeria's Built Environment
Nigeria's Minister of Housing and Urban Development, Professor Muttaqha Rabe Darma, has renewed calls for a comprehensive regulatory framework to transform the country's housing sector, describing stronger oversight as essential to protecting homebuyers, restoring investor confidence and improving transparency across the real estate market.
Speaking at the BusinessDay Abuja Real Estate Conference 2026, Darma said Nigeria's housing sector has grown into one of the country's largest contributors to economic activity, yet continues to face structural challenges arising from weak regulation, unlicensed developers and inadequate consumer protection. He stressed that the Federal Ministry of Housing and Urban Development is developing reforms to create a more accountable and investment-friendly housing market.
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Weak regulation undermines confidence
Darma noted that many Nigerians continue to lose their life savings through transactions with unlicensed property developers, particularly in off-plan housing schemes where buyers often lack adequate legal and financial safeguards.
According to the minister, despite the real estate sector contributing approximately 13.36 per cent of Nigeria's Gross Domestic Product (GDP), the absence of a comprehensive regulatory framework continues to discourage investment and weaken public confidence in the industry.
He argued that creating a transparent regulatory environment is essential for attracting long-term domestic and international investment while protecting consumers from fraudulent practices.
National housing regulation policy takes shape
To address these challenges, Darma disclosed that the ministry is finalising a National Housing and Built Environment Regulation Policy (NHBERP) that will establish minimum standards for the housing industry and improve oversight across the sector.
The proposed policy is expected to introduce:
Mandatory licensing for property developers.
Escrow protection for buyers' funds in off-plan housing transactions.
Construction quality assurance mechanisms.
Professional registration requirements.
A National Housing Industry Data Observatory (NHIDO) to improve transparency and support evidence-based policymaking.
Under the proposed reforms, developers would no longer be permitted to market or sell off-plan housing projects without obtaining the required licences and securing buyers' payments in regulated escrow accounts. The measures aim to reduce fraud, improve accountability and align Nigeria's housing market with international best practices.
Stakeholders invited to shape reforms
The minister called on developers, financial institutions, professional bodies, investors, tenant associations and other stakeholders to participate in consultations on the proposed regulatory framework.
He said broad stakeholder engagement would help ensure the reforms address industry challenges while supporting sustainable housing delivery and encouraging responsible private sector investment.
Darma emphasised that a predictable and transparent regulatory environment would improve confidence across the housing value chain, making projects more bankable and strengthening access to long-term finance.
Implications for Nigeria's housing market
For investors and developers, the proposed reforms could reduce regulatory uncertainty and create clearer operating standards. Improved consumer protection may also encourage greater participation in formal housing finance, particularly for off-plan developments, where concerns over project delivery and fund security have discouraged many prospective buyers.
The planned regulatory framework complements the Federal Government's wider housing reform agenda, which includes expanding mortgage access, strengthening the Federal Mortgage Bank of Nigeria, reviewing the National Building Code and improving land administration to support affordable housing delivery.
Outlook
If successfully implemented, the proposed housing regulation policy could mark one of the most significant governance reforms in Nigeria's real estate sector in recent years. By strengthening oversight, protecting homebuyers and improving market transparency, the framework has the potential to increase investor confidence, encourage formal investment and support the delivery of safer, more accountable and sustainable housing across the country.
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