Housing Operators Back Federal Government Reforms to Strengthen Buyer Protection

Property Developers Back New Housing Reforms to Improve Market Confidence

Real estate operators have welcomed the Federal Government’s proposed housing reforms, saying stronger regulation could improve buyer protection, increase transparency and strengthen confidence in Nigeria’s property market.

The developers, however, want the reform framework to include clear procedures for verifying construction progress and releasing funds held under escrow arrangements. They also called for improved access to long-term financing to ensure that stronger regulation does not constrain housing delivery.

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Developers Support Stronger Buyer Protection

Speaking at an industry forum in Abuja, Mixta Africa supported proposed licensing and escrow arrangements for property developers.

Tola Akinsulire, Chief Commercial Officer of Mixta Africa, said stronger regulatory safeguards could reduce the risks faced by property buyers and improve trust between consumers and developers.

Escrow arrangements can help protect buyers’ funds by keeping payments under controlled arrangements until developers meet agreed conditions.

However, Akinsulire stressed that the effectiveness of the system would depend on clear rules governing when and how developers can access the funds.

Construction Milestones Need Independent Verification

The developers argued that protecting buyers requires more than simply holding their funds in escrow.

Akinsulire said payments should be linked to verified construction milestones, with independent professionals confirming that agreed stages of a project have been completed before funds are released.

Such checks could provide buyers with greater assurance that their payments correspond with actual progress on a development.

Independent verification could also give regulators better visibility into project execution and help identify delays or potential problems before they become more serious.

Escrow Could Improve Confidence in Off-Plan Housing

Escrow arrangements are particularly relevant to Nigeria’s off-plan housing market, where buyers often commit substantial funds before construction reaches completion.

Under a properly structured system, buyers’ payments remain protected while developers receive access to funds as they meet predetermined project milestones.

This could reduce concerns over delayed or abandoned developments and strengthen confidence in off-plan property purchases.

For the system to work effectively, however, regulators will need to establish transparent certification procedures and clearly define the responsibilities of developers, financial institutions and independent professionals.

Developers Need Access to Long-Term Finance

While supporting greater regulation, industry operators also warned that developers need adequate financing to deliver more homes.

Leadforte Homes and Properties also backed the proposed reforms. Its Chief Executive Officer, Bamise David, identified high construction costs, limited access to long-term finance and weak land administration as major challenges facing the sector.

Developers require substantial upfront capital for land acquisition, infrastructure and construction, while lengthy project timelines can increase financing requirements.

Without access to affordable and appropriately structured finance, stricter regulation alone may not increase housing supply.

Balancing Buyer Protection With Housing Supply

The industry's response highlights a central challenge for housing policymakers: protecting consumers while maintaining the capacity of credible developers to build.

Stronger regulation can improve market confidence and reduce fraudulent practices, but excessive compliance costs or delays could make housing development more expensive.

A balanced framework would therefore need to distinguish between measures that improve accountability and requirements that unnecessarily increase development costs.

Effective regulation should protect buyers while allowing reputable developers to access capital and complete projects efficiently.

Land Administration Remains a Challenge

Industry stakeholders also identified weak land administration as an obstacle to housing development.

Difficulties with land acquisition, title verification and documentation can increase project timelines and development costs.

Improving land administration could make it easier for developers to secure sites, obtain finance and bring projects to market.

It could also strengthen buyer confidence by providing clearer information about ownership and title status.

Reforms Could Strengthen Property Market Confidence

The proposed reforms could have wider implications for Nigeria’s real estate market if implemented effectively.

A more transparent regulatory environment could encourage buyers who remain cautious about property transactions because of concerns over fraud, delayed projects and unclear ownership structures.

Greater confidence could also support investment by institutional investors and other sources of long-term capital.

For developers, a more credible market could make it easier to attract buyers and secure financing for viable projects.

Housing Delivery Requires More Than Regulation

Nigeria continues to face a substantial housing shortage, making increased supply a central priority for policymakers and the private sector.

Regulatory reforms can address important weaknesses in the property market, but they must operate alongside measures that reduce development costs and improve access to finance.

The industry therefore wants reforms to be supported by policies that improve land access, infrastructure provision, construction finance and the broader investment environment.

This would allow stronger consumer protection to operate alongside increased housing delivery.

Implications for Buyers and Investors

For property buyers, stronger licensing and escrow systems could provide additional safeguards when purchasing homes, particularly before construction is completed.

For investors, improved regulation could reduce some of the risks associated with property development and strengthen market transparency.

Developers, meanwhile, will need to adapt to stronger compliance requirements while demonstrating that projects meet approved construction and delivery milestones.

The effectiveness of the reforms will ultimately depend on consistent enforcement and the quality of the institutions responsible for implementing them.

Outlook

The backing from housing operators indicates growing industry support for reforms aimed at improving transparency and protecting property buyers. However, developers are also calling for independent construction verification and better access to long-term finance to ensure that regulation supports rather than restricts housing supply.

For Nigeria’s property market, the priority will be to create a regulatory framework that gives buyers greater confidence while preserving the financing and development capacity required to deliver more homes. If implemented effectively, stronger buyer protection, transparent escrow arrangements and improved access to finance could help strengthen trust and support a more resilient housing market.

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