Policymakers and real estate industry stakeholders are calling for a coordinated regulatory framework to protect property buyers
Nigeria's real estate sector could face a major regulatory overhaul as lawmakers and industry stakeholders push for the establishment of a National Real Estate Regulatory Authority (NRERA) to strengthen consumer protection, tackle property fraud and improve investor confidence.
The proposed authority was the focus of a stakeholders' conference organised by the Office of the Speaker of the House of Representatives and the House Committee on Housing and Habitat in Abuja on 2 November 2026.
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The conference, themed "One Vision, One Ecosystem, One National Housing and Real Estate Plan", brought together government officials, property developers, financial institutions, regulators and professional bodies to discuss a coordinated framework for the country's housing and real estate industry.
Speaker of the House of Representatives, Tajudeen Abbas, said Nigeria's property market faced a fundamental trust problem, with buyers often struggling to verify land ownership, development approvals and the credibility of developers before committing their money.
He noted that some prospective homeowners had invested their savings in developments that were subsequently abandoned, sold to multiple buyers or found to lack the necessary approvals.
Abbas argued that effective regulation should protect property buyers and legitimate businesses while creating a more transparent environment for investment.
Proposed Authority to Introduce National Register of Developers and Projects
One of the central proposals discussed at the conference was the creation of a verifiable national register of licensed real estate developers, agents and registered projects.
The proposed system would allow prospective buyers and investors to check the identities of property operators, their licences, project approvals and compliance records before making financial commitments.
Such a register could help address the information gap that exposes buyers to fraudulent operators and makes it difficult to distinguish credible developers from individuals operating without the necessary qualifications or approvals.
Abbas also called for a property verification portal and a complaints management platform to improve access to information and provide clearer channels for resolving disputes.
The proposed framework is expected to strengthen coordination among government institutions and professional bodies involved in land administration, housing delivery and property transactions.
However, the proposed authority is not yet established. Its responsibilities and enforcement powers will depend on the final legislation.
Off-Plan Buyers Could Receive Stronger Financial Protection
The proposed reforms also place emphasis on protecting buyers who pay for properties before construction is completed.
Abbas advocated protected project accounts for qualifying off-plan developments, with developers allowed to access funds according to independently verified construction milestones.
Under such an arrangement, payments made by prospective homeowners would be protected from unrestricted use before agreed development stages are achieved.
The proposal seeks to reduce the risk of developers collecting money from buyers without completing projects or using funds for purposes unrelated to the developments.
The Real Estate Developers Association of Nigeria (REDAN) also backed the proposed regulatory framework, identifying consumer protection as a major requirement for restoring confidence in the property market.
REDAN President, Oba Akintoye Adeoye, said mandatory escrow arrangements could help ensure that buyers' funds are released to developers as construction milestones are met.
He also highlighted the need for reliable industry data, professional training and certification to improve accountability among developers.
For Nigeria's off-plan housing market, the proposals could introduce clearer expectations around payment protection, project delivery and developer responsibilities if incorporated into enforceable legislation.
Digital Property Records Proposed to Tackle Land Fraud
The conference also examined the role of digital property administration in reducing ownership disputes and improving transaction transparency.
Abbas called for a centralised and digitised system connecting land registries, survey records, registered ownership and planning approvals across relevant institutions.
The proposed system would make it easier to verify property ownership and establish links between buyers, sellers and the assets involved in transactions.
This could help address problems such as multiple claims over the same property, fraudulent land sales and disputes arising from incomplete ownership documentation.
The proposal is particularly relevant to Nigeria's property market, where fragmented land administration and lengthy title-registration processes can increase transaction costs and discourage investment.
However, implementing a nationwide verification system would require cooperation with state governments, which retain important constitutional responsibilities for land administration.
The Speaker therefore stressed that the proposed authority should coordinate existing institutions rather than take over their statutory responsibilities.
Housing Minister Calls for Stronger Coordination Among Government Agencies
Minister of Housing and Urban Development, Muttaqha Rabe Darma, expressed support for the proposed authority, saying it could improve coordination across housing delivery, real estate investment and mortgage financing.
He called for the authority to operate under the supervision of the Federal Ministry of Housing and Urban Development to ensure alignment with existing national housing policies.
Darma also emphasised the need for stronger collaboration among institutions including the Federal Mortgage Bank of Nigeria (FMBN), Ministry of Finance Incorporated (MOFI), Family Homes Funds Limited (FHFL) and Federal Housing Authority (FHA).
He argued that fragmented operations among government institutions could weaken housing delivery and limit the effectiveness of government interventions.
The minister also highlighted Nigeria's low mortgage penetration, which he put at below 10 per cent, compared with 38 per cent in Malaysia and 40 per cent in South Korea.
He called for the proposed authority to work alongside the National Housing Finance Authority and the Federal Government's developing mortgage policy.
MOFI Raises Concerns Over Overregulation and Institutional Costs
While stakeholders supported stronger oversight, the Managing Director of MOFI, Armstrong Ume Takang, urged lawmakers to ensure that the proposed authority complements existing institutions without creating unnecessary bureaucracy.
He identified the relationship between the proposed legislation and the Land Use Act as an important issue requiring careful consideration.
Takang also raised questions about how the authority would regulate professional practices, avoid excessive compliance requirements and operate without significantly increasing government recurrent expenditure.
His concerns highlight the need to define the proposed regulator's responsibilities clearly, particularly where existing government agencies, professional bodies and state institutions already exercise regulatory powers.
The Economic and Financial Crimes Commission (EFCC) also expressed readiness to support the proposed framework and strengthen enforcement against fraudulent practices in the real estate sector.
REDAN, meanwhile, said it would support professional training and certification to improve standards among developers and promote accountability.
What the Proposed Regulation Could Mean for Property Investors and Developers
The proposed regulatory framework could change how property developers, agents and investors operate in Nigeria if lawmakers translate the recommendations into effective legislation.
For prospective homeowners, a national register of developers and projects could make it easier to verify operators before paying for land or housing. Protected project accounts could also reduce the financial risks associated with off-plan purchases.
For developers, clearer licensing requirements, transaction standards and compliance procedures could improve market credibility and make it easier for legitimate businesses to distinguish themselves from fraudulent operators.
Institutional investors could also benefit from more reliable property information, stronger consumer safeguards and clearer rules governing real estate transactions.
However, the framework's effectiveness will depend on how lawmakers address the relationship between federal and state responsibilities, existing professional regulators and the proposed authority.
It will also require practical enforcement mechanisms, reliable digital records and accessible dispute-resolution channels.
The conference represents a step towards developing a more coordinated regulatory framework, but the proposed authority must still pass through the legislative process before it can exercise statutory powers.
For Nigeria's housing market, the central test will be whether the reforms can translate into safer property transactions, more accountable developers and greater confidence among buyers and investors.
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