The House of Representatives is pushing for the establishment of a National Real Estate Regulatory Authority to address regulatory gaps, stressing that Nigeria needs stronger legislation and a comprehensive regulatory framework to address the numerous challenges confronting Nigeria’s housing and real estate sector.
Abdulmumini Jibrin, chairman of the House Committee on Housing and Habitat, said the proposed authority would provide a coordinated regulatory framework to address institutional overlaps, improve accountability, strengthen consumer protection, and attract investment into Nigeria’s housing and real estate sector.
He made the call on Monday in Abuja at the Stakeholder Conference on the Proposed National Real Estate Regulatory Authority, themed “One Vision, One Ecosystem, One National Housing and Real Estate Plan”.
Jibrin said an assessment of the sector since he assumed office as committee chairman had revealed that Nigeria was yet to harness even a fraction of its economic potential because of regulatory deficiencies, overlapping institutional responsibilities and inadequate consumer protection.
He noted that several agencies and institutions involved in the housing sector operated outside the direct jurisdiction of the Ministry of Housing and Urban Development, creating gaps and duplication of responsibilities.
“There are enormous challenges. We have a wonderful Minister of Housing. But as the Minister of Housing of the Federal Republic of Nigeria, he does not have jurisdiction over all the agencies and institutions that have to do with housing. There is a link; there is a gap. So, there is duplication of functions,” he said.
The lawmaker said regulation was also necessary to address unethical practices by some property developers and protect prospective homeowners from fraudulent transactions.
He explained that some Nigerians committed themselves to housing projects they could not afford, while others failed to understand how inflation, changing government policies and other economic realities could affect developers’ ability to deliver projects as initially agreed.
Jibrin said the proposed framework would establish clear responsibilities for developers and consumers, provide effective dispute resolution mechanisms and ensure that operators complied with defined standards.
He argued that unlike the oil and gas, power and telecommunications sectors, Nigeria’s real estate industry had continued to operate with significant regulatory loopholes, allowing individuals to collect money from prospective buyers without adequate scrutiny of their credentials or capacity to deliver.
He, however, clarified that the proposed authority would not take over the constitutional responsibilities of state governments or the statutory functions of existing professional bodies and government agencies.
“The bill to create the National Housing Regulatory Authority is not going to take over the powers of any state government. We are not going to compete. We are only going to cooperate. And for professional bodies, nobody is taking away your responsibility. It will be protected,” he said.
Muttaqha Darma, Minister of Housing and Urban Development, expressed the Federal Government’s support for the proposed authority, saying it could improve coordination in housing development, real estate investment and mortgage financing.
Darma disclosed that a previous stakeholder engagement organised by the ministry in July examined Nigeria’s housing deficit, with estimates indicating a shortfall of more than 15 million housing units.
He also highlighted the country’s low mortgage penetration, despite its estimated population of 240 million, saying access to mortgage financing remained limited compared with other countries.
“Our population, as of today, is estimated to be about 240 million. But, as speakers after speakers mentioned, mortgage penetration is very low. It is less than 10 per cent, as against 38 per cent in Malaysia and 40 per cent in South Korea,” he said.
The minister noted that although Nigeria had the Federal Mortgage Bank and other mortgage institutions, the volume of mortgages accessed annually remained inadequate to meet the country’s housing needs.
He urged stakeholders to consider placing the proposed authority within the Ministry of Housing and Urban Development to ensure coordination with existing government policies.
Darma also called for alignment between the proposed regulator, the National Housing Finance Authority and the federal government’s mortgage policy, which is awaiting presidential consideration.
Meanwhile, Armstrong Ume Takang, managing director and chief executive officer of the Ministry of Finance Incorporated, said the Presidency and the Federal Government were willing to give the proposed legislation fair and thorough consideration.
Takang urged stakeholders to ensure that the new authority complemented existing institutions without discouraging private investment or increasing government recurrent expenditure.
Also speaking, Abbas Tajudeen, Speaker of the House of Representatives, called for a centralised and digitised real estate administrative system to simplify property transactions and strengthen confidence in Nigeria’s property market.
He said a reliable digital system linking property ownership records with the identities of owners, buyers and sellers would help address fraud, multiple ownership claims and disputes associated with land transactions.
“Nigeria does not lack property. Nigeria lacks enough trust in property,” Abbas said.
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