…Abbas want a centralised, digitised real estate administrative system
…Jibrin identifies regulatory gaps, overlapping functions as major obstacles to sector growth 
…minister put housing deficit at over 15 million units, laments low mortgage penetration
By Gloria Ikibah
The House of Representatives has called for a centralised and digitised real estate administrative system to simplify property transactions, strengthen public confidence and attract local and international investors.
Speaker of the House of Representatives, Rt. Hon. Tajudeen Abbas, made the call on Monday in Abuja at a Stakeholder Conference on the Proposed National Real Estate Regulatory Authority (NRERA), organised by the House Committee on Housing and Habitat, themed, “One Vision, One Ecosystem, One National Housing and Real Estate Plan”.
Delivering the keynote address on the topic, “Building a Trusted and Investable Nigerian Real Estate Market,” Abbas said Nigeria’s housing challenge was not necessarily a shortage of properties but a lack of confidence in the real estate market.
“Nigeria does not lack property. Nigeria lacks enough trust in property,” he said.
The Speaker called for a reliable digital system linking property ownership records with the identities of owners, as well as buyers and sellers, to address fraud, multiple ownership claims and disputes associated with land and property transactions.
He maintained that effective regulation should not be viewed as an obstacle to legitimate businesses but as a safeguard against fraudulent practices, unfair competition and the exploitation of unsuspecting investors and homebuyers.
According to him, good regulation protects responsible businesses, builds market confidence and provides the institutional credibility needed to attract long-term investment.
The proposed National Real Estate Regulatory Authority is expected to provide a coordinated regulatory framework for the sector, strengthen consumer protection, promote professional standards and address institutional gaps that have continued to hinder the growth of Nigeria’s housing market.
Earlier in his address, the Chairman House Committee on Housing and Habitat, Rep. Abdulmumini Jibrin, said there was need for stronger legislation and a comprehensive regulatory framework to address longstanding challenges in Nigeria’s housing and real estate sector, saying the absence of effective regulation is limiting investment, consumer protection and access to affordable homes.
Jibrin said Nigeria had yet to harness a fraction of the opportunities available in the housing sector because of regulatory gaps, overlapping institutional responsibilities, inadequate consumer protection and the absence of a coordinated national framework.
He explained that his committee had undertaken an extensive assessment of the sector since assuming office, examining its challenges, opportunities and potential contribution to national economic development.
According to him, one of the major problems is that the Minister of Housing and Urban Development does not exercise direct jurisdiction over all the agencies and institutions operating within the housing ecosystem, resulting in institutional 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 Chairman emphasised that the challenges confronting the real estate sector went beyond the activities of property developers, arguing that prospective homeowners also needed adequate protection, information and financial awareness before committing to property transactions.
He noted that some Nigerians enter into housing arrangements without properly assessing their financial capacity, while others fail to understand how inflation, changing government policies and prevailing economic conditions could affect developers’ ability to deliver projects.
Jibrin said a properly regulated sector must clearly define the responsibilities of developers and consumers, establish effective dispute resolution mechanisms and ensure that all operators comply with recognised standards.
He described real estate as a major contributor to Nigeria’s Gross Domestic Product, arguing that its contribution could increase significantly if the sector’s potential was properly harnessed.
He observed that unlike oil and gas, power and telecommunications, the real estate industry had continued to operate with considerable regulatory loopholes, allowing individuals to collect money from unsuspecting Nigerians without adequate verification of their credentials or capacity to deliver housing projects.
The proposed legislation, he said, was designed to address these shortcomings by establishing a national regulatory framework that would strengthen existing institutions without taking over their statutory responsibilities.
Jibrin also dismissed concerns that the proposed authority would encroach on the constitutional powers of state governments or undermine established professional bodies.
“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.
“For government agencies, it will strengthen you and ensure that every government agency is empowered to perform its statutory role according to its Act,” he stated.
He added that the proposed authority should be seen as a strategic intervention to address institutional weaknesses and unlock the economic potential of Nigeria’s housing and real estate market.
In his remarks, the Minister of Housing and Urban Development, Dr Muttaqha Rabe Darma, said the Federal Government was intensifying efforts to address the structural and institutional challenges affecting the housing sector.
Darma disclosed that the Ministry had organised a similar stakeholder engagement in July, during which issues surrounding the country’s housing deficit were examined and validated, with estimates indicating a shortfall of more than 15 million housing units.
He expressed concern that despite Nigeria’s estimated population of about 240 million, access to mortgage financing remained significantly lower than in several 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 number of mortgages accessed annually remained inadequate to meet the country’s housing needs.
He recalled that the built environment and real estate sector had been identified as the third-largest contributor to the Nigerian economy, stressing the need for policies that would enable it to perform more effectively.
Darma expressed the Ministry’s support for the proposed regulatory authority, saying it could provide a coordinated approach to housing development, real estate investment and mortgage financing.
However, he urged stakeholders to consider placing the proposed authority under the Ministry of Housing and Urban Development to ensure proper coordination and alignment with existing government policies.
He cited Singapore, Dubai, Malaysia, the United Kingdom and Rwanda as examples of jurisdictions with similar regulatory institutions operating within ministries responsible for housing and the built environment.
The Minister also called for effective coordination between the proposed authority, the National Housing Finance Authority and the Federal Government’s mortgage policy, which is being developed and awaiting presidential consideration.
Also speaking, the Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Ume Takang, commended the House of Representatives for working with the Executive to address challenges in the housing and real estate sector.
Takang assured stakeholders that the Presidency and the Federal Government would give the proposed legislation fair and thorough consideration, particularly its implications for the existing legal and institutional framework.
He identified the relationship between the proposed legislation and the Land Use Act as one of the critical issues requiring careful examination.
He also urged stakeholders to consider how professional practices would be regulated without imposing excessive restrictions capable of discouraging private sector investment.
Takang further warned against creating another government agency in a manner that would unnecessarily increase recurrent expenditure.
“To what extent are we going to address the regulation of practice in this sector? To what extent are we also going to ensure that the sector is not overregulated?
“And how do we create this new agency and fit it into the existing structure of government in a way that we do not expand the recurrent expenditure framework of government?”, he asked.
He assured participants of the Federal Government’s readiness to work with stakeholders towards building a transparent and sustainable housing market capable of attracting investment and generating greater economic benefits.
