Real estate: Tajudeen seeks regulatory framework to protect investors, consumers

Speaker of House of Representatives, Rep. Abbas Tajudeen, has underscored the need for a proper regulatory framework in the real estate sector to protect consumers and boost investment.

Tajudeen ​‌‌‍​‍⁠⁠‍‌‍⁠‍‍‍‌⁠‌​stated this at a stakeholders’ conference on the proposed National Real Estate Regulatory Authority (NRERA) in Abuja on Monday.

It was reported that the theme for the conference was: ‘One Vision, One Ecosystem, One National Housing and Real Estate Plan.”

According to him, Nigeria does not lack property but enough trust in property, as a buyer can not easily confirm who owns the landed property.

He noted that a developer might spend years seeking approvals from offices that did not share information, while a bank might reject a sound project because of difficulty in verification.

The speaker said that a family might commit its savings to buying a house that had been sold twice, never completed or never legally existed as regulatory failures increase housing costs, discourage investment and reward fraud.

“We are not here to create another agency. We are here to protect property, protect capital and protect citizens.

“We are here to build a trusted market that attracts investment and delivers more affordable homes.

“Our first task is to treat real estate regulation as an instrument for protecting assets.

“For most families, a home is their largest investment. Developers commit substantial capital. Banks and pension funds need property assets they can trust.

“Regulation must reduce these risks. The proposed National Real Estate Regulatory Authority should maintain a verifiable register of regulated developers, agents and projects.

“Buyers should be able to confirm an operator’s identity, licence, project approvals and compliance history before making payment.

“For qualifying off-plan developments, buyers’ funds should enter protected accounts and withdrawals should follow verified construction milestones,” he said.

Tajudeen said that a serious developer should not face endless approvals or rules that change without notice.

According to him, regulation must provide predictable timelines, transparent fees and a clear appeal process, adding that it should not be a burden on honest business but protection from dishonest competition.

“We must also modernise title verification. Nigeria should develop Decentralised Identity Verification for Land Titles. This means connecting trusted records, not creating another isolated database.

“A secure digital identity should link each property to its state registry, survey, registered owner, planning status and encumbrances.

“States would retain authority while common standards make verification possible across institutions,” he said.

Earlier, the Chairman, House Committee on Housing and Habitat, Rep. Abdulmumin Jibrin (APC-Kano), said that the committee had embarked on a research and identified regulatory gaps in the sector.

According to him, the housing sector is the largest contributor to Nigeria’s Gross Domestic Product (GDP) which can be doubled if the potentials are activated.

Jibrin said that there were issues of sharp practices, regulatory gaps and duplication of functions that needed to be addressed to enable Nigeria activate its potential in the housing sector.

“It is only in Nigeria that someone just wakes up one day and becomes a developer or an agent; he prints brochures and begins to distribute to citizens to collect money and no one is asking questions or checking.

“The ministry cannot stop him; no agency has the power to stop such practices; there is a gap. We also have the issue of the sub-nationals, hence the need to create the National Real Estate Regulatory Authority,” he said.

On his part, the Senior Special Adviser to the President on National Assembly Matters (House of Representatives), Dr Smart Olanrewaju, commended the relationship between the legislature and the executive arm of government.

Olanrewaju expressed the president’s readiness to give a fair review of the proposed legislation that seeks to establish a regulatory agency for the real estate sector.

He urged participants to examine and ensure it aligns with the Constitution and Land Use Act, as well as ensure it fits into government in a way that does not expand government expenditure.

He assured of government’s readiness to partner with stakeholders in the sector to promote a stronger housing and real estate sector.