Reported by Weng Patrick Atokor | Journalist at Weng Global
Nigeria’s real estate industry has renewed its call for stronger regulation of property developers, warning that the proliferation of unregistered operators is fueling fraud, substandard construction, and the growing number of building collapses across the country.
The warning comes amid increasing concerns over the safety of residential and commercial buildings, as well as the financial losses suffered by thousands of Nigerians who have fallen victim to fraudulent property schemes.
Industry stakeholders argue that while the real estate sector remains one of Nigeria’s fastest-growing industries, its rapid expansion has also attracted unscrupulous developers who operate outside professional standards and regulatory oversight.
According to the association, the absence of a comprehensive regulatory framework has allowed many individuals and companies to present themselves as legitimate developers without possessing the technical expertise, financial capacity, or professional qualifications required to execute safe housing projects.
Rising Cases of Fraud
Property fraud has become one of the biggest challenges facing Nigeria’s housing sector.
Across major cities such as Lagos, Abuja, Port Harcourt, Ibadan, and Kano, numerous buyers have reported paying for homes that were never completed or purchasing land sold to multiple individuals.
Others have invested millions of naira in estates that exist only on paper, while some developers abandon projects after collecting payments from subscribers.
The association noted that these practices continue to damage public confidence in the real estate market and discourage genuine investment.
Industry experts say many victims are attracted by unusually low prices and unrealistic promises of quick delivery, only to discover later that the projects lack proper approvals or legal documentation.
Building Collapses Raise Alarm
Beyond financial fraud, stakeholders expressed concern over the increasing incidence of building collapses, which have claimed lives and destroyed valuable property in different parts of Nigeria.
Investigations into several collapsed buildings have frequently identified poor construction practices, the use of inferior materials, disregard for approved building plans, and inadequate supervision as contributing factors.
Experts say many unregulated developers cut costs by employing unqualified artisans instead of licensed engineers, architects, quantity surveyors, and builders.
Such practices, they argue, significantly increase structural risks and endanger occupants.
The association stressed that every building project should involve certified professionals from planning to completion to ensure compliance with engineering and safety standards.
Need for Stronger Regulation
To address these challenges, the association is advocating a stronger legal and regulatory framework that would require every real estate developer operating in Nigeria to be properly registered and licensed.
Under such a framework, developers would be expected to meet minimum professional, technical, and financial requirements before undertaking housing projects.
The proposed measures would also establish mechanisms for monitoring compliance, investigating complaints, and imposing sanctions on erring developers.
Stakeholders believe this would help eliminate fraudulent operators while promoting professionalism within the industry.
According to the association, stronger regulation would not only protect homebuyers but also improve investor confidence and attract greater domestic and foreign investment into Nigeria’s housing sector.
Protecting Consumers
Consumer protection remains at the heart of the proposed reforms.
The association urged prospective homebuyers and property investors to conduct extensive due diligence before committing funds to any development project.
Experts recommend verifying land titles, building approvals, environmental permits, company registration status, and the developer’s track record before making payments.
They also advised buyers to engage qualified lawyers, estate surveyors, and other professionals to review contracts and documentation.
Avoiding cash transactions without proper receipts and insisting on legally binding agreements can further reduce the risk of fraud.
Industry professionals say informed consumers are less likely to become victims of fraudulent schemes.
Professional Standards Matter
The association emphasized that professionalism is essential to restoring trust in Nigeria’s real estate sector.
Registered developers are generally expected to comply with building regulations, environmental guidelines, quality assurance standards, and ethical business practices.
Professional associations also enforce disciplinary measures against members who violate established codes of conduct.
In contrast, unregulated developers often operate without accountability, making it difficult for victims to obtain compensation when projects fail or disputes arise.
Stakeholders believe encouraging professional certification across the sector will improve construction quality and reduce incidents of structural failure.
Government’s Role
The association called on federal, state, and local governments to strengthen enforcement of existing building regulations while introducing reforms to close regulatory gaps.
It also urged planning authorities to intensify inspections of construction sites and ensure compliance with approved building designs.
Experts say digital approval systems, transparent land administration processes, and coordinated oversight among relevant government agencies could significantly reduce illegal developments.
They further advocated stricter penalties for developers found guilty of violating safety regulations or engaging in fraudulent property transactions.
According to the association, consistent enforcementโnot merely the existence of lawsโis necessary to improve accountability within the industry.
Housing Demand Continues to Grow
Nigeria’s housing deficit remains one of the largest in Africa, creating enormous demand for affordable residential developments.
As urban populations continue to expand, the pressure to deliver housing has increased significantly.
Industry observers note that while this presents substantial business opportunities for legitimate developers, it also creates room for fraudulent operators seeking to exploit desperate homebuyers.
Experts argue that sustainable growth in the sector depends on balancing increased housing supply with effective regulation, professional standards, and consumer protection.
Without these safeguards, the country’s housing challenges may continue to be compounded by unsafe construction and financial scams.
Industry Seeks Lasting Reform
Stakeholders insist that comprehensive reforms are essential to reposition Nigeria’s real estate industry as a transparent, accountable, and globally competitive sector.
They argue that regulating developers, strengthening professional oversight, and enforcing construction standards would help reduce fraud, prevent avoidable building collapses, and restore public confidence.
The association maintained that collaboration between government agencies, professional bodies, financial institutions, and developers will be critical to achieving lasting improvements.
For prospective homeowners, the message is clear: verify every transaction, engage qualified professionals, and avoid dealing with developers whose credentials cannot be independently confirmed.
As Nigeria continues to invest in urban development and infrastructure, industry leaders believe stronger regulation will play a vital role in ensuring that housing projects are safe, transparent, and capable of meeting the expectations of millions of citizens.
Sources: Nigerian Institution of Estate Surveyors and Valuers (NIESV); Council of Registered Builders of Nigeria (CORBON); Nigerian Society of Engineers (NSE); Federal Ministry of Housing and Urban Development.
