The Federal Government on Monday assured Nigerians of concerted efforts to address the structural and institutional challenges confronting the country’s housing sector.
The Minister of Housing and Urban Development, Dr Muttapha Rabe Darma, gave the assurance while addressing participants at the Stakeholder Conference on the Proposed National Real Estate Regulatory Authority (NRERA), themed ‘One Vision, One Ecosystem, One National Housing and Real Estate Plan.’
The minister disclosed that the ministry had organised a similar stakeholder engagement in July, during which issues surrounding Nigeria’s housing deficit were examined and validated, with estimates indicating a deficit of over 15 million housing units.
He noted that, despite Nigeria’s estimated population of about 240 million people, access to mortgage financing remained significantly low compared with other countries, limiting the ability of many Nigerians to acquire decent and affordable homes.
‘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.
Darma observed that, although Nigeria had the Federal Mortgage Bank and several other mortgage institutions, the volume of mortgages being accessed annually remained inadequate to meet the country’s housing needs.
He also recalled that the built environment and real estate sector had been identified as the third-largest contributor to the Nigerian economy, stressing the need to create an enabling environment for the sector to perform more effectively.
The minister expressed the ministry’s full support for the objectives of the conference and the establishment of the proposed regulatory authority, noting that the initiative could provide a more coordinated approach to housing development, real estate investment and mortgage financing.
He, however, urged stakeholders to consider situating the proposed authority within the Ministry of Housing and Urban Development to ensure effective coordination and alignment with the government’s existing housing policies.
According to him, several countries, including Singapore, Dubai, Malaysia, the United Kingdom and Rwanda, have established similar regulatory institutions within ministries responsible for housing and the built environment.
He further advocated a coordinated relationship between the proposed authority, the National Housing Finance Authority and the mortgage policy currently being developed by the Federal Government and awaiting presidential consideration.
Speaking, the Chairman of the House of Representatives Committee on Housing and Habitat, Hon. Abdulmumini Jibrin, called for stronger legislation and a comprehensive regulatory framework to address the numerous challenges confronting Nigeria’s housing and real estate sector.
Hon. Jibrin said an effective regulatory framework would help unlock the enormous potential of the housing sector, promote transparency and accountability, attract investment, protect homebuyers and ultimately improve access to affordable housing for Nigerians.
The lawmaker explained that, since assuming office as Chairman of the committee, he had undertaken an extensive assessment of the housing sector, examining its challenges, opportunities and potential contributions to national economic development.
According to him, the findings revealed that Nigeria was yet to harness even a fraction of the opportunities available in the sector, due largely to regulatory gaps, overlapping responsibilities among government institutions, inadequate consumer protection and the absence of a coordinated national framework.
He observed that, although the Minister of Housing and Urban Development was responsible for driving government policies in the sector, several agencies and institutions operating within the housing ecosystem fell outside the ministry’s direct jurisdiction, creating institutional gaps and duplication of functions.
‘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.
Hon. Jibrin stressed that the challenges in the real estate sector went beyond the activities of property developers, noting that, while unethical practices among some developers remained a concern, consumers also needed adequate protection, information and financial awareness before entering into property transactions.
He explained that some prospective homeowners commit themselves to housing projects they cannot afford, while others fail to appreciate the economic realities, government policy changes and inflationary pressures that could affect developers’ ability to deliver projects as initially agreed.
The committee chairman maintained that a properly regulated sector must establish clear responsibilities for developers and consumers, provide effective mechanisms for dispute resolution and ensure that all stakeholders operate within clearly defined standards.
He further described the housing sector as one of the major contributors to Nigeria’s Gross Domestic Product (GDP), with the capacity to significantly increase its contribution if its enormous opportunities were properly harnessed.
Hon. Jibrin argued that, unlike other major sectors of the economy, including oil and gas, power and telecommunications, the real estate industry had operated with significant regulatory loopholes, allowing individuals to venture into property development without adequate scrutiny or accountability.
He noted that individuals could simply present property brochures to unsuspecting Nigerians and collect money without the necessary institutional oversight to verify their credentials, business operations or capacity to deliver.
According to him, the proposed legislation seeks to address this missing link by establishing a national regulatory framework that will strengthen existing institutions rather than undermine their statutory responsibilities.
He was also quick to allay concerns that the proposed National Real Estate Regulatory Authority would encroach on the constitutional responsibilities of state governments or take over the functions of 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 not merely be viewed as another regulatory institution but as a strategic intervention designed to unlock the housing sector’s full economic potential by addressing longstanding institutional and regulatory deficiencies.
In his remarks, the Managing Director and Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr Armstrong Ume Takang, commended the House of Representatives for sustaining collaboration with the Executive to address challenges in the housing and real estate sector.
Takang expressed the readiness of the Presidency and the Federal Government to give the proposed legislation a fair and thorough consideration, particularly in addressing critical issues surrounding the country’s existing legal and institutional framework.
He identified the relationship between the proposed legislation and the Land Use Act as one of the important issues requiring careful examination, alongside the regulation of professional practices and the need to prevent excessive regulation that could discourage private-sector investment.
He also challenged stakeholders to develop a regulatory structure that would complement existing government institutions without unnecessarily expanding the government’s 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 queried.
He assured participants that the government was willing to partner with stakeholders to develop a stronger, more transparent and sustainable housing and real estate sector capable of attracting investment and delivering greater economic benefits.
In his keynote address, the Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, called for a centralised and digitised real estate administrative system to simplify property transactions, strengthen public confidence and make Nigeria’s housing market more attractive to local and international investors.
The Speaker emphasised the need to establish a reliable digital linkage between property ownership records and the identities of property owners, as well as between buyers and sellers, to address issues of fraud, multiple ownership claims and disputes associated with land and property transactions.
In his address titled ‘Building a Trusted and Investable Nigerian Real Estate Market,’ Abbas observed that Nigeria’s housing challenge was not necessarily a shortage of properties but a lack of sufficient trust in the real estate market.
‘Nigeria does not lack property. Nigeria lacks enough trust in property,’ he said.
He maintained that effective regulation should not be perceived as an obstacle to legitimate businesses but as a necessary safeguard against fraudulent practices, unfair competition and exploitation of unsuspecting investors and homebuyers.
According to the Speaker, good regulation protects responsible businesses, strengthens confidence in the market and creates the institutional credibility required to attract long-term investment into the housing sector.
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 undermine the growth and development of Nigeria’s housing market.