Pan African real estate developer Mixta Africa has welcomed the Federal Government’s proposed reforms to strengthen regulation and buyer protection in Nigeria’s housing sector, while calling for clear mechanisms for independent verification of construction milestones and improved access to sustainable construction finance.
The company said the success of the proposed framework would depend largely on how two critical issues are addressed: who independently verifies construction milestones before funds are released from escrow, and how credible developers will finance projects when access to buyers’ funds becomes more restricted.
The proposed National Housing and Built Environment Regulation Policy provides for mandatory licensing of developers and estate agents, escrow protection for buyers’ funds, stronger professional standards, construction quality assurance, improved land administration, urban renewal and the establishment of a National Housing Data Observatory.
The policy also proposes the creation of a National Housing Industry Regulatory Commission to strengthen oversight and improve accountability across the sector.
Mixta Africa’s Chief Commercial Officer, Tola Akinsulire, said the proposed measures represented important steps towards restoring confidence in the housing market.
‘Licensing and escrow protection are important interventions in a market where consumers have too often carried significant risk. We welcome the direction of the Federal Government and believe it can materially strengthen confidence in the housing sector.’
However, Akinsulire said effective implementation would require a transparent and independent mechanism for determining when construction milestones had been achieved and funds could be released.
‘The question is not only where the buyer’s money sits, but what evidence is required before that money can move,’ he said. ‘Independent verification creates a clear link between construction progress, fund release and accountability.’
Mixta Africa recommended that qualified built environment professionals should independently verify construction milestones tied to escrow releases, supported by clearly defined certification standards and a verifiable audit trail.
The developer also stressed the need to address the financing implications of tighter controls over buyers’ funds.
According to the company, off plan payments have historically provided part of the working capital required to deliver housing projects. Restricting access to such funds without developing alternative financing mechanisms could create additional pressure on developers and ultimately affect housing supply.
‘Escrow can protect the homebuyer, but escrow on its own does not finance construction,’ Akinsulire said.
‘We need to protect buyers while ensuring credible developers can continue to finance and deliver the homes the market needs.’
Mixta Africa therefore called for continued collaboration among government, financial institutions, developers and professional bodies to establish a framework that combines strong consumer protection with effective project governance and appropriately structured construction finance.
The company said translating the proposed reforms into practical and enforceable standards would be critical to creating a more transparent, investable and sustainable housing sector while ensuring that regulation does not inadvertently constrain the supply of new homes.
Founded in 2005, Mixta Africa has developed residential communities across Nigeria, Senegal, Tunisia, Kenya and Côte d’Ivoire.
Its projects in Nigeria include Lakowe Lakes Golf and Country Estate, Beechwood Estate and Fara Park in Lagos.