The Federal Government has proposed mandatory licensing for property developers and regulated escrow accounts for homebuyers as part of plans to reform Nigeria’s housing sector and strengthen consumer protection.
The Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, announced the proposal while delivering a keynote address at the BusinessDay Abuja Real Estate Conference 2026 in Abuja on Thursday, according to a statement by the Ministry.
The reforms are expected to curb fraud in the real estate sector, improve transparency in off-plan housing transactions, and restore investor confidence.
What they are saying
Darma said the Ministry is developing a National Housing and Built Environment Regulation Policy to regulate Nigeria’s housing and real estate sector.
The policy will introduce developer licensing, escrow protection for buyers’ funds, construction quality assurance, professional registration, and a National Housing Industry Data Observatory to improve transparency and accountability.
“The Honourable Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, PhD, has announced plans to reform Nigeria’s housing sector through a new regulatory framework aimed at protecting homebuyers, restoring investor confidence and promoting a more transparent and accountable real estate market,” the statement read in part.
“According to Engr. Darma, the Ministry is developing a National Housing and Built Environment Regulation Policy that will introduce developer licensing, escrow protection for buyers’ funds, construction quality assurance, professional registration and a National Housing Industry Data Observatory to improve transparency and accountability across the sector,” it added.
The minister said the reforms would prevent unlicensed developers from selling off-plan properties without approval and ensure buyers’ funds are protected through regulated escrow accounts.
More insights
The minister also announced measures to expand access to mortgage finance through the Federal Mortgage Bank of Nigeria (FMBN).
Mortgage disbursements will be increased, while the mortgage loan ceiling will rise to N85 million.
The FMBN is expected to facilitate at least 2,000 mortgages annually.
National Housing Fund contributors will be able to access up to 25% of their Retirement Savings Accounts (RSA) as equity for home ownership.
The ministry also proposed a National Rent Registry and stronger tenancy regulations to address the country’s rent crisis.
Darma added that the government is improving land administration through the Land4Growth initiative, the e-Certificate of Occupancy programme, and a stakeholder engagement process on the proposed reforms beginning next week.
The proposed reforms follow growing complaints from homebuyers over delayed land allocations and prolonged delivery timelines for off-plan housing projects.
A previous Nairametrics report highlighted the experience of a Nigerian in the United States who completed payment for two plots of land in Ibeju Lekki but was still awaiting allocation months later.
The report also documented delays in the delivery of off-plan homes.
Some buyers said they were asked to make additional payments outside their original agreements after construction costs increased.
The cases reinforce longstanding concerns over consumer protection in Nigeria’s real estate market.
What you should know
A previous Nairametrics investigation found that delays in land allocation and off-plan housing projects are driven by structural and operational challenges.
Experts identified weak regulation, financing constraints, poor project planning, title disputes, and the overselling of land as key factors.
Many developers also depend heavily on subscriber payments, exposing projects to inflation and rising construction costs.
Developers acknowledged that the COVID-19 pandemic, inflation, and infrastructure projects contributed to delays in some developments.
Some developers said the experience has encouraged the adoption of more sustainable financing models, construction before marketing, and more realistic project delivery timelines.
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