Nigeria’s House of Representatives has proposed a new regulatory framework for the real estate sector aimed at addressing institutional shortcomings, strengthening homebuyer protection and encouraging investment. The proposed National Real Estate Regulatory Authority (NRERA) is expected to enhance industry oversight, improve transparency and establish regulatory standards for property developers and other sector participants.
Abdulmumini Jibrin, Chairman of the House Committee on Housing and Habitat, declared the proposal on Monday in Abuja during a stakeholder conference focused on the establishment of the proposed authority.
Jibrin stated that the committee’s review of the real estate sector identified several regulatory shortcomings, including overlapping responsibilities among government agencies and inadequate consumer protection measures. He explained that some institutions involved in housing development operated without direct oversight from the Ministry of Housing and Urban Development, creating regulatory gaps and duplication of functions.
He further noted that weak regulatory oversight had enabled some individuals to collect payments from prospective homebuyers without sufficient verification of their professional credentials or ability to complete proposed projects. However, the lawmaker emphasized that the proposed framework would also address the obligations of homebuyers, pointing out that some individuals entered into property agreements without adequately assessing their financial capacity.
Jibrin also explained that inflation, policy adjustments and rising construction costs could affect developers’ ability to complete projects under their original contractual terms.
He said the proposed authority would introduce clearly defined industry standards, establish dispute resolution mechanisms and improve accountability across the real estate sector. He added that the proposed legislation was intended to complement existing regulatory institutions rather than assume their statutory functions.
The committee chairman also assured state governments and professional organizations that the proposed authority would operate within their respective constitutional and legal mandates.
Jibrin described the proposed legislation as a measure to address longstanding regulatory gaps and unlock the economic potential of Nigeria’s real estate sector.
Housing and Urban Development Minister Dr Muttaqha Rabe Darma said the Federal Government was working to resolve structural challenges in the housing industry. He highlighted Nigeria’s housing deficit of more than 15 million units and low mortgage penetration despite its estimated population of 240 million. Darma supported the proposed authority but suggested placing it under the ministry to ensure consistency with existing housing policies, citing Singapore, Dubai, Malaysia, the UK and Rwanda as examples.
Meanwhile, Ministry of Finance Incorporated Managing Director and CEO Dr Armstrong Ume Takang urged stakeholders to assess how the proposed legislation would interact with existing laws, particularly the Land Use Act. He also cautioned that excessive regulation could discourage private investment and increase government expenditure.
The proposed authority aims to establish a unified regulatory structure, enhance homebuyer protection and uphold professional standards across Nigeria’s real estate industry.
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