Darma Advocates Stronger Regulation for Nigeria’s Housing Sector

Nigeria's housing sector is poised for a significant overhaul as Minister of Housing and Urban Development Muttaqha Darma unveiled plans for a new regulatory framework. The initiative aims to shield homebuyers from financial losses, rebuild trust among investors, and foster a more open and accountable real estate market.

Darma highlighted the persistent problem of Nigerians losing their life savings to unlicensed developers, emphasizing the lack of protection for buyers due to absent safeguards like escrow arrangements. Despite the real estate sector's substantial contribution to Nigeria's GDP, estimated at 13.36 percent, a lack of comprehensive regulation has hampered investment and public confidence.

The ministry is developing a national policy that will mandate developer licensing, secure buyers' funds through escrow accounts, ensure construction quality, and establish a data observatory for enhanced transparency. "Developers will no longer be permitted to sell housing units off-plan without obtaining the necessary licence and securing buyers’ payments in regulated escrow accounts," Darma stated, calling it a critical step towards protecting citizens and aligning the market with global best practices.

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Developers will no longer be permitted to sell housing units off-plan without obtaining the necessary licence and securing buyers’ payments in regulated escrow accounts.