Unregulated developers fuel fraud, building collapses in Nigeria, says real estate association

The Real Estate Developers Association of Nigeria (REDAN) has identified the absence of a robust regulatory framework as the primary driver of fraud, multiple land sales, and building collapses plaguing the country's real estate sector. Oba Akintoye Adeoye, the President of REDAN and traditional ruler of Okeigbo Community in Ondo State, made this assertion at a recent workshop organized by the Federal Ministry of Housing and Urban Development in Abuja.

Adeoye stressed the urgent need for the Federal Government to implement a regulatory framework specifically for real estate developers. He argued that such a system would foster greater professionalism, accountability, and significantly enhance consumer protection within the sector. Unlike many other professions in the construction industry that operate under statutory oversight, developers remain largely unregulated, creating a vacuum that facilitates fraudulent practices and exposes homebuyers and investors to substantial financial and safety risks.

REDAN proposes a collaborative regulatory approach. Under this model, the government would be responsible for licensing developers, while REDAN would focus on promoting professionalism, ensuring ethical conduct, and enforcing industry standards. The association also seeks empowerment from the government to train and professionalize real estate developers, thereby cultivating a corps of competent, ethical, and accountable practitioners.

The traditional ruler emphasized that while state governments should retain authority over land administration, planning, and development control, and professional bodies continue to regulate their respective fields, a unified national framework for developers is essential. This, he believes, will strengthen consumer protection, rebuild confidence in the real estate market, and ultimately improve housing delivery across Nigeria. Adeoye concluded that the debate has shifted from whether developers should be regulated to defining the specifics of that regulatory system and the roles of various institutions within it.

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The government should regulate developers, while REDAN should professionalise developers. The two systems should be institutionally connected for effective industry governance.