The Federal Government has announced plans to introduce stricter rules in Nigeria’s housing industry, including compulsory licences for property developers and real estate agents, as well as escrow accounts aimed at protecting home buyers.
The Minister of Housing and Urban Development, Engr. Dr. Muttaqha Darma, disclosed this on Tuesday during the opening of a three-day Stakeholders’ Validation Workshop on the National Housing Data Programme and Regulation of the Built Environment in Abuja.
Darma said the housing sector plays a major role in Nigeria’s economy, contributing about 13.4 per cent to the country’s Gross Domestic Product, with its value estimated at about N41 trillion. He added that when combined with construction activities, the industry was worth more than N77 trillion last year.
The minister, however, raised concerns over the limited level of control and supervision in the sector, saying stronger regulations were needed to create a safer and more organised housing market.
He explained that the proposed National Housing and Built Environment Regulation Policy would introduce reforms covering areas such as licensing of developers and estate agents, protection of buyers’ funds through escrow accounts, registration of professionals, enforcement of building standards, better land administration and the creation of a national housing data centre.
The plan also includes the establishment of a National Housing Industry Regulatory Commission that would be responsible for monitoring activities in the sector.
Darma said improved regulation would help reduce problems linked to illegal property transactions and poor construction practices. He also pointed to the need for stronger enforcement of professional standards to prevent cases of building collapse across the country.
On housing finance, the minister disclosed that about six million Nigerians are currently registered under the National Housing Fund scheme, with the Federal Mortgage Bank of Nigeria receiving between N120 billion and N150 billion annually.
Despite the contributions, he said access to mortgage facilities remains low in the country. He revealed that the government is working on a National Mortgage Industry Policy to make housing finance easier for more Nigerians.
The proposed reforms will include changes to the operations of the Federal Mortgage Bank of Nigeria, the creation of a National Housing Finance Authority and steps to allow more workers in the informal sector, including traders, artisans and commercial drivers, to benefit from housing finance programmes.
The minister added that a special housing programme for Nigerians living abroad would also be introduced to encourage diaspora investment in the country’s housing market.
Darma said the ministry’s technical committee reviewed available information and estimated Nigeria’s housing shortage at about 15 million units based on data from international development organisations.
He called on stakeholders at the workshop to examine the figures and ensure future housing plans are developed with accurate and reliable information.
The minister acknowledged that some industry players may resist the planned changes but said the government would continue with reforms aimed at improving openness, responsibility and confidence in the housing sector.
The Permanent Secretary of the Ministry of Housing and Urban Development, Dr. Shuaib Belgore, also said the workshop would review findings from the ministerial task team on building collapse.
Belgore added that the ministry had prepared a framework for a National Housing Data Centre and encouraged participants to contribute ideas that would improve the proposed policies.
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