The Federal Government has unveiled plans to tighten regulation of Nigeria’s housing sector by introducing mandatory licensing for property developers and estate agents, alongside new measures aimed at protecting homebuyers.
The proposal was announced on Tuesday by the Minister of Housing and Urban Development, Engr. Dr. Muttaqha Darma, during the opening of a three-day Stakeholders’ Validation Workshop on the National Housing Data Programme and the Regulation of the Built Environment in Abuja.
According to the minister, Nigeria’s real estate sector contributes about 13.4 per cent of the country’s Gross Domestic Product (GDP), valued at approximately ₦41 trillion. When combined with the construction industry, the sector was worth more than ₦77 trillion last year.
Despite its economic importance, Darma said the industry remains poorly regulated compared to sectors such as banking, telecommunications, oil and power.
“We put regulations in place for banking and got stability. We did the same for telecommunications and moved from less than 500,000 lines to over 200 million. We regulated oil and power. Housing was left out,” he said.
The proposed National Housing and Built Environment Regulation Policy includes six major reforms, such as compulsory licensing for developers and estate agents, mandatory escrow accounts to safeguard buyers’ funds, registration of professionals, enforcement of the National Building Code, improved land administration and the creation of a national housing data centre.
The policy also recommends establishing a National Housing Industry Regulatory Commission to oversee activities in the sector.
Darma said stronger regulation would improve transparency, boost investor confidence and help reduce cases of building collapse across the country.
On housing finance, the minister disclosed that about six million Nigerians currently contribute to the National Housing Fund (NHF), with the Federal Mortgage Bank of Nigeria (FMBN) generating between ₦120 billion and ₦150 billion annually.
He, however, noted that mortgage access remains low and said the government is proposing a National Mortgage Industry Policy to improve financing opportunities.
The proposal includes reforms to the FMBN, the establishment of a National Housing Finance Authority, expanded access for informal sector workers such as traders, artisans and commercial drivers, as well as a new diaspora housing investment window.
Darma also revealed that Nigeria’s housing deficit is currently estimated at 15 million units, based on data reviewed by the ministry’s technical committee and international development agencies.
He urged stakeholders to carefully review the proposals and contribute to developing policies that will strengthen the housing sector and improve accountability.
