The House of Representatives has urged for stronger regulation of Nigeria's housing and real estate sector. This call aims to address existing institutional gaps, protect homebuyers, and attract investment into the sector. The Chairman of the House Committee on Housing and Habitat, Abdulmumini Jibrin, made this appeal during a stakeholder conference in Abuja. The conference focused on the proposed National Real Estate Regulatory Authority (NRERA). Jibrin emphasized that inadequate regulation and weak consumer protection have limited the sector's potential despite its capacity to significantly contribute to national economic growth.
According to Jibrin, the proposed authority would strengthen existing institutions and establish clear standards for property transactions. It would also provide mechanisms for accountability and dispute resolution. However, the authority would not take over the statutory responsibilities of state governments and professional bodies. Jibrin also highlighted the need to protect prospective homeowners from fraudulent developers. He stressed the importance of ensuring that consumers understand the financial commitments involved in property transactions. This move is expected to boost confidence in the real estate market.
The Minister of Housing and Urban Development, Muttaqha Rabe Darma, disclosed that Nigeria's housing deficit is estimated at over 50 million units. He noted that mortgage penetration remains below 10 per cent, significantly lower than in countries like Malaysia and South Korea. Darma expressed support for the proposed regulatory authority. However, he suggested that it should be placed under the Ministry of Housing and Urban Development. This would ensure coordination with existing government policies and strategies.
Armstrong Ume Takang, Managing Director of the Ministry of Finance Incorporated, called for careful consideration of the proposed authority's relationship with existing laws. He particularly mentioned the Land Use Act. Takang cautioned against excessive regulation and the creation of additional government structures. He warned that these could increase recurrent expenditure and discourage private investment in the sector. The Managing Director emphasized the need for a balanced approach to regulation.
The Speaker of the House of Representatives, Tajudeen Abbas, advocated for a centralized and digitized property administration system. He believes this would curb fraud, resolve ownership disputes, and strengthen confidence in the real estate market. Abbas noted that Nigeria's housing challenge is not necessarily a shortage of properties but a lack of trust in property transactions. He stressed that effective regulation would protect investors and promote transparency in the sector.
The stakeholder conference was themed, One Vision, One Ecosystem, One National Housing and Real Estate Plan. The event brought together various stakeholders to discuss the proposed National Real Estate Regulatory Authority. The goal is to create a cohesive and effective regulatory framework for the housing and real estate sector. This framework aims to address the sector's challenges and unlock its potential for economic growth.
The proposed National Real Estate Regulatory Authority (NRERA) seeks to address the institutional gaps in the housing and real estate sector. Its establishment would provide a regulatory framework that protects homebuyers and promotes transparency. The authority's creation is expected to have a positive impact on the sector, attracting investment and boosting economic growth. Key stakeholders are working together to ensure the successful implementation of the proposed authority.
Key points
- The House of Representatives calls for stronger regulation of Nigeria's housing and real estate sector.
- The proposed National Real Estate Regulatory Authority aims to address institutional gaps and protect homebuyers.
- Nigeria's housing deficit is estimated at over 50 million units, with mortgage penetration below 10 per cent.
