By John Alechenu, Abuja The Federal Government has unveiled plans to strengthen regulation of Nigeria’s housing and construction sector through measures that include mandatory licensing for property developers and agents, as well as the introduction of escrow accounts to protect home buyers. The Minister of Housing and Urban Development, Engr. Muttaqha Darma, disclosed this on Tuesday at 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, the real estate sector contributes about 13.4 per cent of Nigeria’s Gross Domestic Product (GDP), estimated at about N41 trillion. He added that when combined with the construction sector, the industry’s value exceeded N77 trillion last year. Darma, however, expressed concern over what he described as inadequate regulation of the sector.
“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. He explained that the draft National Housing and Built Environment Regulation Policy proposes reforms in six key areas, including the licensing of developers and estate agents, compulsory escrow accounts for buyers’ funds, registration of professionals, enforcement of the National Building Code, improved land administration and the establishment of a national housing data centre.
The proposal also recommends the establishment of a National Housing Industry Regulatory Commission to oversee the sector. Highlighting the importance of regulatory reforms, Darma cited Dubai’s experience, noting that compulsory escrow arrangements contributed to greater confidence in its property market. He also linked weak regulation to recurring incidents of building collapse, stressing the need for stricter compliance with professional and construction standards.
On housing finance, the minister said about six million Nigerians currently contribute to the National Housing Fund (NHF), with the Federal Mortgage Bank of Nigeria (FMBN) collecting between N120 billion and N150 billion annually. He noted, however, that mortgage penetration remains low and said the government is proposing a National Mortgage Industry Policy to improve access to housing finance.
Summary from source