Association Backs Regulation Of Real Estate Sector To Strengthen Consumer Protection
The Real Estate Developers Association of Nigeria (REDAN) has backed the proposed National Real Estate Regulatory Authority (NRERA) saying, “it will protect consumers and boost confidence in the sector”.
REDAN President, Oba Akintoye Adeoye, disclosed this on Monday in Abuja, at a stakeholders’ conference on the proposed regulatory body.
The conference themed, “One Vision, One Ecosystem, One National Housing and Real Estate Plan”, was organised by the Office of the Speaker, House of Representatives and the House Committee on Housing and Habitat.
Newsmeneports that the proposed agency, being spearheaded by the House Committee on Housing and Habitat, was designed to establish a unified national framework for the housing and property market.
The goal is to eliminate institutional loopholes, protect consumers and boost investor confidence.
Adeoye noted that Nigeria’s real estate sector remained largely unregulated, exposing homebuyers and genuine developers to fraud, abandoned projects, and unethical practices.
He noted that the primary objective of the proposed regulation was to safeguard homebuyers from unscrupulous operators who collect payments without delivering properties.
“REDAN supports the regulation. The entire sector players agree that there is need for regulation, but the question has always been how.
“The current unregulated environment allows unscrupulous operators to exploit buyers. Even developers have been duped and so many players in the industry have been victims of fraudulent schemes,” he said.
The REDAN boss noted that the proposed authority would institute measures such as mandatory escrow accounts to ensure funds paid by buyers were released to developers only as construction milestones were met.
He explained that clear regulations would also attract institutional capital, particularly pension funds, by establishing a solid legal framework and reliable data for investment decisions.
“Lack of reliable data makes it difficult for investors to confidently undertake projects. Regulation will establish a national housing data observatory to provide this essential data,” he said.
Adeoye stressed that a transparent regulatory regime would boost investor confidence and make the Nigerian real estate market more attractive to both local and foreign investors.
He emphasised that effective regulation was vital for improving building quality and safety, pointing out that recurring building collapses have led to significant loss of lives over the years.
Speaking on REDAN’s institutional role, Adeoye said the association plans to transition beyond self-regulation into a chartered professional body to enforce accountability among developers.
“We propose that government licences should be tied to a certificate of professional good standing issued by REDAN,” he said.
