The Federal Government has proposed mandatory licensing for property developers and the introduction of regulated escrow accounts for off-plan property transactions as part of a broad regulatory overhaul aimed at strengthening consumer protection and restoring investor confidence in Nigeria’s real estate sector.
The proposals were announced by the Minister of Housing and Urban Development, Prof. Muttaqha Rabe Darma, during his keynote address at the BusinessDay Abuja Real Estate Conference 2026. They form part of the proposed National Housing and Built Environment Regulation Policy (NHBERP), which is currently being finalised by the ministry.
Under the proposed framework, developers would be required to obtain licences before marketing or selling off-plan housing projects. Funds paid by buyers would be held in regulated escrow accounts and released only after agreed construction milestones are achieved, a measure designed to reduce fraud, curb abandoned projects, and protect homebuyers from financial losses.
The proposed reforms seek to address long-standing challenges that have undermined confidence in Nigeria’s property market, including weak regulatory oversight, delayed project delivery, and limited access to affordable housing finance.
To improve mortgage accessibility, Darma directed the Federal Mortgage Bank of Nigeria (FMBN) to increase its maximum mortgage loan limit to ₦85 million and raise annual mortgage disbursements from about 500 to at least 2,000. He also highlighted that eligible contributors to the National Housing Fund can leverage existing Pension Commission (PenCom) guidelines, which allow qualified Retirement Savings Account holders to withdraw up to 25% of their balances as equity contributions for residential mortgages.
The minister further disclosed plans to establish a National Rent Registry, strengthen tenancy regulations, and accelerate digital land administration through initiatives such as Land4Growth and the electronic Certificate of Occupancy (e-C of O) programme.
According to Darma, Nigeria’s rebased Gross Domestic Product (GDP) figures for 2025 show that the real estate sector now contributes 13.36% to the economy, making it the country’s third-largest sector. He noted that the revised figures highlight the industry’s growing economic importance while underscoring the need for stronger regulation to unlock investment, deepen mortgage financing, and promote sustainable growth.
Nigeria’s housing deficit is estimated at over 15 million units, reflecting the scale of the country’s housing challenge. The ministry said it would undertake extensive consultations with developers, financial institutions, professional bodies, investors, and other stakeholders before the proposed regulatory framework is presented for government approval.
