Akintoye Adeoye is the President of the Real Estate Developers Association of Nigeria (REDAN). He spoke to VICTOR GBONEGUN on activities of unprofessional practitioners in the sector, issues militating against developers in Nigeria, the Land Use Act, the need for robust data infrastructure towards deepening housing investment and efforts of REDAN to expand the nation’s housing stock.
Nigerians at home and abroad are worried about the increased activities of fraudulent developers. How do we curtail their activities and check the influx of quacks in the profession?
The increasing activities of fraudulent developers and the influx of quacks in the real estate sector are a major concern for REDAN. Tackling these issues requires a multi-faceted approach, which focuses on the enforcement of professionalism and discipline within the industry.
One of the key strategies we are implementing is strengthening the ethics and disciplinary processes within our association. While not all real estate developers in Nigeria are members of REDAN, we are committed to ensuring that our members adhere to the highest ethical standards. Our Membership, Ethics and Disciplinary Committee plays a vital role in maintaining these standards and holding developers accountable for unethical practices.
In addition to internal measures, REDAN previously presented a bill to establish the Real Estate Regulatory Council of Nigeria (RECON) for better industry regulation. Although the bill did not pass, a revised version will soon be submitted to the National Assembly for improved oversight and accountability. Its success, however, depends on sector-wide support.
We also aim to enhance our collaboration with the Nigerians in Diaspora Commission (NIDCOM) to safeguard the investments of Nigerians abroad, combat fraudulent developers, and foster a transparent, regulated environment with qualified and ethical players in the real estate sector.
What are the issues facing private housing developers in the country and how can the government intervene in alleviating these challenges?
Private housing developers play a pivotal role in addressing housing deficits globally, as governments alone cannot meet the housing needs of their populations. In Nigeria, bridging the housing deficit requires a collaborative partnership between the government and private developers, grounded in mutual respect and shared responsibility.
However, private developers in Nigeria face significant challenges. One of the most pressing is the bureaucratic bottleneck in land administration. The process of land titling, registration, and obtaining Certificates of Occupancy (C of O) is often marred by delays, inefficiency, and a lack of transparency. While the Land Use Act provides a clear legal framework, poor implementation by government officials remains a major obstacle. The government must simplify, digitise, and streamline these processes to ensure timely and cost-effective access to land. Additionally, land should serve as a tool to promote housing development, not merely as a revenue-generation mechanism for states.
Another pressing issue is the indiscriminate demolition of housing projects. Such demolitions, particularly during times of economic difficulty, only worsen the housing deficit and squander limited resources. REDAN strongly advocates that demolitions should be carried out strictly in accordance with due process, ensuring fairness, transparency, and respect for all parties involved. Unjustified demolitions must be avoided to safeguard investments and uphold citizens’ fundamental right to adequate shelter.
High cost of finance is another critical challenge. Access to affordable funding remains one of the greatest hurdles for developers. Double-digit interest rates offered by commercial banks are unsustainable for housing projects, driving up construction costs and making homes unaffordable for the average Nigerian. Government intervention is crucial here; single-digit financing options should be provided through institutions like the Federal Mortgage Bank of Nigeria (FMBN) to support both developers and buyers.
The absence of long-term mortgage financing also hampers affordability. Nigeria’s underdeveloped mortgage system makes it difficult for buyers to access sustainable financing. The government must collaborate with financial institutions to strengthen the mortgage sector by providing low-interest, long-term financing options for homebuyers. Recapitalising the FMBN and introducing down-payment assistance programmes will make homeownership more accessible for low- to middle-income families.
Another persistent challenge is the lack of basic infrastructure. Developers often bear the burden of providing essential infrastructure such as roads, water, electricity, and drainage systems, which significantly escalates housing costs. The government should take responsibility for providing these basic amenities to create an enabling environment for affordable housing development. Policy reforms such as tax incentives, reduced regulatory fees, and subsidies would further encourage private sector participation and help reduce production costs.
Finally, the heavy reliance on imported building materials exposes developers to exchange rate volatility and inflation, leading to unpredictable construction costs. The government should support local production of building materials through institutions like NBRRI and NASENI. Incentives such as tax reliefs and subsidies should also be introduced to encourage developers to use locally sourced materials, thereby reducing costs and promoting economic growth.
A major call by stakeholders has been the urgency to review the Land Use Act of 1978, described as counterproductive to housing development. As a lawyer, what areas of the Act need to be reviewed to boost the housing industry?
Before considering a review of the Land Use Act, it is essential to first address the inefficiencies and lack of transparency in its implementation. The Act provides a clear framework for land administration, but its practical application is often hindered by bureaucratic bottlenecks, corruption, and a lack of accountability from the officials responsible for land management.
If the implementation challenges are not addressed, a review of the Act might result in the same problems, simply under a new framework. Therefore, governments at all levels must demonstrate sincerity and commitment to effective land administration. This includes ensuring accountability, eliminating corruption, and streamlining land titling, registration, and issuance of Certificates of Occupancy to facilitate smooth and transparent land transactions.
Once these implementation challenges are tackled, then a more focused review of the Act can be undertaken to further strengthen its provisions and make it more conducive to housing development, economic growth, and social progress.
Stakeholders have attributed over-reliance on foreign building materials and non-deployment of technology as reasons for escalating housing prices.
What is REDAN doing to promote the use of local materials and improved technology in housing development?
The dependence on imported materials exposes developers to exchange rate volatility and inflation, which escalates housing prices. To combat this, REDAN has recently inaugurated the Directorate of Alternative Building Materials Committee. This committee is dedicated to promoting the use of locally sourced building materials in Nigeria and will collaborate with institutions such as NBRRI, NASENI, and other public and private sector agencies to drive this initiative.
In addition, REDAN is focused on advancing technology adoption in the housing sector. Through the REDAN Prop-Tech Innovation initiative, we are promoting the integration of technology into real estate development. This includes encouraging the use of smart building solutions, sustainable practices, and digital platforms to enhance property transactions and management. Through this initiative, we aim to improve efficiency, reduce costs, and enhance the overall quality of housing in Nigeria.
There have been calls for the recapitalisation of the Federal Mortgage Bank of Nigeria. Will that increase mortgages and access to affordable homes?
The Federal Mortgage Bank of Nigeria (FMBN) remains the only institution in Nigeria offering single-digit interest rate mortgages and construction finance, making it a cornerstone of the country’s housing sector. Empowering the bank to provide increased financing for housing development is crucial for ensuring the success of housing projects across Nigeria. This is why REDAN has consistently advocated for the recapitalisation of FMBN.
In many developed countries, mortgage interest rates are kept in the single-digit range, which is essential for the sustainability of the housing sector. In contrast, Nigeria’s double-digit interest rates are detrimental. They place an excessive financial burden on potential homeowners and developers alike, making homes unaffordable for the majority of Nigerians. High interest rates not only increase the cost of acquiring homes but also stifle demand, leading to a slowdown in housing production and worsening the housing deficit.
For Nigeria’s housing market to thrive and become accessible to all, mortgage interest rates must be brought down to single digits in line with global standards. REDAN believes that recapitalising the FMBN is a strategic move that will transform the housing sector, providing Nigerians with affordable mortgage options while supporting real estate developers in delivering quality homes.
Absence of verifiable data remains an age-long challenge in the housing sector, and efforts to develop data have not yielded a meaningful impact.
What is REDAN doing to ensure accurate data that will aid investors and policy decisions?
The lack of verifiable data has been a persistent challenge in Nigeria’s housing sector, hindering effective decision-making, policy formulation, and investment planning. While past efforts to address this issue have yielded limited results, REDAN has taken proactive measures to bridge this critical gap.
In 2018, under the leadership of REDAN’s former President, Dr. Ugochukwu Chime, the National Real Estate Data Collation and Management Programme (NRE-DCMP) was established. This initiative was developed in collaboration with the Central Bank of Nigeria (CBN), the Federal Ministry of Housing & Urban Development (FMHUD), the Nigeria Mortgage Refinance Company (NMRC), the Federal Mortgage Bank of Nigeria (FMBN), and other key institutions, with REDAN serving as the National Secretariat.
The NRE-DCMP was designed to provide accurate and verifiable data on Nigeria’s housing. Hosted on the NMRC website for public access, the programme played a critical role in the collation and management of data across the housing value chain—covering planning, pre-construction, construction, and post-construction phases.
To further advance this goal, the Minister of Housing & Urban Development, Ahmed Dangiwa, earlier this year inaugurated the Joint Committee on National Housing Data. The committee includes representatives from FMHUD, NMRC, NBS, NPC, CBN, FMBN, REDAN, HDAN, FHFL, and AHCN. Its primary mandate is to establish an accurate and verifiable estimate of Nigeria’s housing deficit and develop a National Housing Data Centre (NHDC). REDAN is fully involved in this process, and significant progress is being made to actualise the minister’s directive.
There was an attempt by REDAN to assist the government in bridging the shortfall in housing stock through the rural housing project across the 774 councils. What has happened to this project?
REDAN’s Rural Housing Project was conceptualised under the leadership of the Immediate Past President of REDAN, Dr Aliyu Wamakko, as a strategic initiative to assist the government in addressing the significant housing shortfall across Nigeria. The project was designed to deliver affordable homes across the 774 local government councils, with the aim of stimulating economic activities, improving living conditions, and meeting the housing needs of Nigerians.
While the project garnered positive interest and recognition, progress has been hindered by challenges, particularly related to affordable funding. However, REDAN remains steadfast in its commitment to reviving and driving this initiative forward. The goal is to complement the government’s efforts to reduce the nation’s housing deficit while fulfilling the Association’s mandate as enshrined in the National Housing Policy of Nigeria.
