The Federal Government has unveiled plans to introduce compulsory licensing for property developers and require the use of regulated escrow accounts in residential property transactions as part of wider reforms aimed at improving transparency and protecting homebuyers in Nigeria’s real estate sector.
The proposed measures were announced by the Minister of Housing and Urban Development, Engr. Muttaqha Rabe Darma, during the BusinessDay Abuja Real Estate Conference 2026. The reforms are intended to address persistent concerns over fraudulent property transactions, particularly in the off-plan housing market, while strengthening confidence among investors and prospective homeowners.
If implemented, the licensing framework would require developers to meet prescribed regulatory standards before operating, while escrow arrangements would ensure that funds paid by buyers are safeguarded and released only after agreed contractual obligations have been fulfilled. Brandspur Brand News reports that the initiative forms part of the Federal Government’s broader efforts to establish a more accountable and professionally regulated housing industry.
Nigeria’s real estate sector has experienced rapid expansion in recent years but continues to face challenges including project abandonment, multiple property sales, delayed housing delivery and fraudulent development schemes. Industry experts have repeatedly called for stronger oversight to improve governance and protect consumers.
The proposed reforms are also expected to enhance transparency in off-plan property sales, where buyers often make payments before construction is completed. By introducing regulated payment mechanisms and stricter developer oversight, the government aims to reduce financial risks for homebuyers while encouraging greater private sector investment.
The housing ministry believes the reforms will help create a more credible real estate market, improve investor confidence and support sustainable growth in Nigeria’s housing sector through stronger consumer protection and higher professional standards.
