Unregulated developers fuel fraud, building collapses in Nigeria: REDAN
The Real Estate Developers Association of Nigeria (REDAN) has said that the absence of regulation for real estate developers is fuelling fraud, multiple land sales and building collapses nationwide.
REDAN president, Akintoye Adeoye, stated this at the just-concluded National Housing Data Programme Workshop organised by the Federal Ministry of Housing and Urban Development (FMHUD) in Abuja.
In the text of his presentation at the event, made available to journalists on Sunday, Mr Adeoye urged the federal government to establish a regulatory framework for developers.
Mr Adeoye, the traditional ruler of Okeigbo community in Ondo State, said the framework would boost professionalism, accountability and consumer protection across the real estate sector.
According to the king, developers remain largely unregulated, despite nearly every other professional in the construction industry operating under statutory oversight.
He said the regulatory gap had encouraged fraudulent practices, weakened accountability and exposed homebuyers and investors to avoidable financial and safety risks.
Mr Adeoye proposed a shared regulatory model whereby the government licenses developers, while REDAN promotes professionalism, ethical conduct and compliance with industry standards.
He urged the federal government to empower REDAN to train and professionalise real estate developers while maintaining professionally competent, ethical and accountable practitioners.
The traditional ruler said state governments should retain responsibility for land administration, planning and development control, while professional bodies continue regulating their respective professions.
He said the framework would strengthen consumer protection, restore confidence in the real estate sector and improve housing delivery across the country.
According to him, a National Developers’ Registry should be backed by a comprehensive regulatory framework, ensuring that only competent, accountable and trustworthy developers operate in the country.
He said the debate was no longer whether developers should be regulated, but the nature of the regulatory system and the responsibilities of institutions within it.
“The government should regulate developers, while REDAN should professionalise developers.
“The two systems should be institutionally connected for effective industry governance,” he said.
Mr Adeoye said Nigeria already regulates architects, builders, engineers, estate surveyors and other professionals involved in housing delivery through established statutory bodies.
He, however, noted that developers, who coordinate projects and receive substantial investments from homebuyers, remained outside a coherent national licensing and professional framework.
According to him, this regulatory vacuum has enabled unscrupulous operators to market non-existent projects, engage in multiple land sales and abandon housing developments after collecting deposits.
“A registry tells us who exists, but a regulatory system tells us who can be trusted to operate and under what standards.
Nigeria needs both,” he said.
The REDAN president said responsible developers had nothing to fear from credible regulation, adding that ethical operators should champion reforms that protect consumers and the industry’s reputation.
He said every fraudulent operator posing as a developer diminished public confidence and undermined the efforts of genuine investors committed to delivering quality housing projects.
Mr Adeoye said an effective regulatory system would improve transparency, attract investment and support the Federal Government’s drive to bridge Nigeria’s housing deficit.
He added that stronger regulation would also enhance data integrity, improve sector planning and facilitate evidence-based housing policies for sustainable urban development.
The REDAN president urged stakeholders to support reforms that would promote professionalism, safeguard homebuyers and strengthen confidence in Nigeria’s real estate market.
(NAN)
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