Nigeria’s property market is built on shaky ground. Less than 10% of properties nationwide have proper land titles, according to the Managing Director of the Ministry of Finance Incorporated (MOFI), Armstrong Takang. His warning, delivered at a House of Representatives conference on November 2, 2026, exposed a systemic crisis: millions of Nigerians own land or homes they can’t legally leverage for loans, sell without dispute, or even prove they possess.
The problem isn’t just paperwork. Without verifiable documentation, property owners can struggle to secure bank loans, attract institutional investors or complete transactions with confidence. Takang tied the issue directly to Nigeria’s 12.9% credit-to-GDP ratio-half the 20.1% average for sub-Saharan Africa and far below the 34% seen in lower-middle-income economies. The lack of verifiable ownership strangles the very mechanism that turns real estate into liquid wealth.
For developers, the stakes are even higher. Unclear titles delay projects, inflate legal costs, and leave investors exposed to lawsuits. The House Committee on Housing and Habitat, led by Abdulmumin Jibrin, pointed to another layer of dysfunction: overlapping responsibilities among agencies, with no single body overseeing the entire chain from land registration to mortgage approval. The proposed solution—a National Real Estate Regulatory Authority (NRERA)—aims to fix that by setting transaction standards, licensing agents, and shielding buyers from scams where unregistered operators vanish with deposits.
Lack of Trust Hinders Growth
The challenge isn’t just about titles. It’s about trust. Nigeria’s mortgage penetration sits at under 10%, compared to 38% in Malaysia and 40% in South Korea. Without reliable records, lenders can’t assess risk, and homebuyers can’t access the long-term financing that turns ownership into stability. The Minister of Housing and Urban Development, Muttaqha Darma, framed it bluntly: the system treats property as a speculative asset rather than a tool for economic growth.
Even if the proposed regulator passes, it won’t solve everything. State land registries remain fragmented, digital records are inconsistent, and fraud persists where enforcement is weak. The House Speaker, Tajudeen Abbas, pushed for a centralized, digitized system; but that requires political will to standardize records across Nigeria’s 36 states. Without it, the authority risks becoming another layer of bureaucracy, not a fix.
Reform is needed. The pieces must fall into place before another generation of owners gets trapped in the same cycle.
Proposed Regulatory Authority
Given the complexities of Nigeria’s property market, the proposed National Real Estate Regulatory Authority aims to address the issue of unclear titles and fraudulent transactions. The authority is expected to introduce standards for property transactions, establish licensing requirements for real estate agents and developers, and provide safeguards for funds paid by prospective property buyers.
The Minister of Housing and Urban Development, Muttaqha Darma, emphasized the need for a centralized and digitized real estate administrative system to improve transparency and simplify property transactions. This system would enable easy access to ownership records, making verification easier and reducing opportunities for fraudulent transactions. Furthermore, reliable digital records could help establish ownership history and verify transaction documents, thereby improving confidence among property buyers, investors, and developers.
Effective Reform Challenges
The effectiveness of the proposed regulatory authority and digitized administrative system depends on accurate records, coordination among state land registries, and appropriate safeguards against manipulation. Establishing a national regulator alone will not resolve the problem; effective reform will also require improvements to state land administration systems, faster title registration, and stronger enforcement against fraudulent transactions.
The House Committee on Housing and Habitat, led by Abdulmumin Jibrin, acknowledged the need for cooperation between federal and state authorities to promote effective regulation of housing and real estate activities. Jibrin said the proposed legislation would not take over the constitutional responsibilities of state governments or the statutory functions of existing professional bodies.
Leave a Reply