Stakeholders in the real estate sector have called for stronger regulation and enforcement of professional standards to curb rising cases of fraudulent property transactions, warning that weak oversight and misleading marketing practices are exposing investors to huge financial losses.
They said that only effective regulation, proper monitoring of property marketers and strict enforcement of land administration laws could restore public confidence in the sector and protect Nigerians from unscrupulous operators.
The stakeholders spoke against the backdrop of growing concerns over alleged fraudulent land sales, misleading property advertisements and the marketing of properties without proper verification of ownership and statutory approvals.
The experts maintained that stronger oversight, transparent transactions and effective enforcement of professional standards were necessary to protect investors and rebuild confidence in the property market.
An estate surveyor and valuer, Femi Ade Oyedele, advised prospective investors with substantial funds to consider partnering with government through established property development programmes, rather than relying solely on private marketers.
He cited the Lagos State government’s Private Sector Developers Programme (PSDP) as an avenue through which investors could explore property development opportunities.
Oyedele said investors should also approach relevant professional institutions and government agencies to verify land ownership, title documents and the status of properties before committing funds.
Using examples from Ghana and Cape Verde, he explained that investors could seek guidance from recognised professional bodies and relevant government institutions when undertaking property transactions.
He also faulted misleading property advertisements, particularly where marketers display pictures of completed houses while offering only undeveloped plots of land for sale.
According to him, such marketing practices could mislead prospective buyers about what they are actually paying for.
Oyedele further identified the misrepresentation of property locations as another problem, citing instances where some marketers describe Oniru as Victoria Island or make exaggerated claims about the proximity of Abijo to Victoria Island.
In a forum in Abuja on Monday, Managing Director/Chief Executive Officer, Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, said there was a need to regulate the entire housing ecosystem to curb fraudulent practices, where developers collect money for projects without delivering as expected, and to ensure that beneficiaries get value for their money.
Special Assistant to the EFCC Chairman, Francis Usani, said the agency was ready for collaboration with stakeholders in the sector to sanitise the system.
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“The Economic and Financial Crimes Commission (EFCC) stands ready to support the establishment of the National Real Estate Regulatory Authority (NRERA) and ensure effective enforcement,” he said.
Minister of Housing and Urban Development, Engineer Muttaqha Rabe Darma, agreed on the need for stronger collaboration and coordination among government housing institutions, including the Federal Mortgage Bank of Nigeria (FMBN), Ministry of Finance Incorporated (MOFI), Family Homes Funds Limited (FHFL) and Federal Housing Authority (FHA), to ensure a more unified approach to housing delivery.
“Working together will strengthen the government’s efforts to provide adequate and sustainable housing for Nigerians,” he said.
In a separate intervention, the Housing Development Advocacy Network (HDAN), through its Research and Economic Development Unit, called for a return to professionalism and ethical standards in property marketing.
The organisation, led by its Executive Director, Festus Adebayo, said the growing influence of social media had changed the way properties were marketed, with some promotional activities prioritising entertainment, physical appearance and popularity over accurate information about properties.
The HDAN’s boss, however, cautioned against generalising allegations of misconduct or unfairly stereotyping female real estate professionals, stressing that professional standards should apply equally to men and women. He explained that property marketing should be driven by the quality and value of the property rather than the physical attractiveness or popularity of the person promoting it.
The experts’ concerns were reinforced by an account of an alleged fraudulent land transaction in Ibeju-Lekki, Lagos, involving four retirees reportedly based in the United Kingdom who allegedly invested about £72,000 in land they later discovered was within government-committed acquisition.
According to the account shared by a property industry commentator, the retirees had returned to Nigeria to inspect the land they jointly purchased in 2023, only to receive information that the property was committed for public infrastructure and other government purposes. The account alleged that the buyers had begun fencing the land before discovering the restrictions affecting its ownership and use.
It further claimed that the incident triggered a confrontation with the marketer and that an accident subsequently claimed several lives. The claims, including the circumstances of the reported accident, the identities of the victims and the alleged land transaction, could not be independently established.
Adebayo stressed that the real estate sector required knowledgeable, trustworthy and professionally disciplined practitioners, particularly given the financial consequences of property transactions.
According to him, social media popularity and large followership should not be mistaken for professional competence, adding that realtors must understand land administration, property documentation, market trends, valuation and contractual obligations.
He maintained that professional success in real estate should be built on credibility, competence and integrity rather than manipulation or misleading promotional strategies.
He called for practical industry guidelines covering digital advertising, conflicts of interest, client relationships, truthful property representations and professional conduct.
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