Mixta Africa has welcomed the Federal Government’s proposed reforms to strengthen regulation, improve buyer protection and boost confidence in Nigeria’s housing sector, while calling for clear mechanisms for independent verification of construction milestones and access to appropriately structured construction finance.
The real estate developer, in a statement, said two questions would be critical to the successful implementation of the proposed framework: how the government would verify construction milestones before funds are released from escrow and how credible developers would access sustainable construction finance.
The proposed National Housing and Built Environment Regulation Policy provides for mandatory licensing of developers and estate agents, escrow protection for buyers’ funds, stronger professional standards and construction quality assurance, improved land administration, urban renewal and the establishment of a National Housing Data Observatory.
It also provides for the establishment of a National Housing Industry Regulatory Commission to strengthen oversight of the sector.
Mixta Africa’s Chief Commercial Officer, Tola Akinsulire, said: “Licensing and escrow protection are important interventions in a market where consumers have too often carried significant risk. We welcome the direction of the Federal Government and believe it can materially strengthen confidence in the housing sector.”
The company, however, recommended that construction milestones linked to escrow releases be independently verified by qualified built-environment professionals, with clear standards for certification and a verifiable audit trail.
“The question is not only where the buyer’s money sits, but what evidence is required before that money can move.Independent verification creates a clear link between construction progress, fund release and accountability,” Akinsulire said.
The company also said buyer protection must be accompanied by measures to expand access to construction finance.
It noted that, historically, off-plan payments have provided part of the working capital used to deliver housing projects. If access to these funds becomes more restricted, credible developers will need alternative sources of appropriately structured and priced construction finance.
“Escrow can protect the homebuyer, but escrow on its own does not finance construction,” Akinsulire said.
“We need to protect buyers while ensuring credible developers can continue to finance and deliver the homes the market needs.”
He called for continued engagement among the government, financial institutions, developers and professional bodies to establish a framework that combines strong buyer protection with effective project governance and sustainable construction finance.
Mixta Africa seeks sustainable construction finance, stronger regulation
