This expose reveals how Nigerians are losing their dreams of homeownership – and what must be done to nib this trend in the bud.

Abuja, Nigeria’s Political and Administrative capital, is rapidly becoming the epicenter of a financial crisis that remains largely ignored; real estate fraud is becoming a pain in the neck of residents and investors.

While towering buildings and gated estates continue to rise, countless Nigerians are falling victim to unscrupulous estate developers who explore weak regulation and desperate buyers.

What was once a booming Sector promising affordable homeownership is now riddled with deception, delays, and outright criminality.

Developers in Abuja today often operate like scammers in suits, seeking to “Eat their cake and have it back,” disregarding fairness, transparency, and accountability.

Some of the developers do help themselves once money is received from clients by purchasing big cars and diverting the remaining funds to uses other than construction of houses.

Indeed, they suddenly become “Big Men”, while neglecting the purpose for which the money was paid.

As a direct consequence of these unethical and unprofessional conducts, they are most often caught up by inflation and rising prices of building materials, making it difficult, if not impossible, to deliver such project.

It is important to mention that when there is time-overrun, there is the possibility of a cost-overrun. When cost-overrun becomes a reality, they will now engage in all forms of criminal ways to pass the liability and responsibility to their clients.

One of such ways is that they engage in alarming practice of arbitrary revocation of plot or unit allocations.

If a buyer delays payment by even a month, developers quickly resell the same property to a new buyer at a higher price, leaving the original purchaser stranded. Attempting to get a refund is like trying to fit a camel through the eye of a needle.

When refund do occur, they are made at historical cost less administrative fees, penalizing buyers severely.

Housing projects estimated to complete within 24 Months routinely drag on for 36 to 48 Months – or longer – without compensation.

It needs to be said that a project that is not done within the expected duration is a failed project and this is a fundamental breach of the contract which developers often take for granted.

Buyer’s wait years for their homes while still paying rents elsewhere, often with no clear update from the developers.

These developers play God and their clients are always at their mercy. Taking legal actions against them no longer serve as a deterrent because they seem to always find their ways out of any legal situation.

There is this notorious developer who deliberately sell plots of land or housing units to two or more people.

If you go to his office to complain and challenge him, he will point to a heap of files of pending court cases.

He will arrogantly, sarcastically, and unrepentantly ask you if you want to join the list by going to court or he should look for another plot of land or house for you.

In addition, double allocations and forged documents are rampant. Some developers even issue fake certificate of occupancy or allocations letters, misleading buyer’s into legal disputes and losses.

Hidden charges also appear after contracts are signed, with fees for “Community Development” surveys, and infrastructure slapped onto unsuspecting buyers.

It is now a common site at most bus stops and traffic in Abuja to see well-dressed young men and women hawking flyers purportedly selling portions of land and housing units.

Some of these transactions are nothing but outright scams. Unfortunately, even some of Abuja’s most prominent developers are implicated in these unethical practices. Here are two recent cases that highlight the scale of the problem:

Case 1:

A retired civil servant subscribed to two units of two – bedroom flats at the carcass (block work) level from a developer whose CEO is a lawyer. He was given one week to pay and promised delivery of the units within Six Months.

The client paid within two days, but after three years, the developer had still not completed the block work.

Worse, the developer eventually completed the block work but fraudulently sold the same units to another subscriber.

This blatant breach of contract and deception is particularly shocking coming from a developer who is legally trained.

Case 2:

Another subscriber bought two units of three – bedroom flat from a major estate developer and made three installment payments. After the third and final payment, he was issued a receipt confirming full payment with no outstanding balance.

However, 18 Months later, when expecting delivery, the developer informed him that the price of the units had increased by 50%.

This sudden, unilateral price hike after full payment is a gross injustice that epitomizes the exploitation many buyer’s face.

The victims range from civil servants and small business owners to retirees and young professionals who invest their life savings into properties they hope will secure their future. Instead, many are left fighting protracted legal battles or forced to continue renting while watching their investment disappear.

The persistence of these scams reflect glaring Regulatory Weaknesses. Agencies like the Department of Development Control (DDC), Abuja Geographic Information System (AGIS), and the Federal Capital Development Authority (FCDA) are either overwhelmed, underfunded, or compromised.

The Economic and Financial Crimes Commission (EFCC) rarely prioritizes real estate fraud, leaving buyers vulnerable. To curb these unethical practices, the following urgent reforms and enforcements are essential:

Firstly, there is a need for legislatives action, the National Assembly must enact comprehensive laws regulating estate development, licensing developers, and protecting buyer’s rights. A publicly accessible registry of licensed developers is critical.

Secondly, there is need to empower regulatory agencies. DDC, FCDA, and AGIS must be strengthened and mandated to monitor all projects with their data bases accessible for public verification.

Thirdly, and more importantly, the Judiciary should establish real estate tribunals to expedite housing disputes, reducing case backlogs and delivering timely justice.

Fourthly, consumer education is imperative. Government and Civil Society must raise awareness about property rights and contractual obligations. Legal counsel should be mandatory for buyers before finalizing agreements.

Lastly, it is highly pertinent to have enforcement and penalties in place. Developers guilty of fraud should face stiff penalties, including license revocation, fines, and prosecution.

In conclusion, the time for action is now. The dream of home ownership in Abuja is slipping away for many Nigerians. Without decisive intervention from the National Assembly, Judiciary, and Enforcement Agencies, fraudulent developers will continue to thrive, preying on innocent citizens.

Protecting the right to safe, affordable housing is not just an economic necessity, it is a moral imperative. It is time for Abuja and Nigeria to clean house and restore trust in their real estate sector.

*Dr. Abubakar, a chartered Accountant, writes from Abuja.

These forces are reshaping how real estate transactions are conducted, improving market transparency, and making homeownership more accessible.

Technology Disrupting the Real Estate Market

Over the last couple of years, the Nigerian real estate industry has started embracing digital transformation.

In 2022, technological advancements have become integral to simplifying processes in property management, investment, and sales. Proptech (property technology) is now at the heart of this shift, creating a more efficient and accessible real estate environment.

Platforms such as PropertyPro, Spleet, and Fibre have led the charge, offering digital solutions to previously cumbersome tasks like property searches, rentals, and even property management.

With the power of the internet, potential buyers and investors now have access to a wide range of listings, market data, and property comparisons at their fingertips.

Virtual tours and drone-powered property inspections have gained popularity, allowing prospective buyers to view properties remotely.

This trend was accelerated by the COVID-19 pandemic, as virtual interactions became the norm. Moreover, blockchain technology started to find applications in real estate transactions, providing greater security, transparency, and faster verification processes.

As a result, investors and homebuyers can now navigate the property market with much more ease, avoiding the opaque processes that often characterised the industry in the past.

Technology is playing a pivotal role in democratising access to real estate, particularly for younger Nigerians, who are more inclined to use these digital tools in their decision-making.

Government Policies Supporting Growth

On the policy front, the Nigerian government has taken significant steps in 2022 to improve the real estate market and reduce the housing deficit, which remains one of the country’s most pressing challenges.

One of the standout developments has been the ongoing review of the Land Use Act, a legal framework that has traditionally slowed down land acquisition processes.

The government’s efforts to streamline land title acquisition and make land registration more efficient have begun yielding results.

The simplification of land documentation has reduced bureaucratic bottlenecks, making it easier for developers to embark on projects and for individuals to acquire property.

Another critical initiative has been the push for affordable housing. In 2022, the government expanded the National Housing Fund (NHF), allowing more Nigerians to access low-interest mortgages.

Coupled with an increasing number of public-private partnerships (PPPs), these initiatives are helping to bridge the housing gap, especially in urban centers like Lagos and Abuja.

By partnering with private developers, the government is ensuring that more Nigerians have access to affordable housing, while also improving the infrastructure around residential areas.

Emerging Challenges and Opportunities

While 2022 has brought significant advancements in technology and policy, the real estate sector is not without its challenges.

Nigeria continues to face issues related to unreliable power supply, inadequate infrastructure, and a volatile economic environment.

These factors limit the pace of real estate development, particularly in rural areas and emerging markets.

Nonetheless, there is a growing interest in renewable energy and sustainable building solutions, as developers seek to address power supply challenges through solar and hybrid power systems.

The government’s ongoing investment in infrastructure, including roads and power grids, is expected to create a more conducive environment for real estate development in the coming years.

Financial technology (fintech) is also playing a key role in supporting real estate investments. Crowdfunding platforms and digital payment solutions are offering innovative ways for developers to raise capital for large projects, while Real Estate Investment Trusts (REITs) are providing everyday Nigerians with the opportunity to invest in the property market without needing to own physical assets.

The Road Ahead for Nigerian Real Estate

As we reflect on the progress made up to 2022, it’s clear that the Nigerian real estate sector is on the verge of a significant transformation.

The integration of technology, coupled with government reforms, is creating new opportunities for investors and making the property market more accessible to Nigerians from all walks of life.

Looking ahead, the continued adoption of technology, alongside sustained policy support from the government, will be critical in driving long-term growth.

By addressing the housing deficit and leveraging innovative solutions, Nigeria’s real estate market is poised to play a key role in the country’s broader economic development.

As we move into 2023 and beyond, real estate professionals, investors, and policymakers must continue to collaborate to create a sector that is more transparent, inclusive, and efficient.

Ayodeji Fashanu has a track record of founding successful ventures like Invil Capital, Vestpro Solutions, Fayod Group, The Azaria Hotel, and Lekki Luxury Homes. He brings a wealth of experience in entrepreneurship and business leadership.

As a seasoned founder and CEO, he is dedicated to driving growth, creating value, and fostering innovation.