Real estate developer, Cecil Osakwe, has called for reforms in Nigeria’s real estate industry, highlighting the need for regulations, transparency levels and investor trustworthiness.
Osakwe, who pointed out the distinctions between the real estate markets in Nigeria and the United States, identified challenges faced by Nigeria.
According to him, “The real estate sector in the United States has established rules that promote fairness and responsibility within the industry. These rules include building codes and real estate laws as licensing criteria that create an attractive environment for investors from near and far. Legal procedures play a role in enabling transactions such as lease agreements and property sales while also dealing with foreclosures to build trust and stability in the market.”
While for Nigeria he said, “The real estate industry in Nigeria encounters obstacles as a result of regulation laws despite an increasing population and a burgeoning middle-income group segment that it caters to; the sector grapples with issues owing to insufficient supervision measures in place, leading to widespread corruption problems and low standards of construction work as well as prevalent instances of fraudulent activities, within the realm of real estate agencies and contractors. This lack of centralized oversight results in a fragmented market, discouraging local and international potential investors.”
Osakwe emphasised the crucial role of regulation by contrasting the stringent licensing and enforcement in the U.S. market with Nigeria’s more lenient approach. “In the U.S., noncompliance results in severe penalties, which helps uphold professionalism across the industry. In contrast, Nigerian contractors frequently cut corners, inflating property prices while compromising the quality of their buildings. This lack of strict enforcement leads to widespread distrust, causing many investors to avoid the Nigerian market.”
One significant issue identified by Osakwe is the disparity in tenant rights between the United States and Nigeria. “In the United States, the rights of both tenants and landlords are explicitly defined and legally enforceable, thereby fostering a balanced and equitable rental market. Conversely, tenants in Nigeria frequently encounter arbitrary rent increases and unexpected evictions due to inadequate protections, which render them susceptible to exploitation.”
Despite the challenges, Osakwe said he remains optimistic about Nigeria’s real estate potential. “The country’s rapid economic growth drives demand for quality residential and commercial properties. To unlock this potential and foster trust in the market, there is need for stronger regulations, improved oversight and strengthening the legal framework surrounding property transactions and dispute resolution. This would help to create a more attractive environment for investors.”
Osakwe also called for increased government intervention in the real estate sector by taking a cue from the U.S. He advocated for measures such as mortgage subsidies and affordable housing initiatives, adding that with the right reforms, Nigeria can transform its real estate industry into a thriving, investor-friendly environment that ensures transparency, accountability, and fairness for all stakeholders.
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