Real estate association blames unregulated developers for fraud, building collapses

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The Real Estate Developers Association of Nigeria has said the absence of a regulatory framework for real estate developers is fuelling fraud, multiple land sales and building collapses across the country.

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The President of REDAN, Oba Akintoye Adeoye, stated this at the recently concluded National Housing Data Programme Workshop organised by the Federal Ministry of Housing and Urban Development in Abuja.

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In the text of his presentation made available to the News Agency of Nigeria on Sunday, Adeoye urged the Federal Government to establish a regulatory framework for developers.

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Adeoye, the traditional ruler of Okeigbo Community in Ondo State, said the framework would boost professionalism, accountability and consumer protection across the real estate sector.

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According to the monarch, developers remain largely unregulated despite nearly every other professional in the construction industry operating under statutory oversight.

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He said the regulatory gap had encouraged fraudulent practices, weakened accountability and exposed homebuyers and investors to avoidable financial and safety risks.

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Adeoye proposed a shared regulatory model whereby the government licenses developers, while REDAN promotes professionalism, ethical conduct and compliance with industry standards.

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He urged the Federal Government to empower REDAN to train and professionalise real estate developers while maintaining professionally competent, ethical and accountable practitioners.

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The traditional ruler said state governments should retain responsibility for land administration, planning and development control, while professional bodies continue regulating their respective professions.

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He said the framework would strengthen consumer protection, restore confidence in the real estate sector and improve housing delivery across the country.

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According to him, a National Developers’ Registry should be backed by a comprehensive regulatory framework to ensure that only competent, accountable and trustworthy developers operate in the country.

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He said the debate was no longer whether developers should be regulated, but the nature of the regulatory system and the responsibilities of institutions within it.

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“The government should regulate developers, while REDAN should professionalise developers.

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“The two systems should be institutionally connected for effective industry governance,” he said.

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Adeoye said Nigeria already regulates architects, builders, engineers, estate surveyors and other professionals involved in housing delivery through established statutory bodies.

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He, however, noted that developers, who coordinate projects and receive substantial investments from homebuyers, remain outside a coherent national licensing and professional framework.

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According to him, the regulatory vacuum has enabled unscrupulous operators to market non-existent projects, engage in multiple land sales and abandon housing developments after collecting deposits.

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“A registry tells us who exists, but a regulatory system tells us who can be trusted to operate and under what standards. Nigeria needs both,” he said.

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The REDAN president said responsible developers had nothing to fear from credible regulation, adding that ethical operators should champion reforms that protect consumers and the industry’s reputation.

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He said every fraudulent operator posing as a developer diminishes public confidence and undermines the efforts of genuine investors committed to delivering quality housing projects.

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Adeoye said an effective regulatory system would improve transparency, attract investment and support the Federal Government’s drive to bridge Nigeria’s housing deficit.

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He added that stronger regulation would also enhance data integrity, improve sector planning and facilitate evidence-based housing policies for sustainable urban development.

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The REDAN president urged stakeholders to support reforms that would promote professionalism, safeguard homebuyers and strengthen confidence in Nigeria’s real estate market.

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