FG proposes developer licensing, escrow protection in housing sector reforms affecting millions of homebuyers

The Federal Government will mandate licensing for property developers and require regulated escrow accounts for homebuyers as part of sweeping housing sector reforms announced at Thursday's BusinessDay Abuja Real Estate Conference 2026.

Minister of Housing and Urban Development Engr. Muttaqha Rabe Darma unveiled the National Housing and Built Environment Regulation Policy to curb fraud, improve transparency in off-plan transactions, and restore investor confidence. The reforms will prevent unlicensed developers from selling properties without approval and protect buyers' funds through regulated accounts.

Mortgage access expands significantly: Federal Mortgage Bank of Nigeria loan ceiling rises to N85 million, targeting 2,000 mortgages annually. National Housing Fund contributors can now access up to 25% of their Retirement Savings Accounts as equity for home ownership. A National Rent Registry and stronger tenancy regulations will also address the rent crisis.

Stakeholder engagement on the proposed reforms begins next week, with implementation timelines not yet specified. These reforms respond to widespread complaints about delayed land allocations and off-plan housing project delays documented in previous Nairametrics investigations.

Weak regulation, financing constraints, poor project planning, title disputes, and overselling were identified as key factors driving delays. Many developers depend heavily on subscriber payments, exposing projects to inflation and rising construction costs.

Are you planning to buy property or access mortgage financing within the next year? How might these proposed protections change your approach to off-plan purchases?

SOURCE: https://nairametrics.com/2026/07/24/fg-proposes-developer-licensing-escrow-accounts-for-homebuyers/