FG Moves to Reform Off-Plan Housing Market with mandatory Escrow Accounts and Developer Licensing
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The Ministry of Housing and Urban Development introduces new safeguards, including escrow-backed payments and strict developer licensing, under the draft National Housing and Built Environment Regulation Policy to curb project abandonment and protect off-plan buyers.
The Federal Government of Nigeria has unveiled proposed reforms under the National Housing and Built Environment Regulation Policy designed to overhaul off-plan housing transactions and restore confidence among prospective homeowners and institutional investors.
Announced by the Minister of Housing and Urban Development, the framework introduces mandatory escrow protection, strict licensing requirements for developers, and standardized milestone-based fund disbursements.
Under the new regulatory framework, real estate developers will be legally prohibited from selling property off-plan without valid licensing and designated escrow account structures.
Buyer deposits will remain in protected trust accounts and will only be released in phases as construction milestones are verified by licensed professional bodies.
Beyond homebuyer protection, policy experts anticipate that establishing transparent verification protocols will make project pipelines bankable for institutional capital—such as pension fund asset managers—to help narrow the nation's estimated 15 million housing deficit.
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