FMBN flags developers reselling allocated homes as Nigeria weighs new property regulator
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The Federal Mortgage Bank of Nigeria says some developers resold houses already allocated to National Housing Fund contributors or abandoned projects after drawing construction finance, as stakeholders debate a proposed real estate regulatory authority.
The Federal Mortgage Bank of Nigeria (FMBN) has raised concerns over developers reselling houses already allocated to beneficiaries, abandoning construction and diverting funds meant for housing development, according to a statement by the bank.
Managing director and chief executive Shehu Usman Osidi spoke on Monday, 2 November 2026, at a stakeholders' conference on the proposed National Real Estate Regulatory Authority (NRERA) at the Transcorp Hilton in Abuja. He said some developers that received construction financing and secured allocations for National Housing Fund (NHF) contributors later failed to hand over the houses, and that in some cases the properties were sold to other purchasers.
Osidi said other developers abandoned sites, did not start construction after collecting funds, or redirected resources intended for housing development. He argued that construction finance alone cannot guarantee delivery where developers lack financial discipline, technical capacity or accountability.
The bank said it had already made membership of the Real Estate Developers Association of Nigeria (REDAN) a condition for developers seeking construction loans, but acknowledged that voluntary industry regulation had not prevented misconduct. It is now backing an independent framework with registration and accreditation of developers, verification of projects, mandatory disclosure and sanctions.
The statement did not disclose the number of affected projects, the value of funds involved or the developers implicated, and did not say whether any case had led to prosecution or recovery. House of Representatives Speaker Tajudeen Abbas told the conference that weaknesses in property documentation and ownership verification were undermining confidence in the sector, while the chairman of the House Committee on Housing and Habitat, Abdulmumin Jibrin, cited regulatory gaps and overlapping institutional responsibilities.
Housing and Urban Development Minister Muttaqha Rabe Darma said a stakeholders' engagement in July 2026 put the country's housing deficit at more than 15 million units and noted that low mortgage penetration continues to limit access to homeownership. The committee is expected to harmonise the conference recommendations as the bill for the proposed regulator moves through the legislature.