Mixta Africa Backs FG Housing Reforms, Seeks Independent Construction Verification
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Pan-African developer Mixta Africa has welcomed Nigeria's proposed housing reforms while urging independent verification of construction milestones and better access to construction finance.
Pan African real estate developer Mixta Africa has welcomed the Federal Government's proposed reforms to strengthen regulation and buyer protection in Nigeria's housing sector, while calling for clear mechanisms for independent verification of construction milestones and improved access to sustainable construction finance.
The company said the success of the proposed framework would depend largely on two critical issues: who independently verifies construction milestones before funds are released from escrow, and how credible developers will finance projects when access to buyers' funds becomes more restricted.
The proposed National Housing and Built Environment Regulation Policy provides for mandatory licensing of developers and estate agents, escrow protection for buyers' funds, stronger professional standards, construction quality assurance, improved land administration, urban renewal and the establishment of a National Housing Data Observatory. The policy also proposes the creation of a National Housing Industry Regulatory Commission.
Mixta Africa's Chief Commercial Officer, Tola Akinsulire, said the proposed measures represented important steps towards restoring confidence in the housing market. 'Licensing and escrow protection are important interventions in a market where consumers have too often carried significant risk,' he said, while noting that effective implementation would require a transparent and independent mechanism for determining when construction milestones had been achieved.
The developer also stressed the financing implications of tighter controls over buyers' funds, noting that off-plan payments have historically provided part of the working capital required to deliver housing projects. 'Escrow can protect the homebuyer, but escrow on its own does not finance construction,' Akinsulire said.
Mixta Africa called for continued collaboration among government, financial institutions, developers and professional bodies to combine strong consumer protection with effective project governance and appropriately structured construction finance, so that regulation does not inadvertently constrain the supply of new homes.