Cecil Osakwe, a prominent real estate developer, recently spoke about the urgent need for reforms in Nigeria’s real estate industry. He emphasized the importance of establishing regulations, enhancing transparency, and fostering investor trust.
Osakwe drew a stark comparison between the real estate markets in Nigeria and the United States, outlining the various challenges Nigeria faces. “In the U.S., the real estate sector operates under a framework of established rules that promote fairness and accountability,” he explained. “These include building codes and licensing criteria, which create an appealing environment for both domestic and international investors. Legal processes govern transactions like lease agreements and property sales, and they also manage foreclosures, contributing to market trust and stability.”
In contrast, he noted that Nigeria’s real estate market struggles with a lack of regulatory enforcement despite a growing population and an emerging middle class. “The industry is hindered by inadequate regulatory frameworks that lead to widespread corruption, low construction standards, and frequent instances of fraud among real estate agents and contractors. The absence of a centralized oversight mechanism results in a fragmented market, which discourages potential investors from both locally and abroad.”
Osakwe highlighted the critical role that regulation plays by contrasting the strict licensing and enforcement in the U.S. with Nigeria’s more lenient approach. “In the U.S., there are serious consequences for noncompliance, which helps maintain a high level of professionalism across the industry. On the other hand, many Nigerian contractors are prone to cutting corners, artificially inflating property prices while compromising building quality. This lack of rigorous enforcement cultivates distrust, compelling many investors to steer clear of the Nigerian market.”
Another significant issue he addressed is the discrepancy in tenant rights between the two countries. “In the United States, the rights of tenants and landlords are clearly defined and legally protected, leading to a fairer rental market. Conversely, Nigerian tenants often experience arbitrary rent hikes and sudden evictions due to insufficient protections, leaving them vulnerable to exploitation.”
Despite these challenges, Osakwe remains hopeful about the potential of Nigeria’s real estate sector. “The country is experiencing rapid economic growth, which drives the demand for quality residential and commercial properties. To unlock this potential, it’s essential to strengthen regulations, improve oversight, and enhance the legal framework surrounding property transactions and dispute resolution. This will create a more inviting atmosphere for investors.”
Additionally, Osakwe advocates for increased government involvement in the real estate sector, suggesting that Nigeria could benefit from U.S.-style interventions. He proposed initiatives such as mortgage subsidies and affordable housing programs, asserting that with the right reforms, Nigeria has the capacity to transform its real estate industry into a vibrant, investor-friendly landscape that prioritizes transparency, accountability, and fairness for all stakeholders.
