The Federal Mortgage Bank of Nigeria (FMBN) has raised concerns over cases of property developers allegedly reselling houses already allocated to beneficiaries, abandoning construction projects and diverting funds meant for housing development.
The bank disclosed that some developers who received construction financing for residential projects failed to deliver completed homes to contributors under the National Housing Fund (NHF) scheme, leaving intended beneficiaries without their allocated properties.
FMBN Managing Director and Chief Executive Officer, Shehu Usman Osidi, raised the concerns on Monday, November 2, 2026, during the Stakeholders’ Conference on the Proposed National Real Estate Regulatory Authority (NRERA), held at the Transcorp Hilton Hotel in Abuja.
According to a statement released by the bank on Tuesday, Osidi said its experience in financing housing projects had exposed serious weaknesses in the accountability and supervision of property developers.
He explained that some developers received financial support and secured allocations for NHF contributors but subsequently failed to hand over the houses.
In certain cases, the properties were reportedly sold to other purchasers, while some developers allegedly abandoned projects, failed to commence construction after collecting funds or redirected resources intended for housing development.
The FMBN chief maintained that providing construction finance alone was insufficient to guarantee successful housing delivery, particularly where developers lacked the financial discipline, technical capacity or accountability required to complete projects.
He stressed the need for stronger safeguards to protect both housing beneficiaries and institutions financing residential developments.
“It is not enough to provide financing,” Osidi said, emphasising the importance of verifying developers’ competence and financial responsibility.
The development raises concerns over the security of housing investments, particularly for Nigerians who depend on the National Housing Fund scheme to access affordable homes.
Under the scheme, eligible contributors can obtain housing finance through arrangements supported by FMBN, while developers may access construction funding to deliver residential properties.
However, where developers fail to fulfil their obligations, beneficiaries may face prolonged delays in obtaining homes allocated to them, even after the financing and approval processes have been completed.
Osidi noted that FMBN had previously introduced safeguards, including making membership of the Real Estate Developers Association of Nigeria (REDAN) a requirement for developers seeking construction loans.
Despite the measure, he acknowledged that voluntary industry regulation had not been sufficient to prevent misconduct.
He therefore advocated the establishment of an independent regulatory framework with enforceable standards for property developers and stronger mechanisms for monitoring housing projects.
The proposed framework, according to him, should provide for proper registration and accreditation of developers, verification of housing projects, mandatory disclosure of relevant transaction information and sanctions against operators found to have violated established requirements.
He also called for clearer responsibilities among developers, financial institutions and housing beneficiaries to reduce disputes and improve accountability.
Although the bank highlighted cases of alleged misconduct, its statement did not disclose the number of affected housing projects, the value of funds involved or the identities of developers implicated.
It also did not indicate whether any of the reported cases had resulted in criminal prosecution, financial recovery or other enforcement actions.
The proposed National Real Estate Regulatory Authority is being considered as part of broader efforts to improve oversight of Nigeria’s property market and address weaknesses that expose homebuyers and investors to financial losses.
Speaking at the conference, Speaker of the House of Representatives, Tajudeen Abbas, identified weaknesses in property documentation, ownership verification and transaction processes as major problems affecting confidence in the real estate sector.
He advocated a coordinated digital system that would make it easier to verify property ownership and establish the identities of parties involved in real estate transactions.
The Speaker maintained that improved transparency would help reduce fraudulent transactions, competing ownership claims and disputes between buyers and sellers.
Similarly, Chairman of the House Committee on Housing and Habitat, Abdulmumin Jibrin, identified regulatory gaps, overlapping institutional responsibilities and inadequate consumer protection as challenges requiring legislative attention.
He said the proposed authority would provide a more coordinated approach to industry regulation while strengthening confidence among property buyers, developers and investors.
Minister of Housing and Urban Development, Muttaqha Rabe Darma, also expressed support for the initiative, stressing the importance of collaboration between federal institutions and state governments.
The minister recalled that a stakeholders’ engagement conducted in July 2026 had placed Nigeria’s housing deficit at more than 15 million units, underscoring the need for stronger systems to support residential development.
He noted that low mortgage penetration continued to limit access to homeownership, while inadequate safeguards exposed prospective buyers and other participants in the housing market to avoidable risks.
The conference, organised by the Office of the Speaker in collaboration with the House Committee on Housing and Habitat, brought together government institutions, financial organisations, professional bodies and private-sector stakeholders.
Participants examined proposals for improving regulation, protecting investments and strengthening accountability within Nigeria’s real estate industry.
The committee is expected to harmonise recommendations from the engagement as part of the legislative process for the proposed regulatory authority.
For FMBN, the initiative represents an opportunity to address weaknesses affecting housing projects financed through public mortgage arrangements and ensure that funds provided for residential development result in completed homes for intended beneficiaries.
The bank maintained that stronger oversight of developers would be essential to protecting housing investments, improving confidence in mortgage financing and ensuring that Nigerians who qualify for housing schemes receive the properties allocated to them.
