Illicit deals driving real estate sector in Nigeria —Report
By Uwana Akpan
A Civil Society legislative Advocacy center, (CISLA) has unveiled high-level money laundering in real estate sector.
The report disclosed that there is a consolidation of dirty deals in real estate sector, revealing that, real estate is populated with informal agents who control over 95per cent of the market.
The report also said, corrupt money that is diverting into the nation’s economy through real estate sector can change the market and inflate property prices.
For instance, Lagos is the most expensive state in Africa, prices of three bedroom apartments in ikoyi, was N140 million as at 2018 while five -bedroom apartments are sold for N350 million.
The report also states that, currently, 70 per cent of the total population of Lagos are living in informal housing and slums. The housing deficit in Lagos is estimated to be around 2.5 million unit.
According to the report, “In major centers like Lagos, Ibadan, Abuja and Kano, Housing demand is fast growing at about 20 per cent per year. Inflated pieces are driven by corrupt proceeds laundered through out the real estate market.
“The Nigerian real estate sector is regarded to be the second corrupt sector to money laundering.
“The Nigerian law enforcement authorities, the anti-corruption agencies are improving their response to money laundering especially non – conviction strategy to seize asset which have yielded an important result in the effort to recover corrupt assets.”
The report explained further that, “money launderers and criminals use family, professionals, and close friends to secure high value real estate to open account which illegal funds were diverted into high-value real estate acquisitions.
“The proceeds secured through purchase of high value real estate are transferred abroad, by politicians and their associates who channel all the greater volume of illegal proceeds into real estate in Nigeria and abroad.
“Transfer of fund through offshore bank account are very frequent, while purchasing real estate properties and laundering of illicit fund through real estate come with the aim of funding political parties or political aspiration.”
