FMBN Raises Alarm Over Developers Reselling Allocated Homes, Abandoning Projects
The Federal Mortgage Bank of Nigeria (FMBN) has expressed concern over alleged misconduct by property developers, including the resale of houses already allocated to beneficiaries, abandonment of housing projects, and diversion of construction funds.
The bank warned that such practices threaten housing delivery, undermine public confidence in mortgage financing, and expose prospective homeowners to financial risks.
FMBN Managing Director and Chief Executive Officer, Shehu Usman Osidi, raised the concerns during the Stakeholders’ Conference on the Proposed National Real Estate Regulatory Authority (NRERA), held on November 2, 2026, in Abuja.
According to Osidi, some developers who received construction financing and secured housing allocations for contributors to the National Housing Fund (NHF) failed to deliver the properties to their intended beneficiaries.
He disclosed that certain houses were reportedly sold to other buyers, while some developers abandoned projects, failed to commence construction after receiving funds, or diverted resources intended for residential development.
The FMBN chief stressed that providing financial support alone cannot guarantee successful housing delivery without proper supervision and accountability.
He explained that developers must demonstrate professional competence, financial responsibility, and the capacity to complete projects before accessing construction financing.
Osidi noted that FMBN had previously introduced measures requiring developers seeking construction loans to belong to the Real Estate Developers Association of Nigeria (REDAN).
However, he acknowledged that voluntary industry regulation had not sufficiently addressed misconduct within the sector.
He therefore called for the establishment of an independent regulatory framework capable of enforcing professional standards, monitoring developers’ activities, investigating complaints and sanctioning violations.
The proposed framework would also introduce stronger registration and accreditation requirements, improve transparency in property transactions and establish clearer responsibilities for developers, financiers and housing beneficiaries.
Speaking at the conference, Speaker of the House of Representatives, Tajudeen Abbas, highlighted weaknesses in property documentation and ownership verification as major challenges affecting confidence in Nigeria’s real estate market.
He advocated a coordinated digital regulatory system to strengthen transparency and protect property buyers and investors.
Similarly, Chairman of the House Committee on Housing and Habitat, Abdulmumin Jibrin, identified regulatory gaps, overlapping institutional responsibilities and inadequate coordination as obstacles to sustainable housing development.
Minister of Housing and Urban Development, Muttaqha Rabe Darma, also supported the proposed regulatory authority, emphasising the importance of collaboration between federal institutions and state governments.
The minister noted that Nigeria’s housing deficit exceeds 15 million units, while limited mortgage access continues to make homeownership difficult for many Nigerians.
The proposed National Real Estate Regulatory Authority is expected to strengthen oversight, improve consumer protection and promote accountability across the country’s property sector.
Stakeholders’ recommendations from the conference are expected to guide the development of a legislative and regulatory framework aimed at restoring confidence in housing investments and ensuring that financed projects deliver homes to their intended beneficiaries.
