Nigerian property market has the potential to deliver N1.4 quadrillion to the country if well developed, industry experts have said.
However, they noted that the market is full of dormant assets that are not playing any role in capital formation compared to countries like South Korea, Brazil and United Arab Emirates (UAE).
To unlock the market’s potential to deliver it real value, experts comprising former president of the African Chapter, International Real Estate Federation, Mr Chudi Ubosi; President, Nigeria Chapter of FIABCI, Mr Akin Opatola; former president, Nigerian Bar Association, Dr. Olisa Agbakoba (SAN); and CEO, Fame Oyster and Co., Mr. Olufemi Oyedele, canvassed for reforms in land registry, titling and property registration.
He blamed lack of land titling and property registration for the underdeveloped of the mortgage system in the country.
Justifying the need for land reform, Agbakoba said that 95 per cent of houses in the country are without titles, as a result, they cannot be used to transact business or obtain loans in the bank.
“There’s a problem. In fact, 95 percent of the houses in Nigeria have no papers. So you cannot take a loan. You cannot be part of the capital formation, unlike in the United Kingdom (UK), the property market is awash with billions,” he said.
“We have written a proposal, which I hope President Bola Tinubu, will use to create a mortgage market. When you create a mortgage market, you are looking at N1.4 quadrillion.”
Chudi Ubosi said the Nigerian property market is definitely worth a tidy sum.
To ensure that 95 per cent of property is registered, he suggested an orientation campaign on the benefits of having title and a drastic reduction in the cost of obtaining a Certification of Occupancy
He said: “To change the narrative of lack of title documents, the first thing is actually a well-articulated orientation campaign as to the benefits of having a title.”
“Then, the government must create in all the states a one-stop office to deal with giving title to lands. There is so much that can be done. Reducing the cost of obtaining the title is key.”
To develop the property market and the mortgage system to deliver the potential of the N1.4 quadrillion to the country, Ubosi said the government has a major role to play.
According to him, government will need to create the enabling environment for economic growth and development so that savings can take place and create the buffer for long term mortgages.
On converting rent to mortgage, he said: “This is a very long term plan and possibly a fallout of several years of operating a system where mortgages exist, and can be accessed at low interest rates.
“We must not rule out the role of strong institutions in achieving this.”
Oyedele corroborated Agbakoba, saying that Nigeria’s property market is worth a quadrillion if well developed.
To unlock 95 per cent of property in Nigeria that lack formal titles, he urged the governors to be ready to issue more Certificate of Occupancy at a cheaper rate.
He urged that all governments to be ready to organise, control and fund real estate practitioners.
According to him, Nigerian government must develop a mortgage system to deliver its potential of N1.4 quadrillion to the country.
“We must improve employment and minimum wage. Mortgages do not work where the median income of people is ridiculously low like Nigeria.
“Even in developed countries, they only convert rent to mortgage in formal houses belonging to government and housing associations which are government’s partners,” he said.
To formalise the tenancy of tenants in informal settlements, Oyedele said that government must recognise all landlords of in the informal sector and assist tenants who have not defaulted in paying their rents for five years to convert rent to mortgage payment on their tenanted houses.
Akin Opatola said that, Nigerian property is worth a quadrillion. “But we should note carefully that this speaks to our potential and not the current realities.”
He noted that Nigeria’s real estate market is significantly undervalued and under documented, especially when considering the scale of land across urban and rural Nigeria, the housing deficit and rapid urbanisation
“The opportunities are huge when they are fully formalised and structured,” he said.
According to him, the key issue is that a large portion of the Nigeria’s real estate’s value is dead capital- assets that exist physically but are not legally or financially recognised.
He also noted that 95 per cent of the property in Nigeria lack title documents.l, calling on the government to digitalise land registries and simplify title processes.
According to Opatola, the current process of obtaining governors consent and title registration is expensive and slow.l, calling for mass titling programmes like what Rwanda did.
He also urged government to lower fees and offer temporary amnesty programmes to encourage property owners to formalise their assets.
To develop the property market and mortgage system to deliver on the potential, he pointed out that a few things needed to be done.
He urged that the property market must be developed, while improving transparency and data availability.
He said:”I would begin to develop our own Multiple Listings Service in Lagos first.”
“A Multiple listings service (MLS) is a centralised, shared database where licensed real estate professionals list properties for sale or rent with accurate details such as price, location, title status, size and transaction history.”
“It allows brokers and agents to collaborate, share listings, and access verified market data in real time.”
“It’s a well-known fact, and I have seen it in my vast travel around the world as FIABCI chapter president that you can’t build a transparent property market or a functional mortgage system without reliable data and an MLS is the foundation for both,” he said.
He added that the government needed innovation and flexible model to convert rent to mortgage.
“We need innovative, flexible models. I have listed three ways: Rent to own schemes, alternative credit scoring, cooperative support and community housing models, and government support and guarantees.”
Meanwhile, government is targeting over N300bn worth of dormant land assets as part of a broader strategy to increase housing supply and unlock value within the real estate sector.
The initiative focuses on reforming land administration systems to convert underutilised land into productive assets that can support housing development.
@ Nigerian Tribune
