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The Economic and Financial Crimes Commission (EFCC) has announced plans to investigate Nigeria’s real estate sector, starting with the Federal Capital Territory (FCT), as part of efforts to tackle corruption.
The anti-graft agency said the probe would focus on identifying the true owners of properties and determining whether the estates were funded through illicit transactions.
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“Let me say it clearly: those who set up businesses with the primary aim of defrauding Nigerians will be brought down,” EFCC chairperson Ola Olukoyede said on Wednesday in Abuja while delivering his keynote address at a policy dialogue on critical issues affecting Nigeria’s real estate ecosystem. The event was organised by the Law Corridor firm.
He said some estates in Abuja are abandoned because they were funded with stolen public funds by civil servants who either lost their jobs or had their illegal income sources cut off.
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According to the EFCC boss, preliminary findings show that some businesses, including real estate ventures, were established to dupe unsuspecting Nigerians. He vowed that such establishments would be dismantled after the investigation.
He said EFCC would collaborate with stakeholders in the sector to ensure the planned probe is effective, and urged Nigerians to support the commission in exposing individuals laundering stolen public funds through real estate, as the Law Corridor has done.
“Only in Nigeria can a civil servant own property worth N500 million without facing questions, either due to fear or complacency,” he said. “We must change this mindset that allows corruption to thrive. Nigerians must form pressure groups to demand accountability and make the anti-corruption fight effective,” said Mr Olukoyede.
Lending rates crisis and support funds
He assured his audience that the commission would support legitimate businesses, as it was already engaging bankers to reduce lending rates so that companies could survive.
He explained that no business can survive 30 per cent interest rates and called on banks to shift to single-digit lending for genuine enterprises.
The EFCC bragged that it is not only tackling corruption with legal tools, but also supporting job creation by helping businesses grow and reducing youth involvement in crime. It plans to collect real estate data and create a property ownership register, stressing that transparency is vital for the sector’s growth.
Mr Olukoyede also urged federal and state governments to set up special funds to support the growth of the real estate sector. He said concrete steps must be taken to ensure its survival.
He urged investors to follow due process to avoid scams, as EFCC does not target legally established businesses. “We only act against those built on fraud,” he said.
Reforms needed
The Practice Group Lead, Real Estate, Construction and Infrastructure at the Law Corridor, Ayokunle Erin, explained that the policy dialogue was convened to drive reforms in Nigeria’s real estate ecosystem and position the sector as a key contributor to the economy.
He said the sector represents more than concrete and land registries. He said with necessary reforms, the sector could be an economic powerhouse that shapes urban development, job creation, wealth distribution and social stability.
Mr Erin further explained that Nigeria’s housing deficit currently stands at between 17 and 20 million units, with an annual delivery requirement of 700,000 units. However, in 2024, only about 5,000 new housing units were delivered in Abuja, meeting less than 10 per cent of the FCT’s needs.
He said the gap highlights deep-rooted policy failures, regulatory weaknesses and legal ambiguities that continue to empower fraudsters, quacks and unlicensed agents.
He called on stakeholders in the sector to act with “clarity, courage and coordination” to reshape Nigeria’s real estate landscape and unlock its potential for national development.
Housing and property scams on the rise in Nigeria
Housing and property scams continue to rise across Nigeria, with law enforcement data pointing to widespread fraud and structural failures in the real estate sector.
In the past year, the EFCC recovered 975 real estate assets linked to nearly $500 million in illicit funds, confirming the sector’s use as a laundering channel for both public and private sector corruption.
In Abuja, 19 professionals reportedly lost a combined N206.5 million in an unfulfilled National Housing Fund (NHF) estate deal since 2020.
A developer was also recently arraigned for allegedly defrauding victims of over N500 million using forged land documents. Another vendor was arrested for selling non-existent plots in Karsana and Katampe Extension, with victims paying between N3.5 million and N60 million.
READ ALSO: Olukoyede to People’s Gazette: Retract NNPC GMD forced resignation report or face legal action
Lagos has emerged as the most proactive state, with the Lagos State Real Estate Regulatory Authority (LASRERA) receiving 1,577 petitions on real estate fraud between 2020 and early 2024. Through mediation, the state recovered N478 million and 18 properties.
Reports show that over 500,000 land scam cases are recorded yearly in Lagos and Ogun states, many involving disputed titles or undocumented sales. Experts estimate that up to 95 per cent of real estate transactions lack proper documentation.
Experts blame the crisis on weak regulation, poor legal enforcement, and the absence of a centralised, digitised property registry, conditions that continue to enable fraudsters and unlicensed agents to operate freely.
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