Mixta Africa has thrown its weight behind the Federal Government’s proposed reforms to Nigeria’s housing sector, but warned that tighter controls on homebuyers’ funds could create fresh challenges for developers if adequate construction financing is not provided.
The pan-African real estate developer said the proposed National Housing and Built Environment Regulation Policy could significantly improve buyer protection, professional standards and confidence in the housing market, but stressed that its success would depend on two critical issues: who independently verifies construction milestones before escrowed funds are released, and how credible developers will finance projects when access to buyers’ funds is restricted.
The proposed framework provides for mandatory licensing of developers and estate agents, escrow protection for buyers’ funds, stronger construction quality assurance, improved land administration, urban renewal and the establishment of a National Housing Data Observatory.
It also proposes a National Housing Industry Regulatory Commission to strengthen oversight and regulation across the sector.
Mixta Africa’s Chief Commercial Officer, Tola Akinsulire, said the reforms were necessary in a market where homebuyers had historically carried substantial risks.
> “Licensing and escrow protection are important interventions in a market where consumers have too often carried significant risk. We welcome the direction of the Federal Government and believe it can materially strengthen confidence in the housing sector.”
However, the company urged the government to establish a transparent and independent system for verifying construction milestones tied to escrow releases.
According to Mixta Africa, qualified built-environment professionals should independently certify project progress, supported by clearly defined standards and a verifiable audit trail.
Akinsulire said the focus should go beyond simply determining where buyers’ money is held to establishing what evidence must be presented before the funds can be released.
> “Independent verification creates a clear link between construction progress, fund release and accountability,” he said.
‘Escrow Alone Cannot Build Houses’
Mixta Africa also raised concerns about construction financing, warning that restricting developers’ access to off-plan payments without providing alternative funding mechanisms could undermine housing supply.
The company noted that off-plan payments have historically served as part of the working capital used to execute residential projects. With such funds potentially becoming more difficult to access under the proposed escrow regime, it argued that credible developers would require appropriately structured and reasonably priced construction finance.
> “Escrow can protect the homebuyer, but escrow on its own does not finance construction,” Akinsulire said.
> “We need to protect buyers while ensuring credible developers can continue to finance and deliver the homes the market needs.”
The developer therefore called for sustained collaboration among the Federal Government, financial institutions, developers and built-environment professionals to create a regulatory framework that protects homebuyers while keeping housing projects financially viable.
Mixta Africa said translating the proposed reforms into practical and enforceable standards would be crucial to creating a more transparent, investable and sustainable housing sector, without inadvertently restricting the supply of new homes.
Founded in 2005, Mixta Africa has developed residential communities across Nigeria, Senegal, Tunisia and Côte d’Ivoire, including Lakowe Lakes Golf & Country Estate, Beechwood Estate and Fara Park in Lagos.
