The real estate industry is a fast-growing industry in Nigeria and one question that is common among both newbies and experts in the industry is; ‘what regulatory body is in charge of the property space?”. This article outlines who regulates the property space in Nigeria and everything you need to know about the regulation of the property space.
Over the years, the real estate sector in Nigeria has experience tremendous growth and has gained traction from both investors and business enthusiast alike. As the industry continues to grow, so does the need for regulatory bodies. These regulatory bodies help to curb the excesses in the industry and also ensures that the land act law is strictly adhered to.
In Nigeria, the real estate sector is supervised and regulated by a number of different regulatory bodies. The creation and execution of policies are supervised by state-level ministries and the federal Ministry of Works and Housing. We will be looking at a number of them.
Regulatory Authorities in Real Estate
As stated earlier, the property space in Nigeria is regulated at both the federal and state levels.
Federal Regulation Of The Property Space In Nigeria
At the federal level, The Federal Ministry of Works And Housing is the number one body that monitors and regulates the property space. Also, there are other bodies that have been recognized and authorized by the federal government to regulate laws pertaining to the property space, some of which are;
- Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON)
Decree No. 24 of 1975, now known as CAP III (Laws of the Federal Republic of Nigeria), designates ESVARBON as the registered body for professional estate surveyors and valuers.
The field of estate surveying and valuation gained prominence in Nigeria in 1969 when a group of certified chartered surveyors (general practitioners) established the Nigerian Institution of Estate Surveyors and Valuers (NIESV), a voluntary non-profit organization dedicated to advancing the field’s interests in the nation.
After requesting government recognition, this group received it six years later with the enactment of the Estate Surveyors and Valuers (Registration, Etc.) Decree No. 24 of 1975, which is currently CAP E. 13 LFN 2004.
The Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) was formed by this legislation to serve as the industry’s regulating body.
- Nigerian Institute of Estate Surveyors and Valuers (NIESV)
The few certified General Practice Chartered Surveyors, who received the majority of their training in the United Kingdom, founded the Nigerian Institution of Estate Surveyors and Valuers (NIESV) in 1969. The Estate Surveyors and Valuers (Registration Act) Decree No. 24 of 1975 gave the Institution official government recognition. In 1969, the inaugural Annual Conference took place in Ibadan.
The authority to oversee and manage the estate surveying and valuation profession in Nigeria rests with the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). The International Federation of Surveyors (FIG), the Royal Institute of Chartered Surveyors (RICS), the Commonwealth Association of Surveying and Land Economy (CASLE), Association of Professional Bodies of Nigeria (APBN), The International Valuation Standards Council (IVSC) and the International Real Estate Federation (FIABCI) are among the organizations to which the institution is affiliated.
- Real Estate Developers’ Association of Nigeria (REDAN)
REDAN was created as the main organization for the organized private sector by the Federal Mortgage Bank of Nigeria (FMBN), the country’s premier mortgage lending bank. Landowners, organizations, producers, suppliers, and financiers are all supported by the association.
Since its official recognition by the Federal Government of Nigeria in November 2002, the Real Estate Developers Association of Nigeria (REDAN) has served as the principal agency and umbrella body of the organized private sector (public and private) responsible for housing development in Nigeria.
For the Federal, State, and Local Governments, NGOs, private organizations, foreign partners, and investors who want to create a housing program or take part in housing development in Nigeria, REDAN is the first place they should go.
- Estate, Rent and Commission Agents Association of Nigeria (ERCAAN)
The Estate, Rent & Commission Agents Association of Nigeria (ERCAAN) was established in 1990 and officially registered as an Association on August 8, 1991, with No. 6223 under the Land (Perpetual Succession) Act, Cap. 98, with the Federal Ministry of Internal Affairs.
The Association was established, registered, and incorporated on behalf of Nigerian real estate agents who are willing to professionalize their real estate agency by providing their clients with prompt, honest service both within and outside of their community, regardless of their gender, nationality, or tribe.
The ERCAAN association instructs, teaches, and provides information to agents regarding property management ethics. Along with the agents, they oversee the behaviour of landlords and tenants.
- Nigerian Institute of Town Planners (NITP)
The foremost organization in Nigeria for inclusive, sustainable, integrative, and spatial planning is the NITP. For the benefit of the general public, the NITP exists to advance the science and art of planning. Planners assist local authorities in making decisions about social, economic, and environmental issues by creating both short- and long-term plans for the use of land for the development and revitalization of urban, suburban, and rural communities. Urban and regional planners are often referred to as community, regional, or city planners because most of them work for local governments.
State Bodies That Regulate The Property Space In Nigeria
Here are a few states real estate regulatory bodies in Nigeria;
- Lagos State Real Estate Transaction Department
The LASRERA organization was established by the Lagos State Ministry of Housing to control the actions of agents. This organization advises the public to only do business with these certified agents and grants licenses to validated agents.
This organization was established by the Lagos State Government to oversee estate agents’ operations in the State and is under the Ministry of Housing’s purview. The goal is to reduce the volume of grievances people file against real estate brokers who take money, vanish, and fail to deliver the housing or other services they were hired to do.
- Edo State Ministry of Physical Planning, Housing, Urban and Regional Development
The state government ministry in charge of planning, creating, and carrying out the state’s policies on physical planning, urban development, and housing is the Edo State Ministry of Physical Planning, Housing, Urban and Regional Development.
- The Federal Capital Development Authority (FCDA)
The Federal Capital Development Authority (FCDA) was established by decree 6 of 1976 to oversee the infrastructural & physical development of the FCT
- Rivers State Housing and Property Development Authority (RSHPDA)
The Rivers State No. 14 of 1985 Laws established the Rivers State Housing and Property Development Authority as the state government body. Since its founding, the Housing Authority has concentrated on fulfilling its primary mandate, which is to increase the number of dwelling houses, office buildings, and industrial buildings in the state that are available for purchase or rental by members of the public. This includes managing and controlling all housing estates and properties owned by the Rivers State Government as well as properties vested in the authority, all the while providing comprehensive justification for the authority’s establishment.
These bodies along with many others helps to keep the balance in the property space in line with the Land Use Act of Nigeria.
