REDAN Wants Real Estate Regulation In Nigeria

REDAN Wants Real Estate Regulation In Nigeria

Mustapha Suleiman

The National Executive Council of the Real Estate Developers Association of Nigeria (REDAN) has said that there is no clear regulatory legal framework for estate developers, leading to the proliferation of incompetent, inefficient and fraudulent developers with the tendency to mislead the public.
REDAN said that the FCT is losing so much revenue as a result of non-compliance to the real estate regulations and enforcement of laws on land administration.

The association said that it deemed necessary to clear the air on some of the positions of the House of Representatives Ad-Hoc Committee investigating the operations of the Real Estate Developers in the Federal Capital City recently published in the Daily Trust Newspaper.

The Ad-Hoc Committee Communique
For the avoidance of doubt, may we clearly note that, REDAN appreciate the efforts made so far by the Ad-hoc Committee of House of Representatives in finding a lasting solution to the lingering land issues in the FCT and by extension in the entire country

that the significance of having regulatory legal framework for real estate development that will regulate developers in the Federal Capital Territory and the entire country.

REDAN, however, said that it is excited about some of the joint observations agreed upon in the communique released at the end of the workshop, but was taken aback on the last paragraph of the Communique, which resolved that “REDAN Bill is unrealistic and therefore be jettisoned”.

According to REDAN, this resolution will spell disaster for the real estate sub-sector, adding that it is particularly concerned about such a "hasty" recommendation when indeed REDAN as well as other well-meaning institutions like the Economic and Financial Crime Commission (EFCC), Nigeria Financial Intelligence Unit (NFIU), Special Control Unit Against Money Laundering (SCUML), Scholars from many Universities of learning, International bodies amongst others have put in efforts in drafting the Real Estate (Regulation and Development) Bill, which was presented to the 9th National Assembly - Senate and the House of Representative in July 2020."

It would be recalled that REDAN is the umbrella body of the organized real estate sector (private and public) duly recognized by the Federal government and saddled with the responsibility of providing affordable housing for Nigerians. The body was established in 2002.

While throwing more light on the Real Estate Regulation and Development Bill objectives, REDAN said that it will standardize the business of real estate development in Nigeria by regulating the conduct of transactions in the real estate sector as well as provide enabling environment and transparency in the real estate development in Nigeria. REDAN further urged the National Assembly to make the business of real estate development in Nigeria conform to international best practices and safeguard the ultimate interest of all stakeholders in the business.

Curb fraudulent practices in the business of real estate development in Nigeria, ensure that the real estate business conforms with the National Building Code in Nigeria.

“Create an innovative and sustainable environment to promote Nigeria as a real estate investment destination in Africa and the world and ensure that the real estate business in Nigeria conforms with the MONEY LAUNDERING PROHIBITION ACT 2011 (as amended) and NFIU ACT 2018 in terms of anti-money laundering and counter terrorism financing due diligence compliance,” said REDAN.

We respectfully therefore, call on the Honourable Members of the House of Representatives to standout against Money Laundering and support the sanitization of the real estate business in Nigeria by passing the Bill, as it will serve the interest of the masses, increase investment in the sector and promote housing development not only in the FCT but the entire country.

REDAN expressed appreciation to the Distinguished Senators for passing the Real Estate (Development and Regulations Bill) and fervently seek the support of the entire leadership and Honourable Members of the House of Representative to give concurrence to the Bill.

It would be recalled that the 9th Senate of the Nigeria’s National Assembly on Wednesday November 17, 2021 passed the Real Estate (Regulation and Development) Bill. A week later, the Senate President sent the Bill to the House of Representatives for Concurrence. The House of Representative read the Bill on the floor of the House on December 2, 2021.

The Bill is aimed at ensuring compliance with all extant laws, National Building Code, financial regulations, and adherence to standards by Developers.

Real estate experts are of the view that Nigerians will greatly benefit from the passage of the Bill as it will ensure value for money for home-seekers, quality of buildings, instill professionalism and mitigation of collapsed building across the nation.

They further observed that it will be in the overall interest of professionals, practitioners and all players in the Built Industry, calling on the government and N/Assembly to regulate the industry like it is done in other climes like: USA, U.K, Malaysia, South Africa etc, and as equally recommended by the Honourable Ad-Hoc Committee in their “Paragraph C” of same Communique, is exactly what REDAN seeks to create and institute with the Bill, which has already been passed at the Senate.”

The assocaition emphasized that REDAN Bill, when given concurrence at the Lower House, will seek to provide answers to many issues bothering the industry.

Reacting to why there is opposition to Regulating the Business of Real Estate in Nigeria, the assocaition said, ”it is not unaware of some developers, who are seriously averse to the Bill and who have vowed to ensure that the Bill does not pass at the Lower House simply because they are likely the ones neck deep in the money laundering business and financing of terrorism.

” They are obviously economic saboteurs and are ready to tarnish the image of Nigeria. They are working to perpetually stain Nigeria in the eyes of the world. If the business is regulated, the law enforcement agents and regulators will catch-up with them and they will not only be exposed but their businesses will crumble. We say with no regrets that any developer seeking to jettison the Bill in its entirety without making amendments, recommendations or inputs that could make the Bill better is a perpetrator of money laundering and the authorities’ searchlight be beamed on such developers and their sponsors.”

REDAN is the umbrella body of entrepreneurs building and constructing affordable housing and other developments in Nigeria with the desire to regulate the business of Real Estate in Nigeria as in other climes.

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