Mixta Africa backs FG’s housing reforms, calls for independent verification

By Maduka Nweke

A real estate developer, Mixta Africa, has welcomed the Federal Government’s proposed reforms to strengthen regulation, improve buyer protection and increase confidence in Nigeria’s housing sector, calling for clear mechanisms for independent milestone verification and access to appropriately structured construction finance.

It believes two questions would be critical to the successful implementation of the proposed framework: who independently verifies that a construction milestone has been achieved before funds are released from escrow, and how will credible developers finance construction where buyers’ funds are more tightly controlled?

The proposed National Housing and Built Environment Regulation Policy includes mandatory licensing for developers and estate agents, escrow protection for buyers’ funds, stronger professional standards and construction quality assurance, improved land administration, urban renewal and a National Housing Data Observatory.

It also provides for a National Housing Industry Regulatory Commission to strengthen oversight of the sector.

Mixta Africa’s Chief Commercial Officer, Tola Akinsulire, said: “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.

“Mixta Africa recommends that construction milestones linked to escrow releases be independently verified by qualified built-environment professionals, with clear standards for certification and a verifiable audit trail.

“The question is not only where the buyer’s money sits, but what evidence is required before that money can move.

“Independent verification creates a clear link between construction progress, fund release and accountability.”

The company also believes that buyer protection must be accompanied by measures that expand access to construction finance.

Historically, off-plan payments have provided part of the working capital used to deliver housing projects. If access to these funds becomes more restricted, credible developers will need alternative sources of appropriately structured and 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.

“Mixta Africa is, therefore, calling for continued engagement between government, financial institutions, developers and professional bodies to establish a framework that combines strong buyer protection with effective project governance and sustainable construction finance.

“The company supports the Ministry’s direction and believes that translating the proposed reforms into practical, enforceable standards will be critical to building a more transparent, investable and sustainable housing sector without constraining the supply of new homes.”