Mixta Africa, a pan-African real estate development company, has hailed the federal government’s (FG’s) planned housing sector reform, hoping it will strengthen regulation, improve buyer protection, and increase confidence in the sector.
The developer, which has more than two decades of experience developing residential communities across Africa, has also canvassed clear mechanisms for independent milestone verification and access to sustainable construction finance.
The company believes that answering two questions will be critical to the successful implementation of the proposed framework. The questions are: 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?
It notes that the proposed National Housing and Built Environment Regulation Policy (NHBERP) 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.
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The policy also provides for a National Housing Industry Regulatory Commission to strengthen oversight of the sector.
“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,” Tola Akinsulire, the company’s chief commercial officer, pointed out.
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.
Akinsulire said the question is not only about where the buyer’s money sits, but also what evidence is required before that money can move,” adding, “independent verification creates a clear link between construction progress, fund release and accountability.”
The company also believes 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, advising that “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 government’s direction and believes that translating the proposed reform into practical, enforceable standards will be critical to building a more transparent, investable and sustainable housing sector without constraining the supply of new homes.
Founded in 2005, Mixta Africa has developed residential communities across Nigeria, Senegal, Tunisia, Kenya and Côte d’Ivoire, plus Lakowe Lakes Golf & Country Estate, Beechwood Estate and Fara Park in Lagos.
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