Nigeria Shows Widening Transparency Gap in Real Estate
Nigeria has been scored low in the 2022 Global Real Estate Transparency Index (GRETI) released by JLL and LaSalle Investment Management. Out of 156 cities across 94 countries and territories covered globally, Nigeria was ranked 60. The report revealed a widening transparency gap, as leading countries pull further ahead and set higher standards, from new regulations covering energy efficiency and emissions standards for buildings and climate risk reporting; to raising the bar for Anti-Money Laundering (AML) and beneficial ownership reporting. The maturing real estate technology ecosystem has potential to significantly boost transparency. However, the use of new technologies is highly varied across organizations and markets, the landscape of solutions and providers are complex, and many tech standards are specific to individual companies or use-cases. The Sub-Saharan Africa region has seen improvements continue to stall for the third consecutive survey, following limited progress in 2018 and 2020. Kenya launched Ardhisasa (a national land information system) and new beneficial ownership regulations. Nigeria gained in the latest rating due to the establishment of Lagos State Real Estate Regulatory Authority and the development of an online portal for planning applications. Experts, however, believe that Nigeria can improve more in ranking, if there is deliberate and concerted efforts in building real estate data infrastructure, enthroning cashless economy, optimising development approval and control processes, liberalising issuance of property titles and establishing title registry, securitising real estate assets and adopting technology in the real estate development. The Managing Director, NISH Affordable Housing Limited, Yemi Adelakun, said lack of essential data must have been responsible for the low ranking of Nigeria in the index. For example, Nigeria’s housing deficit figures have been difficult to ascertain or estimate over the years. The President, Real Estate Developers Association of Nigeria (REDAN), Aliyu Wamakko, said there must be a shift in housing provision and government concentrating on policy formulation. According to Wamakko, there should be a policy by government that all monies budgeted for housing should be channeled through the private sector. Such policy, he said, would create employment for the youths, rejuvenate the economy and provide affordable housing.
Tags : Nigeria Global Real Estate Transparency Index JLL LaSalle Investment Management Managing Director NISH Affordable Housing Limited Yemi Adelakun