…15 Estates Seized Nationwide as Civil Servants, Developers Face Scrutiny
In a sweeping offensive against illicit financial flows, the Economic and Financial Crimes Commission (EFCC) has launched a nationwide investigation into Nigeria’s real estate sector, securing interim forfeiture orders on 15 housing estates allegedly built with stolen public funds.
The development was announced by EFCC Chairman, Ola Olukoyede, during a high-level policy dialogue on Nigeria’s real estate ecosystem, organised in Abuja by the law firm Law Corridor. The event brought together key stakeholders, including the President of the Nigerian Bar Association (NBA), Mazi Afam Osigwe (SAN), and Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun.
Olukoyede disclosed that many of the estates now under EFCC scrutiny were developed by civil servants using misappropriated funds and were later abandoned when illicit financing dried up.
“Most of these estates are funded by civil servants who have stolen money. Some have been abandoned for 10 to 20 years,” he stated.
The EFCC has reportedly set up dedicated teams to inspect housing developments nationwide—not just in Abuja—to investigate ownership structures and trace the origin of development funds.
Shadowy Ownership, Fake Developers Under Investigation
The EFCC chairman raised alarm over the difficulty of tracing the true ownership of many properties, citing a lack of transparency and poor regulation. He called for the full operationalisation of the Beneficial Ownership Register, which would require disclosure of individuals behind corporate entities involved in property deals.
He also revealed that some real estate developers, having initially relied on looted public funds, often seek external investors to continue projects once illegal financing sources are cut off.
“A thousand EFCCs cannot fix corruption if we continue with this cash-based system. Everything—buying a car, a house—is done with cash,” Olukoyede lamented.
Real Estate a “Laundering Haven”
Olukoyede described the sector as “extremely rampant” with money laundering activity, pointing to unrealistic profit margins and the inability of developers to rely on legitimate financing as red flags.
“No one can take a bank loan at over 30% interest and expect to profit from real estate. So how are these projects being funded?” he asked.
To combat this, he proposed a dedicated real estate investment fund offering single-digit interest loans, managed through institutions such as the Federal Mortgage Bank and Aso Savings and Loans.
NBA, BPP Demand Urgent Reforms
NBA President Mazi Afam Osigwe (SAN) called for widespread land reform and digitisation of property records to combat opacity in ownership and transactions.
“In the UK, with a few clicks and a small fee, you can verify property ownership. In Nigeria, it’s a bureaucratic nightmare,” Osigwe noted.
Dr. Adedokun of the BPP linked inflated contract values to real estate money laundering, pointing out that surplus funds from procurement fraud often find their way into private housing investments. He disclosed ongoing collaboration between the BPP and the Corporate Affairs Commission (CAC) to track contract execution and curb misuse of public funds.
Regulatory Reboot Needed
All stakeholders at the forum agreed on the need for sweeping reforms in land administration, property regulation, and financial transparency.
Olukoyede urged estate developers to conduct thorough due diligence on clients, warning that ignorance would not protect them from legal consequences.
“Play by the rules. Don’t be complicit in money laundering—know your clients,” he said.
He also called on professionals and citizens to adopt the Federal Government’s Credit Corporation initiative, which aims to reduce cash transactions and limit corruption channels in major sectors like real estate.
The EFCC’s latest moves mark one of the most assertive efforts yet to clean up Nigeria’s multi-billion naira property market—long considered a safe haven for illicit wealth.