A LEGAL REVIEW OF CHALLENGES AND OPPORTUNITIES IN REAL ESTATE INVESTMENT FINANCING IN NIGERIA

Abstract

The paper attempts to elucidate the challenges and opportunities in the real estate investment financing in Nigeria. No doubt Real estate remains a critical component of national economic development, wealth creation, and urban infrastructure expansion in Nigeria. However, access to sustainable and inclusive real estate investment financing has faced significant legal, regulatory, and institutional challenges. This paper did a comprehensive legal analysis of the frameworks regulating real estate investment financing in Nigeria, it interrogated some statutory provisions and judicial pronouncements in that regards. This paper explores key statutes such as the Land Use Act of 1978, the Mortgage Institutions Act, the Investments and Securities Act of 2007, and the Companies and Allied Matters Act of 2020, among others. It also analyzes the role of regulatory institutions like the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Federal Mortgage Bank of Nigeria (FMBN) in promoting or constraining financing mechanisms.Through doctrinal legal analysis and case law evaluation, the study identified numerous challenges, including bureaucratic inefficiencies in land registration, insecurity of land tenure, high interest rates, limited mortgage penetration, lack of credit infrastructure, and overlapping regulatory authorities. These obstacles have hindered investor confidence and impeded the growth of the real estate sector.Nonetheless, the paper identified emerging opportunities such as the digitization of land registries, the introduction of Real Estate Investment Trusts (REITs), legal reforms to mortgage financing, increasing diaspora interest, and the adoption of alternative financing models. The paper recommended specific legislative updates, clearer land titling processes, judicial reforms, and incentivization of private sector participation as pathways to reposition real estate investment financing as a driver of national development. The paper concluded that while Nigeria’s real estate sector holds immense investment potential, unlocking this value will require robust legal reforms, harmonization of regulatory frameworks, institutional strengthening, and promotion of investor-friendly financing structures.