Real estate developers in Nigeria have been warned to clean up their operations or face legal consequences, as the Economic and Financial Crimes Commission (EFCC) intensifies its crackdown on fraud and illicit financial flows within the sector.
Speaking at a policy dialogue in Abuja, Ola Olukoyede, EFCC Chairman stated that the Commission is now closely monitoring property transactions, especially in luxury estates, which have become common channels for money laundering and other financial crimes.
Olukoyede, who delivered a keynote address entitled, “comply with anti-corruption laws or be prepared to face the full force of the law”, decried the increasing role the real estate market plays in laundering stolen public funds, particularly in high-value developments in Abuja.
He cited cases where developers accepted payments of over ₦3.5 billion for duplexes from civil servants with no traceable source of legitimate income.
He warned that developers who fail to conduct Know Your Customer (KYC) checks, even if not yet legally binding would be held accountable when fraudulently acquired assets were traced to their projects.
The EFCC Chairman revealed that the Commission is working closely with the Corporate Affairs Commission (CAC) to activate the Beneficial Ownership Register, a tool aimed at unmasking the true owners of properties acquired through shell companies.
He added that the EFCC’s Land and Property Fraud Unit has been prosecuting cases involving staff of the Federal Capital Development Authority (FCDA) over multiple allocations and forged land titles.
According to him, more than 15 real estate projects are currently facing civil forfeiture proceedings, many of them linked to looted funds or unexplained wealth.
Olukoyede advised developers to steer clear of serving as fronts for public officials or engaging in overleveraged investments that collapse under scrutiny.
While he acknowledged the challenges faced by genuine developers, such as high interest rates and limited access to credit, he maintained that ethical business practices are non-negotiable.
He also reassured credible investors that the EFCC’s objective is not to stifle growth but to protect the economy from criminal infiltration.
If developers adopt transparency and due diligence as part of their business model, the Commission will support rather than oppose their efforts.
On his part, Adebowale Adedokun, Director General of the Bureau of Public Procurement (BPP) underscored how procurement-related corruption has fuelled fraudulent real estate deals, especially in public housing and infrastructure projects.
He emphasised that a significant part of the sector’s dysfunction stems from opacity in public land allocations and housing contract awards.
“Political interference, coupled with non-compliance with procurement laws, has given rise to a parallel real estate market that disadvantages legitimate developers and distorts urban development priorities”, he said.
The BPP chief advocated for closer alignment between procurement laws, real estate regulations, and anti-corruption strategies.
