The Nigerians in Diaspora Commission, NiDCOM, has warned Nigerians living abroad against falling victim to fraudulent real estate transactions, urging them to verify property titles and deal with recognised mortgage institutions before committing funds to property investments in Nigeria.
The Commission said confusion between licensed mortgage institutions and ordinary property developers, coupled with inadequate verification of land ownership and documentation, had exposed many Diaspora investors to financial losses and prolonged property disputes.
The warning was given during a panel discussion on infrastructure projects and mobilisation of Diaspora capital at the second day of the 9th Nigeria Diaspora Investment Summit in Abuja
According to a statement by the Head of NiDCOM’s Media, Public Relations and Protocols Unit, Abdur-Rahman Balogun, the discussion examined practical ways of connecting Diaspora investors with credible investment opportunities.
Speaking on the Commission’s interventions to protect Nigerians abroad, its Acting Secretary, Abdulrahman Terab, disclosed that NiDCOM had established a dedicated desk in collaboration with the Economic and Financial Crimes Commission, EFCC, about five years ago to address fraud complaints, particularly those arising from real estate transactions.
He said the initiative had helped resolve several cases, enabling many affected Nigerians to recover their investments.
Terab explained that the Commission regularly receives petitions from Nigerians abroad over problematic property transactions and follows up on such complaints through appropriate channels.
He also disclosed that NiDCOM, in partnership with First Bank, had established a housing platform to provide Nigerians in the Diaspora with a more secure route to homeownership and minimise the risks associated with property acquisition.
According to him, the initiative is designed to ensure that Nigerians abroad obtain value for their money and gain access to more credible housing opportunities.
The Acting Secretary also welcomed moves by the National Assembly, involving the Senate and House of Representatives, to establish a National Real Estate Regulatory Agency, describing the proposed legislation as an important response to longstanding concerns about inadequate regulation and oversight in the property sector.
Also speaking, the Executive Director and Chief Executive Officer of AG Mortgage Bank, Dr Ojonimi Simon Ogwu, identified the difficulty in distinguishing genuine mortgage institutions from ordinary property developers as a major challenge confronting the real estate market.
He observed that many Nigerians, particularly those living abroad, mistake property development companies with attractive offices, impressive signboards and strong online visibility for established mortgage institutions.
Ogwu warned that such misconceptions had exposed unsuspecting investors to fraudulent transactions, resulting in substantial financial losses and, in some cases, the inability to recover their money or secure the properties they had purchased.
He urged prospective investors to conduct comprehensive due diligence before acquiring properties, stressing that an attractive building or strategic location did not automatically guarantee legitimate ownership.
He advised buyers to insist on proper title verification, confirmation of ownership, relevant government approvals and compliance with applicable land regulations, including the Land Use Act.
Ogwu particularly highlighted the prevalence of family land ownership disputes, especially in Lagos, where unsuspecting buyers sometimes purchase properties from individuals claiming to represent entire families, only to encounter competing ownership claims after making payments.
He therefore urged Nigerians in the Diaspora to engage recognised mortgage institutions and professional channels rather than relying solely on property developers or informal recommendations from friends and relatives.
On mobilising smaller investments for infrastructure and business development, the Principal Partner and Chief Executive Officer of Afrique Capital and Equity Funds Limited, Dr Kazeem Bello, advocated innovative financing arrangements, including crowdfunding, to enable Nigerians at home and abroad to pool resources into viable projects.
Bello said successful fundraising required project promoters to demonstrate commitment through initial financial contributions, credible business models and properly structured proposals.
He noted that inadequate business formalisation and poor preparation had prevented many small businesses from accessing institutional financing and investment opportunities.
He disclosed that efforts were underway to develop a global crowdfunding initiative in collaboration with the Nigeria Diaspora Investment Summit and relevant partners to provide a centralised platform for pooling smaller contributions to support viable Nigerian businesses.
Beyond financing, he said the initiative would incorporate training, mentorship and capacity-building to prepare entrepreneurs to attract investments and develop sustainable businesses.
Meanwhile, the Director of Planning, Research and Strategy at the Infrastructure Concession Regulatory Commission, ICRC, Akwu Okolo, stressed the importance of institutional credibility, transparency and accountability in rebuilding investor confidence.
He explained that the Commission regulates procurement processes for infrastructure concession projects, noting that stronger institutional safeguards were necessary to address the trust deficit surrounding government and private-sector investment opportunities.
Similarly, the Head of Coronation Infrastructure Fund, Mayowa Ikotun, highlighted the regulatory safeguards protecting investors in infrastructure funds.
He explained that fund managers operate under the regulatory oversight of the Securities and Exchange Commission (SEC), while trustees provide independent monitoring and custodians safeguard investors’ assets.
According to him, these arrangements provide multiple layers of protection by ensuring that investment decisions are professionally managed, independently monitored and consistent with regulatory requirements.
Ikotun added that infrastructure funds offer an organised framework for pooling resources from individual and institutional investors to finance projects in transportation, real estate, energy and social infrastructure.
Another panel discussion examined regulatory frameworks, featuring the Director-General of the Presidential Enabling Business Environment Council, PEBEC, Princess Zahrah Mustapha Audu, and Principal Consultant at CTP International, United Kingdom, Kachi Okezie.
The 9th Nigeria Diaspora Investment Summit, convened by NiDCOM, focused on bridging the trust gap between Diaspora capital and credible investment opportunities in Nigeria.
