How unregulated estate agencies, firms engage in multi-million-naira scam

THE GUARDIAN

Fraudsters are exploiting the desperation of prospective homeowners and tenants to have roofs over their heads and secure cheaper accommodation to defraud victims. 

With an estimated N20 trillion yearly contribution to the Gross Domestic Product (GDP), 200 million population and a housing demand-supply shortfall put at over 20 million units, Nigeria’s property market is an attractive investment destination for many.

While major cities like Lagos, Ogun, Abuja, Port Harcourt, Kano, Ibadan and others are becoming a beehive of construction activities and huge demand for housing, the governments in these cities had in recent times been battling with fraudsters, mediated in over 150 petitions/complaints between property developers, landlords and potential tenants.

For instance, it was reported that over 500,000 lands scam occurs every year in Lagos and Ogun States. In Lagos, 50 cases of fraud were adjourned for further mediation in 2021, while 40 were referred to appropriate agencies, with five cases in courts in locations such as Ketu, Ajah, Ikorodu, Gbagada and Yaba.  In 2021, more than 500 people were allegedly defrauded of ₦8 million each by a real estate firm at Abijo area of Lagos, after buying a fake plot of land without titles.

The Guardian learnt that a major tactic used by perpetrators of real estate scams is laying claims to be marketing consultants with a mandate to sell property in choice locations such as Banana Island, Ikoyi, Asokoro and Lekki worth millions of naira.