The immediate past President of the Real Estate Developers Association of Nigeria (REDAN), Dr. Aliyu Wamakko, has raised a major alarm over the state of the nation’s property market, declaring that the real estate sector has devolved into a high-yield conduit for money laundering and illicit financial flows due to systemic lack of regulation.
​Speaking during a press conference held on Friday at the REDAN National Secretariat in Abuja, Dr. Wamakko highlighted how unchecked financial practices in property acquisition threaten both economic stability and national security.
​Dr. Wamakko explained that the absence of strict statutory oversight allows individuals to funnel illicitly acquired capital directly into high-value residential and commercial properties.
This dynamic, he noted, explains the pervasive phenomenon of grand, unoccupied housing estates across major Nigerian urban centers.
​”Without robust regulatory frameworks, the real estate market becomes an attractive target for capital hiding,” Dr. Wamakko stated. “Illicit funds are poured into non-functional developments purely for value storage, pricing legitimate buyers out of the market and leaving completed assets standing empty.”
​To arrest the trend, Wamakko urged President Bola Ahmed Tinubu and the National Assembly to expedite action on establishing the Real Estate Regulatory Council of Nigeria (RECON).
He argued that statutory enforcement under RECON would enforce strict know-your-customer (KYC) guidelines and mandatory reporting to financial intelligence authorities, closing loopholes currently exploited for illicit wealth accumulation.
​In addition to addressing financial crimes, Dr. Wamakko highlighted broader economic pressures facing the sector, calling on the Federal Government to consider targeted subsidies on critical building materials, specifically cement, to lower construction costs and make housing accessible to average Nigerians.
Representatives from the Special Control Unit Against Money Laundering (SCUML) reaffirmed their ongoing collaboration with sector stakeholders, emphasising that non-financial businesses and professionals (NFBPs), including property developers, must adhere strictly to anti-money laundering reporting requirements.
Current officials of the association reiterated their commitment to self-regulation, encouraging prospective real estate buyers and investors to transact exclusively with vetted, registered developers to combat fraud and financial malpractices.
​The former REDAN chief concluded by emphasising that formal regulation remains the single most critical step to restoring international investor confidence and ensuring that real estate serves as an engine for economic development rather than a safe haven for illegal funds.
