The Real Estate Developers Association of Nigeria (REDAN) has urged property developers across the country to move away from isolated operations and strengthen collaboration to improve the performance of the real estate industry. REDAN President, Oba Adeoye, made the call at a one-day summit for real estate developers in the North-Central Zone in Abuja.
The summit, themed “Collaborate to Consolidate”, focused on improving cooperation and knowledge-sharing among developers and strengthening the association’s ability to address industry challenges. Adeoye said REDAN could become a stronger institution if its national leadership, zones and state chapters worked more closely together.
Benefits of Collaboration
Adeoye said developers already possess expertise across several areas, including land acquisition, construction, project management, finance, planning, sales, affordable housing, government relations, community engagement and technology. According to him, the challenge is not necessarily a lack of professional expertise within the industry, but the inability to effectively connect and use the knowledge available among members.
He urged developers to create stronger platforms for exchanging information, experiences and solutions so that successful approaches in one part of the country can be replicated elsewhere. Adeoye particularly highlighted land acquisition as an area where greater cooperation could benefit developers.
Land Acquisition and Development Costs
Adeoye said solutions developed by one state chapter should be shared with other chapters facing similar challenges rather than remaining within individual jurisdictions. The approach, according to Adeoye, would enable developers to collectively address common problems and strengthen REDAN’s advocacy when engaging with governments and other stakeholders.
Better information flow between state chapters, zones and national leadership could also allow the association to identify recurring problems and develop industry-wide responses. Adeoye also pointed to the potential financial benefits of collective action, saying developers could achieve better prices when they negotiate or purchase materials and other resources collectively.
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Construction Costs and Affordable Housing
At the summit, REDAN National Vice President for the North-Central Zone, Osilama Osilama, called on the Federal Government to take measures to reduce the cost of cement and iron rods. He said the rising prices of the two materials were making it increasingly difficult for developers to provide affordable housing, which is a key challenge in Nigeria’s housing market.
Osilama noted that cement and reinforcement steel are essential inputs for housing construction but are also heavily used in road and infrastructure projects, creating additional demand for the materials. They proposed measures aimed at increasing competition and supply in the cement and iron rod markets.
Among the proposals was the liberalisation of the markets through additional import licences and the entry of new manufacturers. Osilama also suggested that government could consider requiring road contractors to use imported materials or introducing targeted subsidies for critical housing inputs.
Partnerships and Housing Delivery
National President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Bature Muhammad, encouraged developers and investors to structure partnerships properly. Muhammad said successful real estate development requires a combination of land, capital, expertise, technology and market knowledge.
Properly structured partnerships could help developers unlock land, mobilise capital, share risks and improve project delivery. The approach could be particularly relevant to Nigeria’s housing market, where developers often face difficulties securing sufficient capital for large-scale projects.
Muhammad also advised investors entering property partnerships to carry out appropriate due diligence before committing funds. He urged parties to clearly define their contributions, responsibilities, ownership or sharing ratios and expected returns before projects begin.
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Clear agreements and proper documentation could help reduce disputes and provide greater certainty for all parties involved. Collaboration could strengthen housing delivery, as stronger partnerships between developers, landowners, financial institutions, government agencies and investors could help address some of the constraints affecting housing delivery.
Developers could combine land and capital, financial institutions could provide structured funding, while government could support projects through infrastructure, planning approvals and appropriate policy measures. Such collaboration would not eliminate the country’s housing challenges, but it could provide a more coordinated approach to delivering projects at scale.
As Nigeria requires increased housing supply to meet growing demand, REDAN’s call for greater collaboration highlights the importance of cooperation in addressing the structural challenges facing the real estate industry. Greater cooperation could improve knowledge-sharing, strengthen negotiations, and create opportunities for partnerships involving landowners, investors and developers.
REDAN’s emphasis on collaboration reflects the need for developers to pool knowledge and resources while also strengthening their engagement with government and other institutions. The association’s call for government action on cement and iron rod prices points to the need for broader measures to reduce construction costs.
For Nigeria’s housing market, the combination of stronger industry collaboration, better-structured investment partnerships and policies that improve the affordability of construction inputs could help create conditions for increased housing delivery. This could potentially lead to more affordable housing options for ordinary Nigerians, as construction costs are a significant factor in determining the final price of housing units.
Nigeria’s housing market will likely continue to evolve.
