The CEO of McYouniverse Group, Michael Egbekoya, discusses key challenges in Nigeria’s
real estate sector in this interview with JOSEPHINE OGUNDEJI.
Nigeria’s real estate sector is caught in a paradox under-regulated in terms of policy clarity
but over-regulated procedurally. The Land Use Act of 1978 concentrates land control in the
hands of state governors, leading to inconsistent and often arbitrary enforcement.
Constant fee hikes, unclear procedures, and the absence of unified guidelines have created a climate of uncertainty. What the sector truly needs is regulatory reform and increased transparency not just more regulations.
How has bureaucratic red tape in property registration and title documentation hindered real estate growth?
Excessive bureaucracy in land registration and title documentation is a major roadblock to
the sector’s growth. The slow, complex, and often opaque process discourages investment
and delays property development. These inefficiencies not only inflate costs but also reduce investor confidence, limiting the sector’s ability to scale and contribute meaningfully to the economy. Streamlining these processes is essential for unlocking the industry’s full potential.
With inflation exceeding 30 per cent year-on-year, managing cost volatility in the real estate sector requires strategic financial planning. We respond by indexing our contracts to
inflation, incorporating review clauses that are triggered quarterly. This ensures our pricing
remains aligned with current economic conditions, protecting both clients and the business
from abrupt cost increases. Additionally, we apply a 15–20 per cent buffer to all project cost estimates. This cushion helps absorb unforeseen expenses, including currency fluctuations, material price surges, and delays caused by regulatory bottlenecks especially common in areas like Lagos, where property registration can take over 150 days. These proactive measures help us maintain stability, uphold delivery commitments, and safeguard investor and lender confidence despite widespread documentation gaps and rising inflation.
We’ve also implemented strategic procurement measures to navigate the economic
turbulence. This involves securing key materials ahead of time and using hedging
techniques to protect against local price swings. Furthermore, by phasing our project
delivery, we’re able to optimise cash flow and streamline operations. These combined efforts allow us to sustain quality and meet deadlines, even in a highly volatile market environment.
