NiDCOM Advises Diaspora Investors to Verify Mortgage Institutions Before Property Investments
Oru Leonard
The Nigerians in Diaspora Commission (NiDCOM) has cautioned Nigerians living abroad against falling victim to fraudulent real estate transactions, urging them to verify mortgage institutions, property developers and land titles before committing funds to property investments in Nigeria.
The warning was given during a panel discussion on “Infrastructure Projects: Mobilising Diaspora Capital for Credible Infrastructure Projects” on the second day of the 9th Nigeria Diaspora Investment Summit (NDIS 2026) in Abuja on November 11.
The summit, themed “Bridging the Trust Gap: Connecting Diaspora Capital with Credible Home-based Opportunities,” brought together stakeholders in the financial, real estate and infrastructure sectors to examine ways of attracting diaspora investments into Nigeria.
Speaking during the session, the Acting Secretary of NiDCOM, Hon. Abdulrahman Terab, disclosed that the Commission 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 involving real estate transactions.
According to him, the initiative has helped several Nigerians in the Diaspora recover investments lost through questionable property transactions.
Terab explained that the Commission receives petitions from Nigerians abroad who encounter difficulties in property acquisitions and follows up on such complaints through relevant institutions.
He also disclosed that NiDCOM, in collaboration with First Bank, had established a housing platform to provide Nigerians in the Diaspora with a more reliable and secure route to homeownership.
He said the initiative was designed to protect investors, minimise transaction risks and ensure that Nigerians abroad obtain value for their money.
On regulatory reforms, Terab welcomed moves by the National Assembly, involving the Senate and House of Representatives, towards establishing a National Real Estate Regulatory Agency.
He said the proposed legislation would address longstanding concerns over inadequate regulation and oversight in Nigeria’s real estate sector.
Also speaking, the Executive Director and Chief Executive Officer of AG Mortgage Bank, Dr. Ojonimi Simon Ogwu, identified the difficulty in distinguishing licensed mortgage institutions from ordinary property developers as a major challenge confronting the Nigerian real estate market.
Ogwu observed that many Nigerians in the Diaspora are easily attracted by property development companies with impressive signboards and strong online presence, mistakenly assuming they are established mortgage institutions.
He warned that such misconceptions had exposed unsuspecting investors to fraudulent transactions, resulting in substantial financial losses and difficulties recovering their money or properties.
He urged prospective property buyers to conduct comprehensive due diligence, including verification of ownership documents, property titles, government approvals and compliance with relevant land regulations, particularly the Land Use Act.
Ogwu also drew attention to family land ownership disputes, especially in Lagos, where individuals sometimes claim to represent entire families in property transactions, only for competing ownership claims to emerge after payments have been made.
He therefore advised Nigerians abroad to engage recognised mortgage institutions and professional channels rather than relying exclusively on property developers or informal recommendations from friends and relatives.
In his contribution, the Principal Partner and Chief Executive Officer of Afrique Capital and Equity Funds Limited (ACEFUNDS), Dr. Kazeem Bello, called for innovative financing arrangements that would enable Nigerians at home and abroad to pool resources for credible investment projects.
Addressing the potential of combining small individual contributions with financing from lenders, developers, development finance institutions and pension funds, Bello highlighted crowdfunding as an important mechanism for expanding access to investment capital.
He stressed that entrepreneurs seeking funding must demonstrate commitment through initial capital contributions, properly structured business models and credible proposals.
According to him, business formalisation, preparation and capacity-building remain essential for small businesses seeking institutional financing.
Bello further disclosed that efforts were underway to develop a global crowdfunding initiative in collaboration with NDIS and relevant partners.
The proposed platform, he explained, would enable Nigerians, including those in the Diaspora, to pool smaller financial contributions to support viable projects while providing entrepreneurs with training, mentorship and capacity-building opportunities.
Meanwhile, the Director of Planning, Research and Strategy at the Infrastructure Concession Regulatory Commission (ICRC), Akwu Okolo, emphasised the importance of transparency, accountability and institutional credibility in addressing the trust deficit surrounding diaspora investments.
He explained that the ICRC regulates procurement processes for infrastructure concession projects, noting that stronger institutional safeguards were necessary to encourage diaspora participation in Nigeria’s infrastructure development.
Similarly, the Head of Coronation Infrastructure Fund, Mayowa Ikotun, highlighted the regulatory protections available to investors participating 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 to ensure that investments are managed in line with their stated objectives.
He added that custodians safeguard investors’ assets, providing additional layers of protection and accountability.
According to Ikotun, infrastructure funds offer an organised framework for pooling resources from individuals and institutional investors to finance viable projects in transportation, real estate, energy and social infrastructure.
He noted that such investment structures could help mobilise the capital required to address Nigeria’s infrastructure deficit while reducing the burden on individual investors to independently assess every project.
Another panel session examined regulatory frameworks, featuring the Director-General of the Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Mustapha Audu, and the Principal Consultant at CTP International, UK, Kachi Okezie.
The discussions underscored the need for credible institutions, effective regulation, investor protection and transparent financing mechanisms to bridge the trust gap and unlock the investment potential of Nigerians in the Diaspora.
