NiDCOM Warns Nigerians in Diaspora Against Property Investment Fraud, Urges Verification of Mortgage Institutions
The Nigerians in Diaspora Commission (NiDCOM) has urged Nigerians living abroad to exercise caution when investing in Nigeria’s real estate sector, advising them to verify mortgage institutions, property developers and land titles before committing their funds.
The warning was issued during a panel discussion on infrastructure projects and the mobilisation of diaspora capital at the second day of the 9th Nigeria Diaspora Investment Summit (NDIS 2026) in Abuja on Wednesday.
The summit, themed “Bridging the Trust Gap: Connecting Diaspora Capital with Credible Home-based Opportunities,” featured discussions on investment protection, infrastructure financing, regulatory frameworks and strategies for attracting diaspora investments into Nigeria.
Speaking on the Commission’s efforts to protect diaspora investors, the Acting Secretary of NiDCOM, Hon. Abdulrahman Terab, disclosed that the Commission established a dedicated desk in collaboration with the Economic and Financial Crimes Commission (EFCC) about five years ago to address fraud, particularly cases involving real estate transactions.
Terab explained that the initiative had helped resolve several complaints, enabling many affected Nigerians to recover their investments.
He said the Commission regularly receives petitions from Nigerians in the Diaspora over property-related transactions and follows up on such cases through appropriate channels.
He also disclosed that NiDCOM, in partnership with First Bank, had established a housing platform to provide Nigerians abroad with a more reliable and secure route to homeownership.
According to him, the initiative is aimed at protecting investors from fraudulent transactions while ensuring they receive value for their money.
On regulatory reforms, Terab welcomed moves by the National Assembly towards establishing a National Real Estate Regulatory Agency, describing it as an important step towards addressing longstanding regulatory gaps in the property sector.
Also speaking, the Executive Director and Chief Executive Officer of AG Mortgage Bank, Dr. Ojonimi Simon Ogwu, identified the inability of prospective buyers to distinguish between licensed mortgage institutions and ordinary property developers as a major challenge in Nigeria’s real estate market.
He warned that many Nigerians abroad are misled by property companies with impressive signboards and strong online presence, mistaking them for established mortgage institutions.
Ogwu said such misconceptions had exposed unsuspecting investors to fraudulent transactions, leading to substantial financial losses and difficulties in recovering purchased properties.
He advised prospective property buyers to conduct thorough due diligence, including verification of ownership documents, land titles, government approvals and compliance with relevant regulations under the Land Use Act.
He also raised concerns over family land disputes, particularly in Lagos, where individuals sometimes sell properties without obtaining the necessary consent of other family members, resulting in competing ownership claims after payments have been made.
He therefore urged diaspora investors to engage recognised mortgage institutions and professional channels rather than relying solely on property developers or informal recommendations.
Meanwhile, the Principal Partner and Chief Executive Officer of Afrique Capital and Equity Funds Limited (ACEFUNDS), Dr. Kazeem Bello, called for innovative financing mechanisms that would enable Nigerians at home and abroad to pool resources for credible investment projects.
Bello identified crowdfunding as an effective approach to mobilising smaller contributions from individuals to support viable businesses and infrastructure projects.
He stressed that entrepreneurs seeking investments must demonstrate commitment through personal contributions, properly structured business models and credible proposals.
He added that many small businesses struggle to attract institutional funding because they operate informally without adequate business structures.
Bello further disclosed that efforts were underway to develop a global crowdfunding initiative in collaboration with the Nigeria Diaspora Investment Summit and relevant partners.
The proposed platform, he explained, would allow Nigerians, including those living abroad, to contribute smaller amounts towards viable projects while benefiting from training, mentorship and business development support.
In his contribution, the Director of Planning, Research and Strategy at the Infrastructure Concession Regulatory Commission (ICRC), Akwu Okolo, emphasised the need for transparency, accountability and institutional credibility to rebuild trust in diaspora investments.
He explained that the ICRC regulates procurement processes for infrastructure concession projects, noting that stronger institutional safeguards would encourage greater participation by diaspora investors.
Similarly, the Head of Coronation Infrastructure Fund, Mayowa Ikotun, highlighted the regulatory protections available to investors in infrastructure funds.
He explained that fund managers operate under the supervision of the Securities and Exchange Commission (SEC), while independent trustees monitor the management of funds and custodians safeguard investors’ assets.
According to him, these safeguards ensure professional management, independent oversight and compliance with regulatory requirements.
Ikotun added that infrastructure funds provide opportunities for individuals and institutional investors to jointly finance projects in transportation, real estate, energy and social infrastructure.
Another panel session focused on regulatory frameworks, featuring the Director-General of the Presidential Enabling Business Environment Council (PEBEC), Princess Zahrah Mustapha Audu, and Principal Consultant at CTP International, UK, Kachi Okezie.
