How fraudulent developers defraud housing seekers in Lagos

In this report, EDIDIONG IKPOTO writes about how fraudulent property developers who pose as legitimate real estate agents defraud unsuspecting housing seekers

A 34-year-old software developer, Abiodun Oguntade, who now lives in Mende, Maryland, recently fell prey to the antics of a fraudulent real estate developer.

Oguntade said the developer took advantage of his naivety to swindle him out of a N300,000 deposit for a one-bedroom apartment he hoped to rent in the Gbagada area of ​​Lagos.

But he is not the only Lagos resident to have swallowed this bitter pill. In fact, when the victims of such scams tell their stories, Oguntade will stand behind a long line of people who have lost two or three times more than him to fraudulent developers.

Last month alone, an alleged bogus developer, Ahmed Ayinde, was arrested by men from the Lagos State Police Command for allegedly defrauding as many as 100 potential tenants in the Olowo Ira area , in the State.

The PUNCH understood that the victims had paid for different apartments in a one-storey building at No. 5 Ayedun Street, Olowo Ira, which is being developed by Ayinde.

After receiving the payments, it was learned that Ayinde and his accomplices had told potential tenants that they needed time to complete the renovations to the building.

It was agreed that once the renovation was completed, the keys to the respective apartments would be handed over to the tenants.

However, the drama began when the efforts of some of the potential tenants to gain access to their apartments proved futile.

A victim, Sunday Akinmoladun, said he was surprised that more than eight people had paid for the same apartment as him, adding that many potential tenants were blocked because people had occupied all the apartments in the building.

He said, "I paid 300,000 naira in cash for a room in an Ibrahim's bank account. I paid since March 2021, but I couldn't pack because they have Said they were renovating the house. I come to the house almost every day and usually meet an engineer and masons who are working on the building.

"I was told to pick up my apartment keys today when everything changed. I called Ibrahim, but his number is not connecting."

This particular isolated incident, which claimed many lives, is just one of many similar stories that come out of Lagos each year; a reality that begs the question: what makes Lagos infamous for the apparent proliferation of fraudulent property developers?

The answer to the question is not far-fetched. Living in Lagos is strategic for many, given its comparative advantage in trade and industry as well as the best institutions in the country, which in itself gives a certain level of confidence that this is where skills will meet challenges. opportunities.

With more than 500,000 people arriving in the city each year from off the Nigerian coast or from regional migration, UN Special Rapporteur on Housing Leilani Farha has estimated the housing gap of the state at 2.5 million, while the BBC puts the total housing deficit in Nigeria at around 17 million. million.

In fact, the prevalence of rental scams in Lagos had prompted the state government to come up with guidance on what might be a red flag for potential tenants, advising them to beware of charlatans and bogus state rental market professionals. who claim to be landlords and real estate agents.

Over the past 12 months, the state has seen a spike in rent fraud involving potential tenants, landlords, and agents in cases that Governor Babajide Sanwo-Olu's special housing adviser, Toke Benson -Awoyinka, estimated at more than 200 in just a few places.

Locations include Alapere, Ajao Estate, Akoka, Gbagada and other parts of the state.

The special adviser, while speaking at a stakeholder forum for estate practice lawyers, said the Akoka case involved about 113 housing seekers who were defrauded of more than 51 million naira, while 66 others were defrauded of 16 million naira in the Gbagada case.

She also cited other cases in the Alapere and Ajao Estate areas of the state, pointing out that these victims paid between N200,000 and N500,000 for a limited number of apartments, no more than 20.< /p>

Benson-Awoyinka implored home seekers and home buyers to employ the services of genuine professionals like lawyers for all their real estate services, pointing out that the state government has decided to put an end to these fraudulent activities by enacting the Lagos Real Estate Regulatory Authority Act.

Civil engineer and property manager Boniface Adebayo, who has been concerned about the rising rate of rental scams, said such vices will crop up in megacities such as Lagos, which typically experience a rate of urbanization annual above average.

“It is a state where, according to one report, t...