The building and construction industry in Nigeria is transforming rapidly in line with global best practice, where what is built earns the trust of capital and market rewards the discipline that goes into the process and the final product.
In Nigeria, capital trust is no longer an option but a necessity. So also is the discipline in capital deployment for investment in building and construction.
Increasingly, capital discipline is becoming a creed and buzzword in real estate development, meaning that to build and get rewarded, builders and investors must pursue what capital trusts.
‘Building what capital trusts in a market that rewards discipline’ was the focal point of discussion by experts who gathered for the 2026 edition of the annual BusinessDay Property Investment and Smart Cities conference in Lagos recently.
In their respective submissions on the subject, the experts explained why what comes to the market must be one that capital trusts. They also offered insights into how housing products must be built to earn the trust of capital.
The steps to take in building what capital trusts include finding alignment between capital deployment and asset creation; alignment with the opportunity footprints; doing quality developments; and demonstrating compliance with regulatory requirements.
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Others are demonstrating market absorption capacity by building high-demand assets in high-growth locations, presenting good and valid title, showing clarity of documentation, being ESG and sustainability-compliant, ensuring security of investment, and guaranteeing repayment.
“Capital is not sentimental; it is strategic and goes where there is predictability and resilience,” Udo Okonjo, CEO, Fine and Country International, explained in her contribution.
This means that it is not enough to just invest in a fanciful property that is tucked away in one remote neighbourhood where access is a huge challenge and demand is ineffective. It is also not enough to erect a skyscraper in the city centre without providing all the amenities that luxury home buyers are ready to commit money to.
Udo stressed that capital trusts any development, especially in the luxury end market where she plays, that shows strong potential for capital appreciation and good return on investment, pointing out that luxury goes beyond just brick and mortar.
The experts emphasized that to build and get rewarded by the market, there must be capital discipline, which is a strategic, data-driven approach to allocating financial resources that prioritizes long-term value and risk mitigation over rapid expansion or short-term speculative gains.
According to Chudi Ubosi, principal partner, Ubosi Eleh & Co, capital is now more cautious and goes where it can exit. He added that financing costs are getting higher, and investors are prioritizing certainty, transparency, and long-term returns.
“Capital discipline, therefore, is not simply about spending less; it is about investing wisely, in projects that deliver economic value, social inclusion, and environmental sustainability,” he stated.
Similarly, Hakeem Oguniran, CEO, Eximia Realties, noted in his keynote speech at the conference that “capital discipline signifies a change from production volume, acquiring and/or developing as many properties as possible, to financial value, and optimizing the value of every Naira deployed.”
Oguniran reasoned that property investment is not about speed and volume, but about rigid, strategic, and consistent allocation of resources that prioritizes cash flow, managing debt levels, and avoiding impulsive, panic-driven investment decisions.
He explained that investors need capital discipline for managing emotions, which is driven by return on ego (ROE), adding that capital discipline is also needed for investor trust and enhanced credibility; for transparent, data-driven, and rigorous objective, which is loved by investors.
