The Nigerian real estate market is worth over $56 billion and growing at double-digit rates annually. This represents the value and scale of investment opportunities in that market.
These opportunities are driven largely by the country’s expanding population of over 200 million, a housing deficit estimated at 28 million units, and an urbanization surge, particularly in Lagos, which records approximately 600,000 people entering the city daily.
Ahmed Dangiwa, Nigeria’s Minister for Housing and Urban Development, in his keynote address at the just-concluded African Real Estate Society (AFRES) conference in Lagos, noted that the Nigerian real estate market presents fabulous opportunities for investors.
The minister noted further that rapid urbanization, rising incomes, and technological innovation are rewriting the script of Nigeria’s cities and communities, pointing out that the real estate sector sits at the heart of this transformation — as an engine of growth, an investment vehicle, and a foundation for sustainable development.
“Across Africa, real estate is more than brick and mortar. It is about jobs, economic transformation, inclusiveness, and sustainability. In Nigeria, real estate and construction contribute over 9 percent of GDP, employ millions directly and indirectly, and have the potential to drive even greater growth if we unlock the sector’s full potential,” he said.
He said that savvy investors from across Africa and beyond can plug into this sector by embracing the various federal government housing initiatives, which are aimed at enabling the environment for investors to play in the sector.
At the top of these initiatives is the land administration and policy reforms through which the ministry has launched the National Land Titling, Registration and Documentation Programme (NLTRDP) in collaboration with Lagos State.
This, according to the minister, is aimed at simplifying land titling and harmonizing land registries. It is also intended to unlock over $300 billion worth of dead capital tied to untitled lands and improve ease of doing business.
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“At the federal level, digitizing land records across the federal government landholdings nationwide has given birth to the issuance of e-Certificate of Occupancy (e-C-of-O). This is to ensure improved security of tenure, reduce fraud emanating from land-related disputes, and foster investors’ confidence,” the minister explained
In the area of housing finance, Dangiwa disclosed that the Federal Mortgage Bank of Nigeria (FMBN) is being recapitalized to expand mortgage access, adding that new financing instruments such as mortgage-backed securities, diaspora housing bonds, and rent-to-own schemes are being introduced to make homeownership more inclusive.
This, he explained further, has the potential of improving capacity at the demand side, thereby encouraging activities at the supply side where investors are assured of a ready market -off-takers-for their products.
In an interview on the sideline of the conference, Kola Akinsomi, a Professor and President of International Real Estate Society (IRES), added that the government could do more by way of providing incentives to attract investors and encourage developers.
He noted that there is rising cost of construction arising from high cost of materials such as sand, cement, roofing sheets iron rods, and other things. “So, when a developer comes in and builds the home, it’s out of the reach of most of people,” he said.
“There is also the issue of funding,” he said, explaining that interest rates are high, “which means that when developers want to borrow from the bank, the interest rates are too high for them to repay. And when they borrow, they have to pass it on to the people who are buying it, which increases the house price. So, the solutions that we can think about are incentives.”
Kunle Awolaja, AFRES President, described Africa as a whole as “green land.” Awolaja who also spoke in an interview, lamented that despite all the opportunities being flaunted here and there about housing deficit, urbanization, large population and all, one major concern remains, and that is the absence of data to guide investors and investment.
“Here, the opportunities are diverse, but the problem that I think we have in Africa is about data. We need data, which is why I think there should be a link between Town and Gown. The Gown can actually bring up the data,” he advised.
