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2025: What Investors Need to Know About the Market of Property Investment in Nigeria by Dennis Isong

Think about Lekki in Lagos—just a few years ago, it was mostly bush, but today, it’s prime property.

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Investing in Nigerian real estate is like planting a fruit tree—there’s effort, patience, and planning involved, but when it grows, it yields rewards for years.

Nigeria’s property market is full of opportunities, but it can be tricky for investors without the right knowledge.

Let’s break it down simply, so you know what to expect.

1. Nigeria’s Population is an Advantage Nigeria is Africa’s most populous country, with over 200 million people.

That’s a lot of people needing homes, offices, schools, and businesses!

This population growth creates a constant demand for properties. So, whether you’re investing in residential housing, commercial properties, or even land banking, you’re tapping into a growing market.

Quick Tip: Focus on areas with rising populations, like Lagos, Abuja, Port Harcourt, and emerging cities like Ibadan or Enugu.

2. Land is King In Nigeria, land is one of the safest investments. Unlike buildings that can deteriorate, land appreciates over time, especially in growing areas.

Think about Lekki in Lagos—just a few years ago, it was mostly bush, but today, it’s prime property.

What to Watch Out For:

●      Ensure the land has proper documents like a Certificate of Occupancy (C of O) or a Governor’s Consent.

●      Avoid omo-onile troubles by buying from reputable sellers or companies.

3. The Power of Location Location is everything in real estate.

A property in a developed area with good roads, schools, and electricity will fetch more value than one in a remote, inaccessible location. For instance:

●      Lagos Island (Ikoyi, Victoria Island, Lekki): Good for high-end properties.

●      Mainland (Ikeja, Yaba, Surulere): Perfect for mid-range investments.

●      Emerging suburbs (Epe, Ibeju-Lekki): Great for long-term investments. Golden Rule: Research the area thoroughly.

Visit the property site, ask questions, and observe the neighborhood.

4. Real Estate Investment is Not a Sprint Let’s be honest—property investment isn’t for the impatient.

While quick flips (buying and selling quickly) can happen, most returns in real estate come over time. Whether it’s rental income, land appreciation, or property resale, you need patience.

Example: If you buy land in Epe for ₦1 million today, it might not appreciate significantly in the next year. But in 5–10 years, it could be worth ₦10 million or more!

5. Diversify Your Portfolio Don’t put all your eggs in one basket.

Mix things up! You can invest in:

●      Residential properties: Apartments, duplexes, or bungalows.

●      Commercial properties: Shops, offices, or warehouses.

●      Land banking: Buying and holding land for future resale. By diversifying, you reduce risks and open up multiple income streams. 6. Know the Risks and How to Avoid Them Like every business, real estate has its risks:

●      Legal Issues: Fake land documents, disputes, or government acquisition.

●      Market Trends: Property values can fluctuate, depending on the economy.

●      Maintenance Costs: Properties need upkeep, especially rental ones.

How to Reduce Risks:

●      Work with trusted real estate agents or companies.

●      Verify property documents with lawyers.

●      Research market trends before investing. 7. Explore Financing Options You don’t need to be a billionaire to invest in Nigerian real estate. There are financing options like:

●      Mortgage loans: Offered by banks and mortgage institutions.

●      Co-investing: Partnering with others to buy a property.

●      Installment plans: Some developers allow you to pay in bits over time. Pro Tip: Understand the terms of any loan or payment plan. Ensure it aligns with your financial capacity.

8. Rental Income is a Goldmine One of the easiest ways to make money from real estate is through rentals.

Whether it’s residential apartments, office spaces, or short-term rentals (like Airbnb), rental income provides steady cash flow.

What You Should Know:

●      Properties close to universities, business hubs, or major roads attract higher rents.

●      Tenants expect basic amenities like water, electricity, and security.

9. Emerging Trends in Nigerian Real Estate.

The Nigerian property market is evolving. Some trends to keep an eye on include:

●      Smart Homes: Technology-driven homes with automated features.

●      Co-Working Spaces: As remote work rises, shared office spaces are gaining popularity.

●      Affordable Housing: Developers are targeting middle and low-income earners with budget-friendly homes.

Being aware of these trends can help you position your investments for the future. 10. Start Small and Grow Many people think they need millions to start investing in real estate. That’s not always true.

You can start small and grow.

For instance:

●      Buy a small piece of land in an upcoming area.

●      Invest in a one-bedroom apartment for rent. ●      Partner with others to co-own a property.

11. The Role of Real Estate Agents and Experts

Don’t try to do everything alone. Real estate agents, surveyors, and lawyers are your friends in this journey.

They’ll help you navigate the complex process of buying, selling, or renting properties. Dennis Isong’s Advice: Always work with professionals who have a track record of honesty and success in the market.

12. Tax and Regulatory Issues Don’t forget that property investment comes with taxes and regulations.

For instance:

●      Land Use Charge: Payable annually on properties in Lagos.

●      Capital Gains Tax: When you sell a property at a profit. Stay updated on these requirements to avoid penalties.

13. Opportunities in Rural Areas Urban areas like Lagos and Abuja may dominate headlines, but rural areas also hold potential.

As Nigeria develops, rural areas are turning into new hotspots for businesses and housing.

For example:

●      Invest in farmland for agriculture.

●      Buy land near upcoming government projects, like roads or airports.

14. Never Stop Learning

The real estate market is dynamic. New laws, trends, and opportunities arise frequently.

As infrastructure in Epe improves through government-funded projects supported by tax reforms, your land value appreciates significantly. Over 5–10 years, your property could fetch a value of ₦15 million, yielding substantial returns.

To stay ahead, keep learning:

●      Attend real estate seminars.

●      Follow market news.

●      Network with other investors. The recent tax reform and changes in bank charges in Nigeria have significant implications for real estate investors, both positive and challenging.

Incorporating these developments into your investment strategy can help you maximize returns and minimize risks.

15. Impact of Tax Reforms on Real Estate The Nigerian government has introduced reforms aimed at streamlining tax collection and fostering economic growth.

These changes have direct and indirect benefits for real estate investors: a. Lower Compliance Costs Streamlined tax processes reduce bureaucratic delays, making it easier for property owners to comply with tax obligations like Land Use Charges and Capital Gains Tax. This clarity ensures fewer penalties and better financial planning. b. Improved Infrastructure Development Tax revenues are increasingly being channeled into infrastructure development, such as roads, railways, and power projects.

This directly boosts property values, especially in areas where such projects are underway, like Epe, Ibeju-Lekki, and the outskirts of Abuja. c. Incentives for Affordable Housing

To address Nigeria’s housing deficit, tax incentives are now available for developers investing in low-income housing.

This creates opportunities for investors to partner with developers or invest in projects targeting middle and low-income earners.

How to Benefit:

●      Stay informed about tax reforms through newsletters and government updates.

●      Take advantage of tax holidays and exemptions available for certain real estate developments.

16. Bank Charges and Real Estate Financing

The Central Bank of Nigeria (CBN) has recently revised bank charges, which affects how investors access financing.

Here’s how this impacts your real estate investments:

a. Lower Transaction Costs Reduced charges for bank transfers and e-banking services make it cheaper to process payments, whether you’re paying for land, construction materials, or rental income management.

b. Accessible Mortgage Loans Banks are under pressure to make mortgage loans more accessible and affordable.

Lower interest rates and reduced processing fees are encouraging more Nigerians to consider homeownership or property investment.

c. Easier Installment Payments For installment plans offered by developers, lower bank charges mean fewer deductions on recurring payments. This makes it easier for investors to stick to payment schedules.

How to Benefit:

●      Negotiate favorable terms with banks, especially for long-term property loans.

●      Use e-banking platforms to save on transaction fees when making payments.

Practical Example Imagine you purchase land in Epe for ₦2 million using a bank loan.

With reduced interest rates and minimal transfer charges, you save money both on the initial payment and subsequent installments.

As infrastructure in Epe improves through government-funded projects supported by tax reforms, your land value appreciates significantly. Over 5–10 years, your property could fetch a value of ₦15 million, yielding substantial returns.

Key Takeaways

●      Understand Tax Benefits: Take full advantage of tax reforms and incentives for real estate development.

●      Leverage Affordable Financing: Use reduced bank charges and improved mortgage options to your advantage.

●      Plan for Growth: Invest in areas benefiting from infrastructure projects funded by tax revenues. By incorporating these reforms into your real estate strategy, you position yourself to thrive in Nigeria’s evolving property market.

Keep learning, stay patient, and make informed decisions to secure your financial future.

In Conclusion

The Nigerian property market is a land of opportunities, but it’s not without challenges.

With the right knowledge, planning, and patience, you can turn your investment into a goldmine.

Remember: Start small, think long-term, and always consult experts when in doubt.

Real estate is a journey, and every smart step you take brings you closer to financial freedom.  

STOP LOSING MONEY IN LAGOS REAL ESTATE!. Learn How to Verify Land Titles, Avoid Scams, and Make Smart Investments.

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Dangote, Adenuga, Rabiu, Otedola remain on forbes Africa’s billionaires List

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Nigeria’s wealthiest businessmen, Aliko Dangote, Mike Adenuga, Abdulsamad Rabiu, and Femi Otedola, have emerged as the only Nigerians on the 2025 ‘Africa’s Billionaires List’ compiled by Forbes, which was released on Saturday.

Once again, Dangote topped the list for the 14th consecutive year, with an estimated net worth of $23.9 billion, up from $13.9 billion a year ago.

The significant jump in his fortune was primarily due to Forbes factoring in the value of his refinery.

The Dangote Group operates in diverse sectors, including cement, sugar, flour, salt, seasoning, pasta, beverages, real estate, and projects in oil & gas and fertiliser.

On the other hand, Adenuga, who ranked fifth on the list, had $6.8 billion in his portfolio during the period under review, while Rabiu was worth $5.1 billion.

Adenuga runs the Pan-African telecommunications company, Globacom, while Rabiu owns the BUA Group, with interests in cement, sugar, oil, and other sectors.

Nigerian business mogul and philanthropist Otedola emerged as the 16th richest person in Africa on the Forbes list, with his wealth surging by over 30 per cent in the last year.

In the newly released list, Forbes stated that Otedola’s wealth reached $1.5 billion during the period, making him one of the fastest-growing billionaires, second only to Johann Rupert of South Africa, whose fortune grew by 39 per cent.

A prominent Nigerian businessman, Otedola has established and led several companies across various sectors, with many notable enterprises associated with his name.

Checks revealed that some of these include Geregu Power Plc, the first electricity-generating company in Nigeria to be listed on the Nigerian Exchange in October 2022, where he serves as Chairman.

Additionally, he is the Chairman of First Holdco Plc, formerly FBN Holdings Plc, a financial holding company that serves as the parent company for a diversified group of financial services businesses, including commercial banking, merchant banking, capital markets, trusteeship, and insurance brokerage, operating across Africa.

A dedicated philanthropist, Otedola has been a significant supporter of Save the Children, donating billions of naira and earning a Vice President role in recognition of his efforts to improve the lives of children in Nigeria.

Save the Children is an organisation that works to support vulnerable children worldwide.

“Another billionaire whose fortune grew by more than 30 per cent was Femi Otedola of Nigeria ($1.5 billion), chairman of listed power generation firm Geregu Power Plc.

Shares of Geregu surged by approximately 40 per cent in the past year following a rise in revenue and profits,” the Forbes report stated.

The Forbes list tracks the wealth of African billionaires who reside in Africa or have their primary business there.

Net worths were calculated using stock prices and currency exchange rates as of the close of business on 7 March 2025.

Forbes noted that net worth changes were measured from its 2024 African billionaires list, published in January 2024. To value privately held businesses, Forbes starts with estimates of revenues or profits and applies prevailing price-to-sales or price-to-earnings ratios for comparable public companies.

Similarly, the report highlighted that the cumulative wealth of Africa’s billionaires surpassed $100 billion for the first time, as the continent’s 22 billionaires saw their combined fortunes rise to $105 billion, up from $82.4 billion and 20 billionaires last year.

South Africa had the highest number of billionaires this year, with seven, followed by Nigeria and Egypt, with four billionaires each.

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Reps pass bill to give foreign investors Nigerian citizenship

The proposed legislation titled , “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 to include Citizenship by Investment as one of the classes of Citizenship in Nigeria, provide for the Acquisition of Nigerian Citizenship by Qualified Foreign Investors who meet Specified Investment Thresholds and for Related Matters (HB. 2059)” was sponsored by the, Benjamin Kalu, the deputy speaker and some other lawmakers.

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The House of Representatives has passed a bill to give foreign investors Nigerian Citizenship for second reading.

The proposed legislation titled , “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 to include Citizenship by Investment as one of the classes of Citizenship in Nigeria, provide for the Acquisition of Nigerian Citizenship by Qualified Foreign Investors who meet Specified Investment Thresholds and for Related Matters (HB. 2059)” was sponsored by the, Benjamin Kalu, the deputy speaker and some other lawmakers.

Business Day reports that the bill Is among the constitutional amendment bills which the Green Chamber is considering.

In the explanatory memorandum of the Citizenship by Investment Bill, it seeks to alter the Constitution of the Federal Republic of Nigeria, Cap C23 Laws of the Federation of Nigeria 2004 to introduce a new class of citizenship known as Citizenship by Investment.

The proposed alteration aims to attract foreign direct investment by granting Nigerian citizenship to individuals who invest in the Nigerian economy above a specified financial threshold or in strategic sectors critical to national development.

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FG Directs MAN, NECA, FRCN to Review 10% Financial Reporting Levy

Oduwole said the timeline for the suspension would not exceed 60 days, adding that the government is committed to addressing the concerns raised by the private sector.

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The Federal Government has temporarily suspended the implementation of 10 percent financial reporting levy imposed on public interest enterprises by the Financial Reporting Council, for the next two months.

This was in response to the requests by the private sector’s operators – the like of the Manufacturers Association of Nigeria (MAN), and the Nigeria Employers’ Consultative Association and Manufacturers Association of Nigeria (NECA) calling for the suspension of the FRCN Act, which imposes on non-listed entities. a 10 percent penalty on unpaid dues for every month of default, accumulating until full payment.

The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, announced the government’s decision at a Ministerial Consultative Meeting on the Financial Reporting Council Annual Dues for Public Interest Enterprises, yesterday in Abuja.

Oduwole emphasized that the government directed the Financial Reporting Council to pause in the implementation of the new annual dues.

She explained: ” A suspension request by the organised private sector would be in contravention of legislation duly passed by the National Assembly.

A pause is an administrative process simply to review, in line with what we discussed .

”Oduwole said the timeline for the suspension would not exceed 60 days, adding that the government is committed to addressing the concerns raised by the private secto

“We are a listening administration. The private sector has requested a range from three months to an indefinite suspension. We are not going to do that. So, at the most, 60 days is in my estimate.

“We are going to set up a technical working group comprising the FRC and the organised private sector who have formally written in, and this will be reviewed,’ she added.

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