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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.

Published

3 months ago

January 9, 2025

OCHEFA

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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Your Investment Deserves Protection.

Related Topics:Featured Property investment Real Estate

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CBN warns BDCs, banks to tighten compliance on anti-money laundering, counter-terrorism regulations

Published

4 hours ago

April 19, 2025

Charles Flames

The Central Bank of Nigeria has warned licenced Bureau De Change Operators and financial institutions in the country against violating its anti-money laundering and counter-terrorism financing framework.

The apex bank issued this warning in a circular signed by its director of compliance department, Amonia Opusunju on Thursday.

CBN vowed to impose sanctions on BDC operators who failed to adhere to its regulatory framework.

“BDC operators are reminded that they are required to fully comply with the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022; the Terrorism (Prevention and Prohibition) Act, 2022; and the Regulatory and Supervisory Guidelines for Bureau de Change Operators in Nigeria, 2024,” CBN said.

“Any other relevant laws, regulations, and guidelines issued by the CBN and Nigerian Financial Intelligence Unit (NFIU).

“All BDCs are advised to ensure that their operations, staff training, transaction monitoring, and customer onboarding procedures are always fully compliant with applicable requirements,” the apex bank said.

Similarly, CBN also urged all financial institutions in Nigeria to tighten compliance with both domestic and international sanction lists, including the United Nations Consolidated Sanctions List and the Nigerian Sanctions List, in line with the Terrorism (Prevention and Prohibition) Act 2022 and others.

“Financial institutions are required to maintain a robust and dynamic sanctions compliance framework that enables them to identify and respond promptly to updates or changes across all applicable sanctions lists; prevent the use of their systems and platforms for transactions involving designated individuals or entities; conduct real-time screening of customers, transactions, and beneficial owners; and file appropriate reports with the Nigerian Financial Intelligence Unit and notify the CBN, where necessary,” the circular partly reads.

Recall that on February 27, 2024, the financial regulator approved the sale of foreign exchange (FX) to BDC operators, reversing its decision to halt FX sales to the BDCs in 2021.

Meanwhile, on February 6, 2025, the apex bank introduced new regulations limiting BDC operators to purchasing a maximum of $25,000 per week from a single bank.

Business

For The Record: “I Will Build an “NNPC that’ll be the Pride of Nigerians”- Ojulari

Published

18 hours ago

April 18, 2025

OCHEFA

The new Group Chief Executive Officer of the NNPC Ltd., Mr. Bashir Bayo Ojulari, has pledged to build an NNPCL that will be the pride of all Nigerians.

“We recognize that our greatest asset is our people. Our success will be powered by empowered employees. As such, we are fully committed to creating a workplace where everyone is valued, motivated, and inspired to thrive. Together, we will build a high-performing, globally competitive NNPC Ltd that is proudly Nigerian and proudly world-class,” Ojulari said during a meeting with the staff of the Company, with a vow to pursue the company’s bold ambitions and build an NNPC that will be the pride of all Nigerians.

In a Town Hall meeting held at the NNPC Towers in Abuja, on Thursday, Ojulari said it was a huge honour and responsibility to lead the NNPC Ltd.

He describes the Company as an entity that means a lot to Nigeria and its future.

“We stand at the gateway of a new era—one that demands courage, professionalism, and a relentless drive for excellence.

The task before us is great, yet the opportunity to redefine Nigeria’s energy future is even greater. Now is the time to turn our transformation promise into performance,” Ojulari told thousands of the Company’s staff.

Ojulari said that the NNPC Ltd. under his stewardship aims to attract sectoral investments worth $30 billion by 2027 and $60 billion by 2030; raise crude oil production to over 2 million barrels per day, sustained through 2027, and attain 3 million by 2030; expand refining output to 200kbpd by 2027, and 500kbpd by 2030; grow gas production to 10bcf per day by 2027, and 12bcf by 2030 and deepen energy access and affordability for all Nigerians.

To achieve these targets, the company will be focusing on reconfiguring its business structure for agility and value creation, conducting independent value assessments to inform data-driven decisions, enforcing a robust performance management framework, building transparent, value-aligned partnerships with all stakeholders, and, most critically, taking control of its narrative.

While explaining the criticality of pursuing the Company’s bold ambitions, the Group CEO said the targets are not just metrics, but indicators of hope, jobs, industrial growth, and energy security for millions of Nigerians.

Describing NNPC Ltd. as a renewed, forward-facing, and future-ready organisation that is proudly leading Nigeria’s energy transformation, Ojulari said “it’s time we tell our story—one of innovation, reform, and national pride.”

He charged staff to be proud of NNPC Ltd.’s recent transformation, stressing that the next journey to becoming a fully-fledged limited liability company will require the collective drive towards making NNPC more transparent, profitable, and accountable.

The Group CEO pledged to give all employees the space to be able to outperform competitors.

“We will provide the best combination where the experienced and the young will both thrive towards achieving our set targets,” he assured.

He said his Management will deepen collaboration with the Company’s in-house and national unions to build a stronger, trust-based relationship that reflects shared purpose and mutual respect.

He also called on all staff to lead with integrity and act with urgency while bringing their very best to the table.

Business

LCCI, NIXIN Reel Actions to Boost Nigeria’s Paper Industry

He condemned the current tariff regime, which imposes duties on plain paper imports but allows for the importation of printed materials duty-free.

Published

1 day ago

April 18, 2025

OhiBaba

The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to provide policy support and incentives to boost local paper manufacturing in Nigeria.

The Chairman, LCCI, Printing Publishing and Allied Group (PPA), Gabriel Okonkwo, stressed the urgent need for government intervention in the paper manufacturing sector to revive local production and reduce Nigeria’s dependence on imports.

During a meeting with stakeholders at NIXIN Paper Mill, Okonkwo highlighted policy inconsistencies that have continued to undermine local manufacturers.

He condemned the current tariff regime, which imposes duties on plain paper imports but allows for the importation of printed materials duty-free.

“This unfair policy has created a lopsided competitive environment that favours foreign manufacturers over local producers.

“This has led to a situation where it’s cheaper to print books and other materials abroad and import them, rather than produce them locally,” he added.

As a result, a significant number of printing jobs are being outsourced to other countries, depriving our local industry of business opportunities.

If local manufacturers can provide high-quality paper at competitive prices, it would reduce our reliance on imports, conserve foreign exchange, create jobs, and contribute significantly to the economy,” Okonkwo said.

He pointed out that Nigeria’s large population, especially its student demographic, offers a massive market for paper products, calling on support for local paper manufacturers to produce at scale and competitive prices.

Reinforcing his call for increased confidence in local capacity, Okonkwo pointed to recent developments with the electoral body as a case in point. “INEC didn’t even believe we could produce ballot papers locally until recently.

It’s time we began to believe in and invest in our own,” Okonkwo stressed.

As part of NIXIN Paper Mill’s commitment to the nation’s self-sustenance, the paper mill is concentrated on increasing production capacity, improving product quality, and expanding its product line to meet the growing demands of the Nigerian market, thereby reducing the country’s dependence on foreign paper products and contributing to the growth of the local economy.

The Managing Director of NIXIN Paper Mill, Eric Wang, highlighted the potential of Nigeria’s paper industry, comparing it with his hometown in China, with a population of just 300,000, supporting a paper factory that consumes over 20,000 tons monthly.

In contrast, Nigeria, with a population exceeding 200 million, recorded only 70,000 to 75,000 tonnes per month, a figure he believes should be much higher given the country’s educational and commercial demands.

“We see that over 80 percent of Nigeria’s educational and printing materials are imported from Asia,” Wang stated.

Business Manager, NIXIN, Williams Sun, echoed that Nigeria significantly underutilized its local paper production capacity, with many orders still going to countries like India and China.

He emphasized the significant investment NIXIN has made of over $60 million and expressed frustration over the lack of returns, noting that one year into operations, the expected market response has yet to materialize.

Sun urged the government to support investors and take steps that will attract more players into the publishing and paper production space, which is critical for building a self-sufficient industry.