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Real Estate Investment in Nigeria by Dennis Isong

The Nigerian real estate market represents one of Africa’s most dynamic and promising investment frontiers.
With over 200 million people and an urbanization rate exceeding 4 percent annually, the demand for residential and commercial properties continues to surge, particularly in major cities like Lagos, Abuja, and Port Harcourt.
This demographic dividend, coupled with the country’s status as Africa’s largest economy, creates compelling opportunities for real estate investors seeking both capital appreciation and rental income.
The market’s potential is further enhanced by Nigeria’s young population, with more than 60% under the age of 25.
This demographic trend is driving demand for affordable housing, student accommodation, and modern office spaces.
Additionally, the expansion of the middle class, despite economic challenges, has created a growing market for mid-range residential properties and retail spaces.
The sector’s contribution to Nigeria’s GDP has consistently grown, demonstrating its resilience and potential for sustainable returns.
Benefits of Real Estate Investment
Real estate investment in Nigeria offers numerous advantages that continue to attract both domestic and international investors.
Perhaps the most significant benefit is the potential for substantial capital appreciation.
Property values in prime locations across major Nigerian cities have historically shown impressive growth rates, often outpacing inflation.
In particular, properties in developing areas of Lagos and Abuja have recorded appreciation rates of 20-30% annually, presenting opportunities for significant wealth creation through strategic property acquisition.
The rental market also provides a steady stream of income for investors.
The persistent housing deficit, estimated at over 17 million units, ensures strong rental demand across various property segments. High-end residential properties in exclusive neighborhoods can command premium rents, while commercial properties in business districts often yield attractive returns.
The dollarization of rents in prime locations also offers a hedge against currency fluctuations, particularly beneficial for international investors. Furthermore, real estate investment serves as an effective inflation hedge in Nigeria’s sometimes volatile economic environment.
As inflation rises, property values and rental income typically adjust upward, preserving the real value of investments.
The tangible nature of real estate assets also provides security and stability compared to more volatile investment options.
Additionally, the sector offers various investment entry points, from direct property ownership to Real Estate Investment Trusts (REITs), allowing investors to participate according to their capital capacity and risk appetite.
The dollarization of rents in prime locations also offers a hedge against currency fluctuations, particularly beneficial for international investors
Strategic Investment Considerations Success in Nigerian real estate investment requires careful consideration of several strategic factors.
Location remains paramount, with properties in established or rapidly developing areas offering the best potential for value appreciation and rental demand. Areas with improving infrastructure, proximity to business districts, or major development projects often present early-mover advantages for astute investors. The choice of property type must align with market demand and demographic trends.
Residential developments targeting the growing middle class, particularly in the form of apartments and townhouses, have shown strong market acceptance.
Similarly, purpose-built student housing near major educational institutions addresses a significant market gap.
In the commercial sector, mixed-use developments combining retail, office, and residential components have gained popularity, offering diversification benefits within a single investment.
Understanding the local real estate market dynamics is crucial for timing investments effectively.
Market cycles in different Nigerian cities can vary significantly, influenced by factors such as infrastructure development, economic activities, and government policies.
Successful investors often combine market timing with a long-term perspective, recognizing that while short-term volatility may occur, the fundamental drivers of demand remain strong.
Challenges and Risk Mitigation Despite its potential, real estate investment in Nigeria faces several significant challenges that investors must navigate carefully. One of the most prominent issues is land title documentation and property rights.
The complex land tenure system, governed by the Land Use Act of 1978, can make property acquisition procedures lengthy and complicated.
Obtaining Governor’s Consent for property transfers and ensuring clean titles requires due diligence and often professional legal assistance. Infrastructure deficits pose another significant challenge.
Many areas suffer from inadequate power supply, water access, and road networks, necessitating additional investments in private infrastructure solutions.
This can significantly impact development costs and eventual returns. However, savvy investors often turn this challenge into an opportunity by incorporating sustainable infrastructure solutions that add value to their properties.
The regulatory environment presents its own set of challenges.
Multiple layers of government oversight, changing policies, and sometimes overlapping jurisdictions can create uncertainty.
Property taxes, development permits, and building regulations vary across states and local governments, requiring thorough understanding and compliance.
Nevertheless, these challenges can be managed through proper research, engagement with local authorities, and partnership with experienced local professionals.
Financing poses a significant hurdle, with high interest rates and relatively short tenure mortgage products limiting funding options. Most Nigerian banks require substantial equity contributions and offer loans at interest rates that can significantly impact project viability.
However, innovative financing solutions are emerging, including partnerships with development finance institutions, vendor financing arrangements, and off-plan sales strategies that help manage funding challenges.
The informal nature of significant segments of the Nigerian real estate market can complicate investment decisions.
Limited availability of reliable market data, price transparency issues, and informal transaction practices make market analysis challenging.
However, this information gap also creates opportunities for investors who conduct thorough research and build strong local networks. Construction costs and quality control present ongoing challenges.
Fluctuating material costs, skilled labor shortages, and the need to import certain building components can impact project budgets and timelines. Maintaining construction quality while managing costs requires careful contractor selection and robust project management systems.
However, investors who successfully navigate these challenges often achieve premium valuations for quality developments.
Security concerns in certain regions and the general business environment risks require careful consideration in investment planning.
However, these risks can be mitigated through appropriate location selection, security measures, and insurance coverage. Many successful investors focus on areas with stable security situations and strong economic fundamentals.
Real estate investments in Nigeria presents significant opportunities for those willing to understand and navigate its unique market dynamics.
While challenges exist, they are not insurmountable and often create opportunities for well-prepared investors.
Success requires a combination of thorough market research, strong local partnerships, professional advisory support, and a long-term perspective.
As Nigeria’s economy continues to grow and urbanize, real estate investment, when approached strategically, offers the potential for substantial returns while contributing to the country’s development.
■ For personalized guidance and expert advice, Dennis Isong is here to help you navigate the complexities of Nigeria’s real estate market, ensuring a stress-free property acquisition process. Contact him today at +2348164741041!
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BREAKING: Ganduje Resigns as APC National Chairman with immediate effect

Abdullahi Umar Ganduje has resigned as the National Chairman of the All Progressives Congress (APC), with immediate effect.
Ganduje, who previously served as the Governor of Kano State from 2015 to 2023, cited health reasons for his resignation, stating the need to focus on his personal well-being.
His tenure as APC chairman, which began in August 2023, was riddled with internal party crises, legal disputes, and allegations of financial misconduct.
While his resignation letter attributed the move solely to health concerns, party insiders suggest rising political tension and internal opposition may have influenced his decision.
There have also been reports linking his exit to accusations of financial impropriety.
Some party members allegedly protested against what they described as “excessive financial demands” from his office—particularly over complaints by aspirants for FCT area council positions about the high fees required to secure party tickets.
Ganduje’s leadership faced multiple legal challenges. In April 2024, a Kano State High Court issued an ex parte order barring him from identifying as a party member, following a suit filed by some APC officials.
Although a separate suit filed by the APC North Central Forum seeking his removal was later dismissed by a Federal High Court in Abuja, his position remained contentious.
As the APC is yet to issue an official statement, speculation continues to mount over the true circumstances of Ganduje’s departure and its potential implications for the party’s future direction.
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Nigeria New Tax Laws: What You Need to Know

President Bola Tinubu on Thursday signed four new tax laws aimed at modernising and streamlining the country’s tax system.
In the new tax law, the Value Added Tax rate remains at 7.5 per cent despite initial proposals to increase to 12.5 per cent, but its scope is expanded.Essential items—such as food, education, healthcare, public transport, residential rent, and exports—are zero-rated to ease inflationary pressure.
For revenue allocation is restructured: now 30 per cent of VAT proceeds are distributed based on consumption (rather than contribution), 50 per cent equally among states, and 20 per cent to population-based allocation.
With the latest development, it is expected that state revenue streams will increase, and it will also discourage tax evasion.
Overview of the four new lawsNigeria Tax Act:
Consolidates various tax rules into a single, simplified code, eliminating over 50 small, overlapping taxes. This reduces complexity and duplication, making it easier for businesses to comply.
Tax Administration Act:
Establishes uniform rules for tax collection across federal, state, and local governments, ensuring consistency and reducing administrative conflicts.
Nigeria Revenue Service Act:
Replaces the Federal Inland Revenue Service with the independent Nigeria Revenue Service, aiming for greater efficiency and autonomy in tax administration.
Joint Revenue Board Act:
Enhances coordination between different government levels and introduces a Tax Ombudsman and Tax Appeal Tribunal to handle disputes fairly.
Key objectives of the new tax rules
Simplify Tax System:
Reduces bureaucratic hurdles and overlapping taxes to make compliance easier, especially for small businesses and informal traders.
Increase Revenue Efficiency:
Aims to boost Nigeria’s tax-to-GDP ratio from 10% (below the African average of 16–18%) to 18 per cent by 2026 without raising taxes on essential goods.
Reduce Financial Burden:
Provides relief for low-income households and small businesses while ensuring high-income earners and luxury consumers contribute more.
Fund Public Services: Increased revenue will support infrastructure, healthcare, and education, reducing reliance on borrowing.Who benefits and how
Low-Income Households:
Individuals earning up to ₦1 million ($650) annually receive a ₦200,000 rent relief, reducing taxable income to ₦800,000, exempting them from income tax.
VAT exemptions on essential goods and services (food, healthcare, education, rent, power, baby products) lower living costs.
Small businesses:
Businesses with an annual turnover below ₦50 million ($32,400) are exempt from company income tax.
Simplified tax filing without requiring audited accounts reduces compliance costs.
Large businesses:
Corporate tax rates drop from 30 per cent to 27.5 per cent in 2025 and 25 per cent thereafter.Tax credits for VAT paid on expenses and assets allow businesses to recover the 7.5 per cent VAT.
Charitable, educational, and religious organisations:
Tax incentives for non-commercial earnings, encouraging community-focused activities.
Impact on different groups
Low-Income Earners:
Benefit most from income tax exemptions and lower costs for essentials, increasing disposable income.
Small Businesses and informal traders:
Simplified rules and tax exemptions encourage compliance and reduce financial strain, potentially formalising more businesses.
High-income earners and luxury consumers face higher VAT on luxury goods and premium services, plus capital gains tax on large share sales.
Government: Expects increased revenue for public services without overburdening vulnerable citizens.
Why reforms were needed:
Nigeria’s tax system was outdated, inefficient, and disproportionately harsh on low-income groups.
The low tax-to-GDP ratio (10%) limited funding for critical services like healthcare and infrastructure.
Overlapping taxes and complex rules deterred compliance, especially among small businesses and informal traders.
Public and expert reactionsPositive sentiment:
Small business owners welcome tax exemptions but seek clarity on enforcement to avoid unexpected levies.
Low-income earners appreciate relief on essentials but remain cautious about implementation.
Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reform Committee, claims 90% public support, emphasising that success depends on awareness and trust.
The reforms align with Tinubu’s administration’s goal to reduce economic inequality and boost fiscal capacity without overburdening citizens.
By encouraging voluntary compliance and reducing reliance on loans, Nigeria aims to strengthen its economy and fund development projects.
These reforms mark a significant step toward a fairer, more efficient tax system, with a focus on supporting vulnerable groups while fostering economic growth.
However, their success hinges on transparent enforcement and public trust.
For further details, you can refer to official statements from the Nigerian government or credible news sources covering the reforms.
News
2025 NGE Biennial Convention Opens In Enugu, 400 Editors In Attendance

The 2025 Biennial Convention of the Nigerian Guild of Editors(NGE) has opened in Enugu on Friday, with about 400 hundred Editors drawn from various media organizations across the country participating.
With the theme:”Building A Secure And Cohesive Nigeria: The Role Of Dialogue, Inclusion And The Media,” the convention is holding at the International Conference Centre, Enugu.
During the 4-day event, a new leadership will be elected to pilot the affairs of the Guild for the next two years.
In his welcome address, the President of the Guild, Eze Anaba, whom had already been returned unopposed for a second term, thanked members of the Guild for electing him to lead the union in the last two years.
“My esteemed colleagues, I thank you for the trust and confidence you reposed in me by electing me to lead this Guild over the past two years.
It has been a rare privilege and a responsibility I have carried with pride – one I will cherish for the rest of my life,” Anaba said.
Turning to the theme of the convention, the president said insecurity had “regrettably become a defining feature of our national discourse.
The nature of these challenges may differ across the regions, but their severity is felt everywhere.”
“This reality compels us to ask hard questions.Could the media have done more to promote dialogue and inclusion – essential tools for conflict prevention?”
“Are we, perhaps, sometimes guilty of amplifying fear and sensationalism? Are we presenting all sides of the story fairly?
“Most importantly, how can we Journalists and Editors, contribute constructively to the peace building process?,” he further asked.
He said the conversation aims to “interrogate” these questions and more as esteemed stakeholders in security matters lead the discussions.
Meanwhile, preparations are in top gear for the conduct of election of new Executives of the Guild scheduled to hold much later in the day.
The positions being contested for include Deputy President, Vice President (North), Vice President (West), Vice President (East), General Secretary, Treasurer and members of Standing Committees.
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