Business

The Role of Infrastructure in Lagos Real Estate Value by Dennis Isong

Let’s break down why infrastructure is the ultimate game-changer in Lagos real estate.

Published

2 weeks ago

March 1, 2025

OCHEFA

If you want to understand the Lagos real estate market, forget all the fancy jargon for a minute.

Just think of infrastructure as the soul of property value. A house without good roads, electricity, water, or even security is like a designer shoe with no sole—fine but useless.

In Lagos, infrastructure plays a big role in shaping real estate prices.

The same plot of land in two different locations can have an N50 million difference just because one has better roads, drainage, or proximity to a major highway.

Let’s break down why infrastructure is the ultimate game-changer in Lagos real estate.

1. Good Roads = Good Money

Let’s say you have two plots of land—one along a well-paved road and the other inside a swampy, pothole-infested area. Which one would you buy? The answer is obvious.

Lagos traffic is already enough stress; nobody wants to add bad roads to their suffering. That’s why areas with smooth, wide roads see property prices skyrocketing. Look at Lekki Phase 1, for instance.

When the Lekki-Epe Expressway was a narrow, chaotic mess, properties were still relatively affordable. But once the road was expanded and better maintained, land prices shot up like fuel prices after a subsidy removal.

Now, compare that to some areas on the mainland with roads that look like they survived a bomb blast. Properties there remain cheap, not because they aren’t valuable, but because buyers calculate the stress of bad roads into their final decision.

2. Drainage and Flood Control

Nobody Likes Swimming in Their Living Room Every Lagosian knows the pain of flooding.

When rain falls, some streets turn into rivers, and landlords start offering “canoe-inclusive” rent deals. But in places with proper drainage, real estate value remains stable, rain or shine. Victoria Island, for example, had serious flooding issues in the past.

But as drainage systems improved, property values remained strong.

Meanwhile, areas with poor drainage, like some parts of Ajah and Ikorodu, see land values drop during rainy seasons because buyers fear their future homes could become water parks.

Investors and homebuyers are now paying more attention to drainage systems before putting their money into properties.

A house is not cheap, so nobody wants to spend millions only to start living like Aquaman.

3. Power Supply—Because Generators Are Not Luxury

Electricity is one of Lagos’ biggest real estate influencers. Areas with steady power supply command higher rent and property prices. Why? Because the alternative—buying fuel for a generator—is both expensive and frustrating.

Places like Ikeja GRA, Victoria Island, and parts of Lekki have relatively stable power, and landlords use that as a selling point.

On the other hand, areas with epileptic power supply lose value over time. People are now considering solar-powered estates and communities where electricity is stable before making buying decisions.

4. Transportation—BRT, Rail, and Your Property’s Worth

One of the smartest real estate moves in Lagos is to buy property near upcoming transport projects. Why? Because the moment a major road, rail, or even a bridge is announced, land prices start rising like agege bread in hot weather.

When the Lekki-Epe Expressway toll gate was introduced, property prices in Ajah and beyond started climbing.

The same thing is happening with the Lagos Blue and Red Rail Lines. Areas close to the rail stations, like Alagbado and Agbado, are experiencing a surge in demand because people are preparing for easier movement.

Nobody likes spending four hours in Lagos traffic. If your property is near a transport hub that reduces stress, its value automatically goes up.

5. Security—Safe Neighborhoods, High Returns

No matter how fine a house is, if the area is a crime hotspot, buyers and tenants will run. Security infrastructure—streetlights, CCTV, police presence, gated communities—adds serious value to properties.

Banana Island, Ikoyi, and some parts of Lekki Phase 1 are expensive partly because of their tight security.

Compare that to some areas where robberies are common, and you’ll see why people are willing to pay a premium for peace of mind.

6. Social Amenities—Schools, Hospitals, Malls, and Fun Spots

A house in an isolated bush with no schools, hospitals, or supermarkets nearby is just a fancy prison. That’s why areas with top schools, healthcare centers, and entertainment hubs always see higher real estate demand.

Look at places like Ikeja, Lekki, and Surulere.

The presence of good schools, hospitals, and malls means families are willing to pay more to live there. Investors know this, so they buy early before development fully sets in.

The Government’s Role—When Infrastructure Meets Policy Infrastructure development is not magic; it takes government planning, funding, and execution.

The Lagos State Government has been actively pushing major projects to boost real estate value across different areas.

For example:

• The Lekki Free Trade Zone:

This project is turning Ibeju-Lekki into a goldmine. With the Dangote Refinery, Deep Seaport, and Free Trade Zone in full swing, land prices in this area have jumped significantly in the past few years.

• The Fourth Mainland Bridge:

Once this long-awaited bridge becomes a reality, expect a massive real estate boom in areas like Ikorodu, Ajah, and Epe. People are already securing land there in anticipation.

• The Lagos Rail Mass Transit (Blue and Red Lines):

These train lines will reduce commuting stress, meaning properties near stations will become more attractive and valuable.

When the government invests in infrastructure, real estate investors should pay attention. It means they are indirectly boosting property values in those locations.

How to Invest Wisely—Spot the Next Big Infrastructure

Move If you’re planning to buy property in Lagos, don’t just focus on “popular” locations. Instead, look at upcoming infrastructure projects. These areas are where you’ll get the best long-term returns. Here’s how to spot a good investment:

• Follow Government Announcements: Any major road, bridge, or transport project will affect real estate prices in that area. Stay informed.

• Check for Early Development Signs: When big businesses start moving into an area, it’s a sign that value will rise soon.

• Look Beyond the Present Condition: Some places may look like “bush” now, but with infrastructure, they will turn into prime locations.

Epe is a perfect example—five years ago, it was just a quiet town. Today, it’s one of the fastest-growing real estate hubs in Lagos.

• Buy Before the Boom: Once the infrastructure is completed, land prices jump dramatically. The best time to buy is when development is just starting, not when it’s fully established.

Infrastructure is the Key to Lagos Real Estate Wealth

In Lagos, infrastructure determines whether a property is worth millions or remains stagnant. Roads, electricity, drainage, security, transportation, and social amenities all play a crucial role in increasing property value.

Smart investors don’t wait for areas to become “hot” before they buy; they anticipate where the next big infrastructure project will be and invest early. Whether you’re a first-time buyer or a seasoned investor, one thing is clear: if you follow infrastructure, you’ll always find money in Lagos real estate.

Dennis Isong and team.

+2348164741041 +234802866756

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Business

ANED Tells Airforce Base Ikeja ” No Payment, No Reconnection”

The Sam Ethnam Air Force Base Ikeja was disconnected last week due to the unpaid debt, which impacted negatively on the operations of the Ikeja Electric Plc.

Published

3 days ago

March 10, 2025

OCHEFA

THE Association of Nigerian Electricity Distributors, (ANED), the professional association of the 11 electricity distribution companies, DisCos, in the country, said, yesterday that the Sam Ethnam Air Force Base Ikeja, Lagos, would not be reconnected to the grid without the settlement of its N4.3 billion debt to Ikeja Electric Plc.

The Sam Ethnam Air Force Base Ikeja was disconnected last week due to the unpaid debt, which impacted negatively on the operations of the Ikeja Electric Plc.

In reaction to the Airforce officials’ invasion of the headquarters of the Ikeja Electric Plc, vandalizing equipment and beating personnel and others, including journalists, Executive Director, Research and Advocacy, ANED, Sunday Oduntan, said: “Reconnection is not possible immediately.

They have to pay what they owe us.” Vanguard, learned weekend that there were ongoing engagements, targeted at ensuring payment and reconnection of The Sam Ethnam Air force Base Ikeja

He also said: “The attack of Ikeja Electric Plc should not happen in a civilian administration because there are better ways of resolving issues.”

Business

MAN Raises Concerns About Astronomical Charges Imposed By Financial Reporting Council on Private Companies

For publicly quoted companies, the maximum payment earlier was N1 million per annum. Now, that amount is hiked to N25 million.

Published

3 days ago

March 10, 2025

OCHEFA

The Manufacturers Association of Nigeria (MAN) has expressed grave concerns over the implementation of certain provisions of the Financial Reporting Council of Nigeria (Amendment) act, particularly those relating to charges on non-listed entities, like most members of MAN.

The Director-General of MAN, Segun Ajayi-Kadir, said that these provisions, as currently implemented, pose significant challenges to the manufacturing companies, the majority of whom are non-listed entities and are categorized under the current definition of Public Interest Entities (PIEs) of the said Act.

For instance, a new section 33 introduced under the FRCN Amendment Act, 2023 mandates annual charges for non-listed entities, calculated as a percentage of their annual turnover (maximum being 0.05% of the annual turnover for companies with turnover of more than N10 billion).

For publicly quoted companies, the maximum payment earlier was N1 million per annum. Now, that amount is hiked to N25 million!

Quite incredibly, for non-listed companies, who were previously excluded, there is no cap, and it is linked to the turnover, irrespective of whether the company is profitable or not.

The FRCN Amendment Act, 2023, Section 33 Clause 3, imposes heavy penalties on a person or an entity failing to pay annual dues with 10% of the annual due for every month of default cumulatively until payment, liable to sanctions prescribed by the Council for any default of its agents, officer or personnel engaged in the financial reporting process for failure to comply with the provision of the act and in case of chief executive officer to a penalty as may be prescribed by the Council, or on conviction to imprisonment for a term not exceeding 6 months.

The strict penalties and possible conviction to imprisonment could be construed as having the nature of a criminal law. Generally, non-payment of fees/dues typically results in other penalties or fines, and imprisonment provisions are applicable only in cases where non-payment is seen as an act of defiance or fraud.

The Section 34 of the Principle Act stipulates that the proceeds of the Fund established under Section 33 of the Act is to be applied for the expenditures of the Council, which incentivizes excessive generation of revenue and makes collection of the fees purely for administrative purposes.

Criminalizing non-payment of dues/fees, the utilization of which is more administrative in nature, makes the FRNC Amendment Act, 2023 a draconian law with no choice left for the entities to contest the charge, but to comply and pay the dues.

Ajayi-Kadir further posits that this is a direct assault on the government’s commitment to ease of doing business.

Apart from the reservations against its application to private companies, the astronomical increase for listed companies, the excessive charge on non-listed companies turnover, particularly for loss-making companies, and the commencement of implementation at this difficult time for manufacturers and other businesses amounts to yet another form of aggravated tyranny of regulation.

The investments in the productive sector of the economy will be negatively impacted if the continued implementation of this annual charge and the strenuous efforts of FRCN to execute the same are not halted.

MAN, therefore, implores the FRCN to be mindful of the potential negative impact of its continued administration of the fees on businesses and put it on hold.

As the umbrella body for manufacturers in Nigeria, we admonish the FRCN to await the enactment of the tax reform laws and realign its operations with the relevant provisions.

Urgent consideration and swift action from the government are needed to avert the unpleasant consequences of this annual fee. This will bring relief to anxious and long-suffering manufacturers and other business owners.

Quite importantly, it will boost our commitment to ease of doing and align with the broader objectives of the fiscal policy and tax reforms agenda of President Tinubu, which is primarily aimed at streamlining regulatory requirements, harmonizing taxes and revenue collection agencies, promoting business growth and cultivating a competitive landscape.

Business

Places You Can Live Comfortably on the Lagos Island and Mainland, by Dennis Isong

VI is the business hub of Lagos, but it also has amazing residential areas. You’ll find top-notch apartments, good schools, fine dining, and beaches. The only downside? The rent is not smiling. But if you want to live close to work and still enjoy premium comfort, VI is an excellent choice.

Published

5 days ago

March 7, 2025

OCHEFA

You know how Lagos is, right? One minute, you’re stuck in traffic for three hours, and the next, you’re enjoying the best suya of your life.

But let’s be honest—where you live in Lagos can make or break your experience.

That’s why we’re here, to help you find places you can comfortably live, whether you prefer the Island’s flashy vibes or the Mainland’s rugged charm.

Best Places to Live on the Island

▪︎Lagos Island and Mainland \ Shutterstock.com

If you love the soft life and don’t mind paying premium prices, the Island is for you. Here are some top areas to consider:

1. Ikoyi

If Lagos had a VIP section, it would be Ikoyi. This place is home to the rich and powerful. The roads are clean, the houses are luxurious, and security is top-notch.

Expect well-paved streets, high-end restaurants, and some of the most expensive real estate in Nigeria. If your wallet can handle it, Ikoyi is one of the best places to live in Lagos.

2. Victoria Island (VI)

3. Lekki Phase 1

Lekki Phase 1 is for those who want the Island experience but can’t quite afford Ikoyi or VI. It has a mix of luxury and affordability (by Lagos standards). You’ll find many young professionals, good schools, nice estates, and fun places like malls and lounges. However, be ready for traffic, especially during rush hours.

Places like Phase 1 and Phase 2 are particularly popular for their neat environment and relatively stable electricity.

4. Chevron Drive and Ajah

These areas are for people who want the Island life but at a slightly more affordable rate. Ajah has seen major development, with beautiful estates and good roads. Just make sure your house is in a flood-free zone because rain in Lagos can humble even the best plans.

5. Eko Atlantic

This is the future of Lagos. A city built on reclaimed land from the Atlantic Ocean, offering ultra-modern apartments, luxury living, and state-of-the-art infrastructure. If you have the budget for it,

Eko Atlantic is the definition of futuristic living.

Best Places to Live on the Mainland

The Mainland is for those who love Lagos but don’t want to sell a kidney to afford rent. Here are the best places to live comfortably:

1. Ikeja

Ikeja is the capital of Lagos and one of the best places to live on the Mainland. Areas like GRA, Maryland, and Magodo offer good housing, reliable electricity, and less traffic compared to other parts of the Mainland. Plus, you have easy access to the airport, malls, and entertainment spots.

2. Magodo

Magodo feels like the Ikoyi of the Mainland. It is a secure, well-planned area with good roads, beautiful estates, and an organized environment. If you want a peaceful lifestyle with a touch of luxury but don’t want to cross the Third Mainland Bridge every day, Magodo is a great option.

3. Yaba

Yaba is the tech hub of Lagos. With Unilag and several startups in the area, it has a youthful, vibrant feel. Yaba is also home to affordable and decent housing, good transportation links, and a bubbling nightlife. If you’re a young professional or student, Yaba is a solid choice.

4. Surulere

Surulere is the best mix of old and new Lagos. It has good residential estates, a lively social scene, and is centrally located.

You can get to the Island easily while still enjoying affordable rent. Plus, it’s home to the National Stadium, where you can catch football matches and concerts.

5. Ogudu GRA

Ogudu GRA is a hidden gem. It has a serene environment, great road networks, and reliable security. It’s close to both the Mainland and the Island, making it convenient for professionals who need easy movement around Lagos.

6. Festac and Amuwo-Odofin

If you love space and want a family-friendly environment, these areas are great options. They have organized estates, good schools, and a peaceful vibe that is rare in Lagos. Plus, they are close to the Lagos-Badagry Expressway, making travel easier.

7. Gbagada

Gbagada is another top pick for Mainland living. It is well-planned, has a good mix of modern and old buildings, and offers easy access to both the Island and other parts of the Mainland.

▪︎For personalized assistance with property needs in Jakande and the broader Lagos area, interested parties can contact Dennis Isong, a top Lagos realtor specializing in helping Nigerians in the diaspora own property stress-free. He can be reached at +2348164741041.