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

9 months ago

March 1, 2025

OCHEFA

215 Views

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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CPPE Tasks Govt to Fix Cost of Living Crisis Amid GDP Growth

Reacting on Nigeria’s third quarter 2025 Gross Domestic Product (GDP) growth of 3.98 percent , CPPE said that it’s laudable, but called for policy interventions to fix the cost of living crisis.

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December 2, 2025

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The Center for the Promotion of Private Enterprises (CPPE) tasks the government to ensure that GDP Growth and macroeconomic stability translate into real improvements in citizens’ welfare.

Reacting on Nigeria’s third quarter 2025 Gross Domestic Product (GDP) growth of 3.98 percent , CPPE said that it’s laudable, but called for policy interventions to fix the cost of living crisis.

Dr Muda Yusuf, CEO of the CPPE, notes that despite the improvment in the GDP, the cost-of-living crisis remains a concern .

He said: ” While disinflation is underway and prices of some food items and manufactured products are easing, the social outcomes of economic reforms continue to weigh on households.

” It is therefore imperative for policymaking to prioritise targeted interventions to address the uneasiness around the cost of living and ensure that GDP Growth and macroeconomic stability translate into real improvements in citizens’ welfare—particularly for vulnerable groups.”

To consolidate the gains recorded in Q3 and unlock stronger, more inclusive growth, Dr Yusuf, said that the following policy interventions are critical:

Reduce Structural Bottlenecks

Address energy supply constraints, reduce logistics costs, improve port efficiency, and accelerate transport infrastructure development.

Mitigate the Cost-of-Living Crisis

Implement targeted social interventions and remove structural impediments that elevate consumer prices.

All tiers of government [local, state and federal] must sustain targeted interventions in agriculture, pharmaceuticals, transportation and energy to fix the cost of living crisis.

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Dangote Targets Nigeria Festive Season Monthly Supply of 1.5 billion litres of PMS

This represents 50 million litres per day. We are formally notifying the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of this commitment.

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Dangote Petroleum Refinery says that it has concluded arrangements to supply over 50 million litres of petrol per day into the Nigerian market this festive season (December to January).

The company said that the decision was taken to ensure that there is no shortage of the product during the festive season.

This translates to 1.5 billion litres of Premium Motor Spirit (PMS) for the month of December.

The same amount of product will also be supplied in January 2026, it was added.

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, announced the plans.

Dangote said: “In line with our commitment to national well-being, and consistent with our track record of ensuring a holiday season free of fuel scarcity, the Dangote Petroleum Refinery will supply 1.5 billion litres of PMS to the Nigerian market this month.

This represents 50 million litres per day. We are formally notifying the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of this commitment.

We will supply another 1.5 billion litres in January and increase to 1.75 billion litres in February, which translates to over 60 million litres per day.”

Speaking during a visit by the South-South Development Commission (SSDC) to the refinery and the Dangote Fertiliser complex, he stated that the facility currently has adequate stock and is producing between 40 and 45 million litres of PMS daily.

He added that the daily supply of 50 million litres should dispel long-standing claims that domestic refineries lack the capacity to meet national demand.

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Dangote Partners Honeywell International to Boost Refinery Capacity to 1.4 million barrels per day

Published

1 week ago

November 25, 2025

Charles Flames

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Dangote Refinery, Africa’s largest single-train petroleum refinery, has signed a landmark contract with U.S. industrial giant Honeywell International to execute a significant capacity upgrade that will boost the facility’s crude processing capability from the current 650,000 barrels per day to an ambitious 1.4 million barrels per day.

The multi-billion-dollar project, described by sources close to the deal as one of the largest refinery expansion initiatives globally in recent years, will involve the installation of advanced process units, automation systems, and energy-efficiency technologies supplied and integrated by Honeywell UOP and Honeywell Process Solutions.

Aliko Dangote, President and CEO of Dangote Industries Limited, confirmed the partnership, stating: “This strategic collaboration with Honeywell will position the Dangote Refinery as one of the top five largest refineries in the world by capacity.

The upgrade will not only enhance our ability to meet Nigeria’s complete refined products demand but also establish the refinery as a major export hub for gasoline, diesel, jet fuel, and petrochemicals across Africa and beyond.

”The expansion is expected to be implemented in phases, with key units including additional crude distillation, hydrocracking, and catalytic reforming modules.

Honeywell’s proprietary technologies are anticipated to improve yield of high-value products while reducing energy consumption and emissions.Upon completion, the 1.4 million bpd Dangote Refinery will surpass the current global top-tier facilities such as Reliance Industries’ Jamnagar Refinery (1.24 million bpd) and Paraguay’s planned 1.2 million bpd project, cementing its status as the world’s largest single-train refinery.

The project is expected to create thousands of direct and indirect jobs during the construction and commissioning phases and further reduce Nigeria’s dependence on imported refined petroleum products.

A spokesperson for Honeywell confirmed the award, saying the company was “honored to partner with Dangote on this transformative project that will reshape the African downstream landscape.

”Detailed timelines and the exact value of the contract were not disclosed, but industry analysts estimate the expansion could exceed $5–7 billion in total investment.

The statement said: Dangote Group is pleased to announce that it has entered into a strategic partnership with Honeywell International Inc to support the next phase of expansion of the Dangote Petroleum Refinery.

This collaboration will provide advanced technology and services that will enable the refinery to increase its processing capacity to 1.4 million barrels per day by 2028, marking a major milestone in our long-term vision to build the world’s largest petroleum refining complex.

Through this agreement, Honeywell will supply specialised catalysts, equipment, and process technologies that will allow the refinery to process a broader slate of crude grades efficiently and to further enhance product quality and operational reliability.

Honeywell, a global Fortune 100 industrial and technology company, offers a wide portfolio of solutions across aviation, automotive, industrial automation, and advanced materials.

Honeywell’s division UOP has been a technology partner to Dangote since 2017, providing proprietary refining systems, catalyst regeneration equipment, high performance column trays, and heat exchanger technologies that support our best-in-class operations.

Dangote Group is also advancing its petrochemical footprint. As part of the wider collaboration, we are scaling our polypropylene capacity to 2.4 million metric tons annually using Honeywell’s Oleflex technology.

Polypropylene is a key industrial material widely used across packaging, manufacturing, and automotive applications.In addition to refining expansion, Dangote Group is progressing with the next phase of its fertiliser growth plan in Nigeria. We will increase our urea production capacity from 3 million metric tons to 9 million metric tons annually.

The existing plant consists of two trains of 1.5 million metric tons each. The expansion will add four additional trains to meet growing demand for high-quality fertiliser across Africa and global markets.

Dangote Group remains fully committed to delivering world-class industrial capacity, strengthening Nigeria’s energy security, and driving sustainable economic growth through long-term investment, innovation, and strategic global partnerships.