Introduction
Let me start with this: one of the good things about Africa—particularly Nigeria—is that many people still have the opportunity to build their own homes. I’m not saying it’s easy, but hear me out.
Unlike in many Western nations where people are tied into 30-year mortgages, buried in debt, or financially manipulated through housing bubbles, we still have a system—imperfect as it is—that allows you to buy land, build at your own pace, and own property outright.
That’s a gift.
But like most gifts, it comes with responsibility—and risk.
Today, I want us to look at the real estate industry in Nigeria: the ups, the downs, the frauds, the demolitions, and the untapped opportunities—especially for Nigerians in the diaspora who dream of owning back home.
The Gains: Why Real Estate Still Makes Sense
- Tangible Asset: Unlike stocks, real estate is something you can see, touch, and build on.
- Appreciation: Land rarely loses value in Nigeria—especially in urban and suburban areas like Lagos, Abuja, Ibadan, Uyo, and Enugu.
- Rental Income: In cities like Lagos, rent yields can go as high as 8–10% annually depending on location.
- Legacy Building: Land and property are still the most transferred form of generational wealth in Nigerian families.
- Diaspora Advantage: With foreign currency leverage, diaspora Nigerians can secure assets with higher purchasing power compared to local earners.
But What Are the Risks? Let’s Break Them Down
1. Fraud and Land Scams
This is the biggest fear—and for good reason.
According to the Economic and Financial Crimes Commission (EFCC), over 6,000 land-related fraud cases were reported between 2019 and 2023. These often involve:
- Double land sales
- Forged land documents
- Phantom developers
- Contractors who abandon projects
Diaspora investors are especially vulnerable because they’re not on ground and rely on relatives or agents—some of whom betray trust.
What you can do:
- Always verify land titles with the State Ministry of Lands.
- Request a Survey Plan, Deed of Sale, Deed of Assignment, and Governor’s Consent.
- Work with registered estate developers, not just “agents.”
- Use escrow services or legal trustees to manage funds and timelines.
2. Regulatory Oversights and Demolitions
If you’ve been following the news, you’ve seen the heartbreaking demolitions in places like Lagos, Abuja, and Port Harcourt. Entire estates brought down due to:
- Lack of proper approvals
- Encroachment on government land
- Violation of urban planning laws
In 2023, over 800 structures were demolished in Abuja alone by the Federal Capital Development Authority (FCDA). These were not shanties. Some were well-built homes—but built on illegal or improperly acquired land.
What you can do:
- Ensure the developer has a Certificate of Occupancy (C of O) or an R of O (Right of Occupancy).
- Obtain building permits and check urban planning zones.
- Stay updated with state-level building regulations (each state differs!).
3. Legal Gray Areas in Land Use
Many people are unaware that:
- All land in Nigeria is technically vested in the governor of each state, per the Land Use Act of 1978.
- Without the Governor’s Consent, any transaction—even if signed and sealed—is incomplete legally.
This is where many people get into trouble. They buy land, build, but never process documentation fully—and years later, they’re told their land has been revoked.
What you can do:
- Hire a property lawyer to oversee every stage of acquisition.
- Don’t cut corners or rely on “omo-onile” agreements alone.
- Always register your deed.
4. Lack of Real Estate Financing Infrastructure
Unlike in the West, Nigeria has limited mortgage access. The Central Bank of Nigeria’s (CBN) 2022 report showed:
- Less than 1% of Nigerians have access to formal mortgage financing.
- Over 90% of homes are self-built and self-financed.
That means Nigerians are building with personal savings, cooperative loans, and in rare cases, microfinance support.
What you can do:
- Join a registered cooperative society like GTCS that offers real estate-focused loans and group buying.
- Look for developers offering installment plans.
- Consider diaspora housing schemes with insurance-backed guarantees.
Opportunities in Real Estate (Even Now)
Despite the challenges, these trends show it’s still worth it:
- Urban migration is increasing: The UN predicts Nigeria’s urban population will hit 300 million by 2050. More people = more demand for housing.
- Co-living and short-let models are rising: In Lagos and Abuja, AirBnB-style rentals are outperforming traditional rents.
- Government housing schemes are expanding: States like Lagos, Kaduna, and Ogun are offering PPPs (public-private partnerships) to boost housing stock.
- Real Estate Investment Trusts (REITs) are slowly gaining traction: You can now own property shares with as little as ₦50,000 via platforms like ARM and UPDC.
Build, But Build With Wisdom
I still believe that real estate is one of the most impactful investments anyone—especially in the diaspora—can make in Nigeria. But let me be clear: don’t romanticize it.
Too many people have sent millions home and ended up with empty plots, half-built houses, or worse—nothing at all.
It doesn’t have to be that way. With due diligence, legal clarity, cooperative support, and smart tech partnerships, we can change the story.
At God’s Treasury Cooperative Society, we’re working toward a model where members can co-own land, get access to ethical real estate loans, and even invest in digitally monitored building projects.
Because wealth is not just about buying land. It’s about building a future—safely, wisely, and together.
