Experts: Reforms urgently needed to unlock Nigeria’s $2.6trn real estate goldmine

Experts in the built environment have identified Nigeria’s real estate sector as a sleeping giant with vast potential to drive economic growth, create jobs and tackle the housing deficit. They insist that with the right policy reforms, strategic investments and adoption of technology, the sector could become a cornerstone of national prosperity.

Speaking at a recent forum, the Chairman of Periwinkle Residences, Dr. Chiedu Nweke, said Nigeria’s real estate market, projected to hit $2.61 trillion by 2025, remains largely underdeveloped despite its enormous potential.

He noted that residential real estate alone accounts for about $2.25 trillion of this figure, contributing roughly 5 per cent to the nation’s GDP.

According to him, the country’s massive housing deficit, estimated at over 21 million units, reflects both the challenges and untapped investment opportunities across cities and urban areas.“Nigeria’s growing population, rapid urbanisation and steady stream of new graduates entering the workforce all translate into a surging demand for housing,” he explained.

Dr. Nweke, however, faulted the Land Use Act, describing it as a major obstacle to land accessibility and business growth.

He argued that the law, introduced during the military era, gave excessive power to the government while dispossessing local communities of their ancestral lands.

“The Act was designed to make land acquisition easier for the government but ended up stifling private enterprise.

“It is anti-business because it strips communities of ownership rights, forcing investors to depend on governors for approval. When traditional owners can’t freely provide land, development slows.

“The Land Use Act originally came with the military decree. The intention initially was good, but now it requires review. If you want your business to thrive, people should be able to provide land. To open up real estate, people should feel free to transact. That is what is limited. There should be a middle course where the government can regulate what the people do with land, and not that all land should be vested in the governor, causing the local communities to lose power of ownership. The area of Ajah was thriving then; the government came with demolition, and everybody had to pack out. After rebuilding, none of the people they pushed out could get their places back. It is very unfair. It has brought bad results in some areas and good results in others, where people are not compelled to leave places the government feels it can benefit more,” he explained.

In his own contribution, Dr. Edward Ndubuso, a property developer in Lekki, Lagos, said that to unlock Nigeria’s real estate potential, the government must focus on improving policy and infrastructure, developing more accessible mortgage options, and leveraging technology and innovation. “Key actions include simplifying land acquisition, enhancing infrastructure like roads and power, increasing access to affordable financing, and adopting new technologies like PropTech to streamline processes and increase transparency. Government must reform the Land Use Act to encourage ownership and security of tenure. Land registration must have a human face to enable more players to access it. It is the rigorous way of registering land that has about 10 per cent of properties in Lagos registered. Improving efficiency through technology will help in speeding up the process.

“We cannot be talking about unlocking real estate potential when infrastructures like roads, power, and water that help to increase land value and unlock investment potential are not regulated. How can we be talking of opening real estate potential when we cannot have access to finance? We know that finance is the key that promotes PPPs for infrastructure and housing. Do we talk of government policy direction that is not steady? For us to believe that we have unlocked real estate potential, a clear and focused national housing strategy is needed. There must be technology and PropTech that encourage digitisation of land and housing processes. There should also be sustainability and green practices to integrate eco-conscious solutions in building designs,” he said.

Experts: Reforms urgently needed to unlock Nigeria’s $2.6trn