As Nigeria’s real estate market expands, land banking has emerged as the most promising investment strategy for long-term wealth creation, according to industry analysts.
Land banking involves purchasing undeveloped land—often on city outskirts—and holding it until its value appreciates due to urbanization, population growth, or infrastructure development. This approach offers high capital gains for patient investors who perform careful due diligence.
“With Nigeria’s population projected to surpass 250 million by 2050, demand for housing and commercial real estate will rise sharply, making land banking a strategic opportunity, especially in rapidly urbanizing areas,” said Oladipupo Clement, a property market analyst.
Other promising real estate sectors include affordable housing, build-to-rent apartments, logistics and warehousing, retail, mixed-use developments, student housing, and co-living spaces.
Imelda Olaoye, founder of Thinkmintsocial, warned investors to consider risks such as title disputes, regulatory delays, and rising construction costs. She advised strategic positioning in government-backed growth zones and diversification across cities and property types.
Key locations for land banking include Lagos (notably Ibeju-Lekki), the Federal Capital Territory (Abuja), Rivers, Ogun, and Enugu states. Ibeju-Lekki has seen significant land-value appreciation due to developments like the Lekki Free Trade Zone, Dangote Refinery, and Lekki Deep Sea Port.
Benefits of land banking include impressive capital appreciation, low maintenance costs, and a hedge against inflation. Investors who act early in infrastructure-backed corridors are likely to enjoy the strongest returns over time.
Clement described land banking as a “sleeping goldmine” for forward-thinking investors who leverage professional advice, monitor infrastructure projects, and remain informed on government policies.
Makoko Demolition Raises Social Justice Concerns
While real estate opportunities grow, concerns persist over urban development practices, highlighted by the recent Makoko demolitions in Lagos. Housing Development Advocacy Network (HDAN) called on the government to balance urban safety with social justice.
“Development should not render residents homeless. A modern city protects both infrastructure and its people,” said Festus Adebayo, HDAN Executive Director. The network urged Lagos authorities to adopt participatory urban planning, provide humane resettlement options, and align compensation with housing and human rights standards.
The intersection of land investment and urban development underscores the importance of strategic planning, community engagement, and sustainable policies in Nigeria’s growing real estate landscape.
