A growing number of Nigerian importers are abandoning their traditional trade to seek survival in real estate and ride-hailing services as foreign exchange volatility, high import tariffs, and shrinking consumer spending erode their profits.

From car dealers in Lagos’ Berger Auto Yard to traders in Alaba International Market, the story is the same — warehouses are closing, and long-time importers are selling property or signing up with e-hailing platforms just to keep food on the table.

Emmanuel Amaife, who has been importing electronics for over a decade, told our correspondent the math no longer adds up. “You used to buy ten items with ₦100,000. Today, that same money can only get you three,” he said. “When clearing costs, tariffs, and forex keep climbing every week, the business stops making sense. Many of us are watching our capital vanish.”

Since the naira was floated in 2023, the exchange rate against the US dollar has jumped from ₦455 to over ₦1,760, a surge of more than 300 percent. For vehicle importers, that means funds that once bought four used cars now barely cover the cost of one.

Prince Ajibola Adedoyin, president of the Association of Motor Dealers of Nigeria (AMDON), said the fallout has been severe. “Imports have dropped sharply. Even when you bring in a vehicle, buyers are fewer because prices have tripled. Some dealers simply can’t cope and have pulled out entirely,” he explained.

Many of the traders we spoke with described taking on other ventures to salvage what’s left of their finances. “Real estate isn’t easy either, but at least you don’t wake up to a new exchange rate every morning,” Amaife said with a weary laugh. “Some of us are driving for e-hailing companies now. It’s not glamorous, but it pays the bills.”

The broader economic impact is already visible. Traders point to mounting unemployment, rising insecurity, and young people abandoning education because their families can no longer afford school fees. “We used to employ staff, salespeople, even mechanics indirectly,” said one former car importer. “Now those people are out of work, and that’s dangerous for the country.”

Both Amaife and Adedoyin believe government intervention is the only way to stop the exodus from the import sector. They are calling for low-interest loans, stable forex access, and gradual tariff adjustments to give businesses room to breathe.

“If nothing changes, more importers will close shop,” Adedoyin warned. “And when that happens, transportation costs, unemployment, and insecurity will all get worse. This isn’t just our problem — it’s a national problem.”

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This updated valuation positions the sector as the third-largest contributor to Nigeria’s GDP, coming only behind Trade and Crop Production. The data marks a remarkable growth trajectory for the sector, which was previously estimated at ₦10.5 trillion in 2023 before rebasing.

Following the adoption of improved data gathering techniques and updated economic models, the NBS revised the sector’s 2023 output to ₦30.7 trillion—an increase of ₦20.2 trillion. The figure rose further to ₦41.3 trillion in 2024, reflecting the real estate industry’s growing impact on the non-oil economy.

The new GDP figures place Real Estate ahead of several major sectors, including Telecommunications (₦23 trillion), Construction (₦13.8 trillion), and Crude Petroleum & Natural Gas (₦13.1 trillion), as last reported in 2023.

The NBS attributed the increase to more comprehensive asset valuations, improved documentation of property-related services such as rentals, brokerage, and land valuation, and the influence of rapid urban development across Nigeria.

Sector analysts have hailed the development as a long-overdue recognition of Real Estate’s role in job creation, infrastructure expansion, and wealth generation. They are also urging the government to capitalise on the sector’s growth by introducing key reforms in land administration, construction regulation, and access to housing finance.

Experts believe that with continued policy support, the real estate sector can drive further diversification of Nigeria’s economy, create more sustainable employment opportunities, and stimulate inclusive growth in both urban and rural communities.

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Adisa laments the shift from the era when trusted developers and firms let their projects speak for themselves, to a time when flashy promotions and social media theatrics have replaced substance. Back then, purchasing property was a thoughtful process grounded in transparency, not a digital spectacle built on empty promises.

His concerns resonate with many Nigerians today, as real estate becomes more about perception than actual value. “We’ve moved from building homes to selling fantasies,” he suggests. This shift, he argues, is not just dangerous it is deeply exploitative.

Adisa paints a picture familiar to many in cities like Lagos, Abeokuta, and Ibadan: overzealous marketers, often without proper training or credentials, aggressively pitching real estate deals that lack basic infrastructure. According to him, these sellers package undeveloped land as prime property, wrapping them in glossy brochures, drone footage, and exaggerated claims of proximity to nonexistent airports or luxury amenities.

In his view, this spectacle is not merely bad business it’s a systemic problem. Many so-called developers operate on shaky legal grounds, offering “pay small-small” schemes that prey on people’s dreams of owning land. For many buyers, the dream ends in disappointment when allocation fails, documentation stalls, and company contacts suddenly vanish.

Adding to the chaos, Adisa highlights the alarming emergence of pseudo-developers running operations that resemble Ponzi schemes. Promising unrealistic returns and luring investors with glitzy events and celebrity endorsements, these entities prioritize noise over actual delivery.

His reflections raise a critical question: what, exactly, are these firms selling? Often, it’s plots located in remote, undeveloped areas, priced at par with prime urban land. In Adisa’s words, they are selling “possibility,” not property and often, that possibility is a lie.

But he doesn’t stop at criticism. Adisa calls for decisive institutional action. He advocates stricter licensing, monitoring, and sanctions for real estate operators. Regulatory bodies like REDAN and LASRERA, he insists, must rise beyond rhetoric and enforce accountability. Fraud in housing, he notes, is not just theft it is an assault on dignity.

As his piece powerfully concludes, shelter is not a luxury it is a human right. In today’s Nigeria, buying land has become less a transaction and more a test of discernment. He urges buyers to remain vigilant: verify every claim, scrutinize every offer, and look beyond the surface of seductive sales pitches.

Folorunso Fatai Adisa’s essay serves not only as a critique but also as a warning and one the public can no longer afford to ignore.

The post Unmasking Nigeria’s Real Estate Illusion: A Cautionary Look Inspired by Folorunso Fatai Adisa’s appeared first on Housing TV Africa.

Strong Growth in Pension Asset Value
The Director General of the National Pension Commission (PenCom), Omolola Oloworaran, shared this update on Tuesday during a meeting with the International Monetary Fund (IMF). The meeting was part of the IMF’s 2025 Article IV Consultations in Abuja. Oloworaran was represented by Abdulrahaman Muhammad Saleem, the Head of PenCom’s Surveillance Department.

According to PenCom, the industry’s Net Asset Value (NAV) rose by 22.65%. It increased from N18.36 trillion at the end of 2023 to N22.51 trillion by December 2024. This rise is mainly due to additional contributions and solid investment returns.

A Roadblock: Limited Investment Options
Despite the progress, PenCom noted a major challenge. There are only 86 financial instruments in Nigeria that meet the requirements for pension fund investment. These instruments must be both liquid and publicly tradable. This small number limits the industry’s ability to diversify portfolios and boost returns.

Although current regulations encourage wider investment options, the market has not produced enough qualifying assets. As a result, pension funds face restrictions in where they can safely invest.

PenCom’s Strategy for Broader Investment
To solve this problem, PenCom plans to partner with capital market operators. The goal is to increase the number of eligible financial products. This step will allow for better risk management and higher returns.

In addition, PenCom will promote investment in alternative asset classes. These include private equity, infrastructure, and other long-term projects. By doing so, the industry can build more balanced portfolios.

IMF Applauds Nigeria’s Pension Reforms
The IMF delegation welcomed these efforts. They praised PenCom for its strong regulation and oversight. They also noted the impressive growth in the pension sector and its role in supporting national development.

Looking ahead, PenCom says it will continue working with the Securities and Exchange Commission (SEC), the Debt Management Office (DMO), and the Pension Fund Operators Association of Nigeria (PenOp). Together, they aim to create a stronger and more sustainable pension system for the future.

The post Pension Power: Nigeria’s N5.51trn Boosting Real Estate Sector Growth appeared first on Housing TV Africa.

He noted that stronger governance frameworks would unlock the hidden potential in public assets, especially land, buildings, and housing infrastructure.

This was disclosed during the inaugural Corporate Governance Forum, organized by the Ministry of Finance Incorporated (MOFI), commenced on April 7, 2025, at the Transcorp Hilton in Abuja.

The two-day event, themed “Ensuring Value Creation in State-Owned Enterprises (SOEs) through Better Corporate Governance,” marked a bold step toward improving Nigeria’s public sector efficiency and advancing the nation’s $1 trillion economy target.

In his opening address, Dr. Shamsuddeen Usman, Chairman of MOFI’s Board of Directors, emphasized that effective corporate governance is a key catalyst for economic transformation. He stressed the need for transparency and accountability in managing public enterprises, many of which hold significant real estate and infrastructure portfolios that are currently underutilized.

Delivering a goodwill message, Dr. Doris Uzoka-Anite, Honourable Minister of State for Finance, reiterated that improved governance structures are central to ensuring that SOEs, including those in the housing and real estate sectors, deliver tangible value to citizens.

Dr. Ndiame Diop, the World Bank Country Director for Nigeria, stressed that good governance is indispensable for sustainable development. He called for a renewed focus on performance metrics, particularly in sectors like housing and construction, which are vital for inclusive economic growth.

In his keynote address, titled “Making SOEs Engines of Development Through Better Corporate Governance: An International Perspective,” Dr. Ishmael Yamson, Chairperson of Ishmael Yamson & Associates, explored global best practices and highlighted how better governance can transform real estate-heavy SOEs into profitable and impactful contributors to national development.

The event also spotlighted MOFI’s strategic shift from a passive custodian of government assets to an active asset manager. This transition is expected to stimulate the housing and real estate market by revitalizing underperforming assets and encouraging private-sector collaboration for infrastructure development.

With many SOEs sitting on valuable land and property across the country, the forum underscored the importance of proper asset management in driving both economic growth and real estate development.

As MOFI charts this new course, stakeholders across finance, governance, and real estate are hopeful that this initiative will unlock long-dormant value and spur nationwide investment.

Ubong Usoro

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After years of broken promises, project delays, and price hikes, trust in the model took a hit. But many developers are staging a comeback. They’re using better funding strategies, building trust, and focusing on timely delivery.

Why off-plan is still attractive

Buying property before it’s completed still has big perks. It lets buyers lock in today’s prices and pay in stages. This helps beat inflation and rising material costs. Many young professionals, Gen Z buyers, and diaspora Nigerians are jumping back in.

Popular cities like Lagos, Abuja, Ibadan, Enugu, and Kano are seeing new demand. But what’s different this time?

Developers are now investing more upfront

Smart developers now put up to 60–70% of funding into their projects before seeking buyers. That’s a huge shift from the past when off-takers’ money built everything. This self-funding approach helps them stay in control. It also protects the project from sudden price hikes in building materials.

Tackling economic challenges head-on

Nigeria’s housing sector is under pressure. Unstable exchange rates, inflation, and high-interest loans make building tough. So, developers are adapting. They’re buying materials early, using detailed budgets, and planning better.

This shift helps reduce risks for investors. Off-plan sales are becoming safer and more appealing again.

The risks haven’t disappeared

There are still bumps on the road. Some buyers can’t keep up with payments. Some developers struggle with budgeting or poor project management. Even when homes are delivered, some don’t match the promised quality.

Legal battles over delays and defaults are still common. That’s why transparency and strong financial planning are more important than ever.

Off-plan is now a support strategy—not the foundation

Experts say off-plan should support a project, not fund it entirely. Relying only on buyers’ payments creates risk. The most successful developers have backup funding and use off-plan only to test the market.

If buyers default, well-funded developers can resell homes at market rates. They refund the buyer and move on. This gives projects a safety net.

Conclusion: Off-plan is evolving

The off-plan model is changing. Today’s developers are better prepared, more cautious, and more professional. While the market is still unpredictable, one thing is clear—off-plan isn’t dead. It’s just grown up.

The post Off-Plan, On Point: How Developers Are Flipping the Script on Real Estate Deals appeared first on Housing TV Africa.

The Board of Directors approved these investments in a meeting held on March 25, 2025. The official disclosure was published on the Nigerian Exchange Group two days later. This move aligns with VFD’s long-term strategy to expand its influence in real estate financing and digital rewards markets.

Investment in Abbey Mortgage Bank Plc

Abbey Mortgage Bank has been a key player in Nigeria’s real estate financing sector. The bank provides mortgage solutions for homebuyers, developers, and cooperative societies. It plays a significant role in reducing Nigeria’s housing deficit.

With a 43% year-to-date growth on the Nigerian Exchange (NGX) and a 35% return in 2024, Abbey Mortgage Bank has shown strong market performance. VFD’s investment will strengthen the bank’s capital base and open new opportunities in mortgage banking.

Investment in Bvndle Loyalty Limited

VFD is also investing in Bvndle Loyalty Limited, an innovative e-commerce and rewards platform. Bvndle enhances customer engagement by helping businesses implement data-driven loyalty programs.

The company has already partnered with UBA, Piggyvest, VFD Microfinance Bank, and AXA Mansard. These partnerships position Bvndle as a leader in the loyalty rewards industry. By funding its expansion, VFD is capitalizing on the growing demand for customer incentive programs.

Additional Capital Injections

Beyond these two major investments, VFD has approved additional capital injections for its subsidiaries. These include:

• VFD UK – Strengthening its presence in the UK financial market.

• VFD South Africa – Expanding operations across the African continent.

• Template Limited – Enhancing its role in specialized lending.

These investments will boost market diversification and ensure VFD remains a dominant force in the financial sector.

VFD’s N5 Billion Capital Injection into V Bank

VFD’s expansion strategy was further reinforced in February 2025 with a N5 billion capital injection into VFD Microfinance Bank (V Bank). This move aligns with Section 289(8) of the Companies and Allied Matters Act 2020.

Speaking on the investment, Group Managing Director and CEO Nonso Okpala stated:

“This milestone represents a transformative leap in empowering Nigerians through innovative banking solutions. We see V Bank as a catalyst for economic growth, designed to address the diverse needs of our communities.”

Conclusion

With these strategic investments, VFD Group is positioning itself as a powerhouse in Nigeria’s financial, real estate, and fintech sectors. By leveraging opportunities in real estate financing, fintech, and customer engagement, the company is set to drive significant growth, expand its influence, and unlock new revenue streams.

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