Land banking is fast becoming a top investment strategy in Nigeria, tapping into urban growth and real estate demand. Experts call it a “sleeping goldmine.”
Land banking is gaining momentum as a lucrative niche in Nigeria’s expanding real estate market. The practice—buying undeveloped land and holding it for future value appreciation—leverages urbanisation, population growth, and infrastructure development to deliver high returns.
Investors are targeting hotspots like Ibeju-Lekki, Abuja, and Port Harcourt, where major projects such as the Lekki Deep Seaport and Dangote Refinery are boosting land value. “Land banking is a ‘sleeping goldmine,’” experts say, citing low maintenance costs, inflation protection, and portfolio diversification.
Still, legal hurdles, illiquidity, and market volatility remain concerns. “It’s essential to do your homework and consult with legal experts,” realtors advise.
The Land Use Act of 1978 continues to govern land ownership, often complicating access to vital documentation. However, reforms like Lagos State’s land automation system are improving transparency.
With Nigeria’s population projected to exceed 250 million by 2050, land banking is poised to play a critical role in meeting future real estate demand.