Land banking tops destinations for investors as opportunities unfold

As investment opportunities in real estate unfold across cities and market nodes in Nigeria, the most promising of the various asset classes in this sector is land banking which is a high-reward approach to long-term wealth accumulation.

Other areas where opportunities are unfolding in real estate in the new year are affordable housing, build-to-rent apartments, logistics and warehousing, retail, mixed-use developments, student housing, and co-living spaces.

Land banking is a long-term real estate strategy where investors buy undeveloped land, often on city outskirts, to hold until its value significantly increases due to urbanization, population growth, or planned infrastructure. This is eventually sold at a substantial profit.

This investment strategy is, however, most suitable for savvy investors who have patient capital and a long-term view of the market. As long as such investors perform careful due diligence and make informed site selections, they are sure of low-risk wealth accumulation.

It is expected that with Nigeria’s population projected to surpass 250 million by 2050, the need for housing and commercial real estate will soar, making land banking a promising investment strategy, especially in areas undergoing rapid urbanisation and infrastructure development.

Expectation is also high that the increasing embrace of smart cities and technology-driven real estate solutions will make land banking even more appealing, such that investors who make strategic moves now are likely to enjoy significant benefits in the years ahead.

“Investors can unlock the enormous value buried in Nigeria’s land banking landscape by utilising professional advice, keeping an eye on infrastructure advancements, and remaining up to date on governmental policies,” Oladipupo Clement, a property market analyst, said in a media report.

“For forward-thinking investors, land banking is a ‘sleeping goldmine’ because of the potential for large capital appreciation, even in the face of obstacles like market volatility and legal restrictions,” Clement added.

Imelda Olaoye, founder/CEO of Thinkmintsocial, a marketing and consulting firm, agrees, but cautions that there are investors’ risks to be mindful of.  These, according to him, include, title disputes, regulatory delays, rising construction costs, and location oversupply.

She advises that for strategic positioning, especially in the new year, investors should buy before infrastructure completion, prioritise government-backed growth zones, work with credible developers, and diversify across cities and property types.

Olaoye believes that “2026 is a defining entry window. Investors who position early in infrastructure-backed growth corridors will capture the strongest appreciation and long-term wealth creation.”

Investing in land banking comes with some benefits, according to Clement. He explained that in land banking, there is chance for impressive capital appreciation, because as cities grow and the demand for land ramps up, the value of well-placed plots can soar over time.

“Take Ibeju-Lekki in Lagos, for example; it has seen a significant rise in land value, thanks to developments like the Lekki Free Trade Zone, Dangote Refinery, the Lekki Deep Sea Port, among others,” he said.

This investment strategy also acts as a solid buffer against inflation. As prices for goods and services climb, the value of real estate tends to follow suit, helping to maintain the purchasing power of the investors.

Unlike other forms of real estate, especially housing, land banking has low maintenance costs. As an undeveloped piece of land, it comes with very low holding costs, making it a smart and budget-friendly investment choice.

There are some locations that are considered strategic for land banking and these include, Lagos, the federal capital territory (FCT), Abuja, Rivers State, Ogun State, and Enugu State.

Clement noted that in Lagos, Ibeju-Lekki, which is often referred to as “The New Lagos”, is a clear example of land banking, posing interesting real estate potentials, adding that, over the last 10 years, this place has made a gigantic leap from being one of the sparsely populated areas to being a busy hub of economic activities.

He pointed out that “the land-value-appreciating projects in that zone have spurred investments in land, and, as a result, land prices have hiked tremendously. Those who had bought land in Ibeju-Lekki before the coming of these projects have had quite a positive turnaround from their investments.”

Why logistics firms benefit most from cement industry boom

Whenever there is a boom in the cement industry, the sector of the economy that benefits most is logistics, as well as the supply value chain.

Experts explain that, in the industry, logistics and supply chain management play a critical role in ensuring the smooth flow of raw materials, clinker, and finished cement to customers.

This partly explains why Repton Group, a Nigeria-based conglomerate, emerged as the winner of the 2025 Dangote Cement Award for the Largest Distributor in Nigeria and Sub-Saharan Africa.

The Group is a conglomerate with many subsidiaries, including Kazab Heritage Limited (for distribution); Defrost Ventures Limited (for haulage and logistics); Kazab Oil and Gas; Heritage Engineering Services Limited and Kazab Homes and Properties.

Of these subsidiaries, the Group won the award through Kazab Heritage Limited, the cement distribution subsidiary, highlighting the strategic role logistics plays in the cement industry as well as the opportunity it presents to investors who want to play in that space.

According to Martins Ogodo, a building input analyst, given the high-volume and low-margin nature of the cement business, optimizing logistics is key to reducing costs, enhancing efficiency, and minimizing environmental impact.

Investors in logistics have to be resilient and intentional in the efficiency of their operations.  Odeyeyiwa Olayemi, MD/CEO of Repton Group, disclosed that their superlative showing at the Dangote Cement Award was a result of years of strategic corporate vision.

He added that their award also came from operational innovation, resilience, robust planning, and effective teamwork, all of which had also enabled them to clinch the 2023 and 2024 editions of the annual award.

For its strategic role, cement logistics encompasses the management of inbound and outbound materials, including raw materials, intermediate products like clinker, and finished cement. The goal is to ensure timely delivery while minimizing costs and environmental impacts.

The inbound logistics involves managing the transportation of raw materials such as limestone, gypsum, and additives to the plant while the production Logistics ensures seamless movement of materials within the plant.

Outbound logistics on the other hand has to do with transporting finished cement to distributors, retailers, or customers.

All these are carried out through road transport, which is generally flexible but cost-intensive for short-to-medium distances, and rail transport, which is economical for long distances and bulk movement.

Others are waterways, considered ideal for coastal regions with lower transportation costs, and conveyor systems, which are used for short-distance transport of raw materials from quarries.

Experts say that efficient supply chain management in this industry is important because it reduces cost as optimized logistics lowers transportation and storage costs.

It also leads to customer satisfaction, especially on-time delivery, which also enhances customer relationships. This practice also leads to sustainability practices, which reduce transportation emissions and waste, aligning with environmental goals.

Makoko: Lagos advised to align devt, urban safety with social justice

As the demolition of Makoko continues to raise dust that refuses to settle, the Lagos state government has been advised to align its development and urban safety plans with social justice that protects people in vulnerable communities.

Makoko is an informal settlement in Lagos, Nigeria, known for its unique floating homes built on stilts over the Lagos Lagoon. Originally established as a fishing village, it has evolved into a densely populated urban slum, with over 85,000 residents.

Recently, the state government’s angry bulldozer visited that community and reduced their homes to rubble, citing safety of lives, especially for those whose structures were built right under high-tension power lines that pose serious risks.

Though the government’s action is genuine and in the public interest, Nigerians are saying that such an action should also consider both the present and future lives of the people.

Housing Development Advocacy Network (HDAN), an affordable housing delivery advocate,  has expressed deep concern over the Maroko demolition, emphasizing that safety concerns should not be addressed in a manner that violates the rights and dignity of vulnerable citizens.

“While we recognize the state government’s responsibility to protect lives and enforce planning regulations, the sudden demolition of homes without alternative settlement plans exposes residents to homelessness, poverty, and social instability,” Festus Adebayo, HDAN’s executive director, stated.

He noted that Makoko is home to thousands of low-income residents who depend on the area for their livelihoods, advising that development and urban safety must go hand in hand with social justice, inclusive planning, and humane resettlement strategies.

As a community, Maroko faces significant challenges, including lack of basic amenities like clean water and proper sanitation, and has been at the centre of ongoing urban planning conflicts.

The recent demolitions have displaced thousands of residents, leaving many of them without shelter and livelihoods, highlighting the ongoing struggles of this historically significant community.

HDAN is, therefore, calling on the state government to suspend further demolitions and engage with affected communities, and provide clear, affordable, and accessible settlement options for displaced residents.

The network also advised the state government to ensure that compensation and resettlement plans align with national and international housing and human rights standards, and adopt participatory urban planning approaches that include community voices in decision-making.

“No Lagos resident should be rendered homeless in the name of development,”  Adebayo said, adding, “a truly modern city protects both infrastructure and its people. HDAN  remains committed to working with government authorities, civil society organizations, and community leaders to promote safe, inclusive, and sustainable housing solutions across Lagos in particular, and Nigeria at large.