As real estate investment opportunities are expanding across Nigeria's cities and market centres, one of the most promising among the various asset classes in the sector is land banking which is a high-reward approach to long-term wealth accumulation.
Other sectors where opportunities are emerging 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 purchase undeveloped land, often on the outskirts of a city, until its value increases significantly due to urbanization, population growth or planned infrastructure. Ultimately it is sold at a good profit.
However, this investment strategy is best suited for savvy investors who have patient capital and a long-term view of the market. As long as such investors conduct careful due diligence and make informed site selection, they are assured of low-risk wealth accumulation.
It is expected that with Nigeria's population projected to exceed 250 million by 2050, the need for housing and commercial real estate will increase, making land banking a promising investment strategy, especially in areas undergoing rapid urbanization and infrastructure development.
Expectations are also high that the growing embrace of smart cities and technology-driven real estate solutions will make land banking even more attractive, so investors who make strategic moves now are likely to reap significant returns in the years to come.
“Investors can unlock the enormous value hidden in Nigeria’s land banking landscape by using professional advice, tracking infrastructure progress and staying up to date on government policies,” property market analyst Oladipupo Clement said in a media report.
“For forward-thinking investors, land banking is a ‘sleeping gold mine’ as there is potential for huge capital appreciation despite headwinds such as market volatility and legal restrictions,” said Clement.
Imelda Olaoye, founder/CEO of marketing and consulting firm ThinkmintSocial, agrees, but warns that investors should be mindful of the risks. According to him, these include title disputes, regulatory delays, rising construction costs and over-supply of space.
She advises that for strategic positioning, especially in the new year, investors should buy before infrastructure is completed, prioritize government-backed development areas, work with trusted developers and diversify across cities and property types.
Olaoye believes that “2026 is a decisive entry window. Investors who are early positioned in infrastructure-supported growth corridors will achieve the strongest appreciation and long-term wealth creation.”
According to Clement, investing in land banking offers some benefits. He points out that in land banking, there is the potential for impressive capital appreciation, because as cities grow and demand for land increases, the value of well-kept plots can increase over time.
“Take Ibeju-Lekki in Lagos, for example; it has seen a significant increase in land value due to developments such as the Lekki Free Trade Zone, Dangote Refinery, Lekki Deep Sea Port,” he said.
This investment strategy also acts as a solid buffer against inflation. As the prices of goods and services rise, the value of real estate follows suit, helping to maintain the purchasing power of investors.
Unlike other forms of real estate, especially housing, land banking has low maintenance costs. As an undeveloped piece of land, it has very low holding costs, making it a smart and budget-friendly investment option.
There are some locations that are considered strategic for land banking and these include Lagos, Federal Capital Territory (FCT), Abuja, Rivers State, Ogun State and Enugu State.
Clement said that in Lagos, Ibeju-Lekki, often referred to as “The New Lagos”, is a clear example of land banking that presents interesting real estate prospects, adding that, in the last 10 years, the place has made a huge leap from being one of the less populated areas to becoming a bustling hub of economic activities.
He explained that “land-value-appreciating projects in the area have promoted investment in land, and as a result, land prices have increased tremendously. People who bought land in Ibeju-Lekki before the coming of these projects have seen a lot of positive change from their investments.”
Why do logistics firms benefit the most from the boom in the cement industry?
Whenever there is a boom in the cement industry, the sector of the economy that benefits the most is logistics, as well as the supply value chain.
Experts point out that, in the industry, logistics and supply chain management play a vital role in ensuring the smooth flow of raw materials, clinker and finished cement to customers.
This partly explains why Nigeria-based conglomerate, Repton Group, 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 several subsidiaries, including Kazab Heritage Limited (for distribution); DeFrost Ventures Limited (for transportation and logistics); Kazb Oil and Gas; Heritage Engineering Services Limited and Kazab Homes & Properties.
Of these subsidiaries, the Group won the award through its cement distribution subsidiary Kazab Heritage Limited, which demonstrated the strategic role of logistics in the cement industry as well as the opportunity it provides to investors who want to play in that sector.
According to Building Input analyst Martins Ogodo, given the high-volume and low-margin nature of the cement business, optimizing logistics is important to reduce costs, increase efficiency and reduce environmental impact.
Investors in logistics need to be flexible and deliberate in the efficiency of their operations. Odeyiwa Olayemi, MD/CEO of Repton Group, revealed that their outstanding performance at the Dangote Cement Awards was the result of years of strategic corporate vision.
He said their award also came from operational innovation, flexibility, strong planning and effective teamwork, all of which also enabled them to win the 2023 and 2024 editions of the annual award.
For its strategic role, cement logistics involves the management of inbound and outbound materials including raw materials, intermediate products such as clinker and finished cement. The goal is to ensure on-time delivery while minimizing costs and environmental impacts.
Inbound logistics involves managing the transportation of raw materials such as limestone, gypsum and additives into the plant, while production logistics ensures the seamless movement of materials within the plant.
Outbound logistics, on the other hand, is concerned with delivering finished cement to distributors, retailers or customers.
All this is done 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 areas with low transportation costs, and conveyor systems, which are used for short distance transportation of raw materials from mines.
Experts say that efficient supply chain management is important in this industry as it reduces costs as optimized logistics reduces transportation and storage costs.
This also results in customer satisfaction, especially timely delivery, which also enhances customer relationships. This practice also leads to sustainability practices, which reduce transportation emissions and waste in line with environmental goals.
Makoko: Lagos advised to link deity, urban security with social justice
As the dust settles from the demolition of Makoto which refuses to stop, the Lagos State Government has been advised to align its development and urban security plans with social justice that protects people from vulnerable communities.
Makoko is an informal settlement in Lagos, Nigeria, known for its unique floating houses built on stilts above the Lagos Lagoon. Originally established as a fishing village, it has developed into a densely populated urban slum with over 85,000 residents.
Recently, angry bulldozers of the state government visited that community and reduced their houses to rubble citing safety of lives, especially for those whose structures were built right below high-tension power lines that pose serious risks.
Although the government's action is genuine and in the public interest, Nigerians are saying such action should also consider both the present and future lives of the people.
The Housing Development Advocacy Network (HDAN), an affordable housing delivery advocate, has expressed deep concern over the Marocco demolition, emphasizing that security concerns should not be addressed in a way that violates the rights and dignity of vulnerable citizens.
HDAN Executive Director Festus Adebayo said, “While we recognize the responsibility of the state government to protect lives and enforce planning regulations, the sudden demolition of houses without alternative disposal plans leaves residents facing homelessness, poverty and social instability.”
Makoko is home to thousands of low-income residents who depend on the area for their livelihoods, he said, advising that development and urban security must go hand in hand with social justice, inclusive planning and humanitarian resettlement strategies.
As a community, Maroko faces significant challenges, including a lack of basic amenities such as clean water and proper sanitation, and has been at the center of ongoing urban planning conflicts.
Recent demolitions have displaced thousands of residents, leaving many of them without shelter and livelihoods, highlighting the ongoing struggles of this historically important community.
Therefore, HDAN is calling on the state government to stop further demolitions and engage with the 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 are consistent with national and international housing and human rights standards, and adopt participatory urban planning approaches that include community voice in decision making.
“No Lagos resident should be made homeless in the name of development,” Adebayo said, “in fact a modern city protects both the infrastructure and its people. HDAN is committed to working with government officials, civil society organizations and community leaders to promote safe, inclusive and sustainable housing solutions in Lagos in particular and Nigeria at large.
