How Can I Invest in Real Estate in Nigeria?

In this article, I’ll show you how to invest in real estate in Nigeria and why you should.

In Q4 2023, Nigeria’s real estate made up 6.06% of the country’s GDP. In that quarter alone, real estate beat industries like crude petroleum and natural gas, food and beverages, construction, and even financial institutions!

This makes real estate one of the most valuable non-oil sectors to invest in Nigeria today!

But despite the massive financial returns that real estate actively offers, many people see it as an industry that cannot be entered!

The truth is: REAL ESTATE INVESTING IS EASY.

Because of social media, it looks very expensive on the outside. But if you look at the basics, it is simple and accessible to practically everybody.

You don’t need to be a millionaire. You don’t need to be the son or daughter of a millionaire. You just need to see how you can tweak the process to work for you!

Step 1: Understand the Nigerian Real Estate Landscape

The first thing you need to know is that there are different types of real estate investments you can start with today. These include:

Land Banking involves buying land and keeping it to gain interest so you can sell it later or develop it into a commercial or residential property.
Residential Buildings: These are buildings that you construct so you can get rent from private individuals or families.

Sometimes, you may also choose to build the residential property and just sell it to someone who can manage it better than you.

Commercial Properties: These are shops, warehouses, shopping complexes, and office spaces that you develop to rent out to companies and businesses.

The lease on this kind of property is usually longer, some lasting between 3 to 10 years, especially if you are dealing with a big business.

Short-let apartments: Short-lets are just as their name sounds. They are apartments that are rented for a very short stay, usually between 1 day to 6 months, depending on the agreement you make with the occupant.

Short-lets are very profitable because they often offer a higher rent when you compare the total in contrast to a one-year lease.

However, short-lets only work best in cities that have many visitors as well as a young population, like Lagos and Abuja.

If you’re just starting, land banking is often the safest and most flexible route to invest in real estate in Nigeria.

It involves buying affordable land now in areas expected to grow and holding it for appreciation or development.

Step 2: Define Your Investment Goal Before You Invest In Real Estate In Nigeria

Before you put money down to invest in real estate in Nigeria, you must map out your goals for investing first. Here are some simple questions that will help you choose the type of real estate to buy and how much you should spend eventually…

Do I want to build a home for my family, or do I want to make money from rent and grow capital that way?
How soon do I need returns? Is it 1 year, 3 years, 5 years, or more?
How much risk can I take? What amount of money can I invest per time? Am I a high spender and low investor? How much can my bank lend me? And how fast can I refund them?
What is my tolerance level? Am I patient enough to watch a building grow from foundation to roofing? Can I manage tenants?

For example:

A Nigerian in diaspora looking for long-term security may prefer land banking in Omu-Ketu, Gwagwalada, Asaba, Ibadan, or Epe.
A tech professional in Abuja might invest in a rental unit in a high-demand neighborhood in Lagos or Abuja.

Clear goals help you filter thousands of “hot” offers and focus on what aligns with your financial plans.

This way, you will not fall for scam deals that some people peddle to woo unsuspecting buyers.

Step 3: Set Your Budget and Funding Strategy

Let me say this again: REAL ESTATE IS NOT EXPENSIVE!

You don’t need ₦10 million to begin.

You don’t even need ₦5 million.

Let me show you an example: If you bought a plot of land in Epe in 2022 for less than 2 million back then, you will be able to sell it today (June 2025) for up to 6 million!

With just ₦350,000–₦1,000,000, you can secure a plot in growing areas outside major cities in Nigeria.

For Lagos, Omu-Ketu is a fast-developing area on the outskirts

For Abuja, look to Nassarawa

For Ibadan, Ido is a great option

But you may ask… how can I fund my real estate investment?

Ways to fund your investment:

Use your savings: Simply put money together in an account and lock it everytime you top it up. Make your target be clearly written out: TO BECOME A LAND OWNER BY DECEMBER 24TH!
Investment clubs or co-ops: This is how most Nigerian parents buy their land today. They simply joined a cooperative and started paying for land in bits. Sometimes, they don’t even know when they have bought 3 plots.

So, you can find and join a real estate cooperative, too.

Real Estate Instalment Plans: This is what I always suggest to new investors. Real estate saving plans allow you to invest in real estate in Nigeria by “saving” your money. You pay in instalments, and when your payment is done, you get your land and the document.

At Possila, we have been running this plan for many years, and it has been used by professionals in Nigeria, workers and students abroad, as well as students and freelancers in Nigerian universities.

Visit our Instagram page to get land banking services on at a glance land banking.

But when you invest in real estate in Nigeria, there are certain costs you must look out for. Sometimes, your purchase price is just the first among the many things you will have to pay for.

Here are some hidden costs to watch out for:

Survey plans
Legal fees
Development levies
Documentation (like C of O)

This is why we usually subsidize our customers’ spending on land by giving them their Deed of Assignment for free.

If you want to know more about which land document you should spend on first, read this article. I talked all about land documents according to their level of importance.

Step 4: Research Locations and Real Estate Companies

After you discover the type of real estate you want to go into, you should start looking for a place to buy.

Here is a smart 4-way formula you can use when looking for a location for real estate investment:

Look out for government projects
See if the area is accessible by road
Look out for general development like new houses and hotels
Increase in population

But if you are looking for a developer or marketer, here are some factors you should look out for:

Ask for the company’s RC numbers and past transactions.
Look out for online reviews and social proof.
Insist on getting documentation immediately after payment.
Schedule site inspections (do video inspections or send a lawyer, if you are abroad).

Step 5: Understand the Legal Process and Documentation

If you want to buy land or property in Nigeria, you need paperwork and caution. The documents are important, but you must be careful in getting them together.

Here are the top 5 key documents you need when buying land or buildings in Nigeria today:

Certificate of Occupancy (C of O)

This document is issued by the state government. It legally confirms land ownership; the state no longer owns the land. As a result, ownership is transferred to the new buyer by the state governor for a specific period, typically 99 years.

Deed of Assignment

The Deed of Assignment is probably the most important document you could strive for. This is because it is the only document that transfers title from the seller to the buyer, confirming the sale of the property.

Survey Plan

This outlines the property’s coordinates (locations), size, and boundaries, ensuring it aligns with government-approved layouts. It is usually submitted to the Surveyor General in the state where the land or the property is located.

Governor’s Consent

Many people think that this automatically comes with a C of O. No. The Governor’s Consent is required for property resale with a C of O. It is the state’s acknowledgement of the transfer of transfer of ownership.

Deed of Lease

This is similar to a deed of assignment for leased properties. It clearly defines the terms and conditions of property use between the owner and the tenant.

When it comes to land documentation, here are some red flags you need to look out for:

Land under government acquisition: This kind of land is reserved for government projects such as railways, public schools, hospitals, and other government uses.

If you buy this kind of land, you can never lay claim to it successfully. It belongs to the government and cannot be transferred to an individual for private use.

Sellers without verified documents: If someone tried to sell land to you without documentation, run! Don’t transact with them.

IF you buy this kind of land or property, you can lose it if someone with authentic documentation comes along.

All they need to show is that they have legal ownership. You can’t fight them. You will just have to let go.

No physical allocation even after full payment: If you pay for land or property completely and your land is not given to you immediately, this is a big red flag.

Ask for your refund and walk away fast.

The problem here is that they may be trying to allocate land that belongs to someone else already to you.

In that case, someone can come and lay claim to that land or property, no matter how long you have spent on it!

Step 6: Make the Purchase and Track Your Investment

The last thing is to BUY. But when you are doing so, ensure you do these 4 things:

Pay through official channels (bank transfers, company accounts only). Don’t pay to an individual account except if you can confirm that the person represents a family
Request a receipt
If it’s land, push for immediate allocation and fencing to secure it
If it’s a built property, consider hiring a property manager to take care of it for you

Bonus Tips for Nigerians in Diaspora

You don’t have to wait until you’re “back home” before you invest. Many Nigerians in the UK, US, and Canada are now investing via verified real estate companies that are ready to get you virtual inspections.

Avoid sending money to family members to “help you buy” — unless they’re professionals in real estate.

Conclusion: To Invest in Real Estate in Nigeria, Start Smart, Grow Steady

Nigerian real estate is no longer reserved for high-end earners.

Anybody can start with as little as 350,000 and get their property in 3 – 12 months of instalment payments.

Whether you work here in Nigeria or abroad, you can make your money start working for you right now.

Reach out to us today to get top industry advice on the best places to invest in real estate in Nigeria today!

Note again: You don’t have to start BIG. Just start!