Unlocking Nigeria’s Property Market Potential
Nigeria’s property market holds immense potential, with experts estimating it could contribute up to N1.4 quadrillion to the country if properly developed. However, despite this promise, the market is currently hindered by a significant number of dormant assets that are not contributing to capital formation. In contrast, countries like South Korea, Brazil, and the United Arab Emirates have more robust property markets where real estate plays a crucial role in economic growth.
To unlock this potential, industry leaders have called for comprehensive reforms in land registry, titling, and property registration. These changes are seen as essential steps toward developing a functional mortgage system that can tap into the vast value hidden within Nigeria’s real estate sector.
The Problem of Untitled Properties
One of the primary challenges facing the Nigerian property market is the lack of land titling and property registration. Dr. Olisa Agbakoba (SAN), former president of the Nigerian Bar Association, highlighted that 95% of houses in Nigeria do not have formal titles. This absence of documentation prevents these properties from being used for transactions or as collateral for loans, which limits their contribution to the economy.
“This is a problem,” Agbakoba said. “In fact, 95% of the houses in Nigeria have no papers. So you cannot take a loan. You cannot be part of the capital formation, unlike in the United Kingdom, where the property market is awash with billions.”
He emphasized the need for land reform, stating that creating a mortgage market could unlock the N1.4 quadrillion potential. “When you create a mortgage market, you are looking at N1.4 quadrillion,” he added.
Reforming Land Registration and Titling
Chudi Ubosi, former president of the African Chapter of the International Real Estate Federation, echoed these sentiments. He stressed that to ensure 95% of properties are registered, an orientation campaign on the benefits of having a title is essential. Additionally, he suggested a drastic reduction in the cost of obtaining a Certification of Occupancy.
“To change the narrative of lack of title documents, the first thing is actually a well-articulated orientation campaign as to the benefits of having a title,” Ubosi said. “Then, the government must create in all the states a one-stop office to deal with giving title to lands. There is so much that can be done. Reducing the cost of obtaining the title is key.”
Ubosi also emphasized the government’s critical role in creating an enabling environment for economic growth and development. He noted that savings must be encouraged to build a buffer for long-term mortgages.
The Role of Mortgage Systems
Olufemi Oyedele, CEO of Fame Oyster and Co., corroborated the importance of developing a mortgage system. He pointed out that Nigeria’s property market is worth a quadrillion if well developed, but current low income levels make mortgages unfeasible for many.
“We must improve employment and minimum wage. Mortgages do not work where the median income of people is ridiculously low like Nigeria,” Oyedele said. “Even in developed countries, they only convert rent to mortgage in formal houses belonging to government and housing associations which are government’s partners.”
Oyedele also urged the government to formalize tenancy in informal settlements. He suggested recognizing all landlords in the informal sector and assisting tenants who have not defaulted in paying rent for five years to convert rent into mortgage payments.
Formalizing the Real Estate Market
Akin Opatola, President of the Nigeria Chapter of FIABCI, highlighted that Nigeria’s real estate market is significantly undervalued and under-documented. He noted that the opportunities are huge when they are fully formalized and structured.
“The key issue is that a large portion of Nigeria’s real estate’s value is dead capital—assets that exist physically but are not legally or financially recognized,” Opatola said. He called on the government to digitalize land registries and simplify title processes.
According to Opatola, the current process of obtaining governors’ consent and title registration is expensive and slow. He suggested mass titling programs similar to what Rwanda has implemented.
Developing a Transparent Property Market
Opatola also emphasized the need for transparency and data availability in the property market. He proposed the development of a Multiple Listings Service (MLS) in Lagos, which would serve as a centralized database for real estate professionals.
“A Multiple Listings Service (MLS) is a centralised, shared database where licensed real estate professionals list properties for sale or rent with accurate details such as price, location, title status, size and transaction history,” he explained. “It allows brokers and agents to collaborate, share listings, and access verified market data in real time.”
He added that innovation and flexible models are needed to convert rent to mortgage. He listed several approaches, including rent-to-own schemes, alternative credit scoring, cooperative support, and community housing models.
Government Initiatives
The government has also taken steps to address the issue of dormant land assets. It is targeting over N300bn worth of underutilized land as part of a broader strategy to increase housing supply and unlock value within the real estate sector. This initiative focuses on reforming land administration systems to convert these assets into productive resources that can support housing development.
