In the last few years, land investment has become one of the hottest topics in Nigeria’s financial and real-estate circles. You have probably seen social media ads, roadside billboards, and chatter over the radio about buying land, land banking, or “investing for the future.” But is it actually worth the hype? And how do you know if it’s right for you?
Read more about Real Estate
This article explains what land investment is, why land is a good investment, how land banking works, and what you must know before putting your hard-earned money into any land deal.
What Is Land Investment?
Land investment means buying land with the intention of making a profit in the future. Unlike houses or other physical assets, land is a fixed, limited resource. No one is manufacturing more of it. Because of this scarcity, its value generally increases over time, especially in developing areas.
In Nigeria, land investment can take different forms. It could be buying land in developing locations and waiting for the value to rise; purchasing plots for residential or commercial use; land banking (bulk purchase of land for long-term appreciation); or leasing land for farming or business operations
Why Land Is a Good Investment
There are many reasons Nigerians see land as one of the safest places to put money. Here are the biggest ones:
It Appreciates Rapidly
Across major cities like Lagos, Abuja, and Port Harcourt, land prices have multiplied in just a few years. A plot on the outskirts of these cities today may double or triple in value once infrastructure, roads, or estates appear.
It Is Inflation-Proof
As the value of money decreases, the value of land tends to rise. This makes land a strong hedge against inflation, particularly in Nigeria, where inflation rates are high.
Low Maintenance
Land does not require renovation, repairs, or constant upkeep—unlike housing. Apart from the cost of documentation or fencing, it is largely a hands-off investment.
High Demand
Nigeria’s population is growing rapidly. More people mean more need for housing, commercial property, and industrial expansion. This is a major reason why land is a strategic long-term asset.
Flexibility
You can resell, lease, develop, or use land for agriculture. There aren’t many investments that offer this level of flexibility.
Sign up for the Connect Nigeria daily newsletter
How Does Land Banking Work?
Land banking is a popular form of land investment in Nigeria today, and is widely promoted by numerous real estate companies. But how does land banking work?
Land banking involves buying large portions of land in undeveloped or emerging areas, holding it for several years until development reaches the area, and then selling the land at a much higher price. You could also develop it into residential or commercial estates.
For example, areas like Ibeju-Lekki in Lagos and parts of Abuja experienced massive land appreciation due to upcoming infrastructure projects like free-trade zones, refineries, and airports. Early investors made significant returns.
Is Land Investment Worth It?
The short answer is yes, but only if you do it right.
It’s worth it if:
- You verify the land’s documents (survey, excision, C of O, deed of assignment)
- You buy from reputable companies or verified landowners
- The area has strong development potential
- You are investing for the long term
But it’s risky if:
- You buy without proper due diligence
- You rely on verbal promises from agents
- The land is under government acquisition
- You are getting into it hastily due to a fear of missing out
Land investment can yield impressive returns, but you need to approach it tactfully.
Key Things Nigerian Investors Should Check Before Buying Land
Before you commit your money to any land, ensure that you conduct a proper land search at the state land registry and confirm the authenticity of the documents involved. You also need to visit the site physically (don’t rely on pictures alone).
In addition to these things, ascertain that the neighbourhood has decent development prospects. And, work with a lawyer or trusted professional during the transaction. This will reduce the risk of getting swindled by fraudsters or falling afoul of government regulations.
On the Connect Nigeria Real Estate website, you can find legitimate real estate assets on sale, including land. It’s a great place to visit if you’re looking for good deals put up by agents and landlords. Besides being able to view images of the assets on sale, you can also reach sellers via their contact details provided on the site.
You can check out land on offer on Connect Nigeria Real Estate, HERE.
Register to attend the CN Business Mixer
Final Words
Land investment has become popular because it offers security and long-term growth. If you do it right, it could be one of the most profitable investments you ever make.
So yes, investing in land is usually worth it in the end. You just need to verify its status and documentation before you buy, and think long-term about it.
Got something you want to read about on our platform? Contact us: [email protected]