Land Banking in Nigeria: The Underestimated Wealth Strategy

ESV Mark Anukwu,

In Nigeria’s fast-evolving economy, land banking is quietly emerging as one of the smartest ways to build wealth. Unlike popular investment options like forex, crypto currency, or stocks which are often volatile and difficult to understand, land banking is simple, tangible, and historically reliable.

Land banking refers to the practice of acquiring undeveloped land in emerging or underdeveloped areas and holding it for several years as the location develops. Over time, the value of that land appreciates, offering a handsome return on investment. With Nigeria’s rapid urban expansion, locations once dismissed as “too far” or “bush” are now highly sought after.

Take Ibeju-Lekki in Lagos, for example. A decade ago, it was barely known. Today, it houses the Lekki Deep Sea Port, the Dangote Refinery, and several housing estates. Land that sold for N500,000 in 2010 now commands up to N20 million. The same trend is visible in areas around the Abuja-Keffi corridor, parts of Ogun State, and even within Enugu and Akwa Ibom states.

The beauty of land banking lies in its low entry point. Many developers offer flexible payment plans that allow young investors or middle-income earners to acquire plots and pay in installments. Unlike real estate flipping or house construction, land banking doesn’t require constant maintenance or management. You simply buy, secure the property, and wait.

However, this strategy is not without risks. Nigeria’s land market is notorious for scams, fake titles, and encroachment. Many people have fallen victim to fraudsters posing as landowners or agents. That’s why due diligence is crucial. Prospective buyers must verify land titles, confirm government approvals, and work with trusted real estate firms. A competent lawyer should be involved in every transaction.

Additionally, it’s important to invest in areas with strong development potential. Proximity to planned infrastructure roads, airports, markets, schools usually signals future value appreciation. Buyers should study master plans and government policies to identify such locations.

In a country where inflation is steadily eroding the value of naira and where traditional savings yield little return, land banking offers a practical hedge. Unlike luxury items or unstable investments, land doesn’t depreciate. It only grows more valuable as population and infrastructure expand.

For the young Nigerian looking to secure their financial future, land banking is more than just owning property it’s a long-term strategy for wealth creation. It may not yield immediate gratification, but it’s a silent and powerful path to prosperity.

ESV Mark Anukwu, an Estate Surveyor and Valuer is the Head of Practice of Mark Anukwu and Company, a leading firm of Estate Surveyors and Valuers