Can Real Estate Drive Nigeria’s Non-Oil Growth Agenda?

ESV Salami Adetunji Sikiru

For decades, Nigeria’s economic fortunes have been closely tied to crude oil. Oil revenues have funded public spending, supported foreign exchange earnings and shaped government budgets. But the volatility of global oil prices, production challenges and the growing pressure to diversify the economy have made one reality increasingly clear: Nigeria needs stronger, more sustainable sources of growth. Real estate could be one of them.

Real estate is often viewed primarily as a vehicle for wealth preservation or personal investment. Yet its economic impact extends far beyond buying and selling properties. A vibrant real estate sector stimulates construction, manufacturing, financial services, professional services, transportation and retail. From cement and steel to furniture, engineering and architecture, property development creates demand across a wide network of businesses.

Nigeria’s rapidly growing population provides a significant foundation for this potential. As more people move into urban centres in search of employment and economic opportunities, demand for housing, offices, warehouses, retail spaces and infrastructure continues to increase. If properly harnessed, this urbanisation can become a powerful engine of economic expansion rather than simply a pressure on existing infrastructure.

The construction value chain alone offers enormous opportunities for job creation. Every new housing project requires architects, engineers, surveyors, artisans, labourers, suppliers, transporters and financial institutions. Expanding housing development therefore has the potential to create millions of direct and indirect jobs while strengthening local manufacturing and small businesses.

Real estate can also deepen Nigeria’s financial system. A functioning property market allows individuals and businesses to use assets as collateral for credit. With stronger land titling systems, reliable property records and more accessible mortgage financing, previously underutilised assets could become productive capital. This could expand lending to households and businesses and stimulate investment beyond the oil sector.

However, Nigeria must address several structural barriers if real estate is to play a bigger role in economic diversification. Land administration remains complicated in many parts of the country, while obtaining secure titles can be expensive and time-consuming. High construction costs, infrastructure deficits, elevated interest rates and limited access to long-term financing also restrict the ability of developers to deliver housing at scale.

Government therefore has an important role to play, not necessarily by becoming the largest developer, but by creating an environment in which private capital can thrive. Streamlining land administration, digitising property records, improving infrastructure and expanding housing finance would make the sector more attractive to domestic and international investors.

There is also a need to move beyond luxury developments. While high-end real estate attracts capital and contributes to urban development, Nigeria’s greatest opportunity lies in housing and infrastructure that serve the growing middle- and lower-income population. Affordable housing, rental developments, student accommodation, industrial parks and logistics facilities could generate broader economic impact.

The sector can also become a source of stronger public revenue. Better property valuation, transparent ownership records and efficient property taxation would allow governments to capture more value from expanding urban economies. These revenues could then be reinvested in infrastructure, creating a cycle in which better cities attract more investment and generate greater economic activity.

Real estate alone cannot replace oil. But it can become a major pillar of a diversified Nigerian economy. The opportunity lies in treating property not merely as land and buildings, but as infrastructure for economic participation, employment, investment and wealth creation.

If Nigeria can reform its land, housing and property-finance systems, real estate could move from being primarily an investment destination to becoming a productive engine of national growth. In the search for a post-oil economy, the next trillion-naira opportunity may already be sitting on Nigerian soil.

Salami, a registered Estate Surveyor and Valuer, is the Head of Practice at Adetunji Salami & Company.