Jacinta Ukwa, business manager at Braudy Global Ltd, says land banking remains one of the most popular paths to long-term wealth creation.
She said in an interview that despite the benefits of land banking, many Nigerians continue to fall into avoidable traps.
She explained that land banking can be a powerful wealth-building tool, but only when approached with foresight, discipline, and a long-term view.
She described it as a strategic purchase of undeveloped plots in emerging areas, held over time and later sold at a premium.
“It’s the thinking behind those much-publicised stories of N1.2 million plots soaring to N3.5 million,” she said. “But that only happens if you sidestep the common pitfalls.”
Besides the positive stories, there are five mistakes to avoid when considering an investment in land.
Assumption that the investment is for the short-term
Williams Mayomi, a real estate entrepreneur, noted that land banking is for those interested in long-term investments.
“If you’re looking for short-term gains, land banking is not for you. The minimum holding period is typically three to five years, depending on the location,” he cautioned.
“For long-term investors, land banking remains one of the most powerful wealth-building strategies, especially among Nigeria’s elite.”
Wrong locations and missing land titles
It’s important to get the right location and verify land titles while tracking market trends. The aim is to help avoid the common pitfalls of land investment in Nigeria.
Grace Ofure, a real estate investment specialist, advised that proper title documentation is non-negotiable. “In Lagos State, for instance, land with verified title documents appreciates significantly faster,” she noted.
Waiting for location to fully develop before buying
Ukwa, earlier cited, stressed that the core of land banking lies in identifying potential before development arrives.
“If you wait until the roads are tarred and the supermarkets are open, prices will have already surged and you may be priced out entirely,” she warned.
Paying top-of-the-market prices
According to Ukwa, since the goal is to buy low and sell high, investors must avoid plots already commanding premium prices such as those going for N200 million. “These areas may have already peaked in value,” she noted. “High-priced land only makes sense if you plan to build immediately for rental or short-let returns.”
In a similar vein, Ofure advised that investors should aim to buy at wholesale prices, not retail.
“When you buy below the market value through a reputable land banking company, your returns can be substantial,” Ofure said, citing examples of properties appreciating by as much as 30 percent under 60 days.
Buying only one plot
Ukwa advised investors to acquire more than one plot where possible.
“If your single plot appreciates to N10 million in four years, you’re left with a dilemma, sell and exit completely, or hold on,” she explained. “With multiple plots, you can sell one to realise gains while keeping a stake in the same growth zone.”
Ofure shared how she personally reaped the long-term benefits of land banking. Over a decade ago, she purchased a plot of land in an undeveloped area, anticipating future growth. Eleven years later, she sold the land to fund her child’s international school fees—earning more than triple the required amount.
“When I bought that land, my child was just six years old. Years later, that single investment covered three years of international tuition,” she said.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
