Land Banking in Lagos: What Is It And Why Smart Investors Are Doing It by Dennis Isong
Some years ago, Mr. Adebayo, a civil servant in his late 40s, bought a large piece of land in the outskirts of Lagos—somewhere past Epe. His friends laughed. The land had no road network, no visible development, and certainly no electricity poles in sight. “You’ve just bought bush,” one friend said, chuckling over a bottle of palm wine.
But Adebayo had something else in mind. Today, that same bush has turned into a budding estate. His plot—bought for N500,000 per acre—is now valued at over N15 million. And the
best part? He hasn't built a single block on it. This, my friend, is the power of land banking in Lagos.
So, what is land banking—and why are smart investors flooding into it? Let’s take a walk through what makes this quiet, strategic game of land investment so powerful in Lagos real estate today.
1. What Is Land Banking, Really?
Land banking is the act of buying undeveloped or underdeveloped land now—at a low price—with the intention of holding it for future sale or development. The idea is simple: get the land while it's cheap, wait for surrounding development or urban expansion, and then reap the benefits when its value skyrockets.
It’s not a new concept. Wealthy families, governments, and savvy investors have been doing it for decades, quietly amassing land in strategic locations. But in Lagos, land banking has taken on a whole new meaning due to the city’s rapid urban sprawl and high demand for land. As more people flood into Lagos for work and business, areas that were once considered “far” are now becoming the next hotspots for development.
And the best part? You don’t need to be a millionaire to start. What you need is foresight,patience, and good information.
2. Why Lagos? Why Now?
Lagos is a land-hungry city. It's the smallest state in Nigeria by land size, but with the highest population—over 20 million people and counting. Every day, people are moving in, businesses are expanding, and infrastructure is being built. But land? It’s not expanding. This imbalance between supply and demand is what makes land such a valuable asset here.
Take Ibeju-Lekki for example. Ten years ago, it was mostly bush, sand, and silence. But today,it's home to massive developments like the Dangote Refinery, Lekki Deep Sea Port, and the
Lekki Free Trade Zone. Investors who bought land here when it was “just sand” are now smiling to the bank.
The Lagos State Government is also pushing development into the outskirts. Projects like the proposed 4th Mainland Bridge and new road networks are opening up areas like Epe, Badagry, and Agbowa. This means land in these regions won’t remain cheap for long.
Smart investors are not waiting until buildings start springing up. They’re getting in early—buying into the future while the price tag is still friendly.
3. Who Is Land Banking Really For?
There’s a popular myth that land banking is only for the rich or big-time developers. Not true.
It’s actually a smart move for young professionals, retirees, low-risk investors, and anyone thinking long-term. Think of it like planting a tree—you don’t eat the fruit the next day, but when it matures, it feeds you for life.Some people buy shares. Others put money in fixed deposits. But land banking offers something more physical and arguably safer—an asset you can visit, touch, and eventually profit from. It’s especially great for those who want to leave something for their children or retire in peace with a solid asset base.
Let’s not forget those who aren’t ready to build yet. If you’re not financially prepared to
construct a house now, buying land and holding it gives you a head start. By the time you’re
ready to build, the land may have tripled in value—and you’d have saved yourself millions in
future costs.
4. What Are the Risks—and How Can You Avoid Them?
Now, this wouldn’t be a realistic article without addressing the elephants in the room: land
scams, Omonile wahala, and poor documentation. These are real risks in Lagos, and anyone who
jumps into land banking blindly could lose hard-earned money.
The good news is, these risks are avoidable—if you do your due diligence. Always ensure the land is properly documented: look out for a Survey Plan, Deed of Assignment, and if possible, a Certificate of Occupancy (C of O). Work with trustworthy real estate companies or consultants who have verifiable track records and are registered with relevant authorities.
Also, don’t buy land just because it’s cheap. Buy because it’s strategic. Ask yourself: Is there ongoing or planned development in the area? Are there accessible roads? Is the title clean?
In the case of Mr. Adebayo, he didn’t just buy random land. He researched future government plans, asked questions from locals, and worked with a reputable realtor. That’s why today, his land is not just appreciated—it’s prime.
5. So, Why Are Smart Investors Doing It?
Because it works.
Smart investors understand that the best deals are usually quiet. While the world is running after
flashy real estate brochures, they’re planting seeds in overlooked areas. They know that Lagos is expanding, and that time, development, and demand will eventually catch up with the land.
Some flip the land after a few years, making huge profits. Others hold onto it and develop it into residential estates, short lets, or commercial spaces when the time is right. Either way, they win.
The beauty of land banking is that it doesn’t demand much. No tenants. No property
management stress. No construction deadlines. Just patience—and strategy.
In Lagos today, the rush is not just about buying houses. It’s about owning the land under the
houses of tomorrow. Those who see the future are already positioning themselves quietly.
Final Thoughts
Land Banking in Lagos: What Is It and Why Smart Investors Are Doing It is more than just a trendy topic—it’s a real, practical investment strategy that has changed lives. It’s not without its risks, but it holds enormous potential for those who do it right.
If you’ve been thinking about real estate but haven’t figured out how to start, land banking might just be your entry point. It’s not glamorous at first. It doesn’t make noise. But in five or ten years,
it could be the decision that secures your financial future.
So, whether you’re a young worker, a retiree, or just someone who’s tired of letting money sit in the bank, remember: Lagos may not be expanding in size, but the opportunities in its land keep growing.
And like Mr. Adebayo learned—today’s “bush” could be tomorrow’s goldmine.
Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041
