Housing is a thing of pride in Nigeria, and Africa in general. The hallmark of success for many Africans is being able to own a home. In many communities, land is often given freely to young men by their villages as a rite of passage, encouraging them to build and settle. Peer groups also rally around one another, providing materials and manpower to help build homes for their members.
Nigerians in the Diaspora are not left out of this cultural value system. In recent years, there has been a noticeable rise in the number of Nigerians abroad investing in the real estate market back home. This trend is reshaping the housing landscape in Nigeria, with Diaspora investors playing an increasingly significant role.
According to the Nigerians in Diaspora Commission (NiDCOM), over 17 million Nigerians live abroad. In 2023 alone, the Nigerian Diaspora remitted over $20.5 billion into the country, with a significant portion channeled into real estate and construction.
Many Nigerians abroad remain emotionally attached to home and cherish the desire to retain their roots in Nigeria. Owning a property back home provides a sense of belonging and security, especially for those who hope to return someday.
Real estate in Nigeria is a profitable investment, with the potential for high returns due to the country’s growing population and urbanization. Nigeria’s population is projected to hit 223 million by the end of 2025, and with an urbanization rate of over 4.2% annually, the demand for housing continues to surge. Experts estimate Nigeria’s housing deficit at over 20 million units, creating massive opportunities for real estate developers and investors.
Technology has also made it easier for Nigerians abroad to invest in property without physically being present. Virtual tours can be offered through platforms like Zoom, and it’s now easier to verify real estate platforms and developers using government portals such as the Corporate Affairs Commission (CAC), Nigerian Investment Promotion Commission (NIPC), and land registry systems. Many Diaspora buyers can browse properties, conduct due diligence, and make purchases remotely. Real estate expos and conferences targeted at the Diaspora community in countries like the UK, US, and Canada have also helped bridge the trust gap and foster direct relationships with reputable Nigerian developers.
However, challenges still exist. Issues such as land fraud, poor regulation, and lack of transparency have made some investors wary. A 2022 report by the Real Estate Developers Association of Nigeria (REDAN) highlighted that over 40% of property disputes in Nigeria involve fraudulent land transactions. In response, more professional real estate firms and legal consultants are stepping in to provide due diligence services and guide buyers through safe and legal transactions.
Government agencies like the Nigerians in Diaspora Commission (NiDCOM) are also beginning to recognize the importance of engaging the Diaspora in national development, especially through investments in real estate. Some states in Nigeria, such as Lagos, Ogun, and Akwa Ibom, are now designing special housing schemes and incentives to attract Diaspora investment. For instance, Lagos State’s Diaspora Smart City Project is one initiative aimed at encouraging Diaspora homeownership.
The Nigerian Diaspora real estate market is no longer just an emerging space; it is fast becoming a major force in the country’s housing sector. With improved transparency, stronger legal frameworks, and increased collaboration between developers and Diaspora investors, the future looks promising. As more Nigerians abroad channel their resources back home, they are not only securing their financial futures but also contributing significantly to Nigeria’s economic development.
Ubong Usoro
