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REAL ESTATE: is investing in a commercial real estate in Lagos a good one?



Buying and establishing real estate is a great investment strategy that can be both lucrative and fulfilling to accomplish. Quite different from bond and stock investors, potential real estate owners can decide to use leverage to acquire a property of choice. This is achieved by using leverage to pay for the total cost of the property acquired upfront, then completing the payment off the balance as time progresses.

Many of the real estate investors’ primary purpose of investment is for profit maximization and some may even be a long-term investment. Flipper investors buy property to resell at a higher price to earn income, while other real estate investors simply want to be a landlord of their rental property. Before we proceed, let’s find out the meaning of Commercial Real Estate?

What is Commercial Real Estate?

This is the process of acquiring real estate that its main purpose is majorly for business-related and income-generating aim. This type of real estate can either be for multi-family rental residential or mainly for industrial purposes, most times a combination of both. However, we have the various categories that make up commercial real estate, they include office space, retailers’ shops, hotels & resorts, malls &restaurants, and even healthcare facilities.

Commercial real estate yields rental income in combination with other capital appreciation on the property as time progresses. Although,investing in commercial real estate always need more sophistication and huge amounts of finance from investors than does residential real estate.

How Do Commercial Real Estate Works?

Just as the name implies, commercial real estate is available for industrial/commerce, multi-unit rental and can also serves as a residential space for tenants. It works through different methods that’ll discuss in this article. They include;

  1. Long-term Commercial Lease: In this method, the property is leased by the investor or group of investors who own the property to the interested user for a long time, like 5-10 years.
  2. Short-term Rental Period: In this method, the property is rented for a short period, like 12 months after the rental rate has been concluded by both parties. It can even be leased for a short period of a month.
  3. Flipping Commercial Method: This is the process whereby an investor or group of investors simply acquire a property or some properties for reselling aim. They buy at a cheaper rate and resell at a higher rate for profit gain. Some investors can keep the property for as long as they wish before reselling but a large percentage resell within a short period (like 3 to 6 months) of it being purchased.

Managing Your Commercial Real Estate

This can be done by the owner or through the services of a good commercial real estate management firm that aids in the proper maintenance & management of the property. The firm assists the owner to find & retain tenants, manage, co-ordinate the activities of the property. Most times, the services of a commercial real estate firm is highly recommended because of their vast knowledge of the rules and regulation, government policy guiding real estate investment in our country. Meanwhile, let’s see if investing in commercial real estate in Lagos is such a good idea.

Is Investing in Commercial Real Estate in Lagos a Good Idea?

Lagos is the World’s sixth megacity, a major economic hub in Nigeria with a population of 24.6 million inhabitants in 2015 according to UN-Habitat and international Agencies. Thus, Lagos population is increasing 10 times faster when compared to New York City and Los Angeles, also  bigger than the population of 32 different African nations joined together. Lagos state’s population increases by 77 people every hour. Of course,with this kind of population, housing requirement is such a hot cake and a core investment area. Hence, as Lagos city grows, also is the same increase in demand for housing and commercial real estate.

Housing Sector in Lagos

Housing has been one of the most challenging issues with urban areas especially in Lagos state due to the increasing inflow being recorded yearly. Over 500,000 people relocate to the megacity each year, this has also caused a housing deficit of upto 17 million units. Thus, this deficit provides a market and brings an opportunity for real estate investors who’re interested in building real estate mainly for commercial purposes. According to a BBC report concerning housing in Lagos, it was estimated that middle to high income housing expense cost at the rate of $2,000 to $35,000 yearly that’s for a 2-bedroom apartment and above. Even at this price, there’s inadequate housing provision for the inhabitants of the state.

Meanwhile, when compared with the cost of renting a commercial apartment in other states such as Ogun, Anambra, Oyo, Enugu, Kaduna, Cross river, etc. Lagos state has about 35% to 55% higher cost in renting an apartment or any commercial real estate category to other states. So, for investors trying to set-up a commercial real estate in Lagos, they can never go wrong with their investment once they follow judiciously the standard guiding building a commercial real estate investment in the state.

But this can’t be assured for other states. For instance, I have a client who first set up a commercial real estate (a retailer’s shop outlet) in the rural area of Mowe, Ogun State. And, since his investment in the area, he hasn’t been able to recover 60% cost of the building for over 5years now. And this was as a result of low population & low cost of living in the area. Meanwhile, that same client setup another investment at Sangotedo, Lekki almost the same as the one at Mowe but a little different due to the standard required by the Lagos state government and has made over 200% Return on investment on the property.

Therefore, I won’t be wrong if I state that commercial real estate in Lagos a good idea and a huge platform for one to invest in because of its market availability on the ground. So, from our discussion, you can see that commercial real estate in Lagos is favourable depending on your purpose of investment.


Dennis Isong Helps Individuals Invest Right In Real Estate.For Questions On This Article Or Enquiring About Real Estate Email: or Whatsapp/Call +2348164741041

GidiNews is exclusively designed to cover and report Lagos, Nigeria's commercial capital city. We bring you news updates, reports, opinions and analyses in Politics, Business, Sports, Entertainment, Crime, Health and Education among others. GOT NEWS FOR US? Reach us: +2349090870065, +2348055441309

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Everything you need to know about the new Lekki-Epe International Airport




Economic development is a vital component of our economy’s growth, as it creates high-wage jobs and improves people’s quality of life. The Lagos state government has planned another major means to create, attract and maintain jobs in the new developing axis of Ibeju-Lekki, likewise making lives easier.

While the role of economic developers is frequently overlooked, creating and maintaining major development for a region is an important component of a healthy economy and society. Thus, this led to the aim of building an international airport in Lekki-Epe, to bring development, ease down tension on Murtala Muhammed International airport, Ikeja and also to be of service to the fast-growing area of Lagos state.

Details about the new Lekki-Epe International Airport

Due to the large volume of people streaming in and out of Lagos, as well as the strain on the sole existing airport, the Lagos State Government started the new international airport project in Ibeju-Lekki.The new international airport development project ongoing at Lekki-Epe axis is located in Epe, east of Lagos, Nigeria. It is adjacent to Alaro City. The master plan is complete, and the airport site has been secured on 3500 acres. The airport is designed to handle five million passengers per year, with more room for development in the future.

The Lekki Airport project’s first phase is anticipated to cost US$450 million, and it will be located around 10 kilometers from the Lekki Free Trade Zone (LFTZ). It will be designed to accommodate the Airbus A380, the world’s largest passenger airliner, and will be designated as a Code F airport.The new airport will relieve congestion at the aging Murtala Muhammed International Airport, as well as serve the fast-growing industrial Lekki district, the Lekki Deep Seaport, Dangote’s 650,000bpd refinery, the Lekki Free Zone, and other locations.

Apart from its primary purpose, the new airport will enhance both residential and commercial infrastructure. Ibeju-Lekki has already landed significant projects like the Free Trade Zone, putting it one step closer to being Africa’s next commercial hub.



However, the newest development has faced so many challenges in the past. For instance, in the year 2015, around May. The development of the Lekki-Epe International Airport is reportedly stalled due to local landowner opposition to the land acquisition process, as well as delays in investors committing to the airport financing. Sola Oworu, the former Lagos State Commissioner for Commerce and Industry, acknowledged that the state government is “looking for investors” and that construction on the project will resume once new funding is secured. The state administration is also returning some of the land it has bought to 98 local villages, some of which had been purchased for a planned perimeter road. Meanwhile, the project has continued to progress steadily.


  • Lekki Free Trade Zone: The Lekki Free Zone which was established in 2006 is a modern free zone that follows international best practices. The zone’s 16,500 hectares are separated into four quadrants and administered by a variety of operators, taking advantage of Lagos State’s status as West Africa’s main distribution hub.The Lekki Free Zone is situated in Lagos State’s southeast portion, with the Atlantic Ocean to the south and the Lekki Lagoon to the north. It is 50 kilometers from Victoria Island, Lagos, and is bordered by five kilometers of coastline.
  • Alaro City: It is located in the Lekki Free Zone’s North West Quadrant in Lagos, Nigeria.The city is conveniently located on the Lekki-Epe Expressway, providing easy access to Lagos and the rest of Nigeria. To the south of the city, the largest deep-sea port in West Africa is now under construction.
  • Dangote Refinery:Alhaji Aliko Dangote, Africa’s richest man, is building the continent’s largest oil refinery, a fertilizer factory, a petrochemical plant, and a sub-sea gas pipeline project, which is valued at $17 billion.
  • Lekki Sea Port: The largest deep-water port in West Africa is also being built, allowing exports to West Africa and beyond.Local and international investors are flocking to the Zone.

Benefits of the Project

The new international airport in Lekki-Epe will provide so many benefits to both the resident and the government of Lagos state. Also, improvement to the Economy of the state. Other benefits include;

Investment Opportunity: This massive development is going to provide a lot of opportunities for a secure and long-term investment. However, before you begin signing checks, you must first comprehend the significance of land titles and pricing. The majority of the land near the airport does not have a C of O land title. The majority of the titles you’ll see there are either excisions in progress or gazettes. This explains the disparities in gross price between different real-estate firms. Make sure any block of land in Ibeju-Lekki has a legal C of O title before paying for it.Granted, your agent may tell you that a Gazette or excision in a procedure is a ‘done deal’ and that you don’t need to worry; nevertheless, if you’re knowledgeable with how the Nigerian system works, you’ll understand that there’s no guarantee until you have proper documentation.

Land Appreciation: Properties on the periphery of an airport appreciate up to 40% in value in the first few years after the airport’s completion, and the rate rises to around 80% after the airport’s operations are fully operational. Once landed property is strategically placed close enough to gain all of the benefits of living near an airport while remaining far enough away to avoid the drawbacks of living too close to an airport, such as noise pollution and potential health consequences. Housing costs rise as a result of the extra benefit of convenience. Hence, this serves as a great benefit to investors in the area.

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How to access federal mortgage loans in Nigeria




Housing being one of the most crucial components of human life leaves everyone with no choice but to have a roof over their heads, thus everyone requires a place to call home. In essence, the Federal Mortgage Bank of Nigeria (FMBN) was founded to ensure that Nigerians had reliable and inexpensive access to homeownership. Many Nigerians, however, fail to take advantage of this opportunity, as the Federal Mortgage Bank of Nigeria makes it easy to become a property owner with the necessary information and strategy fix in place.

Meanwhile, in this article, we’re going to discuss extensively how you can get access to Federal Mortgage loan in Nigeria, the steps and procedure to it.

Details About the Federal Mortgage Loans in Nigeria

Let’s start by knowing the meaning of Mortgage Loan;

Mortgage Loan is a loan that can be used to purchase or refinance a home. “Mortgage loans” is another term for mortgages. Mortgages allow you to purchase a home without having to pay in full but as time proceeds. It’s mostly granted to individuals who are interested in owning a house but don’t have the total cost of the house available at the moment. Let’s discussed the Federal Mortgage Loans;

The Federal Mortgage Bank of Nigeria (FMBN) is an institution that was established in the year 1956 with the aim of lessening the burden of Nigerians in some certain projects. It became Nigeria’s apex mortgage institution in 1994. Since then, it has maintained and overseen the National Housing Fund, a contributing savings system (NHF).

The NHF is a social savings project that aims to raise long-term money in order to provide contributors with low-interest loans.It is one of the FMBN’s main responsibilities. The National Housing Fund Act governs federal mortgage bank loans in Nigeria (1992).

The Federal Mortgage Bank of Nigeria has its main purpose: that’s to improve the availability of inexpensive and easy-to-acquire homeownership in Nigeria. The organization accomplishes this primarily through long-term liquidity and creation of new products and services.

The Decree

According to the Federal government of Nigeria, there are various decree guiding the organization to ensure it functions according to its main goal. They include;

  • Collect and administer the National Housing Fund according to the NHF Act’s stipulations.
  • Provide Nigerian mortgage institutions with long-term credit facilities.
  • Encourage the establishment and growth of viable main and secondary mortgage institutions to meet the demand for housing in Nigeria’s various regions.
  • Do anything and engage in any transaction that, in the Board’s opinion, is required to guarantee the appropriate performance of the FMBN Act’s functions.
  • Investing both domestic and international funds in the housing market.
  • Connect the stock market to the housing market.
  • Create and run a thriving secondary mortgage market.

Who is Eligible to Apply for a Federal Home Loan?

You must be a Nigerian who is at least 18 years old. They had to have made a six-month contribution to the National Housing Fund. Applicants must also show that they have a consistent source of income.

How Do I Apply for A Federal Home Loan?

It is common knowledge that you must apply for a loan before receiving one. All you have to do when you require a loan is apply for one.The following is the procedure for applying for a Federal Mortgage Loan in Nigeria:

  • Institutional borrowers can apply for the loan directly through the Federal Mortgage Bank of Nigeria (FMBN).
  • Individuals can only apply through a fully regulated Primary Mortgage Bank (PMB) of their choice. However, you will not be able to apply for the loan through FMBN.
  • The loan applications must be obtained from the same Primary Mortgage Institution.
  • You must have registered your principal mortgage institution with FMBN in order to access the national housing fund service.

What Documents Do I Need to Apply for a Loan from the Federal Mortgage Bank of Nigeria?

In general, the following documents are required:

  • The application form has been completed.
  • Title papers photocopied
  • Current value report for the house you want to buy or bills of quantities for the house you want to build.
  • Certificate of tax clearance for three years.
  • Evidence of NHF involvement
  • Paystubs for the preceding three months, copied
  • Depending on the loan amount requested, an equity investment or personal ownership may be required.

The Steps for Registering a Federal Mortgage Loan?

All Nigerians in employment, whether self-employed or employed, are required to contribute 2.5 percent of their basic salary/income to the fund under the NHF Act No.3 of 1992.

The registration procedure is as follows:

  • The Federal Mortgage Bank of Nigeria will send an Employer Registration Form (NHF1) to employers (FMBN).
  • Employers must complete Form NHF1 and deliver it to their local Federal Mortgage Bank of Nigeria office.
  • The Employer will be registered with the Federal Mortgage Bank of Nigeria and given an employer registration number.
  • Employers will be given form NHF2 by the Federal Mortgage Bank of Nigeria, which employees would fill out. Alternatively, you can directly contact self-employed or individual consumers.
  • The employee will complete and deliver the NHF2 form to the employer.

The employer or self-employed persons will submit completed form NHF2 to the Federal Mortgage Bank of Nigeria.

  • Employees will be registered on Form NHF2, and each employee/self-employed individual will be assigned a participation number.
  • Each registered employee will receive a passbook from the Federal Mortgage Bank, in which the employer will record the monthly deduction of his or her 2.5 percent basic income.
  • Contributions will be deducted at the source by the employer. They will then submit such deductions/contributions to Nigeria’s Federal Mortgage Bank. It will be accompanied by a payment schedule that details the amount each employee contributed as well as the quantity of time covered
  • Self–employed individuals’ contributions will be remitted to FMBN on a monthly basis.
  • Contributions will be accepted and payment receipts will be issued by the Federal Mortgage Bank of Nigeria.

What is the maximum amount you can apply for?

You may be eligible for a maximum loan of N15 million, or as the bank may advise. However, no one should be given credit for more than 90% of the value of the mortgaged property.

How can I get in touch with Nigeria’s Federal Mortgage Bank?

Any of the following methods can be used to contact FMBN;

Address of the office of the Federal Mortgage Bank of Nigeria – 266 Cadastral AO, Central Business District. PMB 2273 Garki, Abuja. Nigeria

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Business owners lament hike in cost of goods movement




By Michael Dibie

Business owners in Nigeria have kicked against the high cost of movement of goods in the country saying it costs more to move goods within the country than shipping them from the U.S.

According to a recent report from the World Bank, the cost of moving goods (per unit distance) domestically in Nigeria is about 5.3 times higher than in the United States of America.

Transport operators say the increase is as a result of dilapidated infrastructures and poor security issues.

“The challenges we are having on the road, No 1, bad roads, insecurity and thirdly, our men, I mean all those army and police on the road, the extortion is too much, we spend N500 on each check point. Some soldiers even collect N1000 each vehicle,” said Shonibare Amos, a truck driver.

Some business owners say the little profit they make is taken away from them but they have to continue with their businesses because they do not want to lose their customers.

“Where I used to pay for N30,000 now they are asking for N50,000 and I can’t bear it so I have to go back to the office and re-plan but on their own side, there is a reason for the increase,” Garuba Audu, a Business owner said.

Business consultant, Bright Ugwu noted that the hike affects per unit cost of goods sold, and impacts on the final consumers.

“So you will find out that it has a multiplying effect, once there is an increase in diesel, it will affect all other parts of the business. These are the things we are experiencing in haulage. I imported some goods last week and what I paid for transporting it from Lagos to Abuja increased. Initially I paid N700,00-800 ,00 per container but now I paid N1m from Lagos to Abuja,” he added.

Business experts are of the opinion that the consistent increase can be attributed to the weak state of the Country’s transport infrastructure as 90% of cargos are transported by road.


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