The ₦6.17 Trillion Engine Behind Nigeria’s Built Environment

The Nigerian Institute of Architects (NIA) has disclosed that the architectural profession generated an estimated ₦6.17 trillion in economic value in the last year, representing 6% of Nigeria’s Gross Domestic Product (GDP) the outgoing President of the Institute, Arc. Mobolaji Adeniyi presented the data during the NIA’s 65th Biennial General Assembly, Conference, Exhibition, and Leadership Transition held in Abuja.

The President of the Real Estate Developers Association of Nigeria (REDAN), Akintoye Adeoye, has emphasised the urgent need for comprehensive reforms to address the rising incidence of fraudulent developers in the country. Speaking in an exclusive interview, Adeoye highlighted that unprofessional practices continue to undermine public confidence and deter legitimate investment in Nigeria’s real estate sector.

Adeoye detailed that REDAN has intensified its internal regulatory mechanisms to reinforce professionalism. The association’s Membership, Ethics and Disciplinary Committee has been tasked with stricter oversight, ensuring members adhere to ethical standards and face accountability for violations.

The Federal Capital Territory Administration has begun enforcement actions against 1,095 property owners in Abuja for failing to pay required land charges. These charges include ground rent, certificate of occupancy fees, and payments for land use conversion.

The affected properties are located in Asokoro, Maitama, Garki and Wuse. Authorities said multiple notices were issued between May and November, but many owners still did not comply. After the final deadline passed, the Minister of the Federal Capital Territory approved immediate enforcement.

Nigeria recorded 20.9 billion dollars in capital inflows between January and October 2025, marking one of the strongest investment rebounds in recent years. The rise is driven by foreign exchange reforms that restored investor confidence, cleared FX backlogs, improved transparency, and stabilised the naira. The stronger inflows have boosted external reserves, improved liquidity, and strengthened Nigeria’s ability to manage global economic shocks. Authorities say continued reforms will be key to converting these short term gains into long term investment across infrastructure, housing, and the broader economy.

Why It Matters: Higher capital inflows signal renewed investor confidence, which can help stabilise the naira, ease inflationary pressure, and improve liquidity across the financial system. A more stable macro environment supports cheaper financing for developers, increases access to credit for homebuyers, and strengthens long term investment in housing and infrastructure. If these reforms are sustained, the real estate market could see more predictable pricing, lower volatility, and improved investor appetite.

SBM Intelligence has ranked Nigeria as “critical” on its 2025 Instability Risk Index, placing the country among the highest risk environments in Africa. The assessment points to weak governance, currency volatility, persistent insecurity, and systemic institutional challenges as major drivers of instability. The rating suggests that investor confidence remains fragile and that long term planning for key sectors may face difficulty without meaningful reforms.

Why It Matters: Nigeria’s “critical” instability rating puts the recent economic gains into broader perspective. While foreign inflows are improving in response to FX reforms, deeper structural risks still shape investor confidence and long term planning. High instability can slow major projects, raise financing costs, and weaken momentum in sectors like real estate, where stability is essential for growth.

1. Always factor in currency volatility before making large real estate or investment decisions. A stable plan today can protect you from unexpected shocks tomorrow.

Nigeria’s currency movements can significantly impact the true cost of buying, building, or financing property. Whether you are dealing with imported materials, repatriating funds, or planning a long term investment, fluctuations in the exchange rate can change your financial position overnight. Before committing to a major purchase or project, run multiple scenarios based on different FX outcomes and build a buffer into your budget. Planning for volatility does not eliminate risk, but it ensures you are not caught off guard when the market moves.

2. Do not rely on short term market gains when evaluating a property or investment. Focus on fundamentals like location, infrastructure, and long term demand.

Short term price spikes or trending hotspots can create excitement, but they often mask deeper realities of a market. Sustainable real estate growth is driven by fundamentals: access roads, security, connectivity, planned infrastructure, economic activity, and the long term desirability of the neighborhood. A property that looks attractive today may stall in value if these fundamentals are weak. When assessing any investment, look beyond current momentum and evaluate whether the project or location can hold value and attract demand over the next decade.

_{^{Produced by: Amarachi Okeke}}