Addressing Nigeria's real estate ownership procedures

Lagos state has witnessed a significant wave of demolition this year to pave the way for infrastructural development, sparking concerns about the impact on real estate investors and Nigeria's overall development agenda. Ayo Ibaru, the COO and Director of Real Estate Research at Northcourt, recently shared insights on this topic during an interview on CNBC Africa. The recent demolitions in Lagos have raised questions about the clarity of ownership procedures in the country and the implications for both domestic and foreign investors. The Land Use Act of 1978 grants state governors the authority to intervene in property matters to align with development plans, leading to the recent demolitions. However, the lack of transparency in the process and short notice given to property owners have raised criticisms and concerns among investors. The need for simplified property registration processes and increased transparency in real estate transactions is crucial to boost investor confidence and drive the sector's growth. While the Lagos State Government has introduced a 90-day amnesty window before demolitions, there is a call for more efficient processes akin to global best practices to streamline property registration and improve the overall investment climate. Ayo Ibaru also highlighted the impact of these developments on the commercial, retail, and residential real estate sectors in Nigeria. He noted that the performance of the capital markets directly influences real estate market performance, with inefficiencies in Nigeria's system leading to higher borrowing costs. Against the backdrop of competition from neighboring countries such as Cote d'Ivoire and Ghana, Nigeria must prioritize regulatory clarity and investor-friendly policies to attract and retain real estate investments. As the real estate landscape evolves in Nigeria, stakeholders are urged to strike a balance between regulatory compliance and fostering a conducive environment for sustainable growth.