Real estate stakeholders have identified rising electricity costs, weak financing structures and inadequate project planning as challenges threatening the sector’s development in Nigeria.
They made this known at the seventh edition of the Real Estate Discussions and Awards (REDA) 2026 in Lagos on Wednesday.
The News Agency of Nigeria (NAN) reports that the two-day event has the theme, “Economic Development and Real Estate Linkages.”
The stakeholders called for alternative energy solutions, bankable contracts, improved project preparation and better access to financing to make property development more viable.
Gov. Babajide Sanwo-Olu of Lagos State said the state had delivered 10,623 housing units in seven years through direct budgetary allocations and public-private partnerships.
Sanwo-Olu, represented by the Commissioner for Housing, Mr Moruf Fatai, said the achievement reflected the administration’s commitment to expanding access to decent and affordable housing.
He, however, identified infrastructure deficits, high construction costs and limited access to financing as constraints to housing delivery.
The governor said housing delivery generated 4,793 direct and indirect jobs in the previous year, creating demand for building materials, professional services and suppliers.
He said the state was working with private-sector partners to attract more investments in housing and urban development.
He added that, sustainable development required stronger collaboration among government, developers, financiers and communities.
Sanwo-Olu said new developments must consider drainage, flood risks, access roads, utilities, waste management and the capacity of existing infrastructure.
He said developers and approving authorities had a shared responsibility to ensure that projects were properly planned and integrated into the wider urban environment.
“Poorly planned development imposes costs on residents, businesses and government long after a project is complete,” he said.
The Executive Director, Business Development and Joint Venture, Lagos State Development and Property Corporation (LSDPC), Dr Derin Phillips, said developers needed efficient and affordable electricity solutions.
Phillips said feasibility studies for joint venture projects should identify cost-effective options, including compressed natural gas (CNG), solar energy and hybrid systems.
He said some energy providers financed and installed power infrastructure in exchange for long-term agreements, giving developers another option for managing electricity costs.
Mrs Rolake Akinkugbe-Filani, Managing Director and Chief Executive Officer of EnergyInc Advisors, said Nigeria’s electricity challenge stemmed partly from inadequate contract structures rather than a lack of capital or infrastructure.
Akinkugbe-Filani cited figures indicating that about 5,000 megawatts of power had been available since the beginning of the year, while slightly more than 4,000 megawatts had been transmitted.
She said projects required bankable structures that gave financiers confidence in recovering their investments.
“It’s never been an issue of availability of power,” she said.
She recommended gas-based solutions for large industrial users and hybrid or distributed renewable energy systems for commercial properties and residential communities.
Akinkugbe-Filani also supported energy-as-a-service arrangements, under which third-party operators finance or operate power systems to reduce developers’ upfront capital requirements.
She said alternative energy systems were becoming more viable, but financing remained complicated by equipment costs linked to foreign currencies and revenues earned in naira.
She added that guarantees and credit-enhancement arrangements could make such projects more attractive to financiers.
The Founder and Chief Executive Officer of The African Catalyst, Mr Femi Awofala, said developers building properties for lease faced particular risks because buildings had to be operational before prospective tenants could commit.
Awofala urged developers to engage potential tenants before construction, establish commercially viable lease terms and assess electricity costs in advance.
He also recommended renewable energy solutions and locating developments near industrial parks or communities where shared power infrastructure could serve multiple projects.
The Chief Executive Officer of Natural Eco Capital, Dr Eugene Itua, said climate-focused lenders required evidence of environmental benefits beyond the repayment assurances sought by conventional lenders.
He said developers needed baseline data, monitoring and reporting systems, environmental documentation and adequate technical capacity to meet financing requirements.
Earlier, Mr Chudi Ubosi, Partner at Ubosi Eleh and Co. and former President of the International Real Estate Federation’s African Region, said untitled land prevented owners from unlocking the financial value of their assets.
Ubosi said less than eight per cent of Nigeria’s 927,000 square kilometres of land had title documents, limiting owners’ ability to use their properties as collateral for financing.
“Without title, that land is dead capital. It cannot contribute to economic development,” he said.
He urged governments to encourage landowners to obtain recognised title documents.
Ubosi said real estate contributed about 5.2 per cent of Nigeria’s gross domestic product in 2025 and could contribute substantially more if its potential were fully harnessed.
The Founder and Chief Executive of Thinkmint Nigeria, Europe and Green Mortgage, Mrs Imelda Olaoye, said REDA was designed to translate discussions on real estate and economic growth into practical ideas, partnerships and opportunities. (NAN)
