If you spend enough time on Nigerian social media, you’ll notice a trend: realtors and developers are easy targets. People say they inflate prices, make unrealistic promises, or “just build houses and cash out.” It’s a familiar chorus.
But here’s what most people don’t realise. Developing real estate in Nigeria is nothing like building in most parts of the world. It is an uphill battle full of costs, risks, delays, and responsibilities that should not even belong to private individuals in the first place.
That’s the part the public rarely sees.
People see the final price of a unit and assume the developer is being greedy. What they don’t see is the money drained long before the first block is laid. What they don’t see is the sleepless nights, the unpredictable environment, or the silent battles developers fight daily just to deliver one project.
This article is not about defending the bad actors — every industry has them. It’s about helping Nigerians understand the real dynamics of developing property in this country, and why things work the way they do.
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Because the truth is simple:
Real estate development in Nigeria is far tougher than people think. Developers in Nigeria Are Forced To Play Government
Let’s start with the biggest misunderstanding.
In most countries, a developer buys land, builds houses, and sells. The government provides everything else: roads, power, drainage, street lighting, water, waste management, and basic infrastructure.
In Nigeria?
Developers have to do almost all of that themselves.
Before a foundation is even dug, the developer has spent millions creating what should have existed already:
They are grading access roads, pouring concrete, constructing drainage systems, installing transformers, setting up water treatment plants, digging boreholes, erecting streetlights, building culverts, fencing the estate, clearing the land, and hiring 24-hour security.
Only after all of this can they even start building the houses.
So when people see a 3-bedroom selling for ₦45 million and ask, “Why is it so expensive?”
The answer is simple:
You’re not just buying a house — you’re buying the infrastructure the government never provided.
In many cases, 40% of the developer’s total budget goes into infrastructure alone.
Land Acquisition Is Not a Simple Transaction — It’s a Maze
If you’ve ever bought land privately in Nigeria, you already know it can get chaotic. Now imagine doing that on a large scale, across thousands of square meters. Developers face a long, unpredictable list of obstacles.
Omonile issues alone can stop a project for months. You’re dealing with families, youth groups, community heads, and multiple people claiming the same land. Payments you thought had ended suddenly reappear. Temporary site shutdowns are common. And every stage comes with new “community demands.”
Then comes documentation.
A developer must pay for:
- Survey
- Deed
- Registration
- Governor’s Consent
- Title perfection
- Layout approval
- Environmental approval
- Building permits
These processes are expensive, slow, and often unpredictable. It’s not unusual for developers to wait over a year for government approvals, all while funding the entire project alone.
These delays increase cost. But buyers rarely see this side of the story. They only see the final price.
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Construction Costs in Nigeria Change Overnight
Ask any contractor in Nigeria and they’ll tell you the honest truth: you can’t confidently budget for anything long-term.
- Cement can jump by ₦2,000 in a week.
- Iron rods can double in price in two months.
- Tiles, roofing sheets, and finishing materials fluctuate with the exchange rate.
A developer can start a project at one budget and suddenly realize the cost has escalated by 30% within months. Most buyers still expect the original price, not realising that the market has moved drastically.
To keep a project going, developers often have to dig into reserves, borrow, or redesign the project not because they want to, but because the economy leaves them no choice.
This is why some developers delay delivery. It’s not always incompetence. Many are simply trying to survive cost explosions that the average buyer does not see.
Good Labour Is Hard To Find — And Even Harder To Keep
Labour in Nigerian construction is a puzzle.
Skilled artisans are unpredictable.
Some don’t show up.
Some abandon the site halfway.
Some start well and end poorly.
Developers must constantly train, supervise, and sometimes replace entire teams, all while losing precious time and money. Quality control becomes a daily battle.
In countries with stable labour systems, developers focus on design and execution. In Nigeria, developers often spend half their time managing human behaviour and preventing mistakes that could ruin the entire project.
Financial Pressure in Real Estate Is Brutal
Here’s something most Nigerians don’t know:
Most developers begin projects with their own money.
Banks rarely support real estate projects early on. Developers have to:
- Buy land
- Start infrastructure
- Begin construction
- Fund documentation
- Pay workers
- Manage overhead
Sometimes for years before a buyer pays anything. And when buyers finally begin payment, most of them choose installment options — which means the developer continues to fund the bulk of the project alone. This is why some developers ask for early off-plan buyers. That early funding helps them survive the long journey to delivery.
The pressure is huge, and the risk is even bigger. One mistake can collapse the entire project.
Buyers Expect Perfection — Even When Conditions Aren’t Perfect
Nigerians expect developers to build like Dubai, deliver like London, and price like Cotonou. It’s understandable everyone wants quality. But the expectations often ignore the realities.
A developer battling:
- constant inflation
- unstable materials
- costly infrastructure
- unpredictable labour
- expensive approvals
- community issues
- bad roads
- security challenges
Many developers rise to the challenge.
Many deliver.
Many ensure quality despite the environment.
But the public rarely hears those stories.
Why This Matters
Understanding the realities of Nigerian real estate development is important because it helps buyers make informed decisions. It also helps people appreciate the complexity behind the homes and estates they see.
This doesn’t excuse bad behaviour.
There are fraudulent developers — just like there are fraudulent traders, bankers, artisans, and professionals everywhere.
But lumping genuine developers with scammers is unfair and damaging to the sector. Because without developers, Nigeria’s housing deficit would be twice what it is today.
They are building estates where government infrastructure does not reach.
They are creating jobs for thousands.
They are reducing the pressure on urban housing.
They are trying — despite the environment.
And that’s why these conversations matter.
The Bottom Line
It’s easy to drag realtors and developers online. Social media is quick, emotional, and often uninformed. But before we criticize, we must understand the work that goes into creating these homes.
Real estate development in Nigeria is not for the faint-hearted. It is expensive, unpredictable, complicated, and sometimes frustrating. And yet, people show up every day to make it happen. The next time you see a new estate, a construction site, or a developer pitching a project, remember:
- It is not “just building.”
- It is survival.
- It is innovation.
- It is resilience.
- It is filling the gap where the system has failed.
And until government infrastructure becomes reliable, developers will continue playing roles they were never meant to play. But they keep going anyway.
