HE BOUGHT 6 PLOTS OF LAND IN IBEJU-LEKKI FOR LESS THAN ₦1 MILLION EACH. TEN YEARS LATER, HE SOLD EACH PLOT FOR ₦35 MILLION.
What if the land you consider too cheap to buy today becomes the property everyone struggles to afford tomorrow?
Let me tell you about Mr A.
Ten years ago, Mr A bought six plots of land in Ibeju-Lekki for less than ₦1 million per plot.
While some people were waiting for the area to become developed, he was quietly holding on to his investment.
He didn't build a house. He didn't collect rent. He simply bought land and waited.
Ten years later, he sold each plot for ₦35 million.
Six plots at ₦35 million each would amount to ₦210 million in total sales, compared with less than ₦6 million in initial land costs.
Here's the lesson: sometimes, the biggest money in real estate is made by buying before everybody else arrives.
And that brings us to a strategy many Nigerians are beginning to pay attention to.
WHAT IS LAND BANKING?
Land banking in Nigeria is the practice of buying undeveloped land in areas with strong growth potential and holding it for years until its value appreciates.
Think of it as buying tomorrow's city at today's price.
The strategy is simple: identify where development is heading, buy land before prices rise significantly, secure your property and hold it for the long term.
In Lagos, investors often consider growth corridors such as Ibeju-Lekki and Epe. Parts of Ogun State and Abuja also attract investors looking for long-term opportunities.
Why?
Because roads, industries, new businesses, transport links and population growth can increase demand for land.
When demand rises and available land becomes more valuable, prices may follow.
WHY LAND BANKING CAN BE POWERFUL
1\. Capital appreciation
Land bought at an early stage of development may appreciate substantially as the surrounding area grows.
2\. Lower running costs
Unlike rental properties, vacant land has no tenants, plumbing repairs or leaking roofs to manage. You literally do not feed it!
3\. A potential hedge against inflation
Land may help preserve purchasing power over time, although appreciation is never guaranteed. Prices can stagnate or fall, and land is not as liquid as cash.
4\. A lower entry point
In some developing areas, land may cost less than a completed property, allowing investors to start with smaller capital.
BUT LAND BANKING IS NOT WITHOUT RISKS
Here is where many people get it wrong.
They buy cheap land without verifying the title, only to discover ownership disputes, government acquisition issues or encroachment.
Others buy in locations where the promised development never materialises. Some struggle to sell when they need cash urgently.
Before buying, verify the title and survey, conduct proper legal searches, investigate government acquisition status, and confirm that the seller has the right to transfer ownership.
Fence or otherwise secure the property where appropriate, and arrange regular inspections.
Never buy land simply because someone promises that a road, refinery or estate will make you rich. Do your own due diligence.
WHO SHOULD CONSIDER LAND BANKING?
Land banking may suit investors who:
* Have money they can leave invested for several years.
* Want long-term real estate exposure without immediately managing a building.
* Understand that appreciation is not guaranteed.
* Can verify ownership and afford the costs of protecting their investment.
It is less suitable for anyone who needs quick profits or may need to withdraw the money urgently.
HERE IS THE BIGGER LESSON
The wealthy investor often asks, “Where will development happen next?”
The average buyer often asks, “Where is everybody buying right now?”
By the time an area becomes popular, much of its early price advantage may already be gone.
This means that location, timing, title verification and patience can make a significant difference.
If you are exploring land banking in Lagos, don't just look for cheap land. Look for land with verifiable ownership, credible growth drivers and a price that makes sense today.
Because the goal isn't merely to own land.
The goal is to own the right land, in the right location, at the right time.
Would you rather buy land in a developing area today or wait until the area is fully developed and pay a premium?
Tell me in the comments.
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