CategoriesReal Estate


Hernando de Soto Polar, a Peruvian economist, was the first person to use the term “dead capital. These dead capital or assets needs to be unlocked to get the best out of its value. “Freeing up dead assets is releasing the potential of assets that are not currently yielding any returns. There are so many abandoned assets in Nigeria that the total value could reach $900 billion. The worth of the federal government’s abandoned properties is estimated to be somewhere around N230 billion, as stated by the Nigerian Institute of builders. Some of these dead assets include refineries that are not being utilized, so the country is not receiving a return on its investment. Other examples of such assets include the NITEL Building secretariat in Ikoyi, the national assembly complex at Tafawa Balewa square, and the Nigeria social insurance trust fund along the Lagos Badagary expressway, among others. When it comes to dead assets, the real estate market is affected by it because of its poor performance and lack of revenue which could have accumulated value/income if put into use.

National theatre undergoing $100m renovation renamed, to host UN event in November – Nigeria Transport Hub

People have the ability to borrow money against their properties in order to launch businesses if the real estate market is doing well. If they can be put to use, dead assets have the potential to become live assets. However, the existence of these dead assets presents an economic challenge because it makes it more difficult for the real estate market to flourish. The ability of individuals to trade assets is necessary for it to function properly. Before the developers can invest, they need to ensure that they have clear title to the land, and the buyer also needs to ensure that they will have an easy time transferring the property to them. The biggest problems with dead assets are not not having real estate titles, and not being able to get bank loans to invest in other things. Land is the ideal area to tax and the best place to develop a tax base from the perspective of the government trying to raise more tax revenue. The encouraging news is that the nation has begun the process of converting its dead assets into live assets. There is construction going on at a few of the refineries.

Nigeria has untapped potential in the real estate sector which can be revived especially with issues of unregistered land and dead assets.

With a big bottleneck slowing down the growth of the mortgage industry, the creation of wealth, and the overall growth of the economy, we think that unlocking dead assets and tapping into their potential will be a big step forward for the growth of the real estate sector. Hence, we recommend;

  • A comprehensive reform of the land tenure system to address, among other things, the time-consuming procedure of obtaining a Certificate of Occupancy.
  • Mortgage financing should be backed by special and revolving funds, and a legal framework should be set up to allow mortgage transactions.
  • Implement an electronic title registry for storage, retrieval, and quick verification of such titles to streamline operations and hasten the issue of title papers. Also, a new technology called blockchain can be used for title registry.
CategoriesReal Estate


The Central Bank of Nigeria (CBN) has been seeking, but to no avail, to direct scarce foreign funds into the highest-value uses. This, however, has been counterproductive on the nation. As a consequence of the Central Bank of Nigeria’s (CBN) policy, which includes limitations on FX trading, importers have been forced to acquire dollars at a higher value in order to bring the item/commodity into Nigeria. This is because the local supply is insufficient to fulfill demand. The foreign exchange market is distorted as a result of this, making it difficult to conduct business in certain industries. For instance, in the real estate sector, the majority of value added occurs in Nigeria say 70 -85%; however, you will still need to import some components for manufacturing, which developers/contractors or other members of the value chain are unable to do. This is because they do not have systematic way to access foreign exchange. If there was a standard exchange rate, conducting business in the real estate market would be less complicated. Concerns that have been raised in relation to the unpredictability of the naira may be alleviated if Nigeria maintained a stable foreign currency rate.

The following is a list of some of the benefits that come with having only one exchange rate.

  • It would make it simpler for Nigerians to access markets around the world.
  • It would boost the competitiveness of Nigerian industries by given then a to sell their goods and services with less restrictions on a global scale.
  • It would help to maintain the stability of the Naira, which is now in a weak position.
  • In addition to this, it provides Nigeria with access to a broader market.
  • Also, freer trade among Nigerians is one factor that could contribute to the country’s overall economic expansion.

The real estate industry is the most significant part of the economy. It not only helps individuals move out of poverty but also produces jobs. When the housing market does well, the rest of the economy tends to do well as a whole as well. It is absolutely necessary for the industry as a whole to band together and do what is necessary in order to advance the sector.

Get in touch


+234 809 600 0027
+234 809 600 0017

10, Onisiwo street, off Lateef Jakande, Ikoyi, Lagos.


about us

Fine & Country is a global real estate brand, specializing in providing a premium service through exceptional marketing and professionalism in the upper quartile of the market.


Get latest news & update

© 2024 – Fine and Country International Realty (West Africa) Limited.  All rights reserved. | Privacy Policy

Contact us
Send message
By continuing without changing your cookie settings, we assume you agree to this. Please read our
We use cookies to help give you the best experience on our website.
Ok, I Agree
We use cookies to help give you the best experience on our website.
By continuing without changing your cookie settings, we assume you agree to this. Please read our
Ok, I Agree
Enter your details to get the ebook!
The Modern Guidebook
to Email Marketing
Download Free Ebook

Our website uses cookies and thereby collects information about your visit to improve our website (by analyzing), show you Social Media content and relevant advertisements. Agree by clicking the 'Accept' button.