It’s no longer news that Nigeria’s dead capital staggers at an estimated between $300 billion and $900 billion in vast stretches of land, homes, and properties.
This potential has been stifled by bureaucratic inertia and a lack of clear ownership, according to experts.
The high-value real estate market alone is worth between $230 billion and $750 billion. The middle market accounts for an additional $60 billion to $170 billion.
Speaking on: “Reinvigorating Nigeria ‘s Economic Potential with Dead Capital”, Principal Partner, Ubosi Eleh and Co., Mr Chudi Ubosi, said the dead capital could make a big impact if the country could breathe life into them, propelling them and their owners towards economic growth, poverty reduction and prosperity for all.
“Dead capital, a term coined by Peruvian economist Hernando de Soto, refers to assets that hold potential economic value but are locked away and unable to contribute to the formal economy,’ he said.
According to him, by addressing the legal and institutional challenges that prevent the formal recognition of these assets, their value could be activated, leading to increased investment, credit availability, and overall economic activity.
Painting the situation in Nigeria, Ubosi , a past president of the Africa Chapter of International Real Estate Federation, said that despite the nation’s vast land mass of over 923000 square kilometres vested in the state governors through the Land Use Act, less than 10 percent of the land area is titled
While calling for the review of the 45-year-old land use act, Ubosi advocated a multifaceted approach to resolving the issue of dead land capital in Nigeria.
Suggesting key strategies to resolve the issue of dead land capital in the country, he said these would include the implementation of a comprehensive system for clear land titles and registration, among others.
Implementation of a comprehensive system for clear land titles and registration, he said would help formalise property rights, reducing uncertainty and unlocking economic potential.
“Linking land titling with access to credit can incentivize formalisation and empower landowners. Land registration and documentation processes should even be decentralised to the local government levels, where rural people could easily have access. The stress and cost of travelling to the state capital for land matters will also be reduced,” he said.
He also pointed out that strengthening and streamlining legal frameworks related to land ownership would provide a more secure environment for property transactions, encouraging investment and development.
He called for public awareness and education on importance of formal land ownership,
“Raising awareness about the importance of formal land ownership and educating the public about its benefits can promote a shift towards recognised property rights.
“From all indications, the people (the governed) are always suspicious that the government never means well for the bruised and battered citizenry, and as a result, they are usually hesitant to cooperate with the government. The government has to assuage their feelings and fears by way of intense public awareness campaigns and education,” he advised.
While calling for access to finance, Ubosi explained that facilitating access to financial resources by using formalised land as collateral could encourage investment and entrepreneurship.
“Microfinance and alternative lending models can also be developed for loan products that utilise informal assets as collateral, such as community guarantees or land rights with potential for formalisation,” he said.
He is also of the opinion that community engagement is very essential. According to him, involving local communities in decision-making processes related to land management and ownership would foster a sense of responsibility and ownership and contribute to sustainable solutions.
He explained that implementing government programmes that address land tenure issues and promote land reform can play a crucial role in tackling dead land capital.
In the area of capacity building, Ubosi pointed out that enhancing the capacity of institutions responsible for land administration and governance would ensure the effective implementation of reforms.
He said: “Addressing customary land tenure systems and integrating them into the formal framework can respect traditional rights while promoting formalisation.
“Partnering with private companies and NGOs can leverage their expertise, resources, and technology to accelerate land titling and financial inclusion initiatives.”
Other strategies, according to him, included promotion of alternative dispute resolution mechanisms for land-related conflicts; and incentivisation of private-sector investment in land development and infrastructure.
“Dead capital represents a vast, untapped resource with the potential to boost economic growth and empower individuals. By addressing the challenges and implementing solutions, we can unlock its potential and create a more inclusive and prosperous world.
“While some initiatives are already underway, like the Ministry of Finance Incorporated Committee (MOFI), set up by President Buhari and recently reenergized by President Tinubu, addressing such a complex issue requires sustained commitment from the government, communities, and the private sector. By implementing these strategies holistically, Nigeria can unlock the vast potential of its landless capital, boost economic growth, and empower its citizens,” Ubosi said.
He said: “Nigeria needs a comprehensive and collaborative approach involving government, communities, and various stakeholders to address and ameliorate the issue of dead land capital in Nigeria. This is an essential need. It is very evident that Nigeria’s economy is underperforming, and unlocking dead capital is a major, critical route to reverse the trend and move it in a positive direction.”
He urged governments at all levels to stop paying lip service to land reforms if they truly want rapid economic development, pointing out that land and its role in development cannot be overlooked.
“The only thing that gives life to land is a valid and easily transferable title clearly stating the details of interest,” he said.
Attempts to amend sections of the Land Use Act 1979 at the National Assembly, Ubosi said must be encouraged, warning that it should not be aborted for political exigencies.
“These efforts should be sustained. It should not be a cosmetic or academic exercise but should be far-reaching with amendments that reflect current political and economic realities. It would help leapfrog our land holding system and infrastructure into the technological age,” the estate management expert said.
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