Introduction

Michael Onyeachor of Besitz Group Limited tells Nairametrics that inexpensive land on the outskirts of Lagos and Abuja won't by itself solve the housing affordability crisis. The co-founder argues that what developers add on top of the land deal - roads, utilities, financing - matters far more than the initial plot price.

What Happened

During an exclusive interview, Onyeachor outlined the real cost structure behind new housing projects. He explained that when a developer buys a cheaper plot on the city fringe, they still must fund site access roads, storm drainage, power reticulation, and water reticulation. In many emerging areas, these mandatory additions erase the benefit of lower land prices. He also noted that high construction costs, expensive credit, and limited buying power among target groups make luxury and upper-middle-income projects more appealing to private developers, since they offer a clearer path to recover investment.

Why This Matters

The commentary matters because Nigeria's two largest cities face a widening housing gap. Lagos' homeownership rate sits at 31 percent, with prime land among Africa's most expensive. Onyeachor warns that without government intervention - concessionary land terms, tax incentives, cheaper long-term funding - lower land prices alone won't deliver homes that ordinary Nigerians can afford. He also points out that investors are already looking 5 to 10 years ahead, scouting emerging districts based on expected economic activity rather than current conditions.

Key Takeaways

  • Infrastructure deficits top the list of reasons affordable land doesn't produce affordable homes
  • Developer focus often shifts to higher-value residences when cost structures make lower-income projects financially unviable
  • Public-sector tools - concessionary land, tax breaks, subsidised financing - could tilt the balance back toward affordability
  • Investment patterns show a trend toward future-growth districts, with buyers betting on planned development over current conditions
  • Without accompanying economic activity, peripheral plots risk becoming underutilised assets with limited housing impact

Conclusion

Lower land prices are a piece of the affordability puzzle, but they're not the whole picture. Sustainable progress depends on infrastructure investment, financing reform, and policy design that ensures cheaper plots actually reach the people who need them most.