Insights Newsletter
SPECIAL REPORT:
When Nigeria’s National Bureau of Statistics released data from its recent recalculation of the gross domestic product, one of the surprises was that the real estate sector had overtaken the petroleum industry in contributions to the economy. In 2010, petroleum was number one and real estate was a distant seventh.
In the first quarter of 2025, the top 10 contributors to the GDP were led by trade, crop production, real estate, telecommunications and information technology and construction. Crude oil and natural gas, for decades the mainstay of the economy, took the sixth position, followed by food and beverages, financial institutions and professional and technical services. This shows increased diversity away from oil dependence.
At a time when Nigeria’s oil and manufacturing industries are witnessing contractions, what could be the factors behind the expansion in real estate investments and construction? Our inquiries found several factors at play. While a substantial amount of Nigerian diaspora remittances, estimated at $20 billion in 2024, go into properties, we found the prime driver to be illicit financial flows into the sector from both corrupt public officials and other proceeds of crime.
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