As inflation bites harder, more Nigerians are looking for better ways to increase their income. Land banking has over the years, proven to be one of the best options in Nigeria. If you are wondering what it is all about and how to get started – then, this article is for you.

What is Land Banking?

As Wikipedia puts it, the concept of land banking “is the practice of aggregating parcels of land for future sale or development.”

It became imperative to follow this concept, not just because of the prospects of having a property, but also because of the need to hold for a while and generate income later.

How is Land Banking Done in Nigeria?

Land banking in Nigeria is one of the real estate investment strategies; allowing the “bankers” to buy undeveloped lands, holding them for some time (typically running into years) and reselling at a higher price.

Also Read: 10 Mistakes Nigerians in the Diaspora Make When Buying Property in Nigeria

You can become a land banker by following these steps:

a. Do Your Research

Not all lands are worth turning into a “bank.” Some are better off left the way they are. Therefore, you must do a lot of researches to determine the type of lands to buy or not. Here are some pointers:

  • What is the proximity from the land’s location to the town?
  • Are there possible investments coming to that area in the future?
  • Who owns the land – an individual, a family or a community?

b. Build Your Portfolio

The best way to start land banking is acquiring these properties from a real estate company. You will get the land title documents, affirming your ownership.

Here’s how to add these lands to your portfolio:

  • Start by buying what you can afford. Some lands are cheap, while others are a bit expensive.
  • Depending on your liquidity, you can buy in small or large quantities.

Note: if you have enough funds, buy parcels of lands within the same location.

c. Hold onto the Lands

The concept of land banking thrives with timing. You must learn to be patient and “hold onto” your lands.

d. Put the Lands back into the Market

The best time to sell the lands is when viable or substantial infrastructural developments are coming into the area.

Here are some pointers:

  • When the government decides to build a facility within that area.
  • You know it is the time to sell when investors are looking to erect a couple of structures within the area, such as factories.
  • When there is an influx of people (population growth) in the area.

e. Flow with the Trends

While some investors sell the lands in their portfolios when there is population growth or a significant infrastructural development; others choose to “flow with the trends.”

This entails developing the lands, by way of building on it or leasing them out to the interested parties. That way, you will get some monetary returns, without losing your properties.

Why Should I Do Land Banking?

Buying and reselling lands is a viable business for you, if you have the funds. Even if you don’t have much, you can always start small and grow your portfolio.

These are top reasons why you should engage in land banking:

1. It is a Stress-Free Investment Strategy

Banking on lands is an excellent way to increase your income, without having to bother about the prospects of losing money. You stand a better chance if you are buying undeveloped lands:

  • You can just leave the land as it is – or fence it to reduce the chances of land-grabbers having a shot at it.
  • All you have to do is “sit and wait” for infrastructural developments to come in before you sell for profits.
  • Undeveloped lands can be used for a wide range of purposes, such as leasing or erecting a structure.

2. Land Banking Presents Multiple Income Opportunities

Before, people bought lands and waited many years before reselling for profits. In recent times, you can do much more than allowing the lands to remain “idle.”

Here are a couple of income opportunities:

  • Leasing

It is possible to give-out the lands in your portfolio to some other person(s) for a specific period (tenor), after which you get it back. Within this period, you will receive income from the lease and make both your capital and profits back when you finally sell the lands.

  • Rural Farming

If the land is fertile, consider turning it to a farm. Cultivate some cash crops, which will fetch you extra money.

  • Sell the Mineral Rights

If you are lucky enough to buy a land with mineral deposits, it could turn to a pathway for building wealth. Those minerals can be mined and sold or you sell the mineral rights to the highest bidder.

When the tenor is over, you will get the lands back and the remaining minerals.

3. Lands Always Appreciate with Time

The prices of lands go up, and correlate to the developments within the location. If you have some money in the bank that you don’t intend using for some time, consider buying some lands with it.

We must however advise that you make these purchases in the areas where there is a higher chance of economic activities in the coming years.

4. The Opportunities are Endless – and the Competition is Lower

Unlike some other businesses, you will find lands to have less competition, but with higher rewards. For example, you can always buy with what you have and with the payment plans from us; you can now batch the payments. It is also possible to start with the low-priced properties, before stepping-up to the expensive ones.

5. Land Banking has More Value in Nigeria

Besides serving as a hedge against some economic downsides, such as inflation and capital loss; land banking can also pave a way of multiple value additions.

First, you can erect a structure and when selling, factor-in the cost for that with additional profits.

Second, you can acquire more land title documents to consolidate the ownership. This is a good way to save the new buyer money on running around for such documentations. You can increase the cost of the lands for this reason.

Also Read: How to Know if a Landed Property is Genuine in Lagos


You should get involved in land banking today, because it provides a pathway to building your capital-base, sustaining your income and having something to “fall back to” if you have some financial issues in the future.

Would you like to buy land or house in Epe, Ajah, Lekki, Ibeju-Lekki or anywhere in Nigeria? Reach out to us on +234 806 400 3456 or send an email to We are ever ready to assist you on your property ownership journey in Nigeria.