PricewaterhouseCoopers Nigeria estimates that Nigeria holds approximately $900 billion in dead capital, locked in residential real estate and agricultural land, as revealed in their report titled ‘Nigeria Economic Outlook: Seven trends that will shape the Nigerian economy in 2024.’
The dead capital includes the Federal Government’s abandoned property, valued at N230 billion.
Despite a housing deficit of 28 million units and a projected population of 223.8 million in 2024, the demand for housing remains low due to high rental and construction costs, along with declining disposable incomes.
The lack of proper documentation, bureaucratic procedures, corruption, and inefficient legal frameworks contribute to the existence of dead capital in Nigeria’s real estate sector.
Last October, the Federal Government announced plans to unlock over $300 billion in dead capital through reforms and collaborations in the housing sector, aiming to enhance investment and address the housing deficit.
