Nigeria’s real estate sector is poised for significant transformation, driven by rapid urbanisation, accelerating digitisation, and a slow shift toward formal institutional frameworks, according to Israel Ihaza, CEO of property technology firm Oikus.
Speaking to Media Talk Africa, Ihaza outlined three defining forces for the next decade to fifteen years. “Nigeria’s cities are expanding rapidly, and millions of young people are moving into urban centres,” he said, noting this will reshape housing density and infrastructure demand. Concurrently, technology is changing how properties are discovered, verified, and managed. The sector’s gradual move from informal to structured systems presents a critical opportunity for firms that can build ahead of expansion curves.
Addressing the nation’s estimated housing deficit of 15 to 28 million units, Ihaza stressed the need for scalable production over isolated luxury projects. Key solutions include structured land assembly to reduce fragmentation, industrialised construction methods like modular building to lower costs, and financing models such as rent-to-own schemes that match income realities. “The solution is commercially viable mass production with intelligent financing structures,” he stated.
Mortgage penetration remains low, a challenge Ihaza attributed to systemic issues. He called for more competitive interest rates, deeper long-term funding pools involving pension funds, digitised credit assessment, and stronger land registry and foreclosure systems to build lender confidence.
Technology is central to bridging these gaps. Ihaza highlighted opportunities in virtual tours, automated management systems, and predictive analytics, but identified structured property data as the greatest untapped frontier. “When properties become digitally identifiable assets with traceable histories, financing, insurance, and secondary markets become more efficient,” he explained.
Oikus focuses on building digital property infrastructure to enhance transparency and verification. While not a developer itself, the company influences environmental resilience by collaborating with partners to integrate climate-risk planning—such as drainage engineering and material durability—from the earliest stages. “We help highlight risk-prone zones and encourage smarter siting decisions,” Ihaza said.
On governance, Ihaza emphasised integrity and long-term strategic thinking as non-negotiable for leadership in the capital-intensive, cyclical real estate sector. Oikus enforces strict verification standards and compliance protocols, recognising that trust is its primary asset in a trust-sensitive industry.
Ihaza underscored that solving Nigeria’s housing gap requires robust public-private partnerships. With an annual need for about 500,000 units requiring over ₦5 trillion in investment, government budgets alone are insufficient. He pointed to frameworks like the Renewed Hope Housing Programme as models where government provides land and policy while the private sector delivers capital and efficiency.
Reflecting on fundraising challenges, Ihaza noted that investors in emerging markets prioritise clear governance and execution track records over vision alone. His lasting ambition for Oikus is to build foundational infrastructure that enables future PropTech entrepreneurs to innovate from a stronger base, creating a more structured and globally competitive Nigerian property ecosystem.
While the 2026 federal budget allocation to housing—approximately ₦105 billion—falls short of the required scale, Ihaza stressed that efficient implementation, regulatory clarity, and synergistic public-private collaboration are equally critical to amplifying impact.
