A few days ago, Dangote Granulated Urea Fertiliser Plant located at Ibeju Lekki, Lagos, began production and rolled out its first-ever batch of thousands of bags of fertilizer.
This is significant to prospective real estate investors or those who already have a property in that part of Lagos.
Dangote fertilizer plant is a perfect answer to one of the questions I asked in one of my tips before investing in real estate: Who are my neighbours?
Location is key. Nearness to other stakeholders and players is one of the factors real estate investors don’t joke with.
The capacity of the facility and how will it affect real estate investment?
Dangote Granulated Urea Fertiliser Plant which occupies 500 hectares is the world’s biggest fertilizer plant located in Ibeju Lekki, Lagos Nigeria.
The $2-billion plant was scheduled to commence production by December 2020, but the COVID-19 pandemic affected lots of plans put in place.
It has a capacity of 3million tonnes per annum, President of Dangote Group, Aliko Dangote, confirmed a few weeks ago during a tour of the facility by the Lagos State governor Mr. Babajide Sanwo-Olu.
Recalled that Africa’s wealthiest man unveiled early plans for the facility (refinery) and other facilities in September 2013 on the Lekki Free Zone.
Before 2013, a plot of land in a ‘sweet’ location was between N2,00,000 to N3,000,000. That has changed. At the time of publication, a similar property is going for nothing less than N25, 000,000 or more.
At the moment, investors are making a smart move, as returns continue to grow on that axis.
For instance, a plot of land at Amen Estate, Eleko in 2018 was selling for N10,000,000, a similar property goes for not less than N25,000,000 today.
Research also showed that plots of land close to Dangote Facilities at Ibeju-Lekki was selling for N1,500,000 in 2018, but today, it goes for N10,000,000 or more. Dangote Fertiliser Production Facility is a factor.
The point is:
Properties situated in Ibeju Lekki will keep appreciating every day.
The prices of land have doubled the amounts they used to be seven years ago.
What this means is that real estate investors in Ibeju-Lekki are getting impressive returns on their properties.
Be Wary of Fraud:
The economic potential of Ibeju-Lekki because of Dangote facilities in that part of Lagos also poses some risks investors should be wary of.
For instance, some parts of Ode-Omi were designated for Smart City Initiative during the administration of Akinwumi Ambode.
If you bought any part of the several hectares of land designated for the Lagos State government’s Smart City Initiative, you will lose your investment.
How To Avoid Buying Fraudulent Land In Ibeju-Lekki
- Don’t buy some spaces which are government reserved areas.
- Don’t buy committed land.
- Research has shown that some people are falling prey to fraudsters while purchasing lands in the area. Sangotedo, located in the Ajah-Ibeju Lekki axis has also been allocated for government schemes.
- Get the details of the property buying committing funds, make a proper inquiry about the land. You can get this done at the Lagos Land Registry Unit at Alausa.
It’s better to commit a few thousands of naira for verification on a property worth several millions of naira.
Carry out your due diligence!