Increasing the amount of titled landed property by 25 per cent could have a significant impact on the Gross Domestic Product of the country, a report by Ubosi Eleh & Co. has stated.

The report titled “Reinvigorating Nigeria’s Economic Potential With Dead Capital” stated that in Nigeria, trillions of naira lay dormant in idle assets nationwide, representing a drain in terms of underperformance on the country’s economic capital.

It stated, “Nigeria needs a collaborative approach involving government communities and stakeholders at all levels to implement reforms that will unlock dead capital.

“A hypothetical 25 per cent increase in titled land will potentially increase the Gross Domestic Product astronomically by enhancing agricultural productivity, attracting investments, and fostering economic development. Real estate development and investment, construction and infrastructural projects will increase and in effect boost economic activity.”

According to the report, Nigeria has a land area of 923,000 sq km, of which only less than 10 per cent is titled.

It noted that beyond the work done by PWC estimating the exact worth of Nigeria’s dead capital, it was tough due to lack of clear property rights, informal land ownership, unregistered and unsurveyed land disputed boundaries, absence of a formal market several other issues.

Highlighting steps to free up dead capital, the report noted that several steps had been initiated to rejig the system and bring dead capital back to life.

It added, “The establishment of the Ministry of Finance Incorporated signifies a pivotal step towards consolidating national assets and optimising their management for profitability. Concurrently, the National Land Reform Commission is driving efforts to streamline legal frameworks related to land ownership, foster a secure environment for property transactions and catalyse investment and development opportunities. These initiatives hold the promise of bolstering economic growth and fostering sustainable progress.”

The report asserted that the Federal Government must recognise land as a crucial factor of production, understanding its role in generating multiple ripple effects and benefits throughout the economy.

It advised, “Simplifying the procedures for land titling and registration is essential to unlocking its full potential. Moreover, enhancing public awareness and education regarding the significance of formal land ownership and property rights is vital. These measures not only promote economic development but also ensure social stability and equity in land utilisation.

“Leveraging technology, such as digital mapping and blockchain for land administration has become increasingly important. In 2024, Lagos State introduced an e-portal for land transactions, highlighting the significance of technological advancements in this domain. Capacity building in institutions responsible for land governance is crucial for effective reform implementation.

“Additionally, facilitating access to financial resources by utilising formalised land as collateral is essential. Developing microfinance and alternative lending models that accept informal assets as collateral can further enhance financial inclusivity and support economic growth.”

According to PwC,  Nigeria holds as much as $900bn worth of dead capital locked up in residential real estate and agricultural land, including the Federal Government’s abandoned properties estimated at N230bn.