Flooding and real estate investment

Flooding and real estate investment

One of the most prevalent natural disasters in Nigeria is perennial flooding. In recent years, incidents of flooding have been devastating, ruinously affecting as usual, agriculture, food production, essential agricultural infrastructures and real estate, not to mention the setback to the country’s desire to drive Goal 2 of the Sustainable Development Goals, a global initiative targeted at eradicating poverty and hunger by year 2030.

The extent and nature of the disaster is such that the actual losses, displacements and fatalities figures cannot be truly established due to poor records and reporting. National Emergency Management Agency (NEMA) reported that 33 of 36 states experienced the 2022 floods in which about 600 people were reported dead, 1,546 injured and 100,000 people rendered homeless, with many properties and farmlands destroyed across the country.

Fast forward to 2026; the rains have returned, with the age-old attending challenge of flooding. Hugely affected is real estate. Flooding affects more properties than any other environmental hazard, and hinders sustainable development. Alarming is the appropriate adjective to describe its impact on Nigeria’s real estate. Flooding has become a major concern for players and stakeholders in the industry.

Floods are now silently reordering the rule of property pricing. It is affecting property values. Areas that once attracted high rental values, Lekki-Ajah axis for instance are fast losing their appeal. Tenants are opting for drier alternatives. The Nigerian Meteorological Agency (NiMet) estimates that Lagos alone lost over N200 billion to flooding in a single year. The trend is affecting the real estate sector; it is reshaping investment logic, and behavioural factors such as risk perceptions. Attitude towards flooding is playing crucial role in investment decisions.

The impact of flooding on the nation’s real estate is a critical concern. Annual flood risks causes between 10-20% devaluation to properties in Lagos, not to talk of surge in insurance claims and a steady increase in flood related disputes, threatening about 15% of investment in locations such as Ibeju Lekki and the environs.

Nigeria’s flooding is largely human induced with poor urban planning practices and inadequate environmental infrastructure being contributing factors. That tells us that with proper urban planning and provision of necessary infrastructure, especially in areas that are prone to perennial flooding, the problem can be effectively controlled. There must be concerted efforts by all stakeholders towards preventing future devastation by flood, in addition to finding short-term solutions to the current situation.

How To Protect Your Home Against Flooding in Nigeria

Government, through the Nigerian Meteorological Agency and other relevant government agencies should come up with achievable initiatives on flood control. We have been more focused on post-disaster flood response than prevention and control. Even at that, not much came out of the comprehensive post-disaster needs assessment conducted by the federal government with international collaboration in the recent past. The agencies should henceforth be proactive rather than being proactive in handling issues of flooding. NEMA should through its planning department utilize geographical information system and meteorological information to work on flood data.

Also critical are sustainable urban planning, green infrastructure, combined with information and technology tools. Given that the rainy season is bound to generate seasonal flooding in many parts of the country, government must invest more in the dredging of the major rivers to accommodate high volume of water, promote inland waterways, build, reactivate, and maintain the urban drainage systems, and prevent people from erecting structures on waterways.

Waste management system must be stepped up, technology driven and properly coordinated. Nigerians, especially, those living in flood plains must be sensitized on the danger of blocking the drainage channel with refuse. They must be sensitized on the consequences of ignoring flood warnings. These are necessary steps towards sustainable development.