10/03/2026
The ₦384 Billion Question
For over two decades in the profession, I have watched Nigerian real estate evolve through booms, busts, and everything in between. But nothing—and I mean nothing—has fundamentally reshaped asset economics quite like the sustainability revolution unfolding before us.
The numbers have grown too big to ignore. With over 800,000 square metres of green-certified space across Nigeria's commercial, residential, retail, and mixed-use sectors, we have reached a critical mass that demands a fundamental rethink of how we value green and non-green real estate.
This year, at akinABRAHAM & ASSOCIATES LTD we put a concrete figure on something that has remained frustratingly abstract for too long: the capitalized value of operational savings. Not rental premiums, not sales premiums, not emissions savings, not tax incentives, not yield compression—just the hard, recurring, bankable savings from using less energy, less water, and materials.
In 2023, akinABRAHAM & ASSOCIATES LTD's Green Office Market Report established a robust benchmark for the green-certified buildings in Nigeria, delivering ₦17,059 ($11.00) per square metre in annual operational savings compared to conventional counterparts.
By 2026, with energy tariffs rising by over 300% for Band A customers and diesel prices persistently above ₦1,100 ($0.71) per litre, that figure has adjusted upward. Our recent market tracking now places the annual operational savings range at ₦20,000–₦25,000 ($12.90–$16.10) per square metre annually—with variations for office, residential, retail, and mixed-use typologies.
For this analysis, using a conservative midpoint of ₦22,500 ($14.50) per square metre for annual operational savings across certified space and applying an 8.5% capitalization rate—reflecting the yield compression that sustainability credentials now command—the capitalized value of operational savings alone reaches ₦384 billion ($247 million).
To request the full report or discuss your portfolio's sustainable valuation, contact us at [email protected] or at +234-806-877-4629.
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