The Managing Director of UPDC Plc, Odunayo Ojo, has raised concerns over the risks facing diaspora investors and the growing challenges in Nigeria's low-income housing sector. Speaking at the UPDC summit in Lagos, Ojo noted that while diaspora investments remain vital to the real estate industry, many Nigerians abroad have fallen victim to fraudulent property transactions.
Diaspora Investment Risks
“We have heard several cases of people sending money from the UK, the US, and Brazil, only to lose their investments due to bad actors,” he said. He emphasized the importance of proper verification when investing in real estate, particularly in development projects. “If it sounds too good to be true, it probably is,” he warned, advising investors to engage only with credible developers who have proven track records.
Ojo called for stronger government involvement, highlighting the role of the Nigerians in Diaspora Commission (NIDCOM) in connecting investors with trusted partners. According to him, limited disposable income among Nigerians remains a key constraint in the property market. He noted that while economic growth could eventually improve incomes and expand the investment landscape, current realities show that most Nigerians lack the financial capacity to participate meaningfully.
Barriers to Affordable Housing
Ojo identified three key barriers to affordable housing in Nigeria: high construction costs driven by expensive building materials, limited mortgage systems compared to other countries where payments can span 20–25 years, and low-income levels that reduce purchasing power. He illustrated that a typical N10 million home remains far beyond the reach of most Nigerians, with average monthly incomes around N200,000 and financial guidelines limiting housing expenditure to about 30% of income. Servicing a housing loan is largely unsustainable, especially when compared to the N70,000 minimum wage.
“Many prospective homeowners are unable to sustain mortgage repayments, which significantly reduces purchasing power across the low-income segment,” he said.
Call for Government Intervention
To address these issues, Ojo called for targeted government support for developers operating in the low-income segment. He stressed that access to affordable land and infrastructure is critical. “Providing these at reduced costs would enable developers to deliver more affordable housing,” he said. He pointed to international examples such as Spain, where developers are required to include social housing in their projects but are supported with incentives to ensure profitability.
He stated that without deliberate policy support and structural reforms, affordable housing will remain out of reach for many Nigerians, particularly in the low-income segment.
UPDC’s Growth and Financial Performance
Ojo also highlighted the company’s growth journey, financial performance, and outlook. He explained that UPDC has grown its footprint across multiple segments of the real estate sector, managing over 47 estates, serving more than 2,500 clients, and delivering over 1,000 housing units. According to him, the company’s asset base has expanded significantly, with over $30 billion in assets under management and more than 300,000 square metres of land bank, which he described as critical to sustaining future development projects.
He added that UPDC has also built a presence in the hospitality sector, operating a large hotel complex in Lagos with over 470 rooms, positioning it among the biggest in the city.
Key Milestones
Ojo pointed to several key milestones in the company’s history, including the launch of the UPDC REIT in 2013, which created a dedicated real estate investment platform within the capital market. The REIT, he noted, continues to perform steadily. He also referenced a major ownership change in 2020, when Custodian Investment Plc acquired a 51% majority stake in UPDC, effectively making it a subsidiary and strengthening its financial position.
On the hospitality side, he recalled that the company acquired its flagship hotel asset from the Federal Government in 2002 under the privatisation programme of former president Olusegun Obasanjo. The property, now known as Festival Hotel, has remained a significant part of UPDC’s portfolio.
Return to Dividend Payments
A major highlight of the company’s recent performance, he said, was its return to dividend payments. In 2025, UPDC declared a dividend for the first time in over 10 years, a move that significantly boosted investor confidence and market activity around the company’s stock. He noted that the company’s share value rose substantially during the period, while its overall financial health improved, supported by reduced debt levels.
Despite this progress, he stressed the importance of balancing shareholder returns with long-term growth. Given the capital-intensive nature of real estate, he explained that retaining earnings is essential to fund new developments and avoid excessive borrowing at high interest rates. He added that the company plans to propose another dividend payment to shareholders, reflecting confidence in its performance and commitment to consistent returns.
Leadership and Future Outlook
Ojo attributed UPDC’s recovery and growth largely to strong leadership and strategic direction, noting that the quality of management plays a critical role in organisational success. Looking ahead, he said the company would continue to expand its development projects, leveraging its land bank and improved financial position to drive sustainable growth within Nigeria’s real estate sector.
