Nigerian Real Estate: Lessons from the scandals of PWAN and Sujimoto

In Nigeria, real estate is often synonymous with wealth, status, and long-term security. For many, it is considered a safe investment hedge against inflation and a ticket to financial freedom. However, the glittering veneer of the real estate market in Nigeria appears to be wearing off. Behind the well-polished, carefully designed ads in glossy Instagram publications and billboards lies a shadier side that every investor ought to take note of.

The PWAN Group and Sujimoto Construction have become household names in the realm of real estate discussions. The two high-profile companies attracted thousands of clients with glittering promises of luxury, affordability, and empowerment in property ownership. However, with time, the first cracks began to show-large and literal.

This article seeks to throw light on the hard life lessons learned from both scandals and what they mean to the average Nigerian in his everyday life, considering property investments.

The allure of property in Nigeria

Before diving into the real scandals, let’s be very honest about one thing: property is alluring in Nigeria. Whether one buys land, rents short lets, or invests in off-plan projects, there is this belief culturally: property equals prosperity. An individual is never really “settled” until a land or a house is in their name. Such pressure is widely responsible for pushing many into a hasty entry into real estate, driven more by emotion than sense. 

The PWAN Group and Sujimoto Construction were branded as creators of dreams, thus giving Nigerians an easy chance either to buy land or live elegantly yet affordably. And because so many people are tired of “saving and still suffering,” the promises seem like an instant way to generational wealth. Unfortunately, as many investors now find out, shortcuts may cost more.

The PWAN story: Too many mands in the plot

PWAN Group (Property World Africa Network) set itself up as the king of land banking. Their model was simple, i.e., acquiring huge acres of land outside major cities, such as Lagos, Abuja, and Port Harcourt, and then selling small portions to individuals as a win-win investment.

Things, though, began unraveling when clients raised alarm bells. People paid for land but had no means of accessing it. Some discovered that their properties were under dispute, while others found that they were under acquisition by the government. Among a plethora of complaints, incomplete infrastructure made years after paying was highlighted; no roads, no drainage, security.

PWAN operated more like a multi-level marketing company than a professional real estate firm. Agents were recruited to bring in more clients and earn commissions. The focus seemed to be more on selling than on delivering. And when complaints began piling up, responses were either dismissive or vague. Clients soon realized that what they had invested in was indeed a marketing fantasy that was not registered as real property.

The Sujimoto hype: when luxury turns into liability

A luxury real estate brand was created, Sujimoto, being a “Dubai of Africa” in the heart of Lagos. Sujimoto became a household name through very aggressive public relations, social media marketing, and endorsements from superstars. Their construction in award-winning projects like Lucrezia and Giuliano on Banana Island promises state-of-the-art architectural design, super smart features, and luxury levels accessible only to billionaires.

However, disaster struck after all the glitz. News about delayed deliverables, lawsuits from contractors and suppliers, and rumors from investors saying their funds had been mismanaged began to surface. Some of these said investors claimed to have forked over a large amount for their units, which they either never saw or were never delivered. Turns out Sujimoto’s extravagant branding was not backed by a solid financial or operational structure.

At the moment, many questions lie unanswered. But one thing is clear: people trusted the brand more than they did the actual documents. And that has cost them a lot.

Lessons learnt

Though hearts were broken and money was lost, it wasn’t all a waste. It may be a bitter pill to swallow, but there are certainly lessons learnt in hardship. If you were one of the victims of either of the two scandals, you must have lost money, peace, and the hope of ever owning a property in Nigeria. Despite the severe loss, there are gains, which are the lessons you learnt after the whole fiasco. 

1. Don’t get dazzled by brand names 

So, the biggest lesson from both scandals is that packaging has nothing to do with performance. Just because a company sets up a nice office, has Instagram followers, and has equipped polished adverts, that doesn’t guarantee trustworthiness.

In both these cases, people could fall for the beautiful logos, branded vehicles, and smooth-talking agents. Branding can sell you the dream. But due diligence is what saves you from a nightmare. Ask the tough questions before you invest your money in any property. Is the land government-approved? Is the title valid? Has the company delivered similar projects before? Can you speak to past clients? 

2. Real Estate does not guarantee quick money

People expect immediate profit from the investment in short-term contracts. PWAN even went as far as demonstrating lands that “appreciated” within 6 months. For Sujimoto, the selling point was luxury units, appreciating thrice their worth within a couple of years. That is not how real estate works, not in Nigeria, nor anywhere else in the world.

Yes-the land appreciates, but usually over time. Buildings usually take time to erect. Government policies normally take time, as infrastructure usually requires time. Someone might be promising what is “overnight profit,” then you may want to pause. The best investment in real estate is the long-term sort. Everything else is either a hype or a Ponzi scheme disguised. 

3. Always verify the title 

In real estate, the most important document is the title. Without it, you’re just a glorified squatter. One painful lesson learned in the PWAN scandal was that many clients didn’t know whether what they held was a survey plan, deed of assignment, C of O, or gazette. They just paid and prayed. 

But ignorance often proves costly. Some discerning investors found out later that their land was subject to government seizure or belonged to a bigger family dispute. By then, it was too late. Before you part with your money, make sure the title is clean, verifiable, and registered. And do not take the company’s word for it- get an independent lawyer to do the checks.

4. Don’t buy what you haven’t seen

Site inspections exist for a reason. But many people, especially Nigerians in the diaspora, pay millions for property that they have never visited. Some don’t even bother to read the papers they sign. According to buyers in both PWAN and Sujimoto cases, they said they “trusted the company” and just wanted to get something quickly.

Better slow and sure than hasty and sorry. Whether land or apartment, go there, or send someone you trust. Ask real questions. Take photos. Compare what was promised to what’s on the ground. Because after money leaves your account, the story changes fast.

5. Be careful when buying off-plan

Off-plan buying, in which you purchase a property before it is built, can be a wonderful money-saver. It also has serious downsides, however. Many buyers with Sujimoto paid millions for off-plan luxury apartments that are yet to be finished. In some instances, construction stopped halfway due to poor funding or internal issues.

However, if you’re buying off plan, ensure that the developer has a proven performance record in delivering comparable projects on time. Have deadlines, penalties for delays, and refund policies in writing from the developer. Otherwise, you’ll end up with stories and excuses as your money gets buried under cement and sand.

6. The law is slow; prevention is better than cure

Some investors are still trying to retrieve their money from these companies. Unfortunately, resolving legal matters in Nigeria can either extend for several years or even decades. In addition, even winning may not necessarily guarantee that the rightful owner will obtain satisfaction.

So, it is wiser just not to participate in drama than to keep on fighting for justice after being duped. That means no shortcuts, no emotional buying, and no transferring millions without a legal contract. Do not invest just because your friend did it and it worked for him. Everyone has different tastes in risk, and every real estate deal should be treated like a real business.

7. Emotion is the enemy of investment

Emotion sold PWAN and Sujimoto. PWAN sold the idea of becoming a landowner even without owning a plot within the city. Sujitomo sold the idea of living like the rich even when struggling. They knew what people wanted and packaged it well.

But sound investment decisions are never emotional. They are logical, calculated, and fact-backed. Before buying a property, ask yourself: Does this fit in with my current income, future goals, and verified information? If the answer is: “I just love the idea”, then pause. 

Conclusion

Real estate is still one of the best investments to make in Nigeria. The new scandals highlight the fact that an entirely new mindset is in order- one that would crave clarity over excitement, paper over plaster, and one that sees through the marketing and focuses on the math. 

These lessons should never be forgotten as PWAN and Sujimoto fade from newsworthy headlines. The best way to fight against a morally corrupt real estate industry in Nigeria is to equip yourself with knowledge.  Don’t just buy the land. Don’t just pay for the house. Learn the business. Study the details. And protect your money like your future depends on it -because it does.