Notes From The Africa ESG Conference 2025: Green Real Estates Initiatives | Gidi

The Africa ESG Conference and Exhibition, convened by the Real Estate Developers’ Association of Nigeria (REDAN) in collaboration with the Mortgage Bankers Association of Nigeria (MBAN) and the Nigeria-UK Real Estate Society, brought together key stakeholders to promote a culture of sustainable construction.

Themed “Sustainable Real Estate Value Chain: The Era of Green Initiatives in Africa” this forum gathered policymakers, developers, urban planners, financiers, architects, and sustainability advocates to chart a greener path forward. Prince Akintoye Adeoye, president of REDAN (and a proud member of the association’s leadership), described the conference as a platform to reposition Africa’s built environment for a resilient, inclusive future.

In his remarks, Adeoye warned that if the industry ignores sustainability, challenges like environmental degradation, rapid urbanization, socio-economic inequality, and weak governance will “threaten to undermine economic growth, displace vulnerable communities, and exacerbate climate-related risks.” By contrast, embracing ESG principles – environmental, social, and governance criteria – offers a chance to “mainstream” responsible practices in real estate, from reducing carbon emissions and improving energy efficiency to providing affordable housing and ensuring transparency.

ESG (Environmental, Social, and Governance) has gained global prominence as a framework for ethical and sustainable investment, and it is especially critical in real estate. The environmental component addresses how developments impact the planet, a vital concern given that buildings contribute about 39% of annual global greenhouse gas emissions. Construction and property operations consume vast energy and resources, so prioritizing green design can significantly cut carbon footprints.

The social aspect of ESG centers on a development’s impact on people and communities. In Nigeria, where the housing deficit exceeds 28 million units and the population is projected to soar past 375 million by 2050, real estate projects carry immense social responsibility. Issues like housing affordability, community displacement, and public health are at stake.

The governance dimension focuses on ethical management and compliance. This is particularly pertinent in places like Lagos, which, despite multiple regulatory agencies, has suffered frequent building collapses due to sharp practices and poor compliance.

In short, ESG provides a holistic lens through which real estate developers must evaluate success by environmental stewardship, social value, and good governance. In the African context, ESG is an urgent call to action ”to tackle the climate and urban challenges confronting cities.

Moving from theory to practice, green real estate initiatives offer concrete strategies for sustainable development. At the conference, experts and industry leaders explored a range of innovative approaches, including green building technologies and financing models. Some key initiatives making waves in Nigeria and beyond are

• Energy-Efficient Buildings: This is crucial in a country where the electricity supply is inconsistent. Lagos, for example, meets only about 20% of its power demand via the grid, forcing heavy use of diesel generators. Energy-smart buildings help break this cycle by providing reliable power sustainably.

• Sustainable Materials and Design: Using sustainable materials not only shrinks the environmental footprint but can also stimulate local industries and reduce costs long-term.

• Green Spaces and Community Planning: Truly sustainable developments look beyond individual structures to the broader community. Thoughtful urban planning creates healthier, more inclusive communities.

• Sustainable Financing and Innovation: Achieving green development at scale will require creative financing and partnership models. Stakeholders at the ESG Conference highlighted the need for sustainable finance options, like green bonds, climate funds, and public-private partnerships, to fund eco-friendly projects.

Embracing ESG principles and green initiatives is an urgent imperative for Africa, and Nigeria in particular, given today’s developmental challenges. Across many African cities, public infrastructure is overstretched by booming populations and rapid urban migration. Lagos, Nigeria’s megacity of over 20 million, is a prime example of both the challenges and the opportunities.

With its population growing and an urban housing shortfall in the millions, the conventional approaches to development are proving unsustainable. Roads are congested, power supply is erratic, and drainage and water systems strain under the demand.

Private real estate developers often find themselves struggling with problems that limit sustainable development, from the high cost of providing their own electricity and water (due to inadequate public supply) to navigating bureaucratic hurdles for project approvals.

On the social front, ESG-oriented development means prioritizing projects that address community needs, such as affordable housing, public transport integration, and amenities like schools and healthcare within new estates.

By building inclusive developments rather than gated islands of luxury, private developers can help absorb urban growth more healthily, easing the proliferation of slums and improving living standards.

Finally, robust governance in real estate—transparency in land acquisition, adherence to regulations, and stakeholder engagement—builds trust and attracts investment. International investors and partners are increasingly drawn to markets that can demonstrate ESG compliance and risk mitigation.

Nigeria stands to benefit from this trend: by improving governance and sustainability metrics, the country could unlock new financing for green infrastructure and housing projects.

The push for ESG and green real estate initiatives offers a possibility that makes economic development and sustainability go hand in hand. This is a call to action for all stakeholders in the real estate sector. There is a palpable sense of optimism that, through collective effort and forward-thinking policies, Nigeria can leapfrog towards a more sustainable model of urban growth.

The journey will require commitment and creativity: architects daring to design net-zero energy buildings, banks creating mortgages that reward eco-friendly homes, governments enforcing standards and offering incentives, and communities embracing a culture of sustainability.

Importantly, it will also require champions, that is, thought leaders and industry professionals who are willing to advocate for change and demonstrate by example that green development is profitable and achievable.

 

Author: Tobi Akerele
Chief Executive Officer,
Gidi Real Estate Investment Limited.