Effect of Substance Trafficking and Abuse on Real Estate Investment in Nigeria: A Review

Abstract

Substance trafficking and abuse pose escalating threats to public health, urban safety, and economic development, with growing evidence suggesting their adverse implications for real estate investment. While global studies have explored aspects of this relationship - such as the stigmatization of drug-affected properties and the laundering of illicit funds into real estate - limited attention has been paid to these dynamics within the Nigerian context. This scoping literature review addresses this critical gap by synthesizing global and Nigerian scholarship on the intersection of substance-related activities and property markets. Drawing on Arksey and O’Malley’s (2005) methodological framework, relevant literature was systematically identified through academic databases (Scopus, JSTOR, AJOL) and grey literature sources, applying clear inclusion and exclusion criteria. Thematic analysis revealed three major areas of concern: the investment risks posed by drug activity, the impact of treatment centres on property values, and the role of illicit finance in real estate transactions. While some international studies demonstrate measurable declines in property values in drug-affected areas, Nigerian studies remain sparse, anecdotal, or policy-focused, underscoring the need for empirical inquiry. This review contributes to the body of knowledge by mapping current debates, identifying conceptual and geographic gaps, and proposing a research agenda for Nigeria. Findings emphasize the urgent need for interdisciplinary approaches and regulatory reforms to mitigate the effects of drug-related activities on real estate markets in developing countries.