Buying real estate in Nigeria?

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Can foreigners own and buy land in Nigeria?

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Authored by the expert who managed and guided the team behind the Nigeria Property Pack

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Foreigners can legally acquire land in Nigeria, but only through leasehold arrangements with strict government approval requirements and significant documentation processes.

The Nigerian real estate market offers opportunities for foreign investors, particularly in major cities like Lagos and Abuja, though the legal framework requires careful navigation through state-specific regulations and mandatory governor's consent procedures.

If you want to go deeper, you can check our pack of documents related to the real estate market in Nigeria, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At The African Vestor, we explore the Nigerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lagos, Abuja, and Port Harcourt. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of land can foreigners legally purchase in Nigeria as of 2025?

Foreigners can legally acquire land in Nigeria only on a leasehold basis, never as permanent freehold owners.

The maximum lease period is typically 25 years, though some states may offer up to 99 years in exceptional circumstances. This leasehold arrangement means you gain the right to use and develop the land for the specified period, but the government retains ultimate ownership.

Urban land for residential, commercial, or light industrial purposes represents the primary opportunity for foreign buyers. Rural land presents significant challenges due to communal ownership structures and customary laws that make direct foreign acquisition nearly impossible. Government reserves, military zones, and areas designated for oil and gas operations remain completely off-limits to foreign ownership.

As of June 2025, states like Lagos and Abuja have streamlined their processes for foreign land acquisition in designated urban development zones, making these areas particularly attractive for international investors.

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Do different Nigerian states impose varying restrictions on land size and ownership types for foreigners?

Each of Nigeria's 36 states operates under its own Acquisition of Lands by Aliens Laws, creating a complex patchwork of regulations that foreign buyers must navigate.

Lagos State allows foreigners to acquire residential plots ranging from 500 to 2,000 square meters in designated areas, while Abuja's Federal Capital Territory permits larger commercial plots up to 5,000 square meters for specific business purposes. Rivers State restricts foreign ownership to plots under 1,000 square meters in urban centers like Port Harcourt.

Some states impose sector-specific limitations where foreigners can only purchase land for particular uses such as manufacturing, hospitality, or residential development. Kaduna State, for instance, requires foreign buyers to demonstrate job creation potential before approving commercial land acquisitions.

The universal requirement across all states remains the Governor's written consent, but processing times vary dramatically from 3 months in Lagos to 18 months in less developed states. Cross River State has introduced expedited processing for foreign investors committing to tourism development projects.

What is the exact government approval process foreigners must follow to purchase land in Nigeria?

The Governor's Consent stands as the mandatory cornerstone of any foreign land purchase in Nigeria, representing a non-negotiable legal requirement.

Process Step Required Actions Typical Timeline
Due Diligence Verify title at Land Registry, conduct property search 2-4 weeks
Professional Engagement Hire qualified lawyer and real estate agent 1 week
Agreement Drafting Negotiate terms, sign Deed of Assignment 2-3 weeks
Governor's Consent Application Submit documents, pay fees (1.5% of value) 3-12 months
Land Registry Registration Register Deed of Assignment officially 2-6 weeks
Certificate of Occupancy Obtain final ownership confirmation 4-8 weeks

Can foreigners complete land purchases in Nigeria without physically visiting the country?

Remote land acquisition in Nigeria is legally possible and increasingly common, particularly following the digital transformation accelerated by the COVID-19 pandemic.

Foreign buyers must appoint a trusted representative through a properly executed Power of Attorney, which requires notarization in your home country and subsequent authentication by the Nigerian embassy or consulate. This representative can attend site inspections, sign documents, and handle all physical aspects of the transaction on your behalf.

Virtual property inspections using drone footage, 360-degree cameras, and live video tours have become standard practice among reputable real estate firms in Lagos and Abuja. Many firms now offer virtual escrow services where funds are held in secure accounts until all documentation is verified and completed.

However, due diligence becomes even more critical in remote transactions, as fraudulent land sales targeting diaspora buyers have increased by 23% in 2024 according to Nigerian real estate fraud reports. Always verify your representative's credentials and use established real estate firms with verifiable track records.

What specific documents and permits must foreigners provide to purchase land in Nigeria?

The documentation requirements for foreign land purchases in Nigeria are extensive and vary slightly between states, but certain core documents remain universally mandatory.

Your valid international passport serves as primary identification, accompanied by a recent passport photograph and proof of your current residential address abroad. The seller must provide the original Certificate of Occupancy (C of O) or Governor's Consent for the property, along with a current survey plan prepared by a licensed surveyor within the past five years.

A comprehensive property search report from the Land Registry confirms ownership history and reveals any existing encumbrances or legal disputes. Tax clearance certificates from both buyer and seller ensure compliance with Nigerian tax obligations, while evidence of stamp duty payment (1.5% of property value) must be presented before registration.

For remote purchases, a properly executed Power of Attorney authenticated by Nigerian diplomatic missions becomes essential. Bank statements demonstrating source of funds help satisfy anti-money laundering requirements, particularly for cash transactions exceeding ₦5 million.

Additional state-specific requirements may include environmental impact assessments for large plots, building plan approvals for immediate development projects, and proof of technical expertise for industrial land acquisitions.

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How much does land typically cost across different Nigerian regions, and what are the current price ranges for urban versus rural properties?

Nigerian land prices vary dramatically by location, with Lagos commanding the highest premiums due to its status as the commercial capital and population density exceeding 20 million people.

Location Urban Price Range (₦) Rural Price Range (₦)
Lagos (Prime Areas - Ikoyi, VI) ₦130m - ₦500m+ per plot Not applicable
Lagos (Emerging - Lekki, Epe) ₦10m - ₦30m per plot ₦2m - ₦8m per plot
Abuja (Central Districts) ₦50m - ₦200m per plot ₦5m - ₦15m per plot
Port Harcourt ₦15m - ₦80m per plot ₦1m - ₦6m per plot
Kano/Kaduna ₦8m - ₦25m per plot ₦600k - ₦3m per plot
Secondary Cities ₦3m - ₦12m per plot ₦400k - ₦2m per plot

Land prices in emerging Lagos areas like Ibeju-Lekki and Epe experienced 15-18% appreciation in 2024, driven by major infrastructure projects including the Lekki Deep Sea Port and the Lagos-Calabar Coastal Highway. Abuja prices remained relatively stable with 3-5% growth, while Port Harcourt saw modest increases of 8-12% following renewed oil sector investments.

What are the complete tax obligations, fees, and hidden costs when foreigners purchase land in Nigeria?

Foreign land buyers in Nigeria face a comprehensive fee structure that typically totals 5-7% of the property purchase price, with costs varying by state and property value.

The Governor's Consent fee represents the largest single cost at 1.5% of the property's assessed value, while stamp duty adds another 1.5% to your total expenses. Registration fees consume an additional 0.5% of the property value, and survey fees range from ₦150,000 to ₦300,000 depending on plot size and location complexity.

Legal fees typically range from 3-5% of the property value, though this remains negotiable with your chosen law firm. Lagos State imposes an annual Land Use Charge of 0.394% of assessed property value, while other states have varying annual levies ranging from 0.1% to 0.5%.

Hidden costs often catch foreign buyers unprepared, including environmental impact assessment fees (₦50,000-₦200,000 for larger plots), security deposits for ongoing construction (₦500,000-₦2,000,000), and utility connection fees that can reach ₦300,000 for electricity and water hookups in premium areas.

Capital gains tax of 10% applies when selling the property, calculated on the profit margin between purchase and sale prices. Foreign exchange conversion fees and international wire transfer charges can add 1-2% to your total transaction costs.

Are there legal or practical limitations on cash payments for land purchases by foreigners in Nigeria?

Cash payments for land purchases remain legally permissible in Nigeria, but transactions exceeding ₦5 million trigger enhanced scrutiny under the country's anti-money laundering regulations.

The Economic and Financial Crimes Commission (EFCC) requires detailed documentation for large cash transactions, including bank statements proving the source of funds and declaration forms for amounts above ₦10 million. Most reputable real estate firms and legal practitioners now prefer bank transfers for transactions above ₦1 million to ensure proper audit trails.

Practical limitations include the physical security risks of carrying large amounts of cash in major Nigerian cities, where armed robbery targeting property transactions has increased by 31% in Lagos alone during 2024. Banks also impose daily withdrawal limits ranging from ₦500,000 to ₦2 million, making large cash assemblies time-consuming and logistically challenging.

Foreign buyers using international wire transfers benefit from better exchange rates and reduced security risks, though transfers exceeding $10,000 require additional documentation for both Nigerian and international banking compliance. Cryptocurrency payments remain illegal for real estate transactions in Nigeria as of mid-2025.

It's something we develop in our Nigeria property pack.

infographics rental yields citiesNigeria

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Can foreigners obtain mortgages to finance land purchases in Nigeria, and what are the current rates and eligibility requirements?

Mortgage financing for non-resident foreigners remains extremely limited in Nigeria, with most commercial banks requiring local residency or Nigerian company registration as prerequisites for loan approval.

The Diaspora National Housing Fund (NHF) offers the most accessible financing option for Nigerian citizens living abroad, requiring 12 months of contributions before loan eligibility and providing up to 70% loan-to-value financing with repayment terms extending to 15 years. Current interest rates range from 9-12% annually, significantly lower than the 18-25% rates typical for conventional commercial mortgages.

Non-Nigerian foreigners can access financing by establishing a Nigerian-registered company, which opens doors to commercial real estate loans from banks like Access Bank, GTBank, and First Bank. These institutions typically require 30-40% down payments, proof of income exceeding three times the monthly payment amount, and collateral security equal to 150% of the loan value.

Alternative financing includes developer payment plans where major construction companies like Mixta Real Estate and Rendeavour offer 24-48 month payment schedules with 20-30% initial deposits. International mortgage brokers specializing in African markets have begun offering foreign currency loans secured against properties in major cities, though rates typically exceed 15% annually.

What are the most frequent mistakes foreigners make when buying land in Nigeria, and how can these be prevented?

Inadequate due diligence represents the single most costly mistake foreign land buyers make in Nigeria, with over 40% of fraud cases in 2024 involving properties with disputed ownership or fake documentation.

Skipping professional legal representation to save costs often results in much larger expenses later, as unqualified agents or fraudulent sellers exploit foreign buyers' unfamiliarity with local procedures. Always engage lawyers registered with the Nigerian Bar Association and real estate agents licensed by the Estate Surveyors and Valuers Registration Board.

Trusting verbal agreements or preliminary contracts without proper legal documentation has led to numerous cases where sellers disappear or claim different terms were agreed upon. Insist on comprehensive written contracts reviewed by independent legal counsel before making any payments.

Underestimating the total cost of ownership catches many foreign buyers unprepared, as they budget only for the purchase price while ignoring ongoing fees, taxes, and maintenance costs. Factor in annual land use charges, security fees, and potential infrastructure levies when calculating your total investment.

Failing to verify infrastructure availability before purchase has left buyers with properties lacking reliable electricity, water, or road access. This is particularly common in rapidly developing areas where basic services lag behind residential development.

Which regions of Nigeria attract the most foreign land buyers and what drives this preference?

Lagos State dominates foreign land investment with approximately 65% of all international real estate transactions, driven by its status as Nigeria's commercial hub and gateway for international business operations.

The Federal Capital Territory (Abuja) attracts 20% of foreign land purchases, particularly from diplomats, international organization staff, and investors seeking stable government-backed infrastructure development. The presence of embassies, multinational corporations, and government institutions creates consistent rental demand for residential and commercial properties.

Port Harcourt in Rivers State captures 8% of foreign investment due to its role as Nigeria's oil and gas capital, attracting energy sector professionals and companies seeking operational bases. The city's international airport and seaport facilities provide crucial logistics advantages for business operations.

Emerging hotspots include Ibeju-Lekki in Lagos State, where the new international airport and deep sea port project have attracted significant foreign investment despite relatively underdeveloped current infrastructure. Foreign buyers are betting on massive appreciation potential as these mega-projects reach completion between 2025-2027.

Regional preferences vary by investor nationality, with Chinese investors favoring industrial land in Ogun State for manufacturing, Lebanese investors concentrating on commercial properties in Lagos and Kano, and South African investors targeting luxury residential developments in Abuja and Lagos.

Does land ownership in Nigeria provide any pathway to residency, permanent status, or citizenship for foreign buyers?

Land ownership in Nigeria provides no direct pathway to residency, permanent resident status, or citizenship for foreign buyers, as property investment and immigration policies operate under completely separate legal frameworks.

Nigeria does not offer any form of investor visa or residency-by-investment program tied to real estate purchases, regardless of the property value or investment amount. Foreign land owners must pursue residency through conventional immigration channels including work permits, business visas, or family reunification programs.

The Nigerian Immigration Service requires foreign residents to demonstrate active business operations, employment with Nigerian companies, or significant ongoing investments in job-creating enterprises to qualify for extended stay permits. Simple land ownership, even of multiple properties worth millions of dollars, does not satisfy these requirements.

Some foreign investors establish Nigerian companies to facilitate property purchases and business operations, which can provide grounds for business visa applications, but the land ownership itself remains incidental to the immigration application. The company must demonstrate genuine business activity and employment of Nigerian citizens to support visa renewal applications.

Citizenship requirements include fifteen years of continuous residence, fluency in an indigenous Nigerian language, and renunciation of previous citizenship, with no special provisions for property owners. Land investment may support financial stability requirements for immigration applications but cannot substitute for the fundamental residency and integration requirements.

It's something we develop in our Nigeria property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

  1. DLA Piper Real World - Corporate Vehicles Nigeria
  2. The African Vestor - What to Know Before Buying Land in Nigeria
  3. Arab MLS - Can Foreigners Buy Property in Nigeria
  4. Lands of Nigeria - Comprehensive Guide for Foreigners
  5. Trusted Advisors Law - Legal Perspective on Foreign Real Estate Acquisition
  6. The African Vestor - Nigeria Real Estate Tips for Foreigners
  7. The African Vestor - Nigeria Real Estate Market
  8. NIDCOM - Diaspora Housing Mortgage