How to buy a house in Nigeria?

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

Everything you need to know before buying real estate is included in our Nigeria Property Pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Nigeria. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheAfricanVestor, 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.

How easy is it compared to buying a house in Western countries?

Buying property in Nigeria is significantly more complex and risky compared to Western countries, requiring extensive due diligence and careful selection of trusted professionals.

Western property markets typically offer streamlined title registry systems, stronger buyer protection laws, and regulated professional oversight that make transactions more predictable and secure. In contrast, Nigerian property purchases rely heavily on manual verification processes and personal relationships with agents and lawyers.

The Nigerian system involves more bureaucratic hurdles, higher fraud risks, and document disputes compared to most Western markets where digital title systems and professional regulations provide standardized protection. While Western buyers can often complete transactions with confidence in institutional safeguards, Nigerian purchases require personal vigilance and local expertise to navigate successfully.

Government consent requirements, manual land registry systems, and the need for extensive document authentication add layers of complexity that don't exist in most developed markets. However, with proper preparation and trusted local partners, foreign buyers can complete successful purchases.

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

What are the exact steps in the process from start to finish?

The Nigerian property buying process involves nine key steps that must be completed sequentially for a legal and secure transaction.

First, engage licensed local professionals including a registered real estate agent and qualified property lawyer who understand local regulations and can guide you through the process. Next, conduct thorough property search and due diligence, researching available properties, visiting sites, and verifying legal ownership and title status through official channels.

The third step involves negotiating terms and drafting a comprehensive purchase agreement that includes sale conditions, payment procedures, and contingencies. Following this, perform detailed title searches and document verification at land registries and government bureaus to confirm authenticity and ownership.

The fifth step requires obtaining Governor's consent, which is mandatory for all property transfers in Nigeria and can take 2-8 weeks. Next, execute the Deed of Assignment or Conveyance, which is the legal document that officially transfers property ownership from seller to buyer.

Step seven involves paying all required fees and taxes including stamp duty, registration fees, agent commissions, and legal costs. The eighth step is completing the property payment, typically through secure bank transfers or escrow services rather than cash transactions.

Finally, register the property at the state land registry to update ownership records and complete the legal transfer process.

Which parts of the process are mandatory and which are optional?

Several steps in the Nigerian property buying process are legally mandatory and cannot be skipped without risking invalid ownership or future legal disputes.

Mandatory requirements include conducting due diligence on property title and ownership, obtaining Governor's consent for the transfer, executing a proper Deed of Assignment or Conveyance, registering the property at the state land bureau, paying all statutory fees and taxes, and completing legal title verification through official channels.

Optional but highly recommended steps include hiring a licensed real estate agent and qualified lawyer, conducting physical site inspections (though remote verification is possible), using escrow services for payment security, and utilizing proptech platforms for remote buyers who cannot visit Nigeria personally.

While legal representation isn't technically mandatory, attempting to navigate Nigerian property law without qualified legal assistance significantly increases risks of fraud, documentation errors, and future disputes. Similarly, while physical site visits aren't legally required, remote buyers should arrange trusted third-party inspections.

Escrow services, though optional, provide crucial protection for large financial transactions and help prevent common fraud schemes that target foreign buyers unfamiliar with local practices.

What documents do you need to legally complete a purchase?

Document Type	Purpose	Obtained From
Certificate of Occupancy (CofO)	Proves legal right to occupy and use the land	State Government Land Bureau
Deed of Assignment/Conveyance	Legal document transferring ownership	Lawyer/Legal Practitioner
Survey Plan	Shows exact boundaries and measurements	Licensed Surveyor
Land Purchase Receipt	Proof of payment and transaction record	Seller or Agent
Governor's Consent	Official approval for ownership transfer	State Government
Tax Clearance Certificate	Confirms all property taxes are current	State Tax Authority
Building Plan Approval	For developed properties, proves legal construction	Urban Development Board

Can you buy a property without physically being in Nigeria?

Yes, foreign buyers can complete property purchases in Nigeria remotely using trusted local representatives, digital platforms, and remote verification services.

Remote purchases require engaging reputable licensed agents and qualified lawyers who can act as your representatives throughout the transaction process. These professionals can conduct site inspections, verify documentation, handle negotiations, and manage the legal transfer process on your behalf.

Digital proptech platforms and remote verification services have made it easier for overseas buyers to research properties, view virtual tours, and complete due diligence without physical presence. However, having a trusted third party conduct physical site inspections is strongly recommended to prevent fraud and verify property conditions.

Power of attorney arrangements allow your chosen lawyer or agent to legally act on your behalf for document signing, payment processing, and property registration. All major transaction documents can be executed remotely with proper legal representation and notarization.

While remote purchases are possible, success depends heavily on selecting trustworthy, licensed professionals with verified credentials and good reputations in the local market.

What are the common mistakes and pitfalls foreigners usually face?

Foreign buyers in Nigeria frequently fall victim to several avoidable mistakes that can result in financial losses, legal disputes, or invalid property ownership.

The most common mistake is skipping thorough due diligence and purchasing through unverified agents, family connections, or friends without proper professional oversight. Many foreign buyers also fail to obtain complete documentation, particularly the Certificate of Occupancy, proper surveys, and valid Deeds of Assignment.

Payment-related errors include paying full amounts upfront or in cash without escrow protection or verified purchase agreements. Foreign buyers often underestimate the total cost by failing to budget for hidden expenses like stamp duty, agent fees, registration costs, and legal charges that can add 6-15% to the property price.

Another critical mistake is failing to verify land authenticity, existing encumbrances, or government acquisition status that could invalidate the purchase. Many buyers also rush transactions without allowing sufficient time for proper Governor's consent approval and complete title verification.

Working with unlicensed agents or developers without checking their Corporate Affairs Commission (CAC) registration status frequently leads to fraud or incomplete transactions that leave buyers without legal recourse.

Are real estate agents generally reliable in Nigeria?

Real estate agent reliability in Nigeria varies dramatically from highly professional licensed practitioners to outright fraudulent operators targeting unsuspecting foreign buyers.

Trustworthy agents should be licensed with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) or registered with the Real Estate Developers Association of Nigeria (REDAN), with verifiable Corporate Affairs Commission (CAC) registration and positive client references from completed transactions.

Professional agents provide transparent pricing, detailed property documentation, proper contracts, and facilitate secure payment processes through established legal channels. They maintain physical offices, professional credentials, and can provide references from previous international clients.

However, the market includes many unlicensed operators who use fake credentials, promote non-existent properties, demand upfront payments, or engage in various fraud schemes specifically targeting foreign buyers who cannot easily verify local credentials.

Success requires thoroughly vetting agents through license verification, CAC registration checks, client references, and working only with professionals who demonstrate transparent business practices and proper documentation procedures.

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

Will the legal system actually protect you if something goes wrong?

The Nigerian legal system can provide protection for property buyers, but enforcement is often slow, unpredictable, and depends heavily on having complete proper documentation and legal registration.

Courts will generally uphold property rights when buyers have obtained all required documents including valid Certificates of Occupancy, proper Deeds of Assignment, Governor's consent, and complete land registry registration. However, legal proceedings can take months or years to resolve, and outcomes aren't always predictable.

The effectiveness of legal protection depends significantly on the quality of your legal representation and the completeness of your transaction documentation. Buyers with incomplete paperwork, missing government approvals, or informal purchase agreements face much weaker legal positions.

Alternative dispute resolution through professional mediation or arbitration often provides faster and more predictable outcomes than traditional court proceedings for property disputes between documented buyers and sellers.

Prevention through proper transaction procedures, complete documentation, and qualified legal oversight provides much stronger protection than relying on post-purchase legal remedies through the court system.

What precautions should a foreign buyer take before paying?

Foreign buyers should implement multiple layers of protection before releasing any payments to ensure transaction security and legal validity.

1. Use secure payment methods including bank transfers, banker's drafts, or escrow services rather than cash payments to maintain transaction records and fraud protection2. Demand complete documentation review including Certificate of Occupancy, Survey Plans, Tax Clearance, and Deed of Assignment before any payment release3. Verify agent and developer registration status through Corporate Affairs Commission (CAC) database checks and professional licensing verification4. Conduct comprehensive land dispute checks and confirm the property isn't subject to government acquisition, court orders, or existing encumbrances5. Require signed, detailed purchase contracts with clear terms, conditions, and legal protections before making any financial commitments6. Arrange independent property valuations and legal reviews through qualified professionals not connected to the seller or their representatives

Payment should only be released in stages tied to completion of specific milestones including document verification, legal approvals, and title registration rather than lump-sum advance payments that increase fraud risk.

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.

How long does the whole process usually take from start to finish?

Complete property purchases in Nigeria typically require 1-3 months from initial property selection to final ownership registration, though timeline can vary significantly based on government processing and documentation requirements.

The property search and initial due diligence phase usually takes 2-4 weeks, including agent selection, property viewings, and preliminary document verification. Documentation and title verification processes require an additional 3-6 weeks for obtaining and verifying Certificates of Occupancy, Survey Plans, and other required paperwork.

Governor's consent approval, which is mandatory for all property transfers, typically takes 2-8 weeks depending on the state government's processing efficiency and current workload. Some states process consent applications faster than others, with Lagos and Abuja generally having more streamlined systems.

Final deed execution, payment processing, and property registration usually require 1-3 weeks once all approvals are obtained. However, many transactions experience delays at the Governor's consent or documentation verification stages that can extend timelines to 4-6 months.

Remote buyers should allow additional time for document authentication, power of attorney arrangements, and coordination with local representatives that can add 2-4 weeks to the overall timeline.

What taxes, fees, and hidden costs should you expect, with a full breakdown?

Property purchases in Nigeria involve multiple fees and taxes that typically add 6-15% to the base property price, with costs varying by state and property value.

Cost Category	Typical Amount	Payment To
Real Estate Agent Commission	5-10% of property price	Licensed Agent
Stamp Duty	0.5-2% (varies by state/value)	State Government
Land Registration Fees	₦10,000-₦400,000	State Land Registry
Legal/Attorney Fees	1-5% of property price	Qualified Lawyer
Property Survey Costs	₦50,000-₦250,000	Licensed Surveyor
Governor's Consent Fee	₦50,000-₦300,000	State Government
Tax Clearance Certificate	₦5,000-₦50,000	State Tax Authority
Property Valuation	₦30,000-₦150,000	Certified Valuer
Document Authentication	₦10,000-₦100,000	Various Government Offices

Can you buy a house in cash, and if so, how does that work?

Cash purchases are legal in Nigeria but significantly increase fraud risks and should be avoided in favor of traceable payment methods that provide transaction security.

While Nigerian law permits cash property transactions, using physical cash makes buyers vulnerable to theft, fraud, and disputes since cash payments provide no transaction records or recourse if problems arise. Large cash transactions also attract unwanted attention and may trigger money laundering investigations.

Safer alternatives include bank transfers, banker's drafts, or certified checks that create permanent transaction records while still providing immediate payment clearing. These methods offer legal protection and audit trails that cash transactions cannot provide.

If cash payment is unavoidable, transactions should occur at bank premises with official witnessing, immediate deposit into escrow accounts, and comprehensive receipt documentation signed by all parties with proper legal oversight.

Professional escrow services provide the most secure option for large property payments, holding funds until all legal requirements are satisfied and proper ownership transfer is completed through official channels.

Is mortgage financing really available for foreigners, and what are the rates, conditions, and tips to get one?

Mortgage financing for foreign buyers in Nigeria is extremely limited, expensive, and typically requires Nigerian residency or significant local income documentation.

Available mortgage rates for foreigners average 18% or higher annually, compared to typical Western mortgage rates of 3-8%, making financing prohibitively expensive for most international buyers. Most Nigerian banks prefer lending to foreign-based Nigerians with established local connections rather than non-Nigerian foreign buyers.

Qualifying conditions typically include Nigerian work permits or residency status, local employment with verifiable income, substantial down payments of 30-50%, and sometimes additional collateral beyond the property being purchased. Processing times often exceed 6 months with extensive documentation requirements.

Success strategies include establishing relationships with major Nigerian banks before property shopping, maintaining Nigerian bank accounts with regular activity, providing comprehensive income documentation from home countries with currency conversion calculations, and considering partnerships with Nigerian residents who can co-sign mortgage applications.

Most foreign buyers find cash purchases or financing through their home country banks more practical than pursuing Nigerian mortgage products given the high costs and complex qualification requirements.

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

What types of property can foreigners buy, and what can't they buy?

Foreigners can legally purchase built residential properties, apartments, and commercial buildings, but face restrictions on acquiring freehold land ownership depending on state regulations and property classifications.

Permitted purchases include completed houses, condominiums, apartment units, office buildings, and commercial properties with existing structures where foreigners can obtain leasehold interests or purchase built developments. Most urban residential developments and gated communities welcome foreign buyers without restrictions.

Restricted or prohibited purchases typically include undeveloped freehold land in rural areas, communal or ancestral lands with traditional ownership structures, government-reserved lands, and certain agricultural properties where foreign ownership is limited or requires special approvals.

Some states have specific restrictions on foreign land ownership that require Governor's special consent or limit foreign buyers to leasehold arrangements rather than outright ownership. Federal Capital Territory (Abuja) and Lagos generally have more accommodating policies for foreign property investment.

Successful foreign buyers focus on developed urban properties, established residential estates, and commercial buildings where ownership rights are clearer and legal protections are stronger than rural or undeveloped land purchases.

Does buying property give you any path to residency or citizenship?

Property ownership in Nigeria does not provide any direct pathway to residency, citizenship, or visa benefits for foreign buyers.

Nigeria currently operates no investor visa or residency-by-investment programs linked to real estate purchases, unlike some countries that offer residency rights to significant property investors. Owning Nigerian property has no impact on visa requirements, work permits, or immigration status.

Foreign property owners must still obtain appropriate visas for visits, work permits for employment, or residency permits through standard immigration channels unrelated to their property investments. Property ownership may be considered favorably in some visa applications as evidence of ties to Nigeria, but provides no automatic immigration benefits.

Citizenship requirements remain based on birth, ancestry, naturalization through long-term residency, or marriage to Nigerian citizens, with no property-related pathways available under current immigration law.

Buyers interested in Nigerian residency should pursue immigration options independently of property investment decisions, as real estate ownership alone provides no legal basis for extended stays or permanent residence.

Where do foreigners most often buy homes in Nigeria?

Foreign buyers and Nigerian diaspora investors concentrate their purchases in major urban centers with better infrastructure, security, and international connectivity.

Lagos remains the top destination with foreigners particularly active in Victoria Island, Ikoyi, Lekki Peninsula, and Ikeja areas that offer modern amenities, reliable utilities, and proximity to international business districts. Victoria Island and Ikoyi command premium prices but provide the most developed infrastructure and security systems.

Abuja attracts significant foreign investment in upscale neighborhoods including Maitama, Asokoro, Gwarinpa, and Jahi where government workers, diplomats, and international organizations create steady rental demand for quality properties.

Port Harcourt appeals to oil industry professionals with concentrated buying in New GRA (Government Reserved Area) and Old GRA neighborhoods that serve the petroleum sector workforce and international companies.

Gated estate developments and new planned communities across these cities increasingly attract foreign buyers seeking modern security systems, reliable utilities, and international-standard amenities that address common concerns about infrastructure and safety in Nigerian urban areas.

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. Teta Homes - Buy Property in Nigeria from Abroad
2. LinkedIn - Guide to Buying Property in Nigeria for Foreigners
3. Nigeria Real Estate Blog - How Nigerians Abroad Invest in Real Estate
4. Nigeria Housing Market - 7 Mistakes Nigerians in the Diaspora Make
5. Manifield Solicitors - Protecting Your Investment
6. Plus World Realtors - The Role of Real Estate Agents in Nigeria
7. Metro and Castle - How to Spot a Trusted Property Developer
8. Facibus Housing - Must Have House Documents
9. Urban Ease - Mistakes to Avoid When Buying Property
10. 234 Digest - Nigeria's Real Estate Diaspora Investment