How to invest in property 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 The AfricanVestor, 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 property in Western countries?

Buying property in Nigeria as a foreigner is significantly more complex than in most Western countries.

The Nigerian property market requires additional layers of verification and government approval that don't exist in countries like the United States, Canada, or the United Kingdom. The most critical difference is the mandatory Governor's Consent requirement, which adds 1-3 months to the process and costs 1.5-8% of the property value depending on the state.

Title verification in Nigeria is more challenging because property registries are less transparent and prone to conflicts. Unlike Western countries where property ownership records are digitized and easily accessible, Nigerian land records often involve manual searches across multiple registries. Fraud risks are also higher, with cases of multiple sales of the same property or fake documentation being more common than in developed markets.

The legal framework provides protection, but court processes are slower, and recovery from fraud can be difficult if proper due diligence wasn't conducted. Western property markets typically have more standardized procedures, better consumer protection laws, and faster dispute resolution mechanisms.

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

What are the exact steps to follow if I want to invest in property in Nigeria?

The property investment process in Nigeria follows six essential steps that must be completed in sequence.

First, engage local experts including a reputable real estate agent and legal counsel familiar with Nigerian property law. This is crucial because navigating the complex legal requirements without local expertise often leads to costly mistakes. Second, conduct thorough due diligence by verifying title documents, especially the Certificate of Occupancy, and checking for encumbrances, pending litigation, or communal disputes.

Third, negotiate and sign a formal Sale Agreement outlining terms, payment schedules, and transfer conditions. Fourth, apply for Governor's Consent, which is legally required for all property transfers and can take 1-3 months to obtain. Fifth, complete the conveyance by settling the balance and finalizing the Deed of Assignment or conveyance document.

Finally, register the new ownership at the state land registry to secure legal title. This final step is critical as unregistered properties can face ownership challenges later. Each step has specific documentation requirements and timelines that vary by state, making local legal counsel essential throughout the process.

Which documents are mandatory, and which ones are optional?

Seven documents are absolutely mandatory for legal property ownership in Nigeria.

Document Type	Status	Purpose
Certificate of Occupancy (C of O)	Mandatory	Primary proof of land ownership and government recognition
Deed of Assignment/Conveyance	Mandatory	Legal document transferring ownership from seller to buyer
Governor's Consent	Mandatory	State government approval required for all property transfers
Survey Plan	Mandatory	Defines exact boundaries and measurements of the property
Stamp Duty Payment Receipt	Mandatory	Proof of tax payment (1.5% of property value)
Land Purchase Receipt	Mandatory	Evidence of payment and transaction completion
Registered Title at State Lands Registry	Mandatory	Final legal proof of ownership registration
Contract of Sale	Optional	Preliminary agreement but not final legal title
Building Plan Approval	Optional	Required only for construction or major renovations
Utility Payment Receipts	Optional	Shows property maintenance history

Can I complete the whole process without physically being in Nigeria?

Yes, it's possible to complete the entire property purchase remotely, but it requires careful planning and trusted local representation.

Remote purchases are facilitated through Power of Attorney arrangements where you legally empower a reliable local attorney or agent to sign documents and complete procedures on your behalf. The Power of Attorney document must be properly notarized and registered with the Nigerian authorities to be legally valid.

However, remote buyers face higher risks and should implement additional safeguards. Independent verification of all documents and property details is essential, as you cannot personally inspect the property or meet the seller. Many successful remote buyers visit Nigeria at least once during the closing process to verify everything firsthand.

The key to successful remote purchasing is selecting experienced, licensed legal counsel with a proven track record in foreign buyer transactions. They should provide regular updates, copies of all documents, and detailed progress reports throughout the 2-6 month process.

What are the common mistakes and pitfalls foreigners usually make?

Six critical mistakes account for most foreign investor losses in the Nigerian property market.

1. **Insufficient due diligence on property titles** - Many foreigners skip comprehensive title searches and fall victim to properties with disputed ownership or fake documentation. Always verify the Certificate of Occupancy directly with the state land registry.2. **Overlooking Governor's Consent requirements** - This mandatory approval makes the transfer legally invalid if not obtained, yet many buyers complete purchases without it, creating future legal problems.3. **Buying communal or disputed land** - Some properties are subject to family or community disputes that aren't immediately apparent. These can result in complete loss of investment when the rightful owners emerge later.4. **Paying cash directly to unverified parties** - Direct cash payments to sellers or agents without proper escrow arrangements often result in fraud, especially in online transactions.5. **Not registering with the lands registry** - Failing to complete final registration leaves the property legally vulnerable to future ownership challenges or double sales.6. **Falling for fake online listings** - Scammers often post attractive properties at below-market prices on international websites, targeting foreign investors who can't easily verify the listings in person.

Are real estate agents generally reliable in Nigeria?

Real estate agents in Nigeria have widely varying reliability levels due to limited regulation and licensing enforcement.

The Nigerian real estate sector lacks the standardized licensing and oversight found in Western countries. While legitimate, experienced agents exist, the market also contains many unlicensed operators and fraudsters posing as legitimate agents. The Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) provides some regulation, but enforcement is inconsistent.

Reliable agents typically have established offices, proper licensing, verifiable track records, and strong local referrals from previous foreign clients. They should provide detailed property histories, assist with due diligence, and maintain transparent communication throughout the process. Warning signs include agents demanding large upfront fees, refusing to provide licensing credentials, or pressuring for quick decisions without proper documentation review.

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

The safest approach involves using agents referred by established law firms, expatriate communities, or verified through professional real estate associations. Always verify agent credentials independently and never rely solely on their recommendations for legal counsel or property verification.

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

The Nigerian legal system provides robust protection for foreign property investors, but only when all procedures are followed correctly.

Nigeria's property laws offer strong protections including statutory rights to registered property owners, legal remedies for breach of contract, and criminal penalties for property fraud. The key requirement is proper documentation - properties purchased with complete paperwork including Certificate of Occupancy, Governor's Consent, and registry registration receive full legal protection.

However, the court system has significant limitations that affect dispute resolution. Court processes are typically slow, often taking 2-5 years for complex property disputes. Legal fees can be substantial, and recovery from fraudsters may be limited if they lack assets. Additionally, if initial due diligence was inadequate, courts may offer limited remedies.

The most effective protection comes from prevention rather than litigation. Foreign investors who conduct thorough due diligence, use qualified legal counsel, and ensure proper documentation rarely face significant legal challenges. When problems do arise, they're usually resolved more quickly through negotiation and local mediation than through formal court proceedings.

What precautions should I take before closing a deal?

Eight critical precautions can prevent most common problems in Nigerian property transactions.

First, independently verify ownership and title with the State Lands Registry - don't rely solely on documents provided by the seller or agent. Second, insist on examining all original documents before making any payments, as photocopies can be easily manipulated. Third, ensure Governor's Consent is obtained and registration completed before releasing full payment.

Fourth, use escrow services or a lawyer's client account for fund transfers rather than direct payments to sellers. This provides protection if documentation issues arise. Fifth, avoid cash transactions entirely - use bank transfers for complete traceability and compliance with anti-money laundering regulations.

Sixth, double-check that the property isn't subject to communal disputes, family inheritance conflicts, or pending litigation that could affect your ownership. Seventh, conduct a physical inspection of the property and surrounding area to verify it matches documentation and identify any encroachments or boundary disputes. Finally, obtain comprehensive insurance coverage that includes title insurance where available.

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 typically take from start to finish?

The complete property purchase process in Nigeria typically takes 2-6 months, with timing heavily dependent on documentation complexity and government processing speeds.

The initial due diligence phase usually requires 2-4 weeks for comprehensive title searches, property verification, and legal review. Negotiation and contract drafting add another 1-2 weeks. The Governor's Consent application, which is often the longest single step, takes 1-3 months depending on the state - Lagos and Abuja typically process faster than other states.

Final conveyance and payment completion usually take 1-2 weeks once all approvals are received. Registry registration adds another 2-4 weeks to complete the legal transfer. Properties with clear titles and no complications can sometimes be completed in as little as 6-8 weeks, while complex cases involving disputed ownership or documentation issues can extend to 8-12 months.

Foreign buyers should plan for the longer timeframe and avoid making commitments based on optimistic schedules. Starting the process during Nigeria's dry season (November-March) can sometimes result in faster government processing times.

What are all the taxes, fees, and extra costs I should expect, with a full breakdown?

Total transaction costs for foreign property buyers in Nigeria range from 10-25% of property value depending on the state and property type.

Cost Category	Rate/Amount	Notes
Governor's Consent Fee	1.5-8% of property value	Varies by state; Lagos ~3%, other states up to 8%
Stamp Duty	1.5% of property value	Federal requirement on all property transfers
Legal Fees	3-7% of property value	Includes lawyer fees, documentation, searches
Agent Commission	2-5% of property value	Typically paid by seller, but verify arrangement
Registration Fees	2-3% of property value	State land registry registration costs
Survey/Assessment	₦50,000-500,000	Depends on property size and location
Land Use Charge (Lagos)	0.076-0.76% annually	Owner-occupied vs rental/commercial rates
Property Tax (Luxury)	1.5% annually	Properties >₦150M in Lagos/Abuja/Port Harcourt
Capital Gains Tax	10% of profit	Applied on resale, calculated on gains

Can I buy property in cash, and is that common practice?

Cash purchases are legally permitted and common in Nigeria, but must be conducted through traceable banking channels for compliance and security.

The Central Bank of Nigeria allows cash property transactions, and many sellers prefer cash offers as they eliminate financing contingencies and speed up closing. However, anti-money laundering regulations require transactions above certain thresholds to be conducted through banking systems rather than physical cash.

Bank transfers are strongly recommended over physical cash for several reasons. First, they provide complete transaction traceability for tax and legal purposes. Second, they reduce security risks associated with carrying large amounts of cash. Third, they ensure compliance with foreign exchange regulations and reporting requirements.

Foreign buyers should also consider that cash purchases may limit negotiation leverage, as sellers know the buyer doesn't need financing approval. However, cash offers often secure better purchase prices and faster closing timelines, making them attractive in competitive markets like Lagos and Abuja.

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

Are mortgages available for foreigners, under what rates and conditions, and what tips help in securing one?

Mortgages are rarely available to non-resident foreigners in Nigeria, with most banks requiring local residency or business registration for loan eligibility.

The few Nigerian banks that consider foreign applicants typically require Nigerian resident permits, local employment, or registered business presence. Interest rates for available mortgages range from 15-25% annually with tenors of 5-15 years, significantly higher than Western markets. Down payment requirements usually start at 30-50% of property value.

Some international banks with Nigerian operations may offer limited mortgage products to their existing high-net-worth clients, but these are exceptional cases rather than standard offerings. Private lending institutions sometimes provide alternative financing, but at even higher rates and shorter terms.

Most foreign investors use alternative strategies including company structures where a Nigerian-registered company purchases the property, potentially improving financing options. Some investors arrange financing in their home countries against other assets, then purchase Nigerian properties with cash. Others partner with Nigerian residents who can qualify for local mortgages while maintaining beneficial ownership structures.

What type of properties can foreigners legally buy, and are there restrictions?

Foreigners can legally purchase most urban residential and commercial properties in Nigeria, but face restrictions on rural and agricultural land ownership.

Permitted property types include residential houses, apartments, condominiums, and commercial buildings in urban areas. These are typically offered as 99-year leasehold interests, which provide virtually the same rights as freehold ownership. Foreigners can also purchase industrial properties and participate in real estate development projects through appropriate legal structures.

The primary restriction prevents direct foreign ownership of rural or agricultural land, which must be purchased through Nigerian company structures where the foreign investor holds shares rather than direct land ownership. This restriction aims to preserve local agricultural interests and food security.

Communal and ancestral lands present additional complications regardless of the buyer's nationality. These properties often have complex ownership structures involving multiple family members or community groups, making clear title transfer difficult. Foreign investors are strongly advised to avoid such properties due to ongoing dispute risks.

Is there any path to residency or citizenship through property investment?

Property investment alone does not provide any direct path to Nigerian residency or citizenship under current immigration laws.

Nigeria does not operate investment-based residency programs like those found in Portugal, Malta, or other countries. Property ownership may support other types of visa applications by demonstrating ties to Nigeria, but it doesn't automatically qualify investors for residency status.

Foreign property owners must still obtain appropriate visas for extended stays, whether for business, employment, or other qualifying purposes. The Nigeria Investment Promotion Commission (NIPC) offers some facilitation for significant business investments, but these typically require substantial job creation and business activity beyond passive property ownership.

Some foreign investors establish Nigerian companies for property investment purposes, which can facilitate certain business visa categories, but this still doesn't constitute an automatic residency pathway. Investors interested in eventual residency should consult immigration lawyers about qualifying business investment or employment-based visa options separate from their property purchases.

Where do most foreigners usually buy property in Nigeria?

Foreign property buyers concentrate primarily in Lagos, Abuja, and Port Harcourt, focusing on secure, serviced residential estates and commercial districts.

Lagos dominates foreign investment with areas like Victoria Island, Ikoyi, and Lekki Peninsula being most popular. These locations offer superior infrastructure, international-standard amenities, and established expatriate communities. Lekki particularly attracts investors due to ongoing development projects and proximity to the new international airport.

Abuja ranks second for foreign investment, especially in high-end residential districts like Maitama, Asokoro, and Wuse II. The capital city appeals to investors due to government stability, planned infrastructure, and growing diplomatic presence. Property values in premium Abuja locations have shown consistent appreciation over the past decade.

Port Harcourt attracts foreign buyers primarily due to its oil industry connections, though political and security considerations have reduced investment in recent years. Other emerging locations include Kano for northern Nigeria exposure and selected developments in Kaduna and Ibadan for investors seeking higher yields in secondary cities.

Foreign buyers typically prefer gated communities, serviced estates with reliable utilities, and properties with professional management companies that can handle rental management and maintenance for absentee owners.

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. LinkedIn - Guide to Buying Property in Nigeria as a Foreigner
2. Trusted Advisors Law - Acquisition of Real Estate Assets by Foreigners
3. Arab MLS - Can Foreigners Buy Property in Nigeria
4. Scotts Legal - Legal Documents Required for Property Purchase
5. Facibus Housing - Must-Have House Documents
6. Teta Homes - Buy Property in Nigeria from Abroad
7. Nigeria Real Estate Blog - New Property Tax 2025
8. Inner Konsult - Understanding Property Taxes in Nigeria
9. Realty Explainer - Cost of Property Tax in Different States
10. Mondaq - How to Buy Land in Nigeria Legal Guide