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
Foreigners can legally invest in Nigerian real estate, but only through leasehold arrangements that typically last 25-99 years, not freehold ownership.
The investment process requires obtaining Governor's Consent, involves significant due diligence, and typically takes 6-12 months to complete. Total costs including taxes and fees add 10-20% to the property price, while mortgages are available through special diaspora programs at around 9% interest rates.
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.
Foreigners can buy property in Nigeria through leasehold arrangements (25-99 years) but cannot own land outright, as all land belongs to the state.
The purchase process requires Governor's Consent and takes 6-12 months, with total costs reaching 10-20% above the property price in taxes and fees.
| Investment Aspect | Key Details | Timeline/Cost |
|---|---|---|
| Ownership Type | Leasehold only (25-99 years) | Renewable upon expiry |
| Governor's Consent | Mandatory for foreign buyers | 3-12 months processing |
| Total Additional Costs | Taxes, fees, legal costs | 10-20% of property price |
| Mortgage Availability | Diaspora programs available | 9% interest, 30% down payment |
| Investment Areas | Lagos, Abuja, Port Harcourt | Federal lands off-limits |
| Immigration Benefits | No residency or citizenship path | No golden visa program |
| Remote Purchase | Possible with Power of Attorney | Requires trusted local representative |
Where can foreigners legally buy real estate in Nigeria, and are there any areas that are off-limits?
Foreigners can legally purchase real estate in most urban areas across Nigeria, including major commercial centers like Lagos, Abuja, and Port Harcourt.
However, certain areas remain restricted to foreign buyers. Federal lands designated for government or military use are typically off-limits to non-Nigerian investors. Properties in oil and gas regions may also face additional restrictions, as mineral rights remain under government control.
Areas with unclear land titles or those under government acquisition orders should be avoided entirely. Some traditional communities may also have customary land laws that restrict foreign ownership, particularly in rural areas.
As of June 2025, the Nigerian government maintains these restrictions to protect strategic national interests while still allowing foreign investment in the residential and commercial property sectors.
It's something we develop in our Nigeria property pack.
Can foreigners fully own land or property in Nigeria, and what rights or limitations apply?
Foreigners cannot obtain freehold ownership of land in Nigeria, as all land ultimately belongs to the state under the Land Use Act of 1978.
Instead, foreign investors can acquire leasehold rights, typically ranging from 25 to 99 years depending on the property type and location. These leasehold arrangements are renewable upon expiry, subject to payment of renewal fees and compliance with current regulations.
The leasehold grants you the right to use, develop, sell, or rent the property within the lease period. However, all transfers to foreigners require written consent from the state Governor, which can be a lengthy process.
Under the leasehold system, you essentially become a legal occupier rather than an outright owner. This means you have substantial rights to the property but must operate within the framework of Nigerian land law.
The state government holds the land in trust and can theoretically revoke rights for public purposes, though this requires proper compensation under the law.
What are the exact steps to buy a property in Nigeria from start to finish, and how long does each step typically take?
| Step | Description | Typical Duration |
|---|---|---|
| 1. Engage Professionals | Hire qualified lawyer and registered agent | 1 week |
| 2. Property Search & Due Diligence | Title search, ownership verification, encumbrance check | 2-4 weeks |
| 3. Price Negotiation | Negotiate price and draft preliminary agreements | 1-2 weeks |
| 4. Governor's Consent Application | Submit application for mandatory state approval | 3-12 months |
| 5. Deed Execution | Sign Deed of Assignment and complete payment | 1 week |
| 6. Land Registry Registration | Register transaction at state Land Registry | 1-3 months |
| 7. Final Documentation | Receive Certificate of Occupancy and consent documents | Included above |
What are the key documents and approvals required to purchase real estate in Nigeria, and who issues them?
The Certificate of Occupancy (C of O) serves as the primary document proving legal right to occupy the land, issued by the respective state government.
Governor's Consent is mandatory for any transfer of land to a foreigner and must be obtained from the state Governor's office. This document legitimizes the foreign ownership under Nigerian law.
The Deed of Assignment formally transfers ownership rights from seller to buyer and must be executed before a qualified lawyer. A valid Survey Plan showing exact property boundaries is required, issued by a licensed surveyor registered with the Surveyors Council of Nigeria.
Additional essential documents include the Purchase Receipt as proof of payment, the Land Agreement detailing terms of sale, and any existing building approvals if purchasing developed property.
All documents must be stamped and registered at the appropriate Land Registry to ensure legal validity and enforceability.
Can you buy property in Nigeria without physically being in the country, and if yes, how do you do it safely?
Yes, you can successfully purchase Nigerian property remotely through proper legal mechanisms and trusted representatives.
The most secure approach involves granting Power of Attorney to a trusted local representative, preferably a qualified lawyer registered with the Nigerian Bar Association. This representative can act on your behalf throughout the entire transaction process.
Conduct virtual property tours using reputable agents who specialize in diaspora clients and have established track records. Modern technology allows for detailed remote property inspections through video calls and drone footage.
Always verify property documents remotely through the Land Registry and maintain direct communication with your legal representative throughout the process. Use secure, traceable payment methods and retain all transaction records.
Insist on independent title verification and never make payments without proper legal documentation, even when buying remotely.
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How much should you expect to pay in taxes, agency fees, legal fees, and other costs when buying property in Nigeria?
| Fee/Tax Type | Typical Rate | Description |
|---|---|---|
| Agency Fees | 5-10% of property price | Real estate agent commission |
| Legal Fees | 5% of property price | Lawyer's professional fees |
| Stamp Duty | 1-1.5% of property price | Government stamp duty on documents |
| Registration Fee | 0.5-2% of property price | Land Registry registration costs |
| Survey Fee | ₦50,000-₦17 million | Varies by location and property size |
| Governor's Consent Fee | 1.5% of property price | State approval fee (Lagos rate) |
| Land Use Charge | ~0.394% of assessed value | Annual property tax (Lagos) |
Is it possible for foreigners to get a mortgage in Nigeria, and if so, what are the conditions, interest rates, and tips to qualify?
Mortgages are available to foreigners through specialized diaspora programs, particularly the Diaspora National Housing Fund (NHF) Mortgage scheme.
To qualify, you must register with the National Housing Fund and contribute for a minimum of 12 months before applying. You'll need to provide proof of income, employment verification, and possess a valid residence permit or work visa.
Current interest rates for diaspora mortgages hover around 9% per annum as of mid-2025, which is competitive compared to local mortgage rates. The typical loan-to-value ratio allows financing up to 70% of the property value, requiring a 30% down payment.
Nigerian banks like Access Bank, GTBank, and First Bank offer dedicated diaspora mortgage products with streamlined application processes for overseas-based Nigerians and qualified foreigners.
To improve your chances of approval, maintain a strong credit history, provide comprehensive income documentation, and work with banks that have established diaspora banking relationships.
Can you buy a property in Nigeria with cash, and are there any risks or regulations involved in doing so?
Cash purchases are legal and common in the Nigerian real estate market, but require careful documentation and compliance with anti-money laundering regulations.
All cash payments must be properly documented with official receipts issued by the seller or their legal representative. Large cash transactions may trigger money laundering investigations, so use traceable payment methods whenever possible.
Banks are required to report cash transactions above certain thresholds to the Nigerian Financial Intelligence Unit (NFIU). Ensure all funds can be traced to legitimate sources and maintain comprehensive records of the transaction.
Avoid making any payments without proper legal documentation, regardless of pressure from sellers or agents. Cash payments should only be made after due diligence is complete and all necessary approvals are in process.
Consider using bank drafts or wire transfers instead of physical cash to minimize risks and ensure proper audit trails for your transaction.
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 trustworthy are Nigerian real estate agents and lawyers, and what checks should you do before working with them?
The reliability of Nigerian real estate professionals varies significantly, making due diligence essential before engaging their services.
Work exclusively with agents registered with the Nigerian Institution of Estate Surveyors and Valuers (NIESV), which maintains professional standards and disciplinary procedures. Verify their registration status through the NIESV website or by calling their offices directly.
For lawyers, ensure they are registered with the Nigerian Bar Association and have active practicing certificates. Check their specialization in real estate law and request references from previous foreign clients.
Essential verification steps include checking online reviews, requesting client references, and verifying their office addresses and professional credentials. Avoid professionals who pressure you to make quick decisions or refuse to provide proper documentation.
Always insist on independent title verification at the Land Registry, regardless of assurances from agents or lawyers about property legitimacy.
What are the most common mistakes foreigners make when buying property in Nigeria, and how can you avoid them?
The most frequent error is failing to conduct thorough title verification, leading to purchases of properties with disputed ownership or invalid documentation.
Many foreigners skip the mandatory Governor's Consent process or underestimate its duration, resulting in legal complications and delayed transactions. Others rely on unregistered agents or lawyers without proper credentials, exposing themselves to fraud.
Making payments without comprehensive documentation is another critical mistake that can result in total loss of investment. Some buyers also neglect to check for existing encumbrances, liens, or ongoing legal disputes affecting the property.
Rushing the due diligence process due to perceived "good deals" or pressure from sellers often leads to costly oversights. Always allow sufficient time for proper verification and never bypass legal requirements.
It's something we develop in our Nigeria property pack.
Does the Nigerian legal system actually protect foreign investors in real estate, and what should you do to secure your rights?
The Nigerian legal system provides theoretical protections for foreign real estate investors, but enforcement can be slow and bureaucratic in practice.
To maximize legal protection, ensure all documents are properly registered with the appropriate Land Registry and that all government approvals are obtained before completing transactions. Maintain comprehensive records of all payments, approvals, and correspondence.
Work exclusively with reputable lawyers who specialize in real estate law and have experience with foreign investors. Consider structuring ownership through a Nigerian-registered company, which can offer additional flexibility and protection.
The court system, while functional, can be slow in resolving disputes, making prevention through proper documentation far preferable to litigation. Ensure your lawyer explains all legal implications and maintains copies of all transaction documents.
Regular legal reviews of your property holdings and compliance with ongoing obligations help maintain your legal standing and protect your investment.
Does buying real estate in Nigeria lead to any path toward residency or citizenship, or does it have no immigration benefits?
Purchasing real estate in Nigeria does not provide any direct path to residency or citizenship as of June 2025.
Nigeria does not operate a "golden visa" or investor residency program based on property ownership, unlike some other countries. Real estate investment is treated purely as a commercial transaction without immigration benefits.
Foreign property owners must still obtain appropriate visas for entry and residence through traditional immigration channels. Business visas, work permits, or other visa categories remain necessary regardless of property ownership status.
The Nigerian government has not announced any plans to introduce property-based residency programs, though immigration policies can change. Property ownership may support other visa applications by demonstrating ties to Nigeria, but it provides no automatic immigration benefits.
Investors seeking both property investment and residency should explore Nigeria's existing immigration programs separately from their real estate activities.
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.
Investing in Nigerian real estate as a foreigner requires careful navigation of the leasehold system, mandatory Governor's Consent process, and comprehensive due diligence procedures.
It's something we develop in our Nigeria property pack.
Sources
- ArabMLS - Can Foreigners Buy Property in Nigeria
- NWN - Foreigners Buying Property in Nigeria
- TheAfricanVestor - Nigeria Real Estate Foreigner Tips
- TheAfricanVestor - What to Know Before Buying Land in Nigeria
- DLA Piper - Nigeria Corporate Vehicles
- TheAfricanVestor - Nigeria Real Estate for Foreigners
- School of Estate - Can Foreigners Buy Land in Nigeria
- Trusted Advisors Law - How to Buy Land in Nigeria
- LinkedIn - Understanding Contract Timelines Real Estate Nigeria
- NIDCOM - Diaspora Housing Mortgage