Can foreigners buy property in Lagos Nigeria legally?

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

Yes, the analysis of Lagos' property market is included in our pack

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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 Lagos. 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.

Can foreigners legally own land in Lagos, or are they limited to leasehold agreements only?

Foreigners cannot own land outright in Lagos and are strictly limited to leasehold agreements under Nigerian law.

The Land Use Act of 1978 vests all land ownership in the state government, which means no individual—foreign or Nigerian—can hold absolute freehold title to land in Lagos. Foreigners can only acquire leasehold rights, which grant them the legal right to use and develop the property for a specified period.

This leasehold system applies to all property types including residential apartments, commercial buildings, and industrial facilities. The government retains ultimate control over the land, and at the end of the lease period, the property technically reverts to the state unless the lease is renewed.

As of September 2025, this legal framework remains unchanged and applies uniformly across Lagos State. Foreign investors must understand that they are purchasing the right to use land, not permanent ownership of the land itself.

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

What is the maximum lease period available to foreigners in Lagos under Nigerian law?

The maximum lease period for foreign individuals in Lagos is 25 years, including any renewal options.

This 25-year limit applies specifically to individual foreign buyers under the Lagos State Land Use Act. The lease period begins from the date of the Certificate of Occupancy issuance and cannot exceed this duration for personal ownership by non-Nigerian citizens.

However, Nigerian-registered companies, even those with 100% foreign ownership, may qualify for longer lease periods of up to 99 years in certain circumstances. This corporate route often provides foreign investors with extended property rights compared to individual purchases.

The lease period is non-negotiable and is determined by law, not by individual agreement between buyer and seller. Renewal of the lease after the 25-year period requires a new application process and government approval, which is not guaranteed.

Are there specific areas in Lagos where foreigners are restricted from buying property?

Foreigners can purchase property in most urban areas of Lagos but are restricted from certain government-designated zones.

Prohibited areas include all government reserves, military installations, public infrastructure zones earmarked for schools and hospitals, and areas under government acquisition orders. Properties classified as "committed land" by the Lagos State government are also off-limits to foreign buyers.

Popular investment areas like Victoria Island, Ikoyi, Lekki, Ikeja, and mainland Lagos are generally open to foreign investment, provided the specific properties are not under government restriction. Most residential and commercial developments in these prime locations are available for foreign leasehold purchase.

Resource extraction zones and communal lands, particularly those outside the main city centers, typically have additional restrictions. Foreign buyers should verify the land classification status through the Lagos State Land Registry before making any purchase commitments.

Areas near the Lagos International Airport, certain waterfront locations designated for government projects, and lands reserved for indigenous communities may also have foreign ownership restrictions.

Do foreigners need government consent before completing a property purchase in Lagos?

Yes, Governor's Consent is mandatory for all property purchases by foreigners in Lagos, with very limited exceptions.

The Governor's Consent requirement applies to virtually all real estate transactions involving foreign buyers, regardless of the property value or type. This consent serves as the government's formal approval of the land transfer and is required under the Land Use Act.

The only exception is for lease agreements of less than one year, which typically don't require Governor's Consent. However, since most property investments involve longer-term commitments, this exception rarely applies to foreign property buyers.

Without Governor's Consent, the property transaction is legally void and cannot be enforced in Nigerian courts. This means the buyer has no legal claim to the property, cannot sell it, and cannot use it as collateral for loans.

The consent process must be completed before the final property transfer, and buyers should never take possession or make full payment without securing this approval first.

What is the process for obtaining Governor's Consent when a foreigner buys property in Lagos?

The Governor's Consent process involves five main steps: document preparation, submission, verification, fee payment, and final approval.

Step	Requirements	Timeline
Document Preparation	Deed of Assignment, Survey Plan, Tax Clearance, Application forms	1-2 weeks
Submission	Submit all documents to Lagos State Land Registry	1-3 days
Government Verification	Title search, dispute checks, land status verification	3-6 months
Fee Payment	1.5% consent fee, stamp duties, registration charges	1 week
Final Approval	Governor's written consent issuance	2-4 weeks
Registration	Final registration at Land Registry	1-2 weeks
Certificate Issuance	Certificate of Occupancy delivery	2-3 weeks

Are there special taxes, fees, or charges that foreigners must pay when buying property in Lagos?

Foreigners pay the same basic taxes as Nigerians but face additional fees that can total 8-15% of the property value.

1. **Governor's Consent Fee**: 1.5% of the assessed property value 2. **Stamp Duty**: 1.5% of the property value 3. **Legal and Professional Fees**: 3-5% covering lawyer fees, surveyor costs, and documentation 4. **Registration Fees**: ₦50,000 - ₦200,000 depending on property value 5. **Search and Verification Fees**: ₦15,000 - ₦50,000 for title searches 6. **Agency Commission**: 5-10% if using a real estate agent 7. **Capital Gains Tax**: 10% on future sale profits

These fees are paid at different stages of the transaction, with most due before completion. Foreign buyers should budget an additional 10-15% above the agreed property price to cover all mandatory costs.

Payment of all fees must be completed before the Governor's Consent is issued, and receipts are required for the final property registration process.

What kind of property title documents are valid and secure for foreigners in Lagos?

Five essential documents constitute valid and secure property title for foreign buyers in Lagos.

The Certificate of Occupancy (C of O) is the primary title document issued by the Lagos State government, providing legal proof of leasehold rights. This document must be original and bear the official government seal and signature.

The Deed of Assignment serves as the official transfer document from seller to buyer, containing all transaction details including purchase price, property description, and parties involved. This document must be properly stamped and registered.

Governor's Consent documentation proves government approval of the transaction and must accompany any property transfer involving foreigners. Without this consent, other documents have no legal validity.

A registered Survey Plan provides accurate property boundaries and measurements, preventing boundary disputes and ensuring the property matches official records. The survey must be conducted by a licensed surveyor and approved by the Lagos State Surveyor General.

Purchase receipts and payment evidence document the financial transaction and are required for tax compliance and future property sales. These should include bank transfer receipts and official payment acknowledgments.

Can foreigners buy property in Lagos through a company registered in Nigeria, and is this safer than buying personally?

Yes, foreigners can buy property through Nigerian-registered companies, and this is often safer and more advantageous than personal ownership.

Nigerian companies, including those with 100% foreign ownership, can purchase property and potentially qualify for longer lease periods of up to 99 years compared to the 25-year limit for individual foreign buyers. This corporate structure provides extended property rights and better long-term investment security.

Corporate ownership simplifies compliance procedures and can reduce bureaucratic delays in the approval process. Companies also have more flexibility in property management and can more easily transfer ownership interests without requiring new Governor's Consent for each transaction.

The company structure provides better asset protection and can facilitate easier exit strategies for foreign investors. Corporate ownership also allows for more straightforward inheritance planning and succession arrangements.

However, setting up a Nigerian company requires additional legal costs, annual compliance obligations, and proper corporate governance. Foreign investors must maintain accurate ownership records and comply with Nigerian corporate law requirements.

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

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.

Are there restrictions on foreigners inheriting property in Lagos if the owner passes away?

Foreigners can inherit property in Lagos, but the transfer requires new Governor's Consent and proper legal procedures.

Nigerian law does not restrict property inheritance based on nationality, meaning foreign beneficiaries can legally inherit leasehold property rights from deceased owners. However, the inheritance transfer is not automatic and requires formal legal processes.

The beneficiary must obtain fresh Governor's Consent for the property transfer, even if the original owner had valid consent. This process involves submitting probate documents, death certificates, and will verification to the Lagos State Land Registry.

Inheritance transfers are subject to the same fees and documentation requirements as regular property purchases, including consent fees and stamp duties. The inherited property's lease period continues from the original agreement and does not reset upon inheritance.

Multiple foreign beneficiaries can inherit property jointly, but this requires clear legal documentation and may complicate future property decisions. Estate planning with Nigerian legal counsel is essential for foreign property owners to ensure smooth inheritance processes.

What risks of scams or fraudulent transactions should foreigners be aware of when buying property in Lagos?

Foreign property buyers in Lagos face significant fraud risks that require extensive due diligence and verification procedures.

1. **Forged Title Documents**: Fake Certificates of Occupancy and Deeds of Assignment are common, requiring independent verification at the Land Registry 2. **Multiple Sales**: The same property sold to multiple buyers simultaneously, making registry searches essential before purchase 3. **Unverified Agents**: Fraudulent real estate agents without proper licensing operating illegally in the market 4. **Disputed Ownership**: Properties with ongoing legal disputes or family inheritance conflicts not disclosed to buyers 5. **Government Acquisition**: Properties already marked for government acquisition but still being marketed to unsuspecting buyers 6. **Boundary Fraud**: Inaccurate surveys or properties with boundary disputes leading to future conflicts 7. **Payment Scams**: Requests for payments before proper documentation or to unofficial accounts

Foreign buyers must conduct independent title searches, use only licensed legal practitioners, and insist on property registration at the Land Registry immediately after purchase completion.

Working with reputable law firms and avoiding cash transactions significantly reduces fraud risks. All payments should be made through traceable banking channels with proper documentation.

Do foreigners need a Nigerian bank account to pay for property purchases in Lagos, or can they transfer funds directly from abroad?

Foreigners can pay for Lagos property through either direct international transfers or Nigerian bank accounts, with both options being legally acceptable.

International wire transfers directly to seller accounts or legal practitioner trust accounts are permitted under Nigerian foreign exchange regulations. These transfers must be properly documented and reported to regulatory authorities for transactions above certain thresholds.

Opening a Nigerian bank account can simplify the payment process and reduce transfer fees, especially for multiple transactions or ongoing property-related payments. Nigerian banks offer foreign currency accounts that can facilitate easier fund management.

Large property transactions typically require additional documentation for anti-money laundering compliance, including proof of funds source and transaction purpose. Banks may request extensive documentation for transfers exceeding $10,000.

Payment timing is crucial since Governor's Consent fees and other charges must be paid during the approval process. Having funds readily available in Nigeria can speed up transaction completion and avoid delays in the consent process.

Are there legal or immigration requirements tied to owning property in Lagos as a foreigner?

Property ownership in Lagos provides no immigration benefits or residency rights to foreign owners.

Buying property in Lagos does not grant foreigners any special visa privileges, residency permits, or path to Nigerian citizenship. Property investment and immigration status are completely separate legal matters under Nigerian law.

Foreign property owners must maintain valid visas for any stay exceeding 90 days and must apply for appropriate residence permits through standard immigration channels. Property ownership cannot be used to support visa applications or extend permitted stay periods.

Foreign property owners living in Lagos must comply with all standard immigration requirements including visa renewals, work permits for employment, and tax obligations regardless of their property investment status.

Some foreign buyers mistakenly believe property ownership provides immigration advantages, but this is not the case in Nigeria. Investment visa programs exist separately and do not automatically include property purchase as qualifying investment.

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. TheAfricanVestor - Nigeria Real Estate for Foreigners
2. Vala Homes - Foreigner Property Ownership Lagos
3. TheAfricanVestor - Foreigners Own Land Nigeria
4. Zahari Properties - Foreign Executives Property Guide
5. DLA Piper - Nigeria Real Estate Ownership Restrictions
6. Lexshield Properties - Complete Guide for Foreigners 2025
7. Counseal - Nigerian Land Use Act Foreign Investors
8. Mondaq - Restrictions on Land Buying Nigeria
9. Hush Homes - Governor's Consent Nigeria
10. Mondaq - How to Verify Property Titles Nigeria