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Foreigners cannot own land outright in Lagos under Nigerian law - they can only acquire leasehold interests for a maximum of 25 years.
This restriction stems from the Land Use Act and Lagos State's specific Acquisition of Land by Aliens Law, which requires foreigners to obtain Governor's consent for any significant land transaction and limits them to leasehold arrangements rather than freehold ownership.
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Nigerian law prohibits foreigners from owning land outright in Lagos, limiting them to leasehold interests of up to 25 years with mandatory Governor's consent.
Even forming a Nigerian company with majority foreign ownership doesn't bypass these restrictions, as such entities are still classified as "aliens" under Lagos State law.
| Aspect | Status/Requirements | Key Details |
|---|---|---|
| Outright Ownership | Not Allowed | Foreigners cannot own freehold land |
| Maximum Lease Term | 25 Years | Including any renewal options |
| Governor's Consent | Required | For leases over 1 year |
| Nigerian Company Route | Same Restrictions | Foreign-majority companies treated as "aliens" |
| Land Types Available | Residential/Commercial | Some government lands restricted |
| Taxes and Fees | 5-15% of Value | Stamp duty, registration, consent fees |
| Security of Interest | High if Compliant | Strong protection during lease term |
What does Nigerian law say about foreigners owning land in Lagos?
Nigerian law explicitly prohibits foreigners from owning land outright in Lagos through the Land Use Act and Lagos State's Acquisition of Land by Aliens Law.
The Land Use Act of 1978 vested all land in each state in the Governor, effectively abolishing absolute ownership even for Nigerian citizens. Under this framework, all land ownership becomes a statutory right of occupancy granted by the state government.
Lagos State's Acquisition of Land by Aliens Law (ALAL) goes further by specifically restricting foreigners to leasehold interests only. This law defines any individual who is not a Nigerian citizen, or any company with majority foreign ownership, as an "alien" subject to these restrictions.
As of September 2025, the Lagos State Real Estate Regulatory Authority Law 2022 has reaffirmed these restrictions, confirming that foreigners cannot acquire freehold interests in Lagos land under any circumstances.
Are there any exceptions that allow foreigners to own land outright in Lagos?
No exceptions exist that allow foreigners to own land outright in Lagos - all foreign land acquisition is limited to leasehold arrangements.
The only exception to the Governor's consent requirement applies to very short-term leases of less than one year (or three years including renewals, depending on legal interpretation). However, even these short-term arrangements do not grant ownership rights.
Some practitioners have attempted to structure transactions through Nigerian companies or joint ventures, but Lagos State law classifies any company with majority foreign ownership as an "alien," making it subject to the same restrictions as individual foreigners.
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What is the difference between owning land and holding a lease in Lagos?
The fundamental difference lies in the duration and nature of rights - ownership implies perpetual control while leasehold grants temporary exclusive possession.
| Aspect | Freehold Ownership | Leasehold Interest |
|---|---|---|
| Duration | Perpetual/Indefinite | Fixed term (max 25 years for foreigners) |
| Transfer Rights | Can sell, gift, or bequeath freely | Subject to Governor's consent for assignment |
| Development Rights | Subject only to planning laws | Must comply with lease terms and state policy |
| Renewal | Not applicable | Subject to state discretion and new terms |
| Ground Rent | Not applicable | Annual payments typically required |
| Availability in Lagos | Virtually non-existent | Standard arrangement for all transactions |
| Security of Tenure | Absolute (where it exists) | Strong during term if compliant |
How long is the standard lease period granted to foreigners in Lagos?
Lagos State grants foreigners leasehold interests for a maximum of 25 years, including any renewal options.
This 25-year limit applies to the total duration of the lease arrangement, meaning that if you initially receive a 20-year lease, any renewal can only extend for an additional 5 years to reach the maximum cap. The Lagos State Real Estate Regulatory Authority Law 2022 specifically codified this limitation for foreign investors.
Shorter lease periods are also common, with many transactions involving 10-15 year initial terms with options to renew subject to state approval. The actual term granted often depends on the intended use of the property, the investor's track record, and the state government's development priorities for the area.
Unlike some other Nigerian states that may offer longer terms, Lagos maintains this strict 25-year maximum as a matter of state policy to retain greater control over its prime real estate markets.
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Can a foreigner buy land through a Nigerian company registered in Lagos?
Foreigners can form Nigerian companies to acquire land, but this strategy does not circumvent the fundamental restrictions on foreign land ownership in Lagos.
Lagos State law specifically defines any company with majority foreign ownership or control as an "alien," making it subject to the same 25-year leasehold limitations and Governor's consent requirements as individual foreign investors. This means that simply incorporating a Nigerian company does not provide access to freehold ownership or longer lease terms.
However, using a Nigerian company structure can offer some practical advantages, including simplified transaction processes, potential tax benefits, and easier succession planning. The company can hold the leasehold interest and conduct property-related business activities within Nigeria more efficiently than individual foreign ownership.
Joint venture arrangements with Nigerian partners where Nigerians hold majority control may provide access to longer lease terms, but foreigners would sacrifice control over the investment and decision-making processes.
What steps does a foreigner need to take to legally acquire land in Lagos?
The legal acquisition process involves five critical steps that must be completed in sequence to secure a valid leasehold interest.
1. **Conduct comprehensive due diligence** - Engage a qualified Nigerian lawyer and licensed surveyor to verify the title, confirm the seller's legal capacity, and identify any encumbrances or disputes affecting the property. 2. **Negotiate and execute the transaction documents** - Sign either a Deed of Assignment (for existing titles) or Agreement for Sale (for new allocations), ensuring all terms comply with Lagos State requirements for foreign investors. 3. **Apply for Governor's consent** - Submit the mandatory application to Lagos State with all required documentation, including evidence of the transaction, proof of identity, and payment of prescribed fees. 4. **Complete registration with state authorities** - Register the approved transaction with the Lagos State Land Registry and obtain the Certificate of Occupancy (C of O) or other appropriate title document. 5. **Settle all financial obligations** - Pay stamp duties, registration fees, consent fees, and any applicable taxes to complete the legal transfer and avoid future complications.What government consent or approvals are required for a foreigner to hold land in Lagos?
Governor's consent is the primary approval required for any foreigner seeking to acquire or transfer land rights in Lagos State.
This consent is mandatory for all lease transactions exceeding one year in duration, assignments of existing leasehold interests, and any form of transfer or disposal of land rights by or to a foreign person or entity. The consent application must be submitted to the Lagos State Ministry of Lands and Physical Planning with comprehensive documentation.
Additional approvals may be required depending on the intended use of the property, including development permits for construction projects, environmental impact assessments for certain developments, and compliance certificates from relevant agencies like Lagos State Physical Planning Permit Authority (LASPPPA).
The consent process typically takes 3-6 months to complete and involves payment of consent fees calculated as a percentage of the transaction value, usually ranging from 5-15% depending on the property location and value.
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Are there restrictions on the size or type of land a foreigner can lease in Lagos?
Lagos State does not impose specific maximum size restrictions on land parcels that foreigners can lease, but practical limitations exist based on intended use and location.
Foreigners can lease land for residential, commercial, or mixed-use development purposes in most areas of Lagos State. However, certain categories of land remain restricted, including strategic government reserves, areas designated for specific public purposes, and lands subject to acquisition for infrastructure projects.
The type and scale of development permitted on leased land must align with Lagos State's physical development plans and zoning regulations. Large-scale industrial or agricultural projects may require additional approvals and compliance with specific sector policies.
Location-specific restrictions apply in some premium areas like Victoria Island and Ikoyi, where the state government maintains tighter control over development standards and may preference certain types of investors or projects that align with area development goals.
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What taxes or fees must foreigners pay when acquiring land in Lagos?
Foreign land acquisition in Lagos involves multiple taxes and fees that typically total 5-15% of the transaction value.
| Fee Type | Rate/Amount | Basis of Calculation |
|---|---|---|
| Stamp Duty | 0.5% | Transaction value or property value |
| Registration Fee | ₦3,000-₦15,000 | Fixed amount based on document type |
| Governor's Consent Fee | 3-5% | Transaction value |
| Survey Fee | ₦50,000-₦500,000 | Property size and complexity |
| Legal Documentation | ₦100,000-₦1,000,000 | Lawyer's fees (negotiable) |
| Administrative Processing | ₦20,000-₦100,000 | Various government agencies |
| Annual Ground Rent | ₦500-₦5,000 per sqm | Land area and location |
How secure is a foreigner's leasehold interest compared to outright ownership in Lagos?
Leasehold interests in Lagos provide strong security of tenure during the lease term when properly registered and maintained in compliance with state requirements.
The key security advantage of a properly documented leasehold interest lies in the state's legal obligation to honor the terms of the lease agreement and protect the lessee's rights against third-party interference. Lagos State courts generally uphold legitimate leasehold interests that have obtained proper approvals and registration.
However, leasehold security depends on continued compliance with lease conditions, timely payment of ground rent and other obligations, and adherence to development requirements. Failure to meet these conditions can result in forfeiture of the lease interest.
The main security disadvantage compared to theoretical freehold ownership is the finite nature of the interest and uncertainty around renewal terms when the lease expires. The state government retains discretion over renewal conditions and may impose new terms reflecting current policy priorities.
What risks or legal disputes commonly arise for foreigners dealing with land in Lagos?
The most significant risk for foreign investors involves title fraud and acquisition of defective or encumbered land interests.
Common legal disputes include: 1. **Title verification problems** - Multiple parties claiming ownership of the same property due to poor record-keeping or fraudulent documentation 2. **Failure to obtain Governor's consent** - Transactions without proper approvals are void and unenforceable under Lagos State law 3. **Boundary disputes** - Conflicts over property boundaries due to inadequate or outdated surveys 4. **Lease compliance issues** - Disputes arising from failure to meet development timelines or other lease conditions 5. **Renewal complications** - Uncertainty and disputes when leases approach expiration and renewal terms are negotiatedIt's something we develop in our Nigeria property pack.
Additional risks include potential government acquisition for public purposes, changes in state development policies that affect land use, and difficulties enforcing lease rights against local community claims or government interference.
Are there recent changes or proposed reforms in Lagos law regarding foreign land ownership?
As of September 2025, no reforms are proposed to allow foreigners outright land ownership in Lagos - recent changes have actually reinforced existing restrictions.
The Lagos State Real Estate Regulatory Authority Law 2022 reaffirmed the 25-year maximum lease term for foreigners and strengthened the Governor's consent requirement. This law also established clearer procedures for monitoring compliance with foreign investment restrictions in the real estate sector.
Recent trends indicate periodic tightening of procedures rather than liberalization, with Lagos State implementing more stringent documentation requirements and enhanced due diligence processes for foreign transactions. The state government has also increased enforcement activities to identify and address non-compliant foreign land acquisitions.
While some industry stakeholders continue to advocate for reforms that would allow longer lease terms or simplified procedures for foreign investors, no concrete policy changes are under active consideration by the Lagos State government as of September 2025.
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.
Understanding these land ownership restrictions is crucial for any foreign investor considering Lagos real estate, as non-compliance can result in void transactions and significant financial losses.
While leasehold interests provide reasonable security for foreign investors, the 25-year maximum term and renewal uncertainties require careful consideration in investment planning and exit strategies.
Sources
- DLA Piper Real World - Nigeria Ownership Restrictions
- Trusted Advisors Law - Foreign Real Estate Acquisition
- Vala Homes - Foreign Property Ownership in Lagos
- Mondaq - Foreign Ownership Regulations Nigeria
- LexShield Properties - Complete Guide for Foreigners
- The AfricanVestor - Buying Land in Nigeria
- Legal 500 - Nigeria Foreign Investment Guide
- Flinx Realty - Leasehold vs Freehold Nigeria
- Private Property Nigeria - Foreign Land Purchase
- Multilaw - Nigeria Real Estate Guide