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The Land Use Act of 1978 fundamentally changed property ownership in Lagos, making it impossible for foreigners to own land outright.
Instead, foreign investors can only acquire leasehold rights for up to 25 years through a complex approval process that requires Governor's consent and strict documentation. Understanding these restrictions is crucial for anyone considering property investment in Lagos, as violations can result in complete loss of investment and legal complications.
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Foreigners cannot own land in Lagos but can lease it for up to 25 years with Governor's consent, requiring 6-10% of property value in processing fees.
The process involves multiple government agencies, takes 6-12 months, and requires thorough legal verification to avoid fraud and disputes.
| Aspect | Foreign Buyers | Requirements/Costs |
|---|---|---|
| Land Ownership | Leasehold only (no freehold) | Governor's consent mandatory |
| Maximum Lease Period | 25 years maximum | Renewable with approval |
| Processing Costs | 6-10% of property value | Plus 5% legal fees |
| Government Fees | ₦100,000-₦300,000 | For residential plots |
| Processing Time | 6-12 months | Depends on documentation |
| Main Authority | Lagos State Lands Bureau | Issues Certificate of Occupancy |
| Transfer Requirements | Governor's consent required | For any resale or transfer |
What does the Land Use Act say about land ownership in Lagos and how does it apply specifically to foreigners?
The Land Use Act of 1978 vests all land ownership in the Lagos State Governor, completely eliminating freehold ownership for both Nigerians and foreigners.
Under this law, no individual or entity can own land outright in Lagos - everyone, including foreigners, can only acquire leasehold rights. The Act specifically requires that any land transaction involving foreigners must receive written approval from the Lagos State Governor. This means foreigners cannot purchase, lease, or acquire any interest in land without explicit government consent.
The law applies more strictly to foreigners than to Nigerian citizens, as foreign investors face additional scrutiny and shorter maximum lease periods. While Nigerians can obtain leases up to 99 years in some cases, foreigners are typically restricted to much shorter terms. The Act also gives the state government the right to revoke land rights for overriding public interest, making foreign investments particularly vulnerable to government policy changes.
As of September 2025, this framework remains unchanged, with the Lagos State government maintaining strict control over all land transactions involving non-Nigerian nationals.
Can a foreigner in Lagos legally own land directly, or must they lease it under a government-issued certificate of occupancy?
Foreigners cannot legally own land directly in Lagos - they can only lease it under a government-issued Certificate of Occupancy (C of O).
The Land Use Act completely prohibits freehold ownership for foreigners in Lagos. Instead, all foreign land acquisition must be through leasehold arrangements formalized by a Certificate of Occupancy issued by the Lagos State Government. This C of O serves as the legal document that grants foreigners the right to use and occupy land for a specified period, but never to own it outright.
The Certificate of Occupancy essentially functions as a lease agreement between the Lagos State Government (as the ultimate landowner) and the foreign investor (as the lessee). This document specifies the exact terms of the lease, including duration, permitted land use, renewal conditions, and transfer restrictions. Without a valid C of O, any foreign land acquisition in Lagos is considered illegal and void.
Even when foreigners acquire existing properties from other parties, they must still obtain Governor's consent and ensure proper C of O documentation. This requirement applies regardless of whether the foreigner is buying from another foreigner, a Nigerian citizen, or a corporate entity.
What is the maximum lease period a foreign property buyer can obtain in Lagos under the Land Use Act?
Foreign property buyers in Lagos are restricted to a maximum lease period of 25 years, including any renewals.
This 25-year limit represents a significant restriction compared to what Nigerian citizens can obtain. While Nigerians may receive lease terms up to 99 years in certain circumstances, the Lagos State Real Estate Regulatory Authority Law of 2022 explicitly caps foreign leases at 25 years maximum. This shorter period applies to all types of property acquisitions by foreigners, whether residential, commercial, or investment properties.
The 25-year limit includes any renewal periods, meaning foreigners cannot simply renew their lease multiple times to extend beyond this maximum. After 25 years, the land and any improvements typically revert to the Lagos State Government unless special arrangements are made. However, lease renewals and extensions are possible within this 25-year framework, but they require fresh Governor's consent and compliance with current regulations at the time of renewal.
Short-term leases of less than one year may not require Governor's consent, but any lease exceeding 12 months must receive explicit approval from the Lagos State Government. This regulation ensures that all significant foreign land investments remain under government oversight.
How much does it cost, on average, to process a certificate of occupancy or governor's consent for foreign buyers in Lagos right now?
Processing a Certificate of Occupancy or Governor's consent for foreign buyers in Lagos currently costs between 6-10% of the property value in total fees, plus additional legal costs of around 5% of the purchase price.
| Fee Type | Cost Range | Details |
|---|---|---|
| Government Processing Fees | ₦100,000 - ₦300,000 | For residential plots |
| Stamp Duty | 0.5% - 2% of property value | Varies by property type |
| Land Registration Fee | 3% - 6% of land value | Mandatory government fee |
| Consent Fee | 1.5% of property value | For Governor's consent |
| Legal Fees | 5% of purchase price | Negotiable with lawyers |
| Survey and Admin Charges | ₦50,000 - ₦150,000 | Professional survey required |
For a property worth ₦50 million, foreign buyers should budget approximately ₦3-5 million for government fees alone, plus an additional ₦2.5 million for legal representation. These costs can increase significantly for higher-value properties or complex transactions involving multiple approvals.
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Which government agencies in Lagos handle land allocations and approvals for foreign investors, and how long do the processes usually take?
The Lagos State Lands Bureau serves as the primary government agency handling land allocations and approvals for foreign investors, with processing times typically ranging from 6 months to 1 year.
The Lands Bureau operates under the Lagos State Ministry of Housing and oversees all Certificate of Occupancy applications, Governor's consent requests, and land title verifications. Foreign investors must submit their applications directly to this bureau, which then coordinates with other relevant agencies including the Lagos State Geographic Information System (LAGIS) for surveying and the Lagos State Internal Revenue Service for tax clearances.
Processing timelines depend heavily on several factors including document completeness, land status verification, and current application backlog. Applications with incomplete documentation or disputed land ownership can take significantly longer - sometimes extending to 18 months or more. The bureau has implemented electronic processing systems since 2022 to reduce processing times, but complex foreign investment applications still require extensive manual review.
To expedite the process, foreign investors should ensure all required documents are complete before submission, engage qualified local legal representation, and maintain regular follow-up with the bureau. Applications submitted during peak periods (typically November to February) may experience longer delays due to increased volume.
Are there restrictions on the type of property or location in Lagos that a foreign buyer can legally acquire?
Foreign buyers in Lagos can acquire residential, commercial, and investment properties, but face restrictions on government-designated lands and certain strategic locations.
Foreigners are prohibited from acquiring land designated for government purposes, including areas marked for future infrastructure development, military installations, or other strategic government use. These "committed lands" are clearly identified in government records, and attempting to purchase such properties can result in transaction nullification and financial loss.
Additionally, certain locations within Lagos may have specific restrictions based on zoning laws and development plans. Areas near airports, seaports, and critical infrastructure may require additional approvals or may be completely off-limits to foreign investors. The Lagos State Physical Planning Permit Authority (LASPPPA) maintains updated zoning maps that indicate which areas are available for foreign acquisition.
Foreign investors also cannot acquire agricultural land designated for local food production or land within traditional ruler domains that have not been formally acquired by the Lagos State Government. Properties in these areas may appear available for sale but lack proper government backing, making them risky investments for foreign buyers.
Before making any property acquisition, foreign investors should verify the land status through the Lagos State Lands Bureau and ensure the property is not subject to any government acquisition plans or zoning restrictions.
What taxes, fees, or levies must a foreign buyer pay when acquiring property in Lagos, and what are the current rates?
Foreign buyers acquiring property in Lagos must pay multiple taxes and fees totaling approximately 11-18% of the property value, depending on the specific transaction and property type.
- Stamp Duty: 0.5-2% of property value, paid to the Federal Inland Revenue Service
- Land Registration Fee: 3-6% of land value, paid to Lagos State Government
- Governor's Consent Fee: 1.5% of property value, mandatory for all foreign acquisitions
- Survey Fees: ₦50,000-₦150,000 for professional land survey requirements
- Legal Documentation Fees: 5% of purchase price (negotiable with legal practitioners)
- Land Use Charge: Annual property tax ranging from 0.076% to 0.373% of property value
- Administrative Processing Fees: ₦100,000-₦300,000 for government processing
- Registration and Publication Fees: ₦25,000-₦75,000 for document registration and gazette publication
These rates are current as of September 2025 and may vary based on property location within Lagos, transaction complexity, and current government policies. Foreign buyers should also budget for potential additional costs including title insurance, property valuation fees, and ongoing compliance costs throughout the lease period.
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How does the Land Use Act affect property resale or transfer if a foreigner wants to sell to another foreigner or to a Nigerian?
Any property resale or transfer by foreigners in Lagos requires Governor's consent, regardless of whether the buyer is Nigerian or foreign, with the Lagos State Government holding a right of first refusal.
When a foreigner wants to sell property in Lagos, they must first obtain Governor's consent for the transfer. The process involves submitting a formal application to the Lagos State Lands Bureau, providing details about the proposed buyer, transaction terms, and reasons for the sale. The government typically takes 3-6 months to review and approve such applications.
The Lagos State Government maintains a right of first refusal on all foreign-held properties, meaning the government can choose to purchase the property at the agreed-upon price before allowing the sale to proceed. In practice, this right is rarely exercised except for properties in strategically important locations or when government development plans require the land.
Transfers between foreigners face additional scrutiny compared to sales to Nigerian citizens. When selling to another foreigner, both the seller and buyer must demonstrate compliance with current foreign investment regulations, and the new foreign buyer must meet all eligibility requirements for property acquisition in Lagos.
Sales to Nigerian citizens are generally approved more readily after the government exercises or waives its right of first refusal. However, all transfer documentation must be updated, and new title documents issued to reflect the change in ownership status from foreign leasehold to Nigerian ownership rights.
What are the risks of revocation of land rights by the Lagos State government under the Land Use Act, and how often does this happen in practice?
The Lagos State Government can revoke land rights for overriding public interest, but such revocations are relatively rare when proper documentation exists and no government acquisition plans affect the property.
Under the Land Use Act, the Governor has the power to revoke any Certificate of Occupancy for overriding public interest, which includes infrastructure development, urban planning projects, airport expansion, road construction, and other government initiatives. This revocation power applies equally to Nigerian citizens and foreigners, but foreigners may have less political recourse when facing such actions.
In practice, revocations occur most frequently in areas targeted for major infrastructure projects such as the Lagos-Badagry Expressway expansion, new rail lines, or airport development zones. Property owners in these areas typically receive advance notice of 6-12 months, though compensation arrangements can be disputed and lengthy.
Recent data from the Lagos State Lands Bureau indicates that fewer than 2% of properly documented properties face revocation annually, with most cases involving properties in designated development corridors. However, properties with incomplete documentation, disputed titles, or those built without proper approvals face significantly higher revocation risks.
Foreign investors can minimize revocation risks by conducting thorough due diligence before purchase, ensuring their property is not within planned development zones, maintaining all required documentation current, and avoiding properties with title disputes or incomplete government approvals.
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What legal safeguards should a foreign buyer put in place before paying for land or property in Lagos?
Foreign buyers should implement comprehensive legal safeguards including thorough due diligence, professional legal representation, and proper documentation verification before making any payments for Lagos property.
- Engage qualified legal representation: Hire experienced property lawyers registered with the Nigerian Bar Association who specialize in foreign property acquisitions
- Conduct professional land surveys: Commission registered surveyors to verify property boundaries, coordinates, and ensure no encroachments or disputes
- Verify land title authenticity: Authenticate all documents through the Lagos State Land Registry and confirm Certificate of Occupancy genuineness
- Obtain preliminary title reports: Request comprehensive title searches going back at least 30 years to identify any potential ownership disputes
- Secure Governor's consent confirmation: Ensure written Governor's consent is obtained before payment and verify its authenticity through proper channels
- Arrange escrow services: Use reputable financial institutions for payment holding until all documentation is complete and verified
- Purchase title insurance: Obtain comprehensive title insurance to protect against hidden defects or fraudulent documentation
- Verify seller's legal capacity: Confirm the seller has legal authority to transfer the property and check for any outstanding liens or encumbrances
These safeguards typically add 8-12 weeks to the acquisition timeline but provide essential protection against the significant risks of fraud, title disputes, and documentation irregularities common in the Lagos property market.
How can foreigners confirm that land titles and documents in Lagos are valid and not under dispute?
Foreigners can confirm land title validity through official verification channels at the Lagos State Land Registry and by obtaining a Land Information Certificate from the Lands Bureau.
The primary verification process involves submitting original documents to the Lagos State Land Registry for authentication. This process includes checking government stamps, verifying signature authenticity, confirming survey plan accuracy, and cross-referencing file numbers with official records. The registry maintains computerized records that can quickly identify fraudulent or duplicate documents.
The Land Information Certificate (LIC) serves as the most reliable verification tool for foreign buyers. This document, issued by the Lagos State Lands Bureau, provides comprehensive information about property ownership history, any existing disputes, government acquisition plans, and current legal status. Obtaining an LIC typically costs ₦25,000-₦50,000 and takes 2-4 weeks to process.
Additional verification steps include confirming property coordinates match official survey records, checking for any pending litigation through court registries, verifying the seller appears on official ownership documents, and ensuring no stop-work orders or government notices affect the property. Professional legal assistance is essential for navigating these verification processes effectively and identifying potential red flags that might indicate fraudulent transactions.
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Are there recent Lagos State reforms or updates (within the last 2–3 years) that make property acquisition easier or harder for foreigners under the Land Use Act?
Recent Lagos State reforms between 2022-2025 have introduced mixed changes that streamline some processes while tightening restrictions on foreign property acquisition.
| Reform | Impact on Foreigners | Implementation Status |
|---|---|---|
| Electronic Certificate of Occupancy (e-C of O) | Reduces fraud, faster processing | Fully operational since 2022 |
| Lagos State Real Estate Regulatory Authority Law 2022 | Stricter foreign ownership limits (25-year cap) | Active enforcement |
| Digital land registry system | Improved transparency, easier verification | Ongoing implementation |
| Mandatory foreign investment permits | Additional approval requirements | Required since 2023 |
| Enhanced due diligence requirements | More complex documentation | Fully implemented |
The introduction of electronic Certificates of Occupancy has significantly reduced document fraud and processing times, making legitimate transactions more secure for foreign investors. However, the Lagos State Real Estate Regulatory Authority Law of 2022 explicitly restricted foreign lease periods to 25 years maximum and introduced additional oversight requirements for non-Nigerian property acquisitions.
New foreign investment permit requirements implemented in 2023 require additional approvals from the Nigerian Investment Promotion Commission for property investments exceeding $100,000. This adds another layer of bureaucracy but also provides additional legal protection for substantial foreign investments.
Digital transformation initiatives have improved transparency but also made it harder to circumvent proper procedures. The enhanced tracking systems make it virtually impossible for foreigners to acquire property without proper Governor's consent, eliminating previous informal acquisition methods.
Overall, these reforms make legitimate property acquisition more secure and transparent for foreigners while making it significantly harder to bypass legal requirements or engage in irregular transactions.
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 the Land Use Act's impact on foreign property buyers in Lagos is essential for making informed investment decisions.
While the regulations create significant restrictions and costs, proper planning and legal compliance can enable successful property acquisition within the 25-year leasehold framework.
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Sources
- Counseal - Nigerian Land Use Act Foreign Investors
- Vala Homes - Can a Foreigner Own Real Estate Property in Lagos
- VenturAnna - How Foreigners Can Invest in Nigeria
- Mondaq - Understanding the Land Use Act in Nigeria
- Trusted Advisors Law - Acquisition of Real Estate Assets by Foreigners
- DLA Piper Real World - Ownership of Real Estate Nigeria
- Naija Spider - How to Get Certificate of Occupancy in Lagos
- Naija Houses - Certificate of Occupancy
- Victoria Crest Homes - Documents You Need to Buy Land in Lagos
- Estate Intel - New Lagos State Land Use Act