Is Banana Island property worth the premium price?

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.

Have you confirmed that the seller truly owns the land with proper Certificate of Occupancy or Governor's Consent?

The most critical step in Nigerian property acquisition is verifying that the seller holds legitimate ownership documentation.

A valid Certificate of Occupancy (C of O) or Governor's Consent serves as the primary proof of land ownership in Nigeria. These documents must be issued by the appropriate government authority and bear the seller's name exactly as they appear on identification documents.

As of September 2025, properties sold with only family receipts, customary documentation, or verbal agreements frequently result in ownership disputes. The Lagos State Ministry of Lands requires all legitimate property transactions to involve government-issued titles that can be verified through their official registry system.

Always cross-check any title documents with the Ministry of Lands or Lagos State Land Registry to confirm authenticity. Fraudulent documents are increasingly sophisticated, making independent verification through official channels essential.

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

Have you checked if the land is free from government acquisition, litigation, or land grabber disputes?

Government acquisition, pending litigation, and "omo onile" (land grabber) disputes represent the most common causes of property loss in Nigeria.

Government acquisition occurs when federal or state authorities designate private land for public use, often with minimal compensation to original owners. Lagos State's urban development projects have affected thousands of properties, particularly in rapidly developing areas like Lekki and Ibeju-Lekki.

Land grabber disputes involve individuals or groups claiming ownership of already-sold property, demanding additional payments from legitimate buyers. These incidents have increased by approximately 30% in Lagos suburbs since 2023, according to local real estate associations.

The Lagos State Land Registry maintains records of properties under government acquisition, pending litigation, and reported disputes. A thorough search of these records before purchase can prevent future ownership challenges.

Local community inquiries are equally important, as residents often know about ongoing disputes or problematic land history that may not appear in official records.

Have you confirmed that the survey plan and deed of assignment match the exact plot of land?

Survey plan discrepancies cause significant property disputes when buyers discover their purchased land differs from documentation.

A registered surveyor must verify that coordinates, boundaries, and measurements in the survey plan correspond exactly to the physical plot being offered for sale. GPS coordinates should be cross-referenced with government survey records to ensure accuracy.

The deed of assignment must specify the exact same plot dimensions, coordinates, and boundary descriptions as the survey plan. Any discrepancies between these documents indicate potential fraud or administrative errors that could invalidate the transaction.

Physical boundary verification involves confirming that fence lines, natural boundaries, and neighboring properties align with survey documentation. This process often reveals encroachments or boundary disputes not evident from paperwork alone.

Nigerian courts consistently rule against buyers who failed to verify survey accuracy before purchase, making this step legally and financially critical.

Have you visited the land physically during both rainy and dry seasons to check for flooding and accessibility?

Seasonal property inspection reveals critical issues that single visits cannot detect, particularly in Nigeria's varied climate zones.

Season	Issues to Check	Specific Concerns
Rainy Season (April-October)	Flooding and drainage	Standing water, erosion, access road conditions
Dry Season (November-March)	Infrastructure and utilities	Water supply reliability, dust levels, structural integrity
Peak Rains (June-September)	Severe weather impact	Foundation stability, neighboring property drainage
Harmattan Period (December-February)	Visibility and accessibility	Road conditions, utility line visibility, dust damage
Transition Periods	Climate change effects	Erosion patterns, vegetation growth, access changes

Have you verified that the land is not under excision or encumbrance with the land registry?

Excision and encumbrance checks through official registries prevent purchase of legally restricted properties.

Excision occurs when government authorities remove portions of titled land for public use, reducing the property size and potentially affecting access or development rights. Lagos State has implemented numerous excision orders affecting properties in Ikorodu, Badagry, and Epe areas since 2022.

Encumbrances include existing mortgages, liens, court orders, or inheritance disputes that could affect ownership transfer. Properties under encumbrance cannot be legally sold until these issues are resolved through appropriate legal channels.

The Lagos State Land Registry maintains comprehensive records of all excision orders and registered encumbrances. A formal search request through legal representatives ensures access to current property status information.

Properties with unresolved encumbrances often face prolonged legal battles that can last several years, making verification essential before any financial commitment.

Have you checked if the area has reliable infrastructure like roads, electricity, and water supply?

Infrastructure availability significantly impacts property value, livability, and long-term investment returns in Nigerian real estate markets.

Motorable roads ensure year-round property access and emergency services availability. Many Lagos suburban areas experience seasonal road flooding that isolates properties for weeks during heavy rains, particularly affecting areas like Ajah, Sangotedo, and parts of Ibeju-Lekki.

Electricity supply in Nigeria averages 12-16 hours daily in urban areas, with significant variations by location. Properties in areas with reliable grid connection or planned infrastructure improvements command premium prices compared to locations dependent on private generators.

Water supply infrastructure varies dramatically across Nigerian cities. Lagos Island and Victoria Island maintain more reliable public water systems, while suburban areas often depend on private boreholes or water delivery services that increase monthly living costs by ₦15,000-₦30,000.

Proximity to planned infrastructure projects can significantly increase property values. Government announcements of new roads, power substations, or water treatment facilities typically boost area property prices by 10-25% within two years of completion.

Have you asked about neighborhood development plans, zoning rules, and upcoming government projects?

Understanding local development plans and zoning regulations prevents conflicts with future government projects and ensures appropriate property use.

Lagos State's Master Plan designates specific land uses for different areas, including residential, commercial, industrial, and mixed-use zones. Purchasing residential property in areas zoned for industrial development can lead to future displacement or severe environmental impacts.

Government infrastructure projects can dramatically affect property values and livability. The Lagos-Badagry Expressway expansion has increased property values along the corridor by 40-60% since construction began, while also causing temporary access disruptions for existing residents.

Local planning authorities maintain records of proposed developments, road expansions, utility projects, and zoning changes that could affect specific neighborhoods. This information helps buyers understand long-term area prospects and potential challenges.

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

Have you confirmed the price aligns with current market value through recent transaction comparisons?

Market value verification prevents overpaying and ensures reasonable investment returns in Nigeria's volatile property markets.

Property Type	Required Comparisons	Acceptable Price Variance
Residential Land (Lagos)	Minimum 3 recent sales	±15% of average market price
Developed Property	5-7 comparable transactions	±10% of market average
Commercial Land	3-5 similar locations	±20% depending on location
Waterfront Property	Limited comparables	±25% due to uniqueness
Suburban Development	Multiple phase comparisons	±12% within same development

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.

Have you budgeted realistically for all additional costs like survey, legal fees, and registration charges?

Additional costs in Nigerian property transactions typically add 15-25% to the base purchase price, significantly affecting total investment requirements.

Survey fees range from ₦150,000-₦500,000 depending on land size and location complexity. Professional survey verification is mandatory for secure property acquisition and prevents future boundary disputes.

Legal fees for property transactions typically cost 3-5% of the property value, covering document verification, title searches, contract drafting, and registration processes. Lagos lawyers specializing in real estate charge ₦300,000-₦1,500,000 depending on transaction complexity.

Government registration charges include stamp duty (0.75% of property value), registration fees (₦50,000-₦200,000), and various administrative costs. Lagos State property registration can cost ₦500,000-₦2,000,000 for high-value properties.

Agency commission ranges from 5-10% of purchase price when using real estate agents. While this appears expensive, professional agents often identify issues that save buyers significantly more than their commission costs.

Have you consulted a licensed real estate lawyer to conduct proper due diligence?

Professional legal consultation is the most effective protection against property fraud and documentation errors in Nigerian real estate transactions.

Licensed real estate lawyers have specialized knowledge of Nigerian property law, government procedures, and common fraud schemes that general practice lawyers may miss. They maintain relationships with registry officials and can expedite verification processes.

Legal due diligence includes title searches, document authentication, encumbrance checks, and contract review. This comprehensive process typically takes 2-4 weeks but can prevent losses worth millions of naira from fraudulent transactions.

Professional lawyers can identify forged documents, incomplete ownership transfers, and restrictive covenants that would not be obvious to individual buyers. Their experience with local property markets provides valuable insights about area-specific risks and opportunities.

The cost of legal consultation (₦300,000-₦1,500,000) is minimal compared to potential losses from property fraud, which can result in complete financial loss plus legal costs for recovery attempts.

Have you ensured all payments are made through traceable means with proper receipts?

Traceable payment methods and proper documentation provide essential legal protection and evidence for property ownership claims.

1. **Bank transfers provide official transaction records** that courts accept as evidence of payment and can help trace funds in fraud cases. 2. **Cash payments should be avoided completely** as they offer no legal protection and frequently feature in fraudulent property schemes. 3. **All receipts must include seller identification**, property description, payment amount, date, and official stamps or signatures. 4. **Payment should be made in stages** tied to specific documentation milestones rather than as lump sum payments before verification completion. 5. **Official receipt formats should comply** with Nigerian tax authority requirements and include appropriate tax identification numbers.

Have you registered your interest with the land registry immediately after purchase?

Immediate registry registration secures legal ownership and prevents future encroachment or fraudulent resale to third parties.

Nigerian law recognizes the first registered owner as the legitimate property holder, making rapid registration critical for ownership security. Delayed registration allows fraudulent sellers to sell the same property to multiple buyers, creating complex legal disputes.

Lagos State Land Registry requires specific documentation for registration, including authenticated purchase agreements, tax clearance certificates, and survey plans. The registration process typically takes 3-6 months when properly initiated immediately after purchase.

Registration fees vary by property value and location but represent essential investment protection. Unregistered properties cannot be legally transferred, mortgaged, or used as collateral for business financing.

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. Lagos State Ministry of Physical Planning and Urban Development
2. Nigerian Bar Association Real Estate Practice Guidelines
3. Nigeria Cadastral Zone Real Estate Information
4. Lagos State Land Registry Official Portal
5. ProShare Nigeria Real Estate Market Analysis
6. Nairametrics Real Estate Market Reports
7. Punch Newspapers Real Estate Coverage
8. Guardian Nigeria Property Market Updates