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
Buying property in Nigeria as a foreigner is possible, but understanding the unique legal framework and local practices is essential before you commit.
This guide covers everything from ownership rules and visa requirements to mortgage options and closing costs in Nigeria in January 2026.
We constantly update this blog post to reflect the latest regulations and market conditions in Nigeria.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Nigeria.
Insights
- Nigeria operates under the Land Use Act, meaning foreigners technically acquire "rights of occupancy" rather than freehold ownership, which is a critical distinction most buyers overlook.
- The Central Bank of Nigeria's policy rate sits at 27% as of late 2025, pushing realistic mortgage rates for foreigners into the 20% to 30% per year range in naira terms.
- Closing costs in Lagos typically range from 10% to 15% of the purchase price, higher than Abuja's 8% to 12%, due to state-specific fees and perfection requirements.
- Nigeria has no foreign ownership quota for residential property, unlike many Asian markets, making it relatively accessible for international buyers in 2026.
- The biggest mistake foreigners make in Nigeria is buying property without completing title "perfection," which means you can pay in full and still lack legally enforceable ownership.
- A Nigerian Tax Identification Number (TIN) is practically required for property transactions, even though it is not always legally mandatory for the purchase itself.
- Lagos Land Use Charge, the main recurring property cost, typically runs between 0.1% and 0.5% of assessed value annually, varying by property profile and location.
- Rental income in Nigeria is subject to withholding tax, and tenants or companies often deduct tax at source before paying landlords.
- Prime neighborhoods like Ikoyi, Victoria Island, and Lekki Phase 1 in Lagos still see title problems, so expensive addresses do not guarantee clean documentation.
- Nigeria's new consolidated Tax Act 2025 took effect on January 1, 2026, meaning buyers should verify current tax rules before closing any transaction.
What can I legally buy and truly own as a foreigner in Nigeria?
What property types can foreigners legally buy in Nigeria right now?
In January 2026, foreigners can generally buy all common residential property types in Nigeria, including apartments, flats, terrace houses, semi-detached homes, detached houses, duplexes, and bungalows in cities like Lagos and Abuja.
The most important legal condition to understand is that Nigeria's Land Use Act means you are acquiring "rights of occupancy" rather than outright freehold land ownership, which is a fundamentally different system than many Western countries use.
What you actually own is a registered interest evidenced by documents like a Certificate of Occupancy (C of O) or a properly perfected deed of assignment that has gone through consent, stamping, and registration at the state land registry.
This system applies uniformly across property types, so whether you buy a flat in Victoria Island or a duplex in Abuja's Maitama district, your ownership is defined by the quality of your title documents and their proper registration.
Finally, please note that our pack about the property market in Nigeria is specifically tailored to foreigners.
Can I own land in my own name in Nigeria right now?
In everyday terms Nigerians say "I own land," but legally the system works more like holding long-term, enforceable rights over land under a state-controlled framework governed by the Land Use Act.
As a foreigner, you can hold residential property interests that are recognized and registered in your name, but you should understand this is closer to a long-term leasehold arrangement than simple freehold ownership as understood in countries like the United States or United Kingdom.
The practical takeaway is to focus less on the word "land" and more on whether your transaction will be properly perfected and registered at the relevant state land registry, because that registration is what makes your rights enforceable.
As of 2026, what other key foreign-ownership rules or limits should I know in Nigeria?
As of early 2026, the main constraints affecting foreign buyers in Nigeria are less about quotas or nationality restrictions and more about the practical challenge of ensuring your title documents are properly perfected through consent, stamping, and registration.
Unlike some Asian markets, Nigeria does not impose a foreign ownership quota on residential apartments or condominiums, so you will not encounter percentage limits on how many units in a building can be foreign-owned.
However, foreign buyers should expect to complete registration and stamping requirements with the relevant state land registry and the Federal Inland Revenue Service, and obtaining a Nigerian Tax Identification Number is practically necessary for compliant transactions.
One important development to note is that Nigeria's consolidated Tax Act 2025 took effect on January 1, 2026, which means the tax rules around property transactions may have shifted, and you should verify current requirements with a local professional before closing.
If you're interested, we go much more into details about the foreign ownership rights in Nigeria here.
What's the biggest ownership mistake foreigners make in Nigeria right now?
The single biggest ownership mistake foreigners make in Nigeria is buying a home where the title is not clean or failing to complete the "perfection" process after paying, which means you can hand over your money and still struggle to prove you legally own anything.
If you make this mistake, the real-world consequence is that you may be unable to sell, mortgage, or even defend your property against competing claims, because Nigerian courts and registries rely heavily on properly stamped and registered documents.
Other classic pitfalls specific to Nigeria include buying based on a seller's story instead of running a land registry search, accepting "family land" or "community allocation" narratives without verifiable registry evidence, and assuming that a fancy neighborhood address in Ikoyi or Lekki means the paperwork is automatically fine.
We have made this infographic to give you a quick and clear snapshot of the property market in Nigeria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Nigeria?
Do I need a specific visa to buy property in Nigeria right now?
In January 2026, property purchase in Nigeria is not generally "visa-gated," which means many foreigners can buy while on a tourist or visitor visa without needing special residency status.
The most common administrative hurdle unrelated to the property itself is opening a Nigerian bank account, which typically requires more documentation and sometimes residency evidence, making it harder for short-term visitors to handle payments smoothly.
You should also expect to obtain a Nigerian Tax Identification Number (TIN) before or during your purchase, because this is practically required for stamping documents, filing any tax obligations, and completing compliant transactions.
A typical document set for foreign buyers includes your international passport, proof of address, Nigerian TIN, and potentially a residence permit like CERPAC if you are working or living in Nigeria, plus all the property-specific documents like the sale agreement and deed of assignment.
Does buying property help me get residency and citizenship in Nigeria in 2026?
As of early 2026, buying residential property in Nigeria is not, by itself, a standard "golden visa" pathway to residency or citizenship, unlike programs in Portugal, Greece, or the UAE.
Residency for foreigners in Nigeria is typically tied to work permits, investment structures, or employment permissions administered under the immigration framework, with the Combined Expatriate Residence Permit and Aliens Card (CERPAC) being the main document for those living and working in the country.
If you want to establish residency in Nigeria, the more common pathways include securing employment with a Nigerian company, starting a business, or qualifying under specific investment categories, but simply owning a house does not automatically grant you the right to live in the country long-term.
Can I legally rent out property on my visa in Nigeria right now?
Your visa status generally does not prevent you from renting out property you own in Nigeria, so whether you entered on a tourist visa or hold a residence permit, you can typically earn rental income from your investment.
You do not need to live in Nigeria to rent out your property, and many foreign owners manage their investments from abroad, though this makes having a reliable local property manager or agent practically essential for tenant screening, maintenance, and rent collection.
The important details foreigners must know are that rental income is taxable in Nigeria, withholding tax mechanisms often apply (especially when renting to companies), and you should register with the relevant state tax authority, such as the Lagos Internal Revenue Service if your property is in Lagos.
We cover everything there is to know about buying and renting out in Nigeria here.
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How does the buying process actually work step-by-step in Nigeria?
What are the exact steps to buy property in Nigeria right now?
The standard sequence to buy property in Nigeria involves six main steps: confirm the title type and property details, agree on price and terms in writing, hire a lawyer to run due diligence and a land registry search, sign the transfer instrument (usually a Deed of Assignment), complete the perfection process (consent, stamping, and registration), and then handle post-closing matters like utility transfers and Land Use Charge registration.
You do not always need to be physically present because many foreigners buy via a Power of Attorney or authorized signatory arrangements, though these documents typically need to be notarized and sometimes consularized depending on where you sign them.
The step that typically makes the deal legally binding for both buyer and seller in Nigeria is the execution and exchange of the sale agreement or contract, which sets out the terms and conditions before the full Deed of Assignment is prepared and perfected.
The typical end-to-end timeline from accepted offer to final registration ranges from 3 to 12 months in Nigeria, with the wide variation largely depending on how quickly the relevant state land registry processes consent applications and registrations, and whether the title has any issues that need resolving.
We have a document entirely dedicated to the whole buying process our pack about properties in Nigeria.
Is it mandatory to get a lawyer or a notary to buy a property in Nigeria right now?
Hiring a lawyer is not strictly mandatory by law in Nigeria, but it is strongly advisable, especially for foreigners, because the main risk in Nigerian property transactions is title defects and unperfected documentation, not finding a listing.
In Nigeria, the lawyer handles the critical work of conducting land registry searches, drafting and reviewing transfer documents, and guiding the perfection process, while a notary is primarily used when you need documents notarized for cross-border execution, such as powers of attorney signed abroad.
One key item that should be explicitly included in your lawyer's engagement scope is conducting a comprehensive title search at the state land registry and providing a written opinion on the chain of ownership, because this is where most problems are either caught or missed.
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.
What checks should I run so I don't buy a problem property in Nigeria?
How do I verify title and ownership history in Nigeria right now?
The official authority you should use to verify title and ownership history in Nigeria is the state Land Registry where the property is located, or the Federal Capital Territory (FCT) Land Registry if you are buying in Abuja.
The key document you should request to confirm ownership is the Certificate of Occupancy (C of O) if it exists, or the most recent registered Deed of Assignment showing the seller's name matches the registry records and the property description matches the survey plan.
A realistic look-back period for ownership history checks in Nigeria is at least 15 to 30 years, or back to the original grant or allocation, to ensure there are no missing links in the chain of title transfers.
One clear red-flag finding that should stop or pause a purchase is discovering that the property has overlapping claims, unresolved litigation, a government acquisition notice, or prior transfers that were never properly registered, because any of these can make your ownership unenforceable.
You will find here the list of classic mistakes people make when buying a property in Nigeria.
How do I confirm there are no liens in Nigeria right now?
The standard way to confirm there are no liens or encumbrances on a property in Nigeria is to conduct a search at the relevant state Land Registry, where registered mortgages, charges, and other encumbrances should appear on the property's record.
One common type of lien buyers should specifically ask about in Nigeria is a registered mortgage from a bank or primary mortgage institution, because if the seller has an outstanding loan secured against the property, that charge must be cleared before you can get clean title.
The single best form of written proof that shows lien status in Nigeria is a certified search report from the Land Registry confirming the current registered owner and listing any encumbrances, combined with a clearance letter from any lender if a mortgage was previously registered.
How do I check zoning and permitted use in Nigeria right now?
The authority you should use to check zoning and permitted use in Nigeria is the relevant state ministry responsible for physical planning and urban development, such as the Lagos State Physical Planning Permit Authority or the FCT Development Control Department in Abuja.
The document that typically confirms zoning classification in Nigeria is the approved building plan or development permit, along with the survey plan that shows the plot's designated use category within the state's zoning scheme.
One common zoning pitfall foreign buyers frequently miss in Nigeria is purchasing property in areas zoned for residential use but subject to estate rules that restrict short-term rentals or certain commercial activities, which can limit how you use or monetize the property.
Buying real estate in Nigeria can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Nigeria, and on what terms?
Do banks lend to foreigners for homes in Nigeria in 2026?
As of early 2026, yes, Nigerian banks and licensed primary mortgage institutions do lend to foreigners for home purchases, but the requirements are stricter and the terms less favorable than what local borrowers typically receive.
The realistic loan-to-value (LTV) range that foreign borrowers most commonly see in Nigeria is between 50% and 70%, meaning you should expect to put down 30% to 50% of the purchase price as equity, compared to the 20% to 30% down payments sometimes available to Nigerians with strong local credit histories.
The single most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Nigeria is documented income, ideally Nigeria-linked or clearly verifiable from offshore sources, along with strong KYC and anti-money laundering documentation.
You can also read our latest update about mortgage and interest rates in Nigeria.
Which banks are most foreigner-friendly in Nigeria in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Nigeria tend to be large, internationally connected commercial banks like Stanbic IBTC, Access Bank, and Guaranty Trust Bank (GTBank), along with well-established licensed primary mortgage institutions that are used to handling formal documentation.
The single most important feature that makes these banks more foreigner-friendly is their robust KYC and compliance systems, which means they can process international documentation, verify offshore income, and handle the additional paperwork that comes with non-resident borrowers.
These banks will sometimes lend to non-residents who do not have local residency, but approval is highly case-by-case and typically requires a larger down payment, stronger income documentation, and possibly a Nigerian-based co-signer or guarantor.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Nigeria.
What mortgage rates are foreigners offered in Nigeria in 2026?
As of early 2026, the typical mortgage interest rate range for foreigners in Nigeria is roughly 20% to 30% per year for naira-denominated loans, with most offers for well-qualified borrowers clustering in the low-to-mid 20s.
The difference between fixed-rate and variable-rate mortgages in Nigeria is relatively narrow because most lenders offer variable or adjustable rates tied to the high-interest environment, and truly fixed long-term rates are uncommon since the Central Bank of Nigeria's policy rate was 27% as of November 2025.
We made this infographic to show you how property prices in Nigeria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Nigeria?
What are the total closing costs as a percent in Nigeria in 2026?
The typical total closing cost in Nigeria in 2026 ranges from about 8% to 15% of the purchase price, depending on which state you are buying in and the complexity of the title situation.
The realistic low-to-high closing cost range that covers most standard transactions is 8% to 12% in Abuja (FCT) and 10% to 15% in Lagos, with Lagos generally being more expensive due to additional state-level fees and perfection requirements.
The specific fee categories that most commonly make up total closing costs in Nigeria include government consent and perfection fees, stamp duties on the transfer instrument, land registry registration fees, legal fees (often around 1% on a sliding scale), and agency or brokerage commissions.
The single fee category that is usually the biggest contributor to closing costs in Nigeria is the government consent and perfection-related charges, which can vary significantly based on the property value and the specific state's fee schedule.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Nigeria.
What annual property tax should I budget in Nigeria in 2026?
As of early 2026, if you own property in Lagos, you should budget roughly 0.1% to 0.5% of the property's assessed value per year for the Land Use Charge, which works out to approximately 50,000 to 500,000 naira (around 30 to 300 USD or 28 to 280 EUR) for a mid-range home, though actual amounts vary widely based on the property profile and location.
The main way annual property tax is assessed in Nigeria, particularly in Lagos, is through a formula-based Land Use Charge system that considers factors like property location, size, and use category, rather than a simple flat rate or fixed schedule applied uniformly across all properties.
How is rental income taxed for foreigners in Nigeria in 2026?
As of early 2026, rental income for foreigners in Nigeria is taxed under the Personal Income Tax Act at marginal rates that can reach up to 24% for higher income brackets, though effective rates depend on your total taxable income and allowable deductions.
The basic filing or withholding requirement a foreign owner usually must follow is that tenants, especially corporate tenants, often deduct withholding tax at source (typically 10% for rent payments) before paying you, and you may need to file returns with the relevant state tax authority to claim credits or reconcile your tax position.
What insurance is common and how much in Nigeria in 2026?
As of early 2026, the typical annual insurance premium range for a standard home policy in urban Nigeria is roughly 0.1% to 0.3% of the insured building value, which for a home insured at 50 million naira would be approximately 50,000 to 150,000 naira per year (around 30 to 90 USD or 28 to 85 EUR).
The single most common type of property insurance coverage that owners carry in Nigeria is basic building insurance covering fire and related perils, which is sometimes required by lenders if you have a mortgage.
The one biggest factor that usually makes insurance premiums higher or lower for the same property type in Nigeria is the building's construction materials and location, with properties in flood-prone areas or those built with less durable materials typically attracting higher premiums.
Get the full checklist for your due diligence in Nigeria
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Nigeria, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Central Bank of Nigeria (CBN) Monetary Policy Decisions | Official record of Nigeria's benchmark interest rates and monetary stance. | We used it to anchor realistic mortgage rate expectations in Nigeria's high-interest environment. We treated the CBN's policy rate as the baseline that drives commercial mortgage pricing. |
| UNEP LEAP Land Use Act Repository | Stable, citable version of Nigeria's foundational land law. | We used it to explain the core concept of "rights of occupancy" that defines property ownership in Nigeria. We framed why freehold ownership works differently than foreigners might expect. |
| Nigeria Immigration Service (NIS) CERPAC Page | Official Nigerian government immigration authority for residence permits. | We used it to explain what residency means for foreigners living in Nigeria. We separated property ownership rights from legal residence status to avoid confusion. |
| Lagos State Land Use Charge Portal | Official Lagos portal for the main recurring property charge in the state. | We used it to explain annual property costs that most affect Lagos property owners. We highlighted that recurring costs are state-specific and Lagos is the most systematized. |
| Joint Tax Board (JTB) Tax ID Portal | Official portal for Nigerian Tax Identification Number registration. | We used it to confirm that foreigners should expect to obtain a TIN for compliant transactions. We explained why a Tax ID is practically required for property purchases. |
| FIRS Stamp Duty Guidance | Federal Inland Revenue Service publication on stamp duties administration. | We used it to confirm that property transfer documents must be stamped for enforceability. We supported the message that stamping is not optional for clean title. |
| CBN Primary Mortgage Institutions Directory | Regulator's official list of licensed mortgage banks in Nigeria. | We used it to define what a licensed mortgage lender is in Nigeria. We guided readers toward regulated channels for foreign buyer financing. |
| Personal Income Tax Act (PITA) | Underlying statute for individual income tax across Nigeria. | We used it as the legal backbone for explaining that rental income is taxable for individuals. We avoided vague statements about landlord tax obligations. |
| Lagos Internal Revenue Service (LIRS) Publications | Official Lagos tax authority's publication channel for compliance guidance. | We used it to confirm Lagos' operational stance on withholding taxes and compliance. We informed the section on rental income tax realities for foreign landlords. |
| Withholding Tax Regulations 2024 (Gazetted) | Official gazetted regulations text for withholding tax in Nigeria. | We used it to explain how withholding tax is structured for rent payments. We set realistic expectations for rental income compliance and deductions. |
| Stanbic IBTC Mortgage Product Page | Live product page from a major regulated Nigerian bank. | We used it to confirm that mainstream banks actively offer mortgages to buyers. We referenced it only for product availability signals, not market-wide rate claims. |
| Nigeria Tax Act 2025 Commentary | Specialist legal analysis discussing the new consolidated tax law timeline. | We used it to flag that tax rules transitioned around January 2026. We added a caution for buyers to verify current tax positions before closing. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Nigeria. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.