Can foreigners really buy property in Nigeria easily?

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.

What are the legal requirements for foreigners to buy property in Nigeria?

Foreigners must obtain Governor's Consent for any property purchase in Nigeria, which is a mandatory state-level approval that costs 1.5% of the property value.

The Nigerian Land Use Act restricts foreign individuals to leasehold arrangements only, meaning you cannot own land outright but can secure long-term usage rights typically ranging from 25 to 99 years depending on the state. Lagos State offers leasehold terms up to 99 years for residential properties, while other states may have shorter maximum terms.

As of September 2025, foreign buyers must complete title verification at the relevant state land registry, submit detailed documentation including passport identification and proof of funds, and undergo a thorough due diligence process that can take 3-18 months depending on the state's administrative efficiency. Lagos typically processes applications within 3-6 months, while less developed regions may require up to 18 months.

The legal framework requires foreigners to engage qualified Nigerian legal practitioners for property transactions, as self-representation is not permitted for non-citizens in real estate matters. All contracts must be executed in accordance with both federal and state laws, with stamp duty and registration fees adding approximately 3.5-5% to the total property cost.

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

Are there any specific restrictions on the type of property foreigners can purchase?

Foreigners can only purchase property in designated urban development zones and cannot acquire rural land or property under customary law arrangements.

Military zones, oil and gas exploration areas, and government reserves are completely off-limits to foreign ownership. This restriction effectively confines foreign property investment to major urban centers like Lagos, Abuja, Port Harcourt, and other state capitals with established commercial districts.

Lagos State limits residential plot sizes for foreign leaseholders to 2,000 square meters maximum, while Abuja allows larger plots for commercial purposes. Some states impose additional sector-specific restrictions, requiring foreign buyers to demonstrate job creation potential for commercial acquisitions or limiting purchases to specific business categories.

Communal land under traditional rulers and customary law systems remains largely inaccessible to foreigners, as these areas operate under different legal frameworks that typically require community membership or traditional approval processes not available to non-citizens.

How much of the property can a foreigner legally own in Nigeria?

Ownership Structure	Percentage Allowed	Ownership Type	Duration	Governor's Consent Required
Individual Foreign Buyer	100% leasehold rights	Leasehold only	25-99 years	Yes
Nigerian-Registered Company (100% foreign-owned)	100% freehold ownership	Freehold	Permanent	Yes
Nigerian-Registered Company (Joint venture)	Up to 100% depending on shareholding	Freehold	Permanent	Yes
Rural/Customary Land	0% (Not permitted)	N/A	N/A	N/A
Government Reserve Areas	0% (Not permitted)	N/A	N/A	N/A

Do foreigners need to partner with a Nigerian citizen to buy property?

No, foreigners do not need a Nigerian partner to purchase property through standard leasehold arrangements in urban areas.

Individual foreign buyers can acquire 100% leasehold rights without any requirement for local partnerships or joint ownership structures. This applies to residential, commercial, and mixed-use properties in designated development zones across major Nigerian cities.

However, establishing a Nigerian-registered company offers significant advantages, including access to freehold ownership and broader property types. Foreign investors can create wholly foreign-owned Nigerian companies, maintaining 100% control while gaining the same property rights as local citizens. This corporate structure requires company registration with the Corporate Affairs Commission but does not mandate Nigerian shareholders or directors.

The only scenario requiring local partnerships occurs when attempting to acquire customary land in rural areas, where traditional communities may require local representation or community membership. These arrangements are rare and typically outside the scope of standard real estate investment.

What are the specific steps in the property buying process for foreigners?

1. **Title Verification and Due Diligence**: Conduct comprehensive searches at the state land registry to verify clean title, check for existing liens, disputes, or encumbrances, and confirm the seller's legal right to transfer the property. 2. **Property Valuation and Offer Negotiation**: Engage certified valuers to assess market value, negotiate purchase terms including price and payment schedule, and agree on completion timelines. 3. **Governor's Consent Application**: Submit formal application to the state governor with required documentation, pay the 1.5% consent fee, and await approval which typically takes 2-6 months depending on the state. 4. **Legal Documentation Preparation**: Execute Deed of Assignment or Deed of Conveyance, prepare Certificate of Occupancy (C of O) transfer documents, and complete all required legal forms with qualified legal practitioners. 5. **Payment of Taxes and Registration Fees**: Pay stamp duty (typically 0.78% of property value), registration fees, and other government charges totaling 3.5-5% of property value. 6. **Final Registration and Transfer**: Complete registration at the land registry, obtain registered title documents, and receive legal possession of leasehold rights for the specified term.

The entire process typically takes 3-6 months in Lagos State, 6-12 months in Abuja, and up to 18 months in less developed states with slower bureaucratic processes.

Is there a particular type of visa required to purchase property in Nigeria?

No specific visa is required to purchase property in Nigeria as a foreigner, and property investment does not grant residency or citizenship rights.

Nigerian immigration law and property law operate independently, meaning tourist visas, business visas, or any other legal entry status suffices for property transactions. Foreign buyers can complete purchases remotely through qualified legal representatives without requiring physical presence in Nigeria throughout the entire process.

As of September 2025, Nigeria does not operate a Golden Visa or investor residency program linked to real estate investment. Property ownership provides no pathway to Nigerian citizenship or permanent residence, regardless of investment amount or property value.

However, foreign property owners planning extended stays in Nigeria must still comply with standard visa requirements for their intended duration and purpose of visit, separate from their property ownership status.

What taxes and fees do foreigners need to pay when buying property in Nigeria?

Foreign property buyers face several mandatory fees that typically total 5-7% of the property value, significantly higher than many other African markets.

Governor's Consent Fee represents the largest single cost at 1.5% of property value and applies to every foreign property transaction without exception. Registration and stamp duty charges add another 3.5-5% to the total cost, including land registry fees, legal documentation costs, and government processing charges.

Annual property tax ranges from 0.3% to 0.7% of property value depending on location and property type, with Lagos State charging higher rates than other regions. Capital gains tax applies at 10% of profit when selling property, while rental income from Nigerian property is subject to 10% withholding tax for non-residents.

Additional costs include legal fees (typically 1-2% of property value), surveyor fees, due diligence charges, and agency commissions if using real estate agents. Total acquisition costs often reach 8-10% of property value when including professional services and government fees.

How long does the property acquisition process take for a foreigner?

Property acquisition timelines for foreigners vary significantly by state, ranging from 3 months in Lagos to 18 months in less developed regions.

Lagos State has streamlined its processes and typically completes foreign property transactions within 3-6 months, including Governor's Consent approval and final registration. Abuja follows with 6-12 month timelines, while Rivers State and other major commercial centers usually require 8-15 months for completion.

The Governor's Consent approval stage represents the longest single component, often taking 2-6 months depending on state administrative capacity and application backlogs. States with higher foreign investment volumes like Lagos have dedicated processing units that expedite approvals, while smaller states may lack specialized departments for foreign transactions.

Complex transactions involving corporate structures, multiple properties, or commercial developments may extend timelines by 3-6 months beyond standard residential purchases. Title disputes or incomplete documentation can add several additional months to the process.

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 any differences in financing options available to foreigners compared to Nigerians?

Foreign buyers can access mortgage financing through Nigerian banks, though with stricter requirements than Nigerian citizens face.

Major Nigerian banks including UBA, Standard Chartered Nigeria, and First Bank offer mortgage products to foreigners, typically requiring 15-20% minimum equity contributions compared to 10-15% for Nigerian citizens. Loan terms usually range from 10-20 years with interest rates currently between 18-25% annually as of September 2025.

Foreign buyers must provide additional documentation including proof of foreign income, tax clearance from their home country, and enhanced credit verification. Some banks require foreign applicants to maintain local Nigerian accounts for at least 6 months before mortgage approval, while others accept international banking references.

Corporate buyers using Nigerian-registered companies typically access better financing terms, as banks view locally incorporated entities as lower risk than individual foreign applicants. Developer financing and off-plan payment schemes are also available to foreigners on similar terms to local buyers.

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

What documents and permits are required to finalize a property purchase in Nigeria?

Foreign property buyers must provide comprehensive documentation covering identity verification, financial capacity, and legal compliance.

**Essential Documents Required:** 1. **Certificate of Occupancy (C of O)** - Primary title document proving legal ownership rights 2. **Governor's Consent Letter** - Mandatory state approval for foreign ownership transfer 3. **Deed of Assignment or Deed of Conveyance** - Legal transfer documents 4. **Survey Plan and Surveyor's Report** - Official property boundary verification 5. **Tax Clearance Certificate** - Proof seller has met tax obligations 6. **Purchase Receipt and Payment Evidence** - Documentation of financial transaction 7. **Passport and Identification** - Foreign buyer identity verification 8. **Company Registration Documents** - If purchasing through Nigerian entity

Additional permits may include development permits for construction projects, environmental impact assessments for commercial properties, and building approvals for renovation or modification plans. Some states require proof of fund sources for transactions exceeding certain thresholds.

All foreign documents must be notarized and may require apostille certification depending on the buyer's country of origin and bilateral agreements with Nigeria.

Are foreigners allowed to own land in Nigeria, or is it only leasehold property available to them?

Individual foreigners cannot own land outright in Nigeria and are restricted to leasehold arrangements only, while foreign-owned Nigerian companies can acquire freehold ownership.

The Nigerian Land Use Act explicitly prohibits freehold land ownership by non-citizens, limiting individual foreign buyers to maximum leasehold terms of 99 years in most states. Lagos State offers 99-year residential leases, while some states provide shorter terms of 25-50 years depending on property type and location.

However, foreigners can achieve effective freehold ownership by establishing a Nigerian-registered company that can be 100% foreign-owned. These companies enjoy the same land ownership rights as Nigerian citizens, including permanent freehold title and inheritance rights that can be passed to heirs or sold to other entities.

This corporate structure has become the preferred method for serious foreign investors, as it provides security of tenure beyond individual lifespans and eliminates concerns about lease renewal or extension negotiations with future government administrations.

Are there any specific regional differences or limitations in property ownership for foreigners within Nigeria?

Significant regional variations exist in foreign property ownership rules, with each state maintaining distinct requirements for plot sizes, usage restrictions, and approval processes.

Lagos State leads in foreign investor accommodation, permitting residential plots up to 2,000 square meters for foreign leaseholders and offering streamlined approval processes through dedicated foreign investment units. Abuja allows larger commercial plots and has fewer sectoral restrictions, particularly for business and mixed-use developments.

Northern states including Kano, Kaduna, and Sokoto impose stricter limitations on foreign ownership, often requiring demonstration of local economic benefits or job creation commitments for commercial acquisitions. Some northern regions maintain stronger adherence to customary land law systems that effectively exclude foreign participation.

Oil-producing states like Rivers, Bayelsa, and Delta have additional restrictions around petroleum industry zones and may require special clearances for properties near strategic infrastructure. Cross River State and other border regions maintain enhanced security screening for foreign buyers due to proximity to international boundaries.

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. The AfricanVestor - Nigeria Real Estate for Foreigners
2. DLA Piper Real World - Nigeria Corporate Vehicles
3. The AfricanVestor - Foreigners Own Land Nigeria
4. Multilaw - Real Estate Guide Nigeria
5. Counseal - Nigerian Land Use Act Foreign Investors
6. LinkedIn - Procedure Buying Property Nigeria
7. DLA Piper - Nigeria Real Estate Ownership
8. DemanGold - Buying Property Nigeria Foreigner
9. PwC Tax Summaries - Nigeria Other Taxes
10. Global Property Guide - Nigeria Taxes and Costs