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Foreigners can purchase property in Nigeria, but only leasehold rights are available, not freehold ownership. Understanding the complete purchase process is crucial for avoiding costly mistakes and legal complications in the Nigerian real estate market.
If you want to go deeper, you can check our pack of documents related to the real estate market in Nigeria, based on reliable facts and data, not opinions or rumors.
Foreigners can only acquire leasehold rights (25-99 years) in Nigeria, not freehold land ownership, and must obtain Governor's Consent for property transfers.
The purchase process involves extensive documentation verification, legal due diligence, and registration with state land registries, with total transaction costs typically reaching 10-20% above the property price.
| Purchase Step | Key Requirements | Estimated Timeline |
|---|---|---|
| Initial Documentation | Certificate of Occupancy, Survey Plan, Deed of Assignment | 1-2 weeks |
| Due Diligence | Land registry checks, title verification, litigation search | 2-4 weeks |
| Contract Execution | Legal drafting, witness signatures, payment terms | 1-2 weeks |
| Governor's Consent | State approval application, fees payment | 3-6 months |
| Title Registration | Land registry filing, stamp duty payment | 2-4 weeks |
| Total Process | All requirements completed | 6-12 months |
Can foreigners legally buy property in Nigeria?
Foreigners can purchase property in Nigeria, but only leasehold rights are available, not freehold ownership of land.
As of September 2025, all land in Nigeria remains vested in the state government under the Land Use Act of 1978. Foreign investors can acquire residential and commercial properties through leasehold arrangements that typically last between 25 to 99 years, depending on the location and property type.
The Nigerian government restricts foreign ownership to prevent land speculation and maintain state control over natural resources. Urban centers like Lagos, Abuja, and Port Harcourt offer the most opportunities for foreign property investment, while rural and agricultural lands remain largely off-limits to non-Nigerian citizens.
Foreign buyers must obtain Governor's Consent for any property transaction, which serves as the primary legal mechanism for transferring leasehold rights from one party to another.
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What types of properties can foreigners buy, and are there location restrictions?
Foreigners can purchase residential and commercial properties in urban areas, but face significant restrictions on rural and agricultural land.
In major cities like Lagos, Abuja, and Port Harcourt, foreign investors can acquire apartments, houses, office buildings, and retail spaces through leasehold agreements. These urban markets offer the most liquid and transparent property transactions for international buyers.
Federal lands designated for government or military use are completely off-limits to foreign ownership. Properties in oil and gas districts also carry additional restrictions due to national security considerations. Traditional communities in rural areas may impose their own limitations on foreign property acquisition.
Commercial properties in designated business districts and residential developments in planned estates typically offer the clearest ownership structures for foreign buyers. Mixed-use developments and gated communities often provide additional security and management services that appeal to international investors.
What key documents should I request from the seller?
Essential documents include the Certificate of Occupancy, Deed of Assignment, survey plan, purchase receipts, and tax clearance certificates.
The Certificate of Occupancy (CofO) or Governor's Consent represents the most critical document, as it establishes the seller's legal right to the property. This document must be current and issued by the appropriate state government authority.
A registered survey plan showing exact property boundaries and measurements is mandatory for all transactions. The plan must be prepared by a licensed surveyor and approved by the Surveyor General's office in the relevant state.
Tax clearance certificates and stamp duty receipts demonstrate that the seller has met all financial obligations related to the property. Purchase receipts from previous transactions help establish the property's ownership chain and market value history.
| Document Type | Issued By | Purpose |
|---|---|---|
| Certificate of Occupancy | State Government | Proves legal right to property |
| Survey Plan | Licensed Surveyor | Defines property boundaries |
| Deed of Assignment | Legal Counsel | Transfer agreement document |
| Tax Clearance | State Tax Authority | Confirms tax compliance |
| Purchase Receipt | Previous Owner | Establishes ownership chain |
How do I verify the seller is the rightful owner?
Verification requires cross-checking the Certificate of Occupancy with state land registries and confirming seller identification matches property documents.
Start by visiting the relevant state land registry office to confirm the authenticity of the Certificate of Occupancy or Governor's Consent. Registry officials can verify whether the document is genuine and whether any liens, encumbrances, or legal disputes affect the property.
Request the seller's valid identification documents and compare them against the names listed on the property title. Any discrepancies in names, spellings, or other details should be resolved before proceeding with the transaction.
Examine the survey plan for any government acquisition notices or planning restrictions that might affect the property's use or value. The Surveyor General's office maintains records of all approved survey plans and can confirm their validity.
Consider hiring a licensed private investigator or real estate lawyer to conduct additional background checks on the seller, particularly for high-value transactions or properties with complex ownership histories.
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Which government agencies should I check for property title confirmation?
Essential checks must be made with the State Land Registry, Surveyor General's Office, and Ministry of Lands and Housing.
The State Land Registry maintains comprehensive records of all property transactions, liens, and legal disputes within each state's jurisdiction. This office can confirm title validity, ownership history, and any outstanding legal issues affecting the property.
The Surveyor General's Office oversees all approved survey plans and can verify the authenticity of property boundaries and measurements. They also maintain records of government acquisition notices and planning restrictions.
The Ministry of Lands and Housing handles Governor's Consent applications and can confirm whether previous approvals were properly obtained. This ministry also maintains records of revoked or suspended titles.
Some states operate integrated land information management systems that consolidate records from multiple agencies, making verification more efficient for property buyers.
What does the due diligence process involve and who conducts it?
Due diligence involves comprehensive title verification, encumbrance checks, and litigation searches, typically conducted by qualified Nigerian real estate lawyers and registered estate agents.
A thorough due diligence process begins with confirming the validity of all title documents through official government registries. This includes searching for any liens, mortgages, or other financial encumbrances that might affect the property's transferability.
Litigation searches at relevant courts help identify any pending legal disputes involving the property or its previous owners. These searches should cover both civil and criminal cases that might impact the transaction.
Physical site visits are essential to confirm the property's actual condition, boundaries, and any unauthorized structures or encroachments. A qualified surveyor should verify that the physical property matches the survey plan exactly.
Environmental and planning compliance checks ensure the property meets all zoning requirements and building codes. This is particularly important for commercial properties or developments in rapidly growing urban areas.
What legal professionals should I involve in the purchase?
The purchase process requires a qualified Nigerian real estate lawyer, registered estate agent, and sometimes a licensed surveyor.
A Nigerian real estate lawyer with extensive experience in property law is absolutely essential for foreign buyers. This professional will handle contract drafting, title verification, and all legal aspects of the transaction including Governor's Consent applications.
Registered estate agents provide valuable local market knowledge and can assist with property valuation, negotiation, and transaction coordination. Ensure any agent you hire holds valid registration with the Estate Surveyors and Valuers Registration Board of Nigeria.
Licensed surveyors may be necessary for independent boundary verification, especially for large or complex properties. They can also identify any physical issues that might affect the property's value or usability.
Some buyers also engage forensic accountants for high-value transactions to verify the financial aspects of the purchase and ensure compliance with foreign exchange regulations.
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How do I create a legally binding sales contract?
| Contract Element | Details Required | Legal Significance |
|---|---|---|
| Property Description | Survey plan reference, exact boundaries, structures | Defines what is being sold |
| Payment Terms | Total price, payment schedule, currency | Financial obligations of buyer |
| Conditions Precedent | Governor's Consent, title verification, inspections | Requirements before completion |
| Dispute Resolution | Arbitration clauses, applicable law | How conflicts will be resolved |
| Completion Timeline | Key dates, penalties for delays | Time-sensitive obligations |
A legally binding contract must be drafted by a qualified Nigerian real estate lawyer and signed by both parties with proper witness signatures.
The contract should clearly state all payment terms including the total purchase price, deposit amounts, payment schedule, and acceptable payment methods. Include specific clauses addressing foreign exchange compliance and fund transfer procedures.
Detailed property descriptions must reference the official survey plan and Certificate of Occupancy to avoid any ambiguity about what is being purchased. Include any fixtures, fittings, or equipment that will transfer with the property.
Conditions precedent should outline all requirements that must be satisfied before the transaction completes, such as obtaining Governor's Consent, completing satisfactory inspections, and resolving any title issues.
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What are the steps to transfer property title into my name?
Title transfer requires executing a Deed of Assignment, applying for Governor's Consent, paying required fees, and registering with the Land Registry.
The seller and buyer must first execute a Deed of Assignment, which is the legal document that transfers the seller's interest in the property to the buyer. This document must be properly drafted, witnessed, and stamped according to Nigerian law.
Next, the buyer must apply to the relevant state governor for Governor's Consent, which legally approves the transfer of the leasehold interest. This application requires extensive documentation including the Deed of Assignment, survey plan, tax clearance certificates, and identification documents.
All stamp duties and registration fees must be paid to the appropriate state revenue agencies before the title transfer can be completed. These fees are typically calculated as a percentage of the property's assessed value.
Finally, the completed transaction must be registered with the State Land Registry to establish the buyer's legal ownership. This registration provides public notice of the ownership change and protects the buyer's interest against future claims.
What taxes, fees, and levies must I pay?
Property buyers must pay stamp duty, registration fees, Governor's Consent fees, legal fees, and agent commissions, totaling approximately 10-20% above the property price.
Stamp duty is calculated as a percentage of the property's assessed value and varies by state, typically ranging from 1-3% of the purchase price. This tax must be paid before the transaction can be registered.
Governor's Consent fees are substantial and can range from 3-5% of the property value, depending on the state and property type. These fees cover the administrative costs of processing the ownership transfer application.
Registration fees for recording the transaction with the Land Registry typically cost 1-2% of the property value. Legal fees for qualified representation generally range from 2-5% of the transaction value.
Real estate agent commissions usually cost 2-5% of the purchase price, split between buyer and seller agents. Additional costs may include survey fees, valuation fees, and ongoing ground rent payments.
What common mistakes should I avoid during the purchase process?
Common mistakes include failing to verify title authenticity, skipping due diligence, using unqualified agents, and not confirming receipt of essential documents.
- Proceeding without proper title verification through official government registries
- Hiring unregistered or inexperienced real estate agents and lawyers
- Failing to obtain and verify the Certificate of Occupancy or Governor's Consent
- Skipping physical property inspections and boundary verification
- Not conducting comprehensive litigation and encumbrance searches
- Underestimating total transaction costs and fees
- Rushing the process without allowing adequate time for due diligence
- Not understanding the leasehold nature of Nigerian property ownership
Many foreign buyers make the mistake of treating Nigerian property purchases like transactions in their home countries, leading to costly oversights and legal complications.
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What red flags and scams should I watch for?
Major red flags include sellers without legitimate Certificates of Occupancy, properties under government acquisition, double-sale scams, and forged documentation.
- Sellers who cannot produce valid Certificate of Occupancy or Governor's Consent
- Properties listed at significantly below-market prices
- Pressure tactics demanding immediate payment without proper documentation
- Multiple parties claiming ownership of the same property
- Survey plans that appear altered or contain inconsistent information
- Properties in areas subject to government acquisition or development plans
- Agents or lawyers who are not properly registered with professional bodies
- Requests to make payments to individuals rather than official accounts
Always insist on dealing only with licensed professionals and verify everything through official government channels before making any payments.
Double-sale scams are particularly common, where unscrupulous sellers attempt to sell the same property to multiple buyers simultaneously, collecting deposits from each before disappearing.
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.
Successfully purchasing property in Nigeria requires careful navigation of complex legal requirements and extensive due diligence.
Foreign buyers who work with qualified local professionals and follow proper procedures can successfully acquire leasehold property rights in Nigeria's growing urban markets.
Sources
- DLA Piper Real World
- TheAfricanVestor - Nigeria Real Estate Investment
- Arab MLS - Foreign Property Ownership Nigeria
- NWN - Nigeria Property Laws
- TheAfricanVestor - Nigeria Real Estate for Foreigners
- Facibus Housing - Property Documents
- Resolution Law - Nigeria Land Purchase
- LinkedIn - Property Buying Guide Nigeria