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
Yes, US citizens can legally buy residential property in Nigeria in 2026, though the process works differently than in the United States.
Nigeria uses a rights of occupancy system rather than traditional freehold ownership, which means you will hold long-term land rights instead of owning the land outright.
We constantly update this blog post to reflect the latest regulations, tax rates, 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.
Can a US citizen legally buy residential property in Nigeria right now?
Can I buy a home in Nigeria as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Nigeria, including apartments, houses, townhouses, and duplexes, without any nationality-based restrictions blocking the transaction.
The standard buying process for a US citizen in Nigeria involves finding a property, conducting thorough title verification, signing a Deed of Assignment, paying stamp duties, and then obtaining Governor's Consent to complete the legal transfer of rights.
What makes Nigeria unique is that under the Land Use Act, all land is technically vested in the state Governor, so instead of receiving absolute ownership, you receive a Certificate of Occupancy or similar document that grants you long-term occupancy rights to the property.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Nigeria.
Are there many Americans buying property and living in Nigeria in 2026?
As of early 2026, there is no official count of American property buyers in Nigeria, but the market sees consistent interest primarily from Nigerian-Americans, diaspora returnees, and Americans with family or business ties to the country.
The neighborhoods with the highest concentration of American expats and property owners in Nigeria include Ikoyi, Victoria Island, and Lekki Phase 1 in Lagos, as well as Maitama, Asokoro, and Wuse 2 in Abuja.
The top three reasons Americans choose to buy property in Nigeria are family connections and heritage ties, business opportunities in Africa's largest economy, and the relatively lower property prices compared to major US cities.
The American expat community in Nigeria appears stable with modest growth, driven mainly by diaspora members returning to invest, remote workers seeking lower living costs, and entrepreneurs tapping into Nigeria's young consumer market.
Do foreigners have the same buying rights as locals in Nigeria?
In Nigeria, foreigners including US citizens generally have the same legal ability to acquire property rights as locals, though in practice foreign buyers often face more scrutiny on source of funds, more complex banking logistics, and a stronger need for thorough title verification.
There are no specific property types or locations in Nigeria that are legally off-limits to foreign buyers, but official guidance suggests foreigners commonly access land through Nigeria-registered companies rather than as individual buyers, especially for larger transactions.
We cover all these things in length in our pack about the property market in Nigeria.
Can I buy property in Nigeria without a residence permit?
Yes, you can buy residential property in Nigeria without holding a residence permit, as Nigerian property law does not require buyers to be residents or have any specific immigration status to complete a purchase.
The process for buying property in Nigeria while living abroad involves hiring a local lawyer to handle due diligence and paperwork, setting up a Nigerian bank account for payments, and granting power of attorney to a trusted representative for document signing.
Buying a home in Nigeria does not automatically grant you any visa or residency rights, so if you want to live in Nigeria long-term, you will need to apply for the appropriate visa through separate immigration channels.
The main practical challenge non-resident buyers face when purchasing property remotely in Nigeria is coordinating the extensive document verification, government consent processes, and fund transfers across time zones without being physically present.
Can US citizens own land in Nigeria?
US citizens can acquire land rights in Nigeria, but the country does not operate on a traditional freehold system where you own land outright forever.
Under Nigeria's Land Use Act, all land is vested in the state Governor, and what buyers receive is a statutory right of occupancy, which functions similarly to a very long lease, often described as 99-year interests, rather than absolute permanent ownership.
There are no specific geographic zones in Nigeria where foreign land ownership is outright prohibited, but the Governor's Consent requirement applies to most transfers, and some state-level practices may add administrative complexity for foreign buyers in certain areas.
What documents will I need to buy in Nigeria?
To purchase property in Nigeria, a US citizen typically needs a valid passport, proof of funds documentation, a signed Deed of Assignment, the seller's title documents such as a Certificate of Occupancy, a survey plan, and application forms for Governor's Consent and registration.
A Nigerian Tax Identification Number is often required in practice for filing stamp duties and other government paperwork, and you can obtain one through the Joint Tax Board portal with your passport and basic personal information.
A local Nigerian bank account is not strictly mandatory, but it is very common and highly recommended because it makes paying local fees, stamp duties, and ongoing charges much simpler and creates a cleaner payment trail.
Proof of funds showing you have the money to complete the purchase is typically required, especially when moving money internationally, and while a local address is not strictly necessary, having one helps with receiving government correspondence and utility bills.
We have a whole section dedicated to all the documents you need in our Nigeria property pack.
Can a foreign-owned company buy property in Nigeria?
Yes, foreign-owned companies can legally purchase residential property in Nigeria, and many foreign buyers actually prefer this route because it offers cleaner governance, easier inheritance planning, and sometimes simpler multi-investor arrangements.
Americans commonly use Nigeria-registered limited liability companies to hold property, which you can set up through the Corporate Affairs Commission, and this is actually the structure that official Nigerian investment guidance often implies foreigners should use.
Owning property through a company in Nigeria does not automatically lower your taxes and can sometimes increase complexity, because the company may face corporate tax obligations if it earns rental income, plus you will have annual filing requirements and administrative costs.
The main drawback of using company ownership for residential property in Nigeria is the added compliance burden, including annual returns, potential corporate taxes, and the cost of maintaining the company even if the property sits empty.
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What taxes and fees will I pay in Nigeria in 2026?
What are buyer taxes in Nigeria in 2026?
As of early 2026, the total buyer tax burden on a property purchase in Nigeria typically ranges from 3% to 8% of the purchase price in most cases, though in high-fee states like Lagos with complex title perfection, you should budget 6% to 12%, meaning on a 100 million naira property (roughly $62,000 USD or 57,000 EUR), you might pay 6 to 12 million naira in taxes and government charges.
The main tax components include stamp duty on the transfer instrument, state-level consent fees for Governor's Consent, and registration fees at the land registry, with stamp duty alone often running around 1.5% to 3% depending on the state and instrument type.
Buyer tax rates in Nigeria do not officially differ between foreigners and locals or between primary residences and investment properties, but foreign buyers may face more administrative steps and associated costs during the title perfection process.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Nigeria.
What are other closing costs in Nigeria in 2026?
As of early 2026, total closing costs excluding taxes in Nigeria typically range from 2% to 5% of the purchase price, so on a 100 million naira property (roughly $62,000 USD or 57,000 EUR), expect to pay an additional 2 to 5 million naira (roughly $1,200 to $3,100 USD or 1,100 to 2,850 EUR) in professional and administrative fees.
The main closing cost categories include legal fees at around 0.5% to 1.5% of the purchase price (500,000 to 1.5 million naira on a 100 million naira property), survey and title verification costs varying by property complexity, and agent commissions which are often paid by the seller but can be negotiated.
Legal fees are sometimes negotiable depending on the complexity of the transaction, and agent commissions can often be structured either way between buyer and seller, while government fees and stamp duties are fixed and non-negotiable.
The single closing cost item that tends to surprise foreign buyers the most in Nigeria is the Governor's Consent process, which can take months to complete and involves fees, document preparation costs, and sometimes informal facilitation expenses that add up quickly.
Are there hidden fees foreigners miss in Nigeria right now?
Foreign buyers in Nigeria commonly overlook fees totaling 5% to 10% of the purchase price, which on a 100 million naira property (roughly $62,000 USD or 57,000 EUR) could mean an extra 5 to 10 million naira (roughly $3,100 to $6,200 USD or 2,850 to 5,700 EUR) in unexpected costs.
The top three hidden fees that foreign buyers most often fail to budget for in Nigeria are title perfection and Governor's Consent processing costs (1 to 3 million naira or $620 to $1,860 USD), currency exchange and transfer fees when moving money internationally (varies but often 2% to 4% of the amount), and post-purchase registration and document collection fees (500,000 to 1 million naira or $310 to $620 USD).
The ongoing annual costs that foreign property owners often underestimate in Nigeria include the Lagos Land Use Charge (which varies by property value but can run several hundred thousand naira per year), building maintenance and service charges in managed estates, and utility connection fees that can surprise new owners.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Nigeria.
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.
Can I get a mortgage as a US citizen in Nigeria in 2026?
Do banks lend to US citizens in Nigeria in 2026?
As of early 2026, mortgages for US citizens are available from some Nigerian banks, but the market is small, rates are high, and most foreign buyers end up purchasing with cash or using developer payment plans instead.
US citizens do not receive better treatment than other foreign nationals when applying for mortgages in Nigeria, and in fact, American applicants sometimes face extra scrutiny due to FATCA compliance requirements that Nigerian banks must follow.
The main reason some banks in Nigeria are hesitant to lend to American borrowers specifically is the additional compliance burden of FATCA reporting, which requires banks to report US account holders to American tax authorities, creating administrative costs many smaller lenders prefer to avoid.
The typical approval rate for US citizens applying for property loans in Nigeria is difficult to estimate precisely, but success is more likely for buyers who can show strong documentation, consistent income deposits in a Nigerian bank account, and a property with clean, easily perfected title.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Nigeria.
What down payment do American people need in Nigeria in 2026?
As of early 2026, the minimum down payment for US citizens seeking a mortgage in Nigeria is typically around 30% to 40% of the property value, meaning on a 100 million naira property (roughly $62,000 USD or 57,000 EUR), you would need to bring at least 30 to 40 million naira (roughly $18,600 to $24,800 USD or 17,100 to 22,800 EUR) upfront.
The typical down payment range for foreign buyers in Nigeria spans from 30% at the low end for very strong applications to 50% or more for buyers with foreign income, limited local banking history, or properties with complicated titles.
A larger down payment does improve your mortgage terms in Nigeria, as lenders view higher equity as reduced risk, which can translate into slightly better interest rates, faster approval, and more willingness to work with foreign income documentation.
You can also read our latest update about mortgage and interest rates in Nigeria.
What interest rates do US citizens get in Nigeria in 2026?
As of early 2026, typical mortgage interest rates for US citizens in Nigeria range from 18% to 30% per year, reflecting the country's high-rate environment where the Central Bank of Nigeria's policy rate stood at 27% in late 2025.
Interest rates for foreign buyers in Nigeria are generally similar to those offered to locals, as banks price mortgages primarily based on income stability, documentation quality, and property collateral rather than nationality.
Variable-rate mortgages tied to the CBN policy rate are more common in Nigeria than fixed-rate products, with typical loan terms ranging from 5 to 20 years, though shorter terms are often preferred given the high rates.
The single factor that has the biggest impact on the interest rate a US citizen will be offered in Nigeria is the quality of income documentation and banking history, as lenders need confidence that you can reliably service the loan in naira despite earning in dollars.
Can I use US income to qualify in Nigeria right now?
Yes, some Nigerian banks will accept US-sourced income for mortgage qualification, but it is harder than using Nigeria-based income because lenders worry about verifying foreign earnings, currency conversion volatility, and their ability to enforce repayment if you leave the country.
Banks in Nigeria typically require US income documentation including two years of tax returns, recent pay stubs or employment verification letters, bank statements showing consistent deposits, and sometimes a letter from your employer confirming your position and salary.
If standard US documentation is insufficient, some Nigerian lenders will accept alternative verification such as a larger down payment (often 50% or more), audited financial statements for self-employed applicants, or evidence of substantial assets held in Nigeria that could serve as additional collateral.
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How do US taxes interact with owning property in Nigeria?
Do I have to declare the property to the IRS from Nigeria?
Simply owning foreign real estate in Nigeria does not by itself trigger a specific IRS reporting form, but you must report any rental income you earn, capital gains when you sell, and any foreign financial accounts you use in connection with the property.
While there is no dedicated form just for owning a foreign house, US citizens may need to file Form 8938 for foreign financial assets and FinCEN Form 114 (FBAR) for foreign bank accounts, depending on the value thresholds you meet.
The IRS reporting obligation is triggered not by owning the property itself, but by the financial activity around it, so if you simply hold an empty property with no rental income and no foreign accounts above the thresholds, your direct reporting requirements are minimal until you sell or start earning income.
Will I pay tax twice in the US and Nigeria in 2026?
As of early 2026, there is a real risk of double taxation for US citizens owning property in Nigeria because the United States and Nigeria do not have an income tax treaty to automatically prevent it.
The IRS treaty list confirms there is no tax treaty between the US and Nigeria, which means you cannot rely on treaty provisions to reduce or eliminate double taxation on rental income or capital gains from your Nigerian property.
The Foreign Tax Credit allows you to offset taxes paid to Nigeria against your US tax liability on the same income, so if you pay Nigerian taxes on rental income, you can claim a credit on your US return to avoid paying full tax twice on that same money.
Whether property taxes paid in Nigeria are deductible on US federal tax returns depends on current US tax law regarding foreign real property taxes and itemized deductions, which has changed over time, so this is definitely a question to discuss with a US CPA before assuming you can deduct everything.
Do I need FATCA reporting when buying in Nigeria?
FATCA reporting may be required not because you bought a house in Nigeria, but because buying property often leads you to open foreign bank accounts or hold foreign financial assets that cross the reporting thresholds.
FATCA reporting through Form 8938 is triggered when your specified foreign financial assets exceed $50,000 at year-end (or $75,000 at any point) for US residents, with higher thresholds for those living abroad, and this includes bank accounts and certain financial interests but not the real estate itself.
FATCA (Form 8938) is filed with your tax return and covers specified foreign financial assets above the thresholds, while FBAR (FinCEN Form 114) is filed separately and covers foreign financial accounts with aggregate values exceeding $10,000 at any point during the year, so you may need to file both if you have Nigerian bank accounts.
Consulting a US CPA before buying property in Nigeria is highly recommended, and you should specifically ask about FBAR and FATCA filing requirements, how to structure your Nigerian bank accounts, tax implications of rental income versus personal use, and how to document everything for potential capital gains when you eventually sell.
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.
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 We Trust It | How We Used It |
|---|---|---|
| Land Use Act on UNEP LEAP | Primary legal text hosted by a major international law platform. | We used it to explain what property ownership means in Nigeria. We grounded the Governor's Consent requirement and rights of occupancy concepts here. |
| Nigerian Investment Promotion Commission | Official federal investment agency guidance for foreign investors. | We used it to describe how Nigeria frames land access for foreigners. We explained why foreign buyers often use Nigeria-registered structures. |
| DLA Piper REALWORLD | Global law firm's regularly updated country guide. | We used it to explain ownership restrictions and consent requirements. We cross-checked our plain-English explanations of legal concepts here. |
| CBN MPC Communiqué (Sept 2025) | Official Central Bank of Nigeria monetary policy statement. | We used it to anchor interest rate environment driving mortgage pricing. We explained why Nigeria mortgage rates are structurally high in early 2026. |
| FIRS Stamp Duty Platform | Official stamp duty platform from Nigerian tax authority. | We used it to confirm stamp duty is a real closing cost. We framed stamp duty percentages in our tax and fee estimates. |
| Lagos State Land Use Charge | Official Lagos State government property charge portal. | We used it to illustrate ongoing annual property charges in Lagos. We highlighted that ongoing costs are state-specific in Nigeria. |
| Corporate Affairs Commission | Nigeria's official corporate registry under company law. | We used it to explain company ownership routes for property. We clarified what setting up a Nigerian company actually involves. |
| Joint Tax Board Tax ID Portal | Official portal for Nigerian tax identification. | We used it to explain why a local tax ID is often practical. We showed how buyers may need Nigerian tax references in real workflows. |
| IRS Tax Treaties List | US government's official tax treaty reference. | We used it to confirm no US-Nigeria income tax treaty exists. We framed double-taxation risk and foreign tax credit importance. |
| FinCEN FBAR Guidance | Primary US government guidance on foreign account reporting. | We used it to explain when Nigerian bank accounts trigger FBAR. We kept US compliance advice accurate and verifiable. |
| Nigeria Mortgage Refinance Company | Major housing finance institution with formal disclosures. | We used it to ground mortgage market context in Nigeria. We explained why bank mortgages are less common than cash purchases. |
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