What to know before buying a land in Nigeria

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 types of land can foreigners buy in Nigeria, and are there any restrictions?

Foreigners cannot own Nigerian land outright under freehold arrangements - this is strictly prohibited by Nigerian law.

You can only acquire land through leasehold arrangements, typically with a maximum term of 25 years, though some states occasionally allow up to 99 years depending on local laws and specific circumstances. Every leasehold above one year requires mandatory Governor's Consent, which is a government approval process that can take 3-12 months to complete.

Many foreigners establish a Nigerian-registered company to hold land, which can then lease land for longer periods under more favorable terms. This corporate structure is standard practice for business and investment purposes and provides additional legal protection. The company must be registered with the Corporate Affairs Commission and meet specific ownership requirements.

As a foreigner, you have access to urban plots for residential, commercial, or light industrial use. However, rural and agricultural land is heavily restricted for non-citizens, and you cannot access oil and gas zones, government reserves, or military areas. The restrictions are designed to protect Nigeria's strategic resources and ensure food security.

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

Is there a path to residency or citizenship by purchasing land in Nigeria?

No, there is no direct path to residency or citizenship through land or property ownership in Nigeria.

Nigerian immigration laws are completely separate from real estate investment, meaning your land purchase will not qualify you for any form of residency status or fast-track citizenship process. This differs significantly from some other countries that offer investor visa programs.

To obtain residency in Nigeria, you must apply through the standard immigration channels, which typically require work permits, business visas, or other qualifying criteria. The Nigerian Immigration Service handles these applications independently of any property ownership.

For citizenship, Nigeria requires a minimum of 15 years of continuous legal residency, good character references, and demonstration of integration into Nigerian society. Your land ownership may support your application by showing long-term commitment to the country, but it cannot substitute for the residency requirement or accelerate the timeline.

Where in Nigeria do foreigners typically buy the most land?

Foreign land buyers concentrate their investments primarily in Nigeria's major urban centers, with Lagos leading as the top destination.

Lagos State attracts the most foreign investment, particularly in areas like Ibeju-Lekki, Lekki Free Trade Zone, Sangotedo, and Epe, which offer strong development potential and infrastructure growth. The Lekki corridor has become especially popular due to ongoing government infrastructure projects and proximity to the new international airport.

Abuja, as the Federal Capital Territory, ranks second for foreign land purchases, especially for business and commercial plots. The city's status as the political center makes it attractive for corporate investments and high-end residential developments. Areas like Maitama, Asokoro, and Gwarinpa see significant foreign interest.

Port Harcourt in Rivers State also attracts foreign buyers, primarily due to its position as Nigeria's oil and gas hub. The presence of international companies and expatriate communities creates demand for quality residential and commercial properties.

Other emerging locations include Kano for northern Nigeria access and Calabar for its tourism potential, though these represent smaller portions of foreign investment compared to the three main centers.

What is the step-by-step process for buying land as a foreigner in Nigeria?

The land purchase process for foreigners involves seven critical steps that must be completed in sequence.

First, hire a qualified Nigerian real estate lawyer and licensed agent who understand foreign investment regulations. This legal representation is essential given the complexity of Nigerian land laws and the risks of fraud in the market.

Second, conduct thorough due diligence by searching the title at the Land Registry, verifying the land status, and confirming the seller's legitimate ownership. This step can take 2-4 weeks but prevents costly mistakes and legal disputes later.

Third, sign a formal Deed of Assignment, which is the contract that transfers the seller's interest in the land to you. This document must be properly executed and witnessed according to Nigerian law.

Fourth, apply for Governor's Consent, which is mandatory government approval for any leasehold transfer to foreigners. This process typically takes 3-12 months and requires payment of consent fees ranging from 1.5% to 8% of the property value, depending on the state.

Fifth, pay all taxes, legal fees, and registration costs, which typically add 10-20% to your total investment. Sixth, register the title at the appropriate Land Registry to establish your legal interest. Finally, obtain the Certificate of Occupancy, which serves as formal proof of your leasehold rights and is essential for any future transactions.

What are the mandatory documents you need to purchase land in Nigeria?

Document Category	Specific Requirements	Purpose
Personal Identification	Valid international passport and passport photos	Identity verification and legal eligibility
Residency Proof	Proof of foreign residential address	Establishing foreign status and contact information
Property Documents	Seller's Certificate of Occupancy or Governor's Consent	Verifying seller's legal right to transfer land
Survey Requirements	Land survey plan by licensed Nigerian surveyor	Confirming exact boundaries and measurements
Legal Agreements	Deed of Assignment and Property search report	Formal transfer contract and title verification
Financial Records	Tax clearance (buyer and seller) and payment receipts	Compliance with tax obligations and payment proof
Remote Purchase	Notarized Power of Attorney (if buying remotely)	Legal authorization for representative to act

Can you buy land in Nigeria without being physically present in the country?

Yes, foreigners can buy land in Nigeria without being physically present by appointing a trusted representative through a notarized Power of Attorney.

The Power of Attorney must be properly authenticated by the Nigerian embassy or consulate in your home country to be legally valid. This document gives your chosen representative the legal authority to act on your behalf throughout the entire purchase process.

Virtual inspections and remote transactions have become increasingly common, especially since the COVID-19 pandemic. Many real estate agencies now offer comprehensive virtual tours, drone footage, and detailed property reports to help remote buyers make informed decisions.

However, due diligence becomes even more critical when buying remotely. You must thoroughly verify your representative's credentials, ensure all legal documentation is properly executed, and maintain clear communication throughout the process. The risk of fraud increases with remote purchases, so working with established, reputable professionals is essential.

Many successful remote purchases involve an initial reconnaissance trip to establish relationships and understand the local market, followed by the actual purchase process conducted remotely with trusted local partners.

What common mistakes and pitfalls should foreigners avoid when buying land in Nigeria?

The most critical mistake is failing to verify land title or registry records, which can result in purchasing encumbered or government-acquired properties.

Many foreigners skip proper due diligence or legal review to save time and money, but this often leads to disputes, loss of investment, or discovery that the land cannot be legally transferred. Always conduct a comprehensive title search and engage qualified legal professionals.

Buying land without a Certificate of Occupancy or Governor's Consent is another common error. Some sellers offer properties at attractive prices precisely because they lack proper documentation, but these purchases are legally invalid and cannot be registered in your name.

Paying cash to unverified agents, particularly the infamous "Omo Onile" (local land grabbers), represents a significant risk. These individuals may appear to control land but lack legal authority to sell it. Always verify the seller's legal standing and use formal banking channels for payments.

Other frequent mistakes include overlooking land zoning regulations that may restrict your intended use, not registering or perfecting the land title after purchase, and failing to budget for the substantial additional costs that can add 10-20% to your investment.

What are the typical uses for land purchased by foreigners in Nigeria?

1. **Residential estate development** - Building luxury housing for expatriates, creating rental income properties, or developing gated communities for resale to the growing middle class2. **Commercial development projects** - Constructing office buildings, shopping centers, warehouses, or mixed-use developments in high-traffic urban areas3. **Light industrial operations** - Establishing manufacturing facilities, logistics centers, or processing plants where zoning permits and infrastructure supports industrial use4. **Agricultural ventures** - Limited farming or agribusiness operations, though this requires special approval and is heavily restricted for foreign investors5. **Investment holding** - Land banking for capital appreciation, particularly in developing corridors where infrastructure improvements are planned or underway

Most foreign buyers focus on residential and commercial development due to Nigeria's growing urban population and expanding middle class. The demand for quality housing and modern commercial spaces continues to outpace supply in major cities.

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

What is the average price per acre or plot of land in Nigeria?

Land prices in Nigeria vary dramatically by location, with Lagos commanding the highest prices and rural areas offering the most affordable options.

In Lagos urban areas, plot prices range from ₦5 million to over ₦100 million per plot, with premium locations like Lekki, Ikeja, and Ikoyi at the top end, while emerging areas like Epe offer more affordable entry points around ₦5-15 million per plot.

Abuja prices typically range from ₦5 million to ₦50 million per plot, depending on the specific district and proximity to the city center. High-end areas like Maitama and Asokoro command premium prices, while developing areas offer better value for money.

In Nigeria's cheapest states, particularly in northern and rural regions, land can cost as little as ₦50,000 to ₦1 million per plot, though these areas often lack infrastructure and may have limited development potential.

Standard Nigerian plots are typically measured as 60x120 feet, with one acre equaling approximately six plots. When evaluating prices, always confirm the exact plot size as measurements can vary between locations and developers.

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 taxes, fees, and other costs are associated with purchasing land in Nigeria?

Total transaction costs typically add 10-20% to your land purchase price, making budget planning crucial for foreign investors.

Governor's Consent fees represent the largest additional cost, ranging from 1.5% to 8% of the property value depending on the state, with Lagos charging among the highest rates. This mandatory fee cannot be avoided for any foreign land purchase.

Stamp duty costs 0.75% for residential properties and 1.5% for commercial properties of the total value. Registration fees add another 3-5% of the property value, while professional survey plans cost ₦100,000 to ₦500,000 depending on the plot size and location.

Legal and agency fees are negotiable but typically range from 5-10% of the property value. These fees cover due diligence, document preparation, and transaction management throughout the complex purchase process.

Hidden costs often surprise foreign buyers and include Omo Onile fees (community claims), additional community charges, and various developer levies that may not be disclosed upfront. Always budget an additional 2-5% for these unexpected expenses to avoid delays in your transaction.

Can you buy land in Nigeria with cash, and are there any benefits or risks in doing so?

Cash purchases are allowed and remain common in the Nigerian land market, potentially speeding up transactions but carrying significant risks.

The main benefit of cash purchases is faster transaction completion, as you avoid lengthy bank approval processes and can negotiate better prices with sellers who prefer immediate payment. Cash buyers often have stronger negotiating positions in competitive markets.

However, cash transactions attract scrutiny due to Nigeria's anti-money laundering regulations. Large cash payments may trigger investigations and require additional documentation to prove the source of funds, potentially delaying rather than accelerating your purchase.

The primary risks include fraud exposure, as cash payments are untraceable once made, and difficulty proving the transaction in case of disputes. Cash payments also provide less documentation for tax and legal purposes.

For safety and legal compliance, always insist on formal receipts, proper title documentation, and consider bank transfers for large sums when possible. Many experienced investors use a combination of cash deposits and bank transfers to balance speed with security.

Is it possible for foreigners to get a mortgage for land in Nigeria, and what are the typical rates and conditions?

Mortgage financing for land purchase is possible but limited for foreigners, with most Nigerian banks restricting loans to diaspora Nigerians or foreigners with strong Nigerian ties.

Typical mortgage terms for qualifying foreigners include interest rates around 9% for diaspora schemes, requiring a 30% down payment with loan terms extending up to 15-20 years. These rates are more favorable than standard commercial loans but still significantly higher than many international markets.

Approval requirements are stricter for foreigners and often require proof of local income, existing Nigerian assets, or strong guarantors. Banks typically want to see employment history in Nigeria or substantial business interests that provide confidence in repayment ability.

Alternative financing options include developer financing schemes, which some large real estate companies offer directly to buyers, and international mortgage products from global banks that operate in Nigeria, though these often have higher interest rates and more restrictive terms.

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

What is the long-term forecast for the land market in Nigeria?

The Nigerian land market outlook remains positive for the next decade, with land prices projected to rise 5-15% in 2025 driven by population growth, infrastructure development, and continued urbanization.

Nigeria's population is expected to exceed 250 million by 2030, creating sustained demand for residential and commercial land, particularly in major urban centers. This demographic pressure, combined with limited land supply in prime locations, supports long-term value appreciation.

Suburban and newly accessible areas are expected to outperform city centers as infrastructure projects like the Lagos-Ibadan expressway and new airport developments open up previously remote areas. The government's focus on improving transportation links creates opportunities in emerging corridors.

Infrastructure investments, including the ongoing Lekki Deep Seaport project and planned rail networks, will likely drive significant value increases in connected areas. These projects represent multi-billion dollar investments that fundamentally change land accessibility and development potential.

Key risks include potential policy shifts regarding foreign land ownership, increased supply from new developments that could moderate price growth, and the need for mortgage market reforms to improve accessibility. Additionally, stronger enforcement of land tenure rules could create short-term market disruptions but ultimately improve long-term stability.

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. TheAfricanVestor - Land Investment Nigeria
2. DLA Piper Real World - Nigeria Corporate Vehicles
3. TheAfricanVestor - Foreigners Own Land Nigeria
4. LexShield Properties - Buy Land Nigeria Guide
5. CounSeal - Nigerian Land Use Act Foreign Investors
6. TheAfricanVestor - What Know Before Buying Land Nigeria
7. LinkedIn - Top 10 Best Places Buy Land Lagos 2025
8. LinkedIn - Documents Required Land Purchase Nigeria
9. VenturAnna - Mistakes to Avoid When Buying Property Lagos
10. LexShield Properties - Land for Sale Nigeria Price Guide