Nigeria (NG)

Nigeria is Africa's most populous nation and its largest economy — a vibrant, dynamic, and entrepreneurial country of over 220 million people spanning 36 states and 250+ ethnic groups.

Capital: Abuja

Region: Africa

Language: English

Currency: NGN (₦)

Cost of living: Very affordable (index 22)

Emergency: 112

Buying Property in Nigeria

The full buying process, transaction costs, mortgage, and legal requirements.

Nigeria's property market is governed primarily by the Land Use Act 1978, which vests all land in each state in the hands of the State Governor. No individual or company holds freehold title — all ownership interests are leaseholds (typically 99 years, or 25 years for direct foreign leases) granted by the Governor. The national homeownership rate is approximately 25%, with a housing deficit estimated at 28 million units. Foreign nationals may legally acquire property in Nigeria, but every transaction involving a foreigner must receive the prior written consent of the State Governor (via the State Lands Bureau) under the Acquisition of Lands by Aliens Act — without this consent, the transaction is void. Purchasing through a Nigerian-registered company (CAC-registered) grants access to the standard 99-year term and is the most common route for foreign investors. Title fraud, family/community land claims, and building approval irregularities are significant risks — independent legal due diligence by a qualified Nigerian lawyer is mandatory before any payment.

Rent vs. Buy

For most short-term expats, renting is strongly preferred. Lagos and Abuja rental markets are active and well-supplied, particularly for gated-estate and serviced-apartment accommodation. Rental yields in Lagos prime areas (Ikoyi, Victoria Island, Lekki) run 4–7% gross. Property prices have risen sharply due to naira depreciation: dollar-denominated Lagos properties appreciated 20–30% in USD terms over 2023–2025 for well-located assets. For diaspora Nigerians and long-term investors, buying offers a meaningful hedge against currency inflation. Abuja (FCT) has a parallel land administration system under the Federal Capital Territory Administration (FCTA), which issues statutory rights of occupancy — the process differs from state land procedures.

Buying Process — Step by Step

Engage an independent Nigerian lawyer

1 week

A solicitor qualified in Nigerian property law is essential. The lawyer confirms your legal capacity to transact, advises on company vs. personal name purchase, and manages all government filings. Do not pay any deposit before retaining legal counsel.

Title search at the State Land Registry

2–4 weeks

Your lawyer conducts a formal search at the State Land Registry (e.g., Lagos State Lands Bureau — landsbureau.lagosstate.gov.ng) and the Federal Land Registry (Abuja). The search verifies: the root of title, the existence of a Certificate of Occupancy (C of O) or Governor's Consent, any outstanding mortgages, liens, court orders, or government acquisition notices. Also check the corporate affairs commission (CAC) if buying from a company. Never pay for property without a clean title search result.

Survey and physical inspection

1–2 weeks

Commission a licensed estate surveyor and valuer (NIESV member) to produce a valuation report and confirm boundaries against the survey plan. Engage an engineer to assess structural condition for existing buildings. Confirm building approval plan (where applicable) with the State Physical Planning authority.

Negotiate and execute the Contract of Sale / Deed of Assignment

2–4 weeks

Your lawyer drafts the contract specifying price, payment terms, title conditions, and handover date. Once terms are agreed, the Deed of Assignment (or Deed of Sub-Lease) is prepared and executed by both parties in the presence of witnesses.

Apply for Governor's Consent

3–6 months (can exceed this in some states)

Under Section 22 of the Land Use Act, every transfer of a right of occupancy requires the prior consent of the State Governor. Your lawyer files the application with the State Lands Bureau, including the signed Deed of Assignment, title documents, tax clearance certificates, and prescribed fees. This is the most time-consuming step. Lagos introduced a new Fair Market Value (FMV) "Blue Book" effective May 2026, increasing consent fees significantly in prime areas.

Stamp the deed

1–2 weeks

After Governor's Consent is obtained, the Deed must be presented to the Stamp Duties Office (FIRS or State) for stamping within 30 days of execution. Stamp duty is typically 1.5% in most states (Lagos charges up to 2%). Failure to stamp on time incurs statutory penalties.

Register the deed at the Land Registry

2–6 weeks

The stamped Deed is filed at the State Land Registry to create a public record of ownership. Registration fees are approximately 0.5% of property value. Lagos provides online access to registered documents via its eGIS portal (landonline.lagosstate.gov.ng). Registration completes the perfection of title.

Post-completion: update tax records and obtain new C of O (if applicable)

1–3 months

Notify the State Inland Revenue Service and register for annual Land Use Charge. If purchasing from a developer without an existing C of O, apply to the Lands Bureau for a new Certificate of Occupancy in your name (or company name). Retain all original documents securely.

Transaction Costs

Cost Item	Amount	Notes
Stamp duty	1.5% (most states) / 2% (Lagos)	Paid on the Deed of Assignment at the Stamp Duties Office. Must be paid within 30 days of execution.
Governor's Consent fee	1.5% of FMV (Lagos)	Lagos Blue Book FMV rates were significantly revised upward effective May 2026. Rates in Abuja/other states differ.
Land Registry registration fee	~0.5% of property value	Paid when registering the deed at the State Land Registry.
Land Use Charge (annual)	Varies (0.5–1% of assessed value per year in Lagos)	Annual charge payable to the state government; any arrears must be settled by the seller before transfer.
Legal fees (solicitor)	5–10% of purchase price	Nigerian Bar Association scale fees are guidance-only; negotiate a fixed fee. A full conveyancing package includes title search, drafting, stamping, consent application and registration.
Estate agent / broker commission	5–10% (often shared buyer/seller)	Typically 5% for residential; higher for commercial. Clarify in writing who pays.
Survey and valuation	NGN 150,000–500,000+	Licensed NIESV-member estate surveyor and structural inspection fee.
Total estimated buyer transaction costs	10–20% of purchase price	In Lagos prime areas (Ikoyi, Lekki, Victoria Island), the 2026 Blue Book FMV revisions push total costs toward the upper end of this range.

The Notary — Mandatory for All Purchases

Nigeria uses a common-law conveyancing system. A licensed solicitor (qualified in Nigerian law) drafts all transaction documents, conducts due diligence, and manages the Governor's Consent and registration process. There is no civil-law notary role in routine property transactions. Documents executed abroad for use in Nigerian property transactions must be notarised by a local notary public and apostilled (or authenticated by the Nigerian High Commission/Embassy in the relevant country). The Nigerian Institute of Estate Surveyors and Valuers (NIESV) governs valuers.

Mortgage

The Nigerian mortgage market is significantly underdeveloped relative to GDP. Commercial bank mortgage rates for naira-denominated loans range from 20% to 28% per annum, making conventional mortgage financing expensive. The Federal Mortgage Bank of Nigeria (FMBN) offers subsidised National Housing Fund (NHF) mortgages at 6–9.75% p.a. — but these are primarily for Nigerian citizens who have contributed to the NHF scheme for at least 6 months. FMBN launched a Diaspora Mortgage product in 2025/2026 allowing Nigerians abroad to contribute in foreign currency ($100–$200/month) and access loans up to NGN 100 million after 12 months of contributions.

Typical Deposit Required

30–50% for commercial bank mortgages. The NHF/FMBN scheme requires lower deposits for qualifying Nigerian citizens. Foreign nationals purchasing through Nigerian companies typically must self-fund or arrange offshore financing.

For Foreign Buyers

Foreign nationals (non-Nigerians) cannot access NHF/FMBN mortgage products. Commercial bank loans to foreigners are rare and require strong collateral, long Nigerian banking history, and high income documentation. Most foreign investors self-finance or arrange financing in their home country secured against other assets. The Diaspora Mortgage (FMBN) is available only to Nigerian citizens abroad, not other foreign nationals.

Recommended Lenders & Brokers

Federal Mortgage Bank of Nigeria — fmbn.gov.ng (NHF and Diaspora Mortgage)Stanbic IBTC (stanbicibtc.com) — Mortgage products, diaspora-friendlyAccess Bank (accessbankplc.com) — Diaspora mortgage offeringFirst Trust Mortgage BankNigerian Mortgage Refinance Company — nmrc.com.ng (secondary market support)

Land Registry

Each state maintains its own Land Registry. Lagos State: Lagos State Lands Bureau (landsbureau.lagosstate.gov.ng) with an online eGIS portal at landonline.lagosstate.gov.ng for public searches. Abuja (FCT): Federal Land Registry under the FCTA at fct.gov.ng. Rivers, Ogun, and other states each have their own Lands Bureau websites. Title search cost: typically NGN 5,000–50,000 depending on the state and record complexity. Governor's Consent and registration complete the process of "perfecting title." A Certificate of Occupancy (C of O) is the highest form of title available.

Taxes

Stamp duty: 1.5–2% of property value, paid on the deed. Governor's Consent fee: approximately 1.5% (Lagos, revised under May 2026 Blue Book — higher in prime areas). Land Registry registration fee: ~0.5%. Land Use Charge (annual): Lagos charges an annual Land Use Charge based on assessed value (rate varies by use class — residential vs. commercial). Capital Gains Tax: 10% on gains from asset disposal, payable by the seller. Withholding Tax on rent income: 10% (companies) or 5% (individuals). VAT on commercial property: 7.5% on taxable supplies. All taxes must be settled before title can be transferred.

New Build vs. Existing Property

New-build purchases from established developers in gated estates often come with cleaner documentation and building approvals already in place — this is recommended for foreign buyers. Off-plan purchases carry developer insolvency risk; use an escrow account and check the developer's track record and CAC registration. For existing properties, dilapidation and estate fraud risk are significant — structural surveys and thorough title searches are essential. In Lagos, confirm whether a property falls within a government acquisition zone before purchase.

Selling Property

Sellers must obtain a tax clearance certificate and ensure all Land Use Charge arrears are settled before transfer. Capital Gains Tax (10% of gain) is payable. The Deed of Assignment must go through the same Governor's Consent, stamping, and registration process. Foreign sellers (companies registered in Nigeria) may repatriate sale proceeds through the banking system subject to CBN foreign exchange regulations. Proof of original investment inflow is required for repatriation approval.

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