Nigeria Real Estate FAQ for Foreign and Diaspora Buyers: 25 Questions Answered

Buying property in Nigeria from abroad raises a long list of legal questions, and the answers are not always obvious. This guide answers the 25 questions diaspora Nigerians and foreign buyers ask most often, with the specific laws, fees, and 2026 rule changes that apply. Bektu publishes this as a transparency resource so buyers can verify what they are told before any money moves.

Can foreigners own property in Nigeria?

Foreigners cannot hold the same freehold-style interest as Nigerian citizens, but they can hold property through a long lease or a Nigerian-registered company. Under the Lagos State Acquisition of Lands by Aliens Law, a non-Nigerian needs the prior written consent of the Governor and is generally limited to a leasehold capped at 25 years. The most secure route is to set up a Nigerian company, which can hold land on a leasehold of up to 99 years.

Can diaspora Nigerians buy property in Nigeria?

Yes, diaspora Nigerians are citizens and have the same land rights as residents. A Nigerian passport holder living abroad can hold a Certificate of Occupancy for the full 99-year term and is not restricted by the Aliens Land laws that apply to foreigners. The main risks for the diaspora are practical ones like fraud and remote due diligence, not legal capacity.

What is the Land Use Act and how does it affect ownership?

The Land Use Act of 1978 vests all land in each state in the Governor, who holds it in trust for the people. This means you do not buy land outright in Nigeria. You acquire a right of occupancy, and your Certificate of Occupancy is evidence of that right rather than absolute ownership. The Act is entrenched in the Constitution, so no state can simply opt out of it.

What is a Certificate of Occupancy (C of O)?

A Certificate of Occupancy is the official document issued by a State Governor that confirms your right to occupy and use a specific parcel of land. It is the strongest statutory title a buyer can hold and is granted under the Land Use Act. A genuine C of O carries a file number that can be verified at the state Lands Registry.

How long does a Certificate of Occupancy last?

A Certificate of Occupancy is granted for a maximum term of 99 years. When the term expires the land technically reverts to the state, though in practice C of O terms are renewable. Always check the issue date on the certificate so you know how many years remain.

What is Governor's Consent and why does it matter?

Governor's Consent is the official approval required before any registered land can be sold, assigned, mortgaged, or transferred. Section 22 of the Land Use Act makes it unlawful to transfer a statutory right of occupancy without the Governor's consent first obtained. Without it, your purchase is not perfected and the state does not recognise you as the new title holder.

What happens if I buy without Governor's Consent?

A transfer made without Governor's Consent is voidable and cannot be reliably enforced in court. You may hold a signed Deed of Assignment, but until consent is obtained and the deed is registered, you are exposed if the seller resells the land or a dispute arises. Perfecting your title through consent and registration is what makes your ownership legally secure.

What is a Deed of Assignment?

A Deed of Assignment is the contract that transfers the seller's rights and interest in the land to you, the buyer. It is the core document in a Nigerian property sale and must be registered at the state Lands Registry after Governor's Consent is obtained. An unregistered deed offers far weaker protection than a registered one.

What is the difference between a C of O and a Governor's Consent?

A Certificate of Occupancy creates a fresh statutory title on land that had none, while Governor's Consent approves the transfer of land that already has a registered title. If you buy from someone who already holds a C of O, you need Governor's Consent on your Deed of Assignment, not a brand new C of O. Buyers often confuse the two and pay for the wrong process.

What are "excision" and "gazette"?

Excision is the government's formal release of a portion of land back to a community or family for private ownership, and the gazette is the official publication that records it. Land inside a government acquisition area cannot be titled unless it has been excised and published in the Government Gazette. Always ask whether land sits on an excised, gazetted area before buying.

Who are "omonile" and why are they a risk?

Omonile are indigenous family landowners who sell community or family land directly. The risk is that the same plot can be sold to multiple buyers, or that other family members later dispute the sale and demand more money. Buying through a verified estate with proper title is far safer than buying raw land from omonile.

What documents should I check before buying land?

You should check the Certificate of Occupancy or registered title, the survey plan, the Deed of Assignment, and any excision or gazette records. The survey plan confirms the exact boundaries and coordinates, and a registry search confirms the land is not under government acquisition or litigation. A lawyer conducting a search at the Lands Registry is the standard way to confirm all of this.

Only a survey plan signed by a registered surveyor and lodged with the Office of the Surveyor-General is reliable. Buying on an unregistered survey is one of the most common ways diaspora buyers end up with a disputed or non-existent parcel.

How much are closing costs when buying property in Nigeria?

Total closing costs in Lagos usually run between 10 and 15 percent of the purchase price. Of that, roughly 4 to 8 percent covers government perfection charges like Governor's Consent, stamp duty, and registration, while the rest covers legal fees, due diligence, and agency. Budget for these on top of the headline price, because many sellers quote the land cost alone.

Agency fees typically run around 5 percent and legal fees 5 to 10 percent of the property value, charged separately from the government perfection costs. Budget for the annual charge too. Most states levy one, and in Lagos the Land Use Charge Law consolidates ground rent, tenement rate, and neighbourhood charges into a single annual bill based on assessed value, with owner-occupied homes rated lower than commercial property.

What is the Governor's Consent fee in Lagos?

The Governor's Consent fee in Lagos is assessed at 1.5 percent of the property's official value, with stamp duty at 2 percent and registration at 0.5 percent. These are charged on the assessed value rather than the price you negotiated. Together they form the bulk of the government perfection cost.

Stamp duty is charged under the Stamp Duties Act and collected by the Federal Inland Revenue Service or the state, depending on who the parties are.

Do I pay capital gains tax when I sell property in Nigeria?

From 1 January 2026, capital gains on property are no longer taxed at the old flat 10 percent rate. The Nigeria Tax Act 2025 replaced it with progressive rates tied to your income band, reaching up to 25 percent for individuals and 30 percent for companies. Your principal private residence is exempt, and gains that built up before 2026 are protected because the law resets your cost base to the property's market value as of 31 December 2025.

What is the "Blue Book" and why did fees rise in 2026?

The Blue Book is Lagos State's 2026 Fair Market Value and Governor's Consent charges schedule, which took effect on 1 May 2026. It raised the official land values used to calculate perfection fees, with increases reported as high as 300 percent in prime areas such as Lekki, Ikoyi, and Banana Island. Because consent and stamp duty are charged on these official values, perfection now costs significantly more in high-value locations.

Can I buy property in Nigeria from abroad without traveling?

Yes, many diaspora buyers complete purchases remotely using a trusted lawyer and a verified developer. You can grant a power of attorney for signing and registration, but you should still insist on independent verification of the title and the developer. Remote buying is where most diaspora fraud happens, so the verification step is not optional.

Is off-plan property safe to buy in Nigeria?

Off-plan property can be safe, but only when the developer has clear title to the land and a track record of delivery. The common failure is paying for a unit on land that is not properly titled or is still under acquisition. Confirm the land status and the developer's completed projects before committing to an off-plan payment plan.

Stage payments to construction milestones rather than paying in full upfront, and make sure the agreement carries clear delivery dates and refund clauses. A full upfront payment on vague terms leaves you with no leverage if the developer stalls.

How do I verify a property developer in Nigeria?

Verify a developer by checking their company registration, their title to the project land, and their record of completed and handed-over projects. A polished website and renderings are marketing, not proof of delivery or land ownership. Independent verification of the land title and corporate records is the only reliable check.

Company registration is verifiable at the Corporate Affairs Commission, and the developer should also produce the regulatory approvals for the development itself, not just title to the land.

What is the safest land title to buy?

A registered Certificate of Occupancy with Governor's Consent on the transfer to you is the safest title. Excised and gazetted land with a clean survey and registry search is the next best position. Avoid land described only as a "global C of O" without confirming your own perfected interest, and avoid undocumented family land.

Can a foreigner set up a company to own land?

Yes, a foreigner can register a Nigerian company and acquire land through it on a leasehold of up to 99 years. This is the most secure and legally recognised route for non-Nigerians, because it avoids the 25-year cap that applies to direct alien leaseholds. The company must be properly incorporated and the land transfer still requires Governor's Consent.

The company is incorporated under the Companies and Allied Matters Act 2020 through the Corporate Affairs Commission, and the Nigerian Investment Promotion Commission permits full foreign ownership of such a company in most sectors.

What is the SCUML or EFCC requirement for property payments?

Large property payments can trigger anti-money-laundering checks overseen by the EFCC through its Special Control Unit Against Money Laundering. Developers and agents dealing in real estate are designated businesses that must register and report under these rules. Diaspora buyers should expect to document the source of funds, which is normal compliance rather than a red flag.

How long does it take to get Governor's Consent?

Governor's Consent typically takes several weeks to several months depending on the state and how complete your application is. Lagos and Abuja have digitised parts of the process, but delays are common when documents or earlier titles are missing. Your lawyer should confirm the current processing timeline before you plan around it.

What currency should I pay in and how do I move money safely?

Property in Nigeria is priced and paid in naira, so foreign-currency funds are usually converted before payment. Move money through formal banking channels so you have a clear paper trail and a Certificate of Capital Importation if you are a foreign investor, which protects future repatriation. Avoid paying large sums in cash or to personal accounts.

The Certificate of Capital Importation is issued by your Nigerian bank under the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, and it is the legal basis for repatriating capital and profit later. Mortgage options for non-residents are limited and expensive, so most diaspora purchases are cash or run on a developer payment plan spread across the construction period.

What are the biggest mistakes diaspora buyers make?

The biggest mistakes are skipping an independent title search, paying before Governor's Consent and registration, and trusting marketing over verification. Many diaspora buyers send money based on photos and family recommendations, then discover title problems later. Slowing down to verify the land and the developer prevents almost all of these losses.