Published on and written by Cyril Jarnias
Purchasing real estate in Nigeria, whether you live in the country or are part of the diaspora, often feels like an obstacle course. The market is huge, the potential returns are high, but the pitfalls are just as significant. Thousands of people lose millions of naira every year due to questionable land titles, ghost developers, lands under government acquisition, or hidden fees they hadn’t anticipated.
To secure a real estate purchase in Nigeria, it is essential to understand common mistakes, master the precise legal framework, require all mandatory documents, and conduct rigorous checks. Neglecting these steps turns the operation into a risky gamble.
An attractive market… but a high-risk one
The real estate sector is one of the pillars of the Nigerian economy, the third-largest contributor to the national GDP. Estimates value the market at over $2 trillion, with a strong push in residential, office, and industrial projects. Lagos, Abuja, and Port Harcourt concentrate most investments, with Lagos alone accounting for about 60% of property purchases by foreigners.
Nigeria’s housing deficit is estimated at over 28 million units nationwide.
But behind these flattering figures lies a much rougher reality. Trust is low, the land registry is still largely opaque – about 97% of land is estimated to be untitled – and fraud thrives. Anti-corruption authorities report that over 70% of real estate fraud is related to title issues. In Lagos, over 70% of land tribunal cases are reportedly linked to missing or forged documents. In the federal capital, over 2,000 buildings have been demolished for lack of valid titles.
In this context, many buyers, attracted by the promise of quick returns or by an urgent need for housing, sign too quickly, without understanding the legal framework or the essential checks. That’s where the mistakes begin.
Misunderstanding the legal framework: a fundamental error
The first gap between buyers and reality stems from a misunderstanding of Nigerian land laws. Yet, everything starts there.
The central role of the Land Use Act
The basic land law is the Land Use Act of 1978. It abolished “absolute” land ownership to establish a system of occupancy and management tightly regulated by the state: all land in a State is placed under the control of the Governor, who holds it in trust for the people. In practice, this means that what an individual holds is not perpetual freehold ownership, but a right of occupancy, generally for a maximum period of 99 years.
Failing to grasp this principle leads to several common mistakes:
It is risky to believe that land is transferred like perpetual freehold property when it is often a long-term lease (e.g., 99 years). This right is not automatically renewed at its term. Furthermore, the Governor can revoke the right of occupancy for non-payment of ground rent or for a public utility project.
Alongside this national law, each State has its own legal arsenal: statutes on land registration, regulation of real estate actors, urban planning, and zoning. Lagos, for example, has a specific Land Registration Law of 2015 and a Real Estate Regulatory Authority (LASRERA) created by a 2022 law. These frameworks add layers of constraints that many buyers are unaware of.
Underestimating the importance of Governor’s Consent
One of the most frequently overlooked obligations is that of Governor’s Consent. Section 22 of the Land Use Act is clear: any holder of a statutory right of occupancy cannot assign this right (sale, mortgage, sublease, transfer) without this prior consent.
« the land already has a Certificate of Occupancy, nothing more is needed ». That is a major error. The C of O is issued only to the very first allottee of a “virgin” plot. All subsequent purchasers must register the transfer and obtain this famous consent. Without it:
Real estate buyers and sellers
– the transaction is legally null and void;
– the new purchaser is not recognized by the State as the legitimate owner;
– they will not be able to officially mortgage the property, nor resell it properly without regularization;
– they remain vulnerable to fraudulent resale by the former owner, or to legal challenge.
Failing to anticipate the time, complexity, and cost of this process is among the most expensive mistakes. Officially, processing can take from a few weeks to several months, often much longer in practice, and the fees cumulate consent fees, stamp duties, registration, and various taxes.
Misunderstanding the Certificate of Occupancy
The Certificate of Occupancy (C of O) is often presented on the ground as the absolute “holy grail.” Sellers use it as an unbeatable marketing argument: “This land has a C of O, it’s 100% safe.” This view is misleading.
A C of O:
A Certificate of Occupancy is a government document granting a right of occupancy, usually for 99 years. It is unique per plot and serves as presumptive evidence of title, without being irrefutable. It can be voided by a court if its issuance occurred on land where a prior valid right still existed.
A buyer commits several typical errors regarding the C of O:
– buying land without checking the issue date and the years remaining on the title;
– neglecting the risk that a C of O is expiring or near its term;
– assuming that a C of O is sufficient by itself, without investigating the “root of title” or potential disputes.
Another common pitfall is that of fake C of Os, very sophisticated, sometimes with cloned numbers. Settling for a copy, not cross-referencing the document with State registries, or refusing to involve a specialized lawyer are shortcuts that come at a high cost. Court rulings have reiterated that this certificate remains a presumption, rebuttable in case of evidence of a superior right or fraud in its issuance.
Neglecting title verification: the root of most dramas
The available figures are telling: over 30% of real estate complaints received by the anti-corruption agency (EFCC) are related to land fraud, and a large majority of judicial disputes in Lagos concern missing or falsified documents. Behind these statistics lies a recurring error: buying without a proper “title search.”
Ignoring the search at the Land Registry
An essential step is to request an official search at the relevant State’s Land Registry. This process, costing a few tens of thousands of naira depending on the case, allows verification of:
– the name of the officially registered owner;
– the nature of the title (C of O, Gazette, Right of Occupancy, etc.);
– the existence of encumbrances, mortgages, cautions (caveats) or notices of dispute;
– if the plot is under government acquisition, or reserved for a public project.
Many victims of real estate fraud have never legally verified land ownership, relying on photocopies, the word of an intermediary, or informal receipts. It is crucial to consult official registries. In some States, digital systems like GIS or online cadastral registries exist but are often underutilized by buyers. Always use these tools to confirm the true owner’s identity before any transaction.
Forgetting to verify the survey plan at the Surveyor General’s Office
Another crucial point: cross-checking the survey plan with the registries of the Surveyor General. This plan, prepared by a licensed surveyor, describes the exact coordinates of the land, its area, boundaries, and, where applicable, indicates if it is “free from government acquisition.”
The frequent errors at this level are multiple:
– accepting an unsigned, unsealed, or unregistered plan;
– not checking if the plan’s coordinates overlap a reserved area (road, pipeline, power line, canal, flood zone, infrastructure project, etc.);
– being convinced by “recycled” plans, used to sell a plot that does not match the visited land.
Crucial steps to avoid disputes related to the actual location of a plot being sold
Have the survey plan verified and authenticated at the Surveyor General’s office to confirm its validity and registration.
Organize a site visit with a professional surveyor to verify the physical match between the plan and the actual ground.
Skipping probate and court registries
When a property originates from a family estate or a deceased person, consulting the Probate Registry is indispensable. This is where Grants of Probate (validated wills) or Letters of Administration are registered. Not checking this aspect exposes one to buying from a self-proclaimed heir who has no power to dispose of the property.
Similarly, consulting the Court Registry helps identify ongoing proceedings: ownership disputes, boundary disputes, seizures, etc. Yet, many buyers limit themselves to the cadastre without seeking to know if the land is at the heart of a heated lawsuit for years. A court decision can, however, overturn an apparently regular title.
Skipping neighborhood inquiry and physical visit
One of the most common mistakes – but also one with the heaviest consequences – is buying a property one has never seen physically, or has only glimpsed through a promotional video. This trend is particularly strong among diaspora Nigerians, who are pressed for time and far away, but not exclusively. The euphoria of a “good deal” or the power of marketing (“your land in Lekki for half price, offer expires tonight”) pushes them to sign remotely.
On the ground, an inspection allows one to spot:
– existing structures, squatters, or long-term occupants (adverse possession);
– “caveat emptor” notices or official signs signaling a dispute;
– recurrent flooding, marshy land, near-inaccessible access;
– neighbors who tell a very different story from the seller’s.
Not taking the time to ask questions of locals, community leaders, or traditional authorities, especially in areas where the phenomenon of “Omo-onile” (more or less legitimate customary claimants) is common, is a revealing negligence.
Relying on the wrong intermediaries: fake agents, dubious developers, and “Omo-onile”
The proliferation of real estate agencies, micro-developers, and pseudo-brokers on social media has multiplied access channels to the market. But it has also opened the door to a multitude of dubious practices.
Settling for a “WhatsApp agent” with no real existence
A recurring red flag in fraud cases: the agent has no office, no credible website, no verifiable registration, only a phone number and a very active social media profile. The buyer, seduced by visually attractive offers, forgets to verify:
– the company’s registration with the Corporate Affairs Commission (CAC);
– a traceable physical address;
– potential affiliations with serious professional bodies (NIESV, REDAN, etc.).
They then pay “reservation fees” or a deposit into a personal account, after which the contact disappears. Other times, the agent exists but has received no mandate from the true owner: they collect tens of millions of naira based on manipulated documents and then vanish.
Not auditing the developer’s real capacity
Scandals of abandoned or perpetually delayed off-plan projects are symptomatic of another error: confusing good communication with operational solidity. In many cases, developers have launched successive “estates,” sold hundreds of plots, and have never completed either infrastructure or titles, or have not even secured the initial land.
Buyers often commit several joint faults:
– not visiting the developer’s past projects to judge what was actually delivered;
– relying on 3D renderings, drone videos, and influencer campaigns without verifying administrative approvals (building permits, planning approvals, master titles);
– accepting additional “phases” (Phase 2, 3, 4) none of which have received full approval from the authorities.
Data from market observers show that many projects started in 2021 or 2022 were still abandoned several years later. In some cases, developers have even refused to let buyers verify files at the Land Registry.
Underestimating the weight of “Omo-onile” and community levies
In several southwestern States, and more broadly in the peri-urban land market, families or groups present themselves as customary landowners. They demand multiple payments – “foundation fee,” fencing fee, roofing fee, “settlement,” road contribution – in addition to the price paid to the formal seller.
Potential additional cost in naira for land acquisition due to informal local levies, which can block the project if unpaid.
Believing unrealistic ROI promises
In a market where gross rental yields of 6 to 8% are announced in premium Lagos neighborhoods and up to 10–12% in middle-class areas, some campaigns promise that land value will “double or triple in a year.” Many buyers, dazzled by these promises, sign without asking questions about:
– the basis of the projections;
– the exact situation of the land;
– political, tax, or infrastructure risks.
Reasoning solely from the sales pitch, without independent counter-expertise or analysis, is a classic error that paves the way for pyramid schemes or “investments” in unbuildable land.
Another widely documented trap: preparing only for the advertised purchase price, neglecting the myriad of ancillary fees. Many buyers discover, sometimes after exhausting their savings, that they are missing 20 to 30% of the budget to complete the transaction, regularize titles, and start any work.
The true cost of a transaction: a quantified example
Available studies show that ancillary costs easily represent between 15% and 25% of a property’s price, sometimes more. To illustrate, a typical case, simplified, for a property worth 50 million naira in Lagos.
| Expense Item | Indicative Basis | Estimated Common Range |
|---|---|---|
| Legal Fees | % of price (approx. 3–5%) | ₦1.5 to ₦2.5 million |
| Real Estate Agent Commission | 2–5.5% of price | ₦1 to ₦2.75 million |
| Governor’s Consent & Registration | % of value (approx. 5–10% cumulative) | ₦2.5 to ₦5 million |
| Stamp Duty | 1–3% of price | ₦0.5 to ₦1.5 million |
| Survey / Plan Fees | Flat fee depending on area | ₦0.3 to ₦1 million |
| Land Taxes (LUC, potential arrears) | % of annual value | Variable, sometimes > ₦0.1 million |
| Development Fund / Infrastructure Charges | Lump sum | ₦0.5 to ₦3 million |
| Informal Community Fees (Omo-onile, etc.) | Variable amount | ₦0.2 to ₦2 million or more |
Depending on the case, the total bill can easily push a budget of 50 million to 63–64 million naira. Experts actually recommend setting aside an envelope of at least 125% of the advertised price as the “total investment cost.”
Lack of budgetary planning for ancillary fees leads to delays in obtaining land titles, the inability to secure the land, construction site stoppages due to lack of funds for connections or initial work, and can result in the loss of the deposit paid.
Main categories of often neglected costs
In examined cases, the same blind spots recur:
An overview of often underestimated or late-discovered expenses, essential to budget for a smooth purchase.
Essential for title verification and deed drafting. Neglecting them can lead to using unqualified intermediaries.
Typically 2 to 5% of the sale price. A charge to clarify from the start to know who bears it.
Governor’s Consent, registration, stamp duty, obtaining a C of O. Can represent 5 to 10% of the price.
Land Use Charge in Lagos, land taxes, ground rents. Arrears must be settled to enable property transfer.
For internal roads, electricity, drainage, fencing. Amounts often from several hundred thousand to a few million naira.
Security, waste management, common area maintenance. Around ₦50,000 to ₦200,000 per year.
Connection to electricity, water, or sewage. Cost ranging from tens to hundreds of thousands of naira.
For an unfinished house or one needing upgrades. Work can cost several million naira.
For loans (rates can exceed 18-20% for foreigners) or fund transfers from abroad.
Not incorporating these items into a detailed financial plan, and not demanding a precise breakdown of fees from the seller or developer from the outset, is a purely budgetary error that alone can turn a promising investment into a money pit.
Rushing the use of professionals: lawyer, surveyor, engineer
In such a complex environment, wanting to “save” on professionals often opens the door to trouble.
Dispensing with a specialized lawyer
Several statutes remind that only a person called to the bar can legally prepare certain real estate documents. The Legal Practitioners Act even provides for criminal penalties for those who attempt to do so without being lawyers.
Yet, many buyers:
– rely on the seller’s lawyer, forgetting that the latter defends their client’s interests, not theirs;
– confuse real estate agent and legal advice, leaving the agent to “handle the paperwork”;
– sign standardized contracts riddled with unbalanced clauses (no guarantee, no clear recourse in case of default, vague timelines, etc.).
A specialized real estate lawyer does much more than simply draft deeds. They develop a due diligence strategy, conduct searches in official registries, and verify the seller’s authority (corporate resolutions for a company, family consents for land, etc.). They identify and alert to risks, negotiate contractual guarantees, ensure tax payments, and oversee the perfection of the title.
Choosing to forego one to “save” 3 to 5% of the price, when the slightest fraud can swallow 100% of the capital, is one of the most rationally unjustifiable and yet most widespread errors.
Neglecting the role of the surveyor and technical inspections
Similarly, considering the survey plan as a simple piece of paper without checking who prepared it or if it corresponds to the physical reality of the land is a serious fault. Only a surveyor registered with the Surveyors Council of Nigeria (SURCON) can produce a legally valid plan. Yet, fake plans or plans from “amateurs” abound.
For a building, relying on the naked eye to judge structural soundness or installations is risky. Inspections conducted by structural engineers, electrical technicians, or plumbing specialists can reveal major defects like unstable foundations, leaks, dangerous wiring, or faulty septic tanks. Saving on these checks often leads to much higher repair costs and can expose one to safety risks.
Underestimating the importance of legal engineering for companies and estates
When a company sells a property, company law sometimes requires a qualified vote of the shareholders, especially if the asset represents a significant portion of the company’s value. For a property dependent on an estate, all executors or administrators must sign. Many buyers, lacking sharp legal guidance, neglect these details. Result: a sale later challenged for lack of authority, and a real risk of the deed being annulled.
Buying the wrong property in the wrong place: the location and zoning trap
The adage “location, location, location” has a dual meaning in Nigeria: beyond a neighborhood’s appeal, it’s also about the permitted use type, flood risks, security, and infrastructure coverage.
Ignoring zoning and permitted use
Each State has urban planning regulations defining possible land uses: residential, commercial, industrial, mixed-use, agricultural. Buying land to build an office building in a strictly residential zone, or vice versa, sets the stage for demolitions or heavy fines.
Do not presume a building is legal simply because it already exists. Some seemingly regular buildings are actually in violation. To avoid any risk, systematically consult the competent urban planning authorities (like the Lagos State Physical Planning and Development Authority or the FCDA in Abuja) to confirm permitted use, mandatory setbacks, maximum height, and allowable building densities for your project.
Neglecting environmental and infrastructure risks
Many buyers settle for appreciating the aesthetics and price without asking questions about:
Land analysis must integrate three critical aspects: its topography (low-lying flood zone, clay soil, proximity to a watercourse), surrounding risks (presence of polluting industries, pipelines, and high-voltage power lines), and its accessibility (condition of the motorable road, distance to infrastructure, planned road projects).
These parameters are not anecdotal. Buying in a floodplain or a few meters from a pipeline, even at a knockdown price, can lead to a risk of mandatory demolition or serious incidents. Here again, the error often stems from the absence of a visit during the rainy season, not consulting zoning plans, and excessive trust in the seller’s narrative.
Mismanaging time, paperwork, and formalities: follow-up errors
Even when a buyer has identified a good property, well-located and backed by an apparently solid title, troubles can begin if they do not correctly manage the formalization phase.
Delaying transaction registration
Some are content to sign a Deed of Assignment or a sales contract, then file the documents in a drawer, postponing:
– payment of stamp duties;
– deposit at the Land Registry for registration;
– application for Governor’s Consent, when required.
A registration delay, sometimes of several years, exposes one to several risks: a bad-faith seller may attempt a double sale. An unregistered deed is also vulnerable against a subsequent purchaser who would have regularized their registration. Finally, without proper stamping or registration, the deed may not be admissible as evidence in court.
Settling for verbal agreements or scattered receipts
There are many stories of people handing over significant sums “by hand” based on a verbal promise or a simple generic receipt, without a formalized contract. In an environment where the burden of proof weighs heavily on the one alleging ownership, this practice is particularly risky.
For every payment, even partial, it is essential to issue a precise and traceable receipt. Ideally, secure the transaction via an escrow account or a lawyer’s account. These payments must be integrated into a contract that clearly stipulates the fate of the committed sum in case the sale fails.
Forgetting to plan an exit strategy
Many buy without thinking about when they will want to resell or refinance. They do not question the ease of transferring land in an illiquid area, nor the impact of an imperfect title on resale value. Yet, not thinking about the “after” leads to blockages: inability to sell at a good price for lack of Governor’s Consent, banks’ refusal to accept the property as collateral, difficulties convincing a cautious buyer.
Specifics for foreigners: restrictions and frequent missteps
Foreign investors – or Nigerians residing abroad – often make additional mistakes related to their status.
Confusing real estate purchase and a path to residency
Unlike other countries, Nigeria does not have an official residency-by-investment program linked to real estate. Owning an apartment in Lagos, even a high-end one, grants neither automatic right of residence nor a passport. Believing otherwise, or letting oneself be convinced by intermediaries who promise immigration facilities in exchange for buying a property, is a complete misunderstanding.
Ignoring limits on land ownership for foreigners
In certain jurisdictions, non-Nigerians cannot hold freehold land: they only have access to leasehold rights for limited periods, generally between 25 and 99 years. In Lagos, the Acquisition of Lands by Aliens Law limits foreigners’ leases to 25 years, including renewals, except through specific structures.
A common mistake is signing a contract for a long-term right when the remaining lease is very short. To acquire land, the usual solution is to go through a Nigerian company, treated as a local entity. It is essential to get advice on these structures to avoid fragile legal setups.
Buying remotely without reliable representatives
Cases of fraud targeting the diaspora are numerous. Fake videos, fake plans, untraceable contacts in case of problems: the pitfalls of “remote buying” are well-documented. The error here is threefold:
The situation is characterized by the absence of an independent lawyer mandated on the ground, the absence of a visit by a trusted representative (family, friend, or professional), and by massive payments made to personal accounts without recourse to an escrow mechanism.
Some buyers abroad discover, several years later, that the land paid for does not exist, or that it was sold to multiple people. Easy access to international transfers and online communication reduces friction but increases risks if no verification procedure is in place.
How to turn these mistakes into secure buying lessons
The accumulation of fraud, demolition, and pure loss cases has allowed for the identification of a foundation of best practices relatively simple to formulate, even if it requires discipline.
Here are some key points emerging from analyses and feedback, which help avoid most of the errors mentioned.
Establish a non-negotiable requirement: “verify before paying”
The guiding principle, often reiterated by legal practitioners, is clear: verification is not a luxury, it’s an obligation. This translates into a sequence of concrete actions:
– demand all available documents before any payment: C of O, Gazette, Governor’s Consent, survey plan, Deed of Assignment, building permits, proof of tax payments;
– systematically conduct a title search at the Land Registry;
– authenticate the survey plan with the Surveyor General;
– verify, in case of succession, the Grants of Probate or Letters of Administration at the Probate Registry;
– consult the Court Registry to detect any ongoing litigation.
This process has a cost – a few hundred thousand naira, sometimes – but it is modest compared to the risk of losing tens of millions.
Systematize site visits and local inquiries
Even for a diaspora buyer, there are now third-party inspection services, law firms, or surveyors that can produce detailed reports with photos, geolocated videos, measurements. Travel time and costs may seem burdensome, but they constitute a form of factual insurance.
An informal inquiry conducted with neighbors, community leaders, or older generations of a neighborhood can reveal land conflicts not officially documented, such as intra-family quarrels, cases of multiple sales of the same land, or the presence of long-term occupants not recognized by the registries.
Legally frame every relationship
Rather than relying on an agent’s “trust me,” the buyer benefits from framing each step with written documents:
– power of attorney or letter of instruction for the lawyer;
– clear contract with the developer, specifying delivery schedules, penalties for delay, refund modalities;
– clause allocating a specific plot or unit for estate projects;
– detailed Deed of Assignment, mentioning the root of title, exact coordinates, price, guarantees, and signatures of authorized parties.
Using escrow accounts or lawyers’ accounts for significant payments offers additional protection. It notably helps guard against fund misappropriation or fraudulent redirection of payment by email.
Budget broadly and reject gray areas
Financially, two reflexes make the difference:
– immediately add an envelope of 15 to 25% to the purchase budget to cover title fees, professional fees, taxes, technical costs, contingencies;
– demand from the seller or developer a written summary table of all present and future fees, including estate charges, infrastructure contributions, known community fees.
If an interlocutor refuses to provide these details, constantly changes their story, or becomes aggressive when the topic of hidden costs is raised, it’s a signal to walk away rather than a mere inconvenience.
Think long-term, from day one
Finally, approaching any purchase by asking: “Will I be able to easily resell or refinance this property in ten years?” naturally leads to favoring:
– well-“perfected” titles (Governor’s Consent obtained, deed registered, taxes up to date);
– areas with clear and stable zoning;
– projects led by developers with a tangible track record, with visible deliveries.
This reasoning automatically filters out some of the riskiest opportunities, even if they seem, in the short term, cheaper or more enticing.
In conclusion
Buying real estate in Nigeria is neither impossible nor inherently perilous. What makes it dangerous are the shortcuts taken in understanding the law, verifying titles, choosing intermediaries, accounting for costs, and using competent professionals.
Risky real estate investments often result from blind trust, haste, ignorance of the rules, or skimping on protections. To reduce risks, it is crucial to audit titles, visit sites, verify documents in official registries, and surround oneself with professionals like a lawyer and a surveyor, accepting the cost of regularity.
In such a vast and dynamic market, opportunities abound. But for a real estate purchase in Nigeria to become a lasting asset and not a source of legal nightmares, each signature must be approached as a serious legal act, not merely a commercial transaction. The difference between these two approaches is rarely measured on the day keys are handed over, but it appears abruptly the day a dispute, demolition, or resale attempt arises. It is at that moment, in case files, that one sees if the common mistakes were made – or avoided.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
