Foreign Property Acquisition in Lagos: Laws, Process and Title Registration

Legal Framework and Foreign Ownership Restrictions

Foreign nationals cannot hold freehold land in Lagos State. Under the Land Use Act of 1978, outright freehold ownership was abolished throughout Nigeria. All land in Lagos State is vested in the State Governor, who holds it in trust for the public. Property ownership is granted as a leasehold interest known as a Statutory Right of Occupancy, which is issued for a maximum term of 99 years.

Foreign individuals and foreign-owned corporate entities are permitted to acquire leasehold property in Lagos under the Acquisition of Lands by Aliens Law (ALAL) of Lagos State. However, the law stipulates that any transfer of land interest to an alien must receive prior written approval or consent from the Lagos State Governor. A foreign buyer acquiring property from a private holder who holds a Certificate of Occupancy (C of O) acquires the unexpired residue of that 99-year term.

Property Acquisition Process: Offer to Title Perfection

The acquisition process in Lagos follows a formal multi-stage sequence. Each stage involves specific documentation, legal checks and fund transfers.

Stage 1: Reservation and Contract of Sale

Once a property is selected, the buyer submits a formal offer through their legal practitioner. Upon acceptance, the buyer signs a Reservation Form or a Contract of Sale prepared by the vendor's legal counsel. At this point, a deposit (typically 10 per cent of the purchase price) is paid. Deposit funds are held in a secure client account by the vendor's solicitor or an agreed escrow agent until contract execution.

Stage 2: Legal Due Diligence and Title Search

The buyer's legal representative conducts formal searches at the Lagos State Land Registry in Alausa, Ikeja. This search verifies whether the title is free from government acquisition, court litigation, mortgages or rival claims by traditional landholding families. The lawyer also inspects the survey plan at the Office of the Surveyor-General of Lagos State to confirm coordinates and land boundary status.

Stage 3: Execution of Deed of Assignment and Balance Payment

Upon successful verification, the buyer pays the remaining balance of the purchase price into the vendor's designated solicitor account. Simultaneously, both parties execute the Deed of Assignment and sign the official Governor's Consent application form (Form 1C). Vendor ownership documents, including original survey plans and previous title certificates, are handed over to the buyer's lawyer.

Stage 4: Perfection of Title

The final legal phase is title perfection, which makes the transaction legally enforceable against third parties. Title perfection requires three steps:

1. Obtaining Governor's Consent via the Lands Bureau. 2. Stamping the Deed of Assignment at the Stamp Duties Office of the Lagos State Internal Revenue Service (LIRS). 3. Registering the stamped Deed of Assignment at the Lagos State Land Registry Directorate.

Required Documents for Foreign Buyers

A foreign national purchasing property in Lagos must provide the following documentation to legal counsel and state authorities:

• A certified copy of a valid international passport.
• Proof of funds and a formal bank reference letter.
• Tax Clearance Certificate or Tax Identification Number (TIN) issued by the Lagos State Internal Revenue Service (LIRS) or Federal Inland Revenue Service (FIRS).
• Completed Form 1C application for Governor's Consent.
• Four passport-sized photographs of the buyer.
• Executed Deed of Assignment signed by both vendor and buyer.
• Approved Survey Plan produced by a registered Nigerian surveyor.
• Corporate Affairs Commission (CAC) registration documents, board resolutions and articles of association (if the property is acquired through a Nigerian-registered corporate vehicle).

Fees, Stamp Duty and Government Rates (2026)

Property transfers in Lagos State incur statutory administrative taxes and levies calculated against the property value assessed by the Lagos State Lands Bureau in 2026:

• Governor's Consent Fee: 1.5 per cent of the assessed property value.
• Stamp Duty: 0.5 per cent of the assessed property value.
• Registration Fee: 0.5 per cent of the assessed property value.
• Capital Gains Tax: 0.5 per cent of the assessed property value (payable by the vendor, though contractual terms may shift payment responsibilities).
• Legal Practitioner Fees: Standard legal charges regulated by the Scale of Charges under the Legal Practitioners Remuneration Order range from 5 per cent to 7.5 per cent of the purchase price.

Transaction Timelines

The timeline from initial reservation to final registration ranges from 3 to 6 months. Initial search and contract execution take 2 to 4 weeks. The title perfection process at the Lagos State Lands Bureau, including valuation, assessment, payment of consent fees, stamping and final endorsement in the land register, typically requires 2 to 5 months depending on administrative workflow.