Understanding Property Transactions in Nigeria

Property transactions in Nigeria carry risks that are less common in jurisdictions with fully centralised land registries. Competing claims, unregistered interests and incomplete documentation are all issues a buyer can encounter, which makes the process leading up to a purchase as important as the purchase agreement itself.

Title verification is the starting point. This involves confirming, through the relevant land registry and other checks, that the seller has the right to sell the property and that the title is free of undisclosed encumbrances. Skipping this step, or treating it as a formality, is one of the more common causes of property disputes.

Where the land in question is subject to a Certificate of Occupancy, a further step, Governor's Consent, is typically required before an assignment or sublease can take legal effect. The requirement and process vary by state, and failing to obtain consent where it is required can affect the validity of a transaction.

A structured approach, verifying title, preparing proper documentation and obtaining any required consents in the correct order, reduces the risk of a transaction that looks complete on paper but leaves the buyer exposed.

Share this article