Investing in Nigeria: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Nigeria.
Who can buy in Nigeria
Nigeria's Land Use Act of 1978 vests all land in each state's Governor. You do not buy freehold land in Nigeria; you obtain a statutory Right of Occupancy (C of O) or customary occupancy, which is a 99-year leasehold interest. The Governor's Consent is required to transfer this title, which is why consent fees apply to every transaction. Foreign nationals and non-residents can hold leasehold titles but may need to satisfy the Nigerian Investment Promotion Commission (NIPC) registration requirements for investment purposes. Due diligence on title is critical given Nigeria's complex land tenure history.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Resident citizen | Yes | Leasehold (Right of Occupancy, typically 99 years) | Governor's Consent required for transferApproval: State Governor |
| Foreign national | Conditional | Leasehold | Can hold right of occupancy; NIPC registration may be required for investment propertyApproval: State Governor plus NIPC for investments |
| Non resident | Conditional | Leasehold | Title possible but due diligence is complex; use a reputable local lawyerApproval: State Governor |
Capital gains on a sale
Nigeria taxes capital gains on the disposal of residential property at a flat 10 percent of the net chargeable gain under the Capital Gains Tax Act. The taxable gain is the sale proceeds minus the original cost and any allowable improvement costs. There is no holding-period exemption and no indexation relief. Gains from the sale of your primary residence are not automatically exempt under federal law, though enforcement can be inconsistent.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Any | Chargeable gain | 10 percent flat on net gain | No |
| Any, company seller | Chargeable gain | 10 percent flat; also subject to company income tax rules | No |
Laws change. Always consult a licensed real estate attorney before purchasing. Consult a qualified chartered accountant for advice specific to your tax profile. Rules change; verify with a professional before you transact.
Frequently asked questions about Nigeria
With conditions. Can hold right of occupancy; NIPC registration may be required for investment property
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