What you should know about Purchasing a Property in Nigeria?

What you should know about Purchasing a Property in Nigeria?

Being the largest oil producer and largest economy in Africa, Nigeria is nicknamed the Giant of Africa. Nigeria’s buoyant economy focuses on oil exploration, telecommunications, agriculture and mining. This has led to increased interest from many international investors. Purchasing a property in Nigeria is one way to enter into the world of real estate investment in the country. This is undoubtedly one of the most lucrative form of investment as it accounted for a minimum of no less than 8% of the nation’s GDP since 2015.

Basically, the process required in purchasing a property varies from country to country. In buying a property for sale in Nigeria as well, there are a few requirements which you will do well to be informed about especially if you live in diaspora.

Eligibility

For eligibility, all lands must be registered with the Governor of the state or signed or approved to be authenticated. There, must be a signature of validity applied for in the land registry in the name of the new owner. If you are a foreigner, you must have an entry visa in Nigeria. There are only leasehold for foreigners in the country because all lands belong to the state. Lands are usually leased for 99 years in different parts of Nigeria like a property for sale in Lagos for example.

The Procedures

1. Obtain a property tax statement from the Tax Authority in Nigeria. The purpose of this document is to serve as a proof that the property has undergone a tax assessment and is registered by the property tax authority.

2. Request for the registration form that was submitted by the buyer to the Real Estate Registry. After negotiations, you can then pay the seller the requested price.

3. Site Inspection: The Nigerian Surveying Authority inspects the property, conducts survey, prepares report of findings on the property. All these is done within 15 days at no cost and the report is delivered to the Measurement Department.

4. Obtain Measurement Department’s Approval: It takes about 21 days at no cost to get the approval of the report after which it is released to both parties; the buyer and seller. A contract of agreement is then printed.

5. Verification and Ratification by the lawyer: At a cost of about 0.5% of the property value for a period of about 4 days, the parties’ lawyer drafts contract, verifies and certifies it.

6. Obtain the Real Estate Registry’s approval of the sale contract. This normally takes around 10 days at no cost.

7. Proceed with the contract to the competent State Governor to sign and authenticate the contract. Before purchasing, it is important to make sure that consent from the Governor is obtained as no land can be sold without his consent. This is an important step to do because it legally makes you the new owner in the eyes of the law.

8. Registration process is complete once the Real Estate Registry legalises the contract. Once approval is granted, a registration number is issued and that completes the registration process.

Required Documents

Whether you are purchasing a property for sale in Abuja, Lagos or in any part of the country as the case may be, there are some documents which is required of you to have rightful ownership to. They include paperwork relating to title, boundaries, planning permission, building license among other legal documents.

On a final note, the process of purchasing a property in Nigeria can be simplified as you can simply search for properties in your area of choice via online real estate portals. You may not necessarily have to go through the rigorous process to buy a property. Majority of the properties available for sale on online platforms usually come with the required documents for owning a property. It may only require due diligence on your part to ascertain the validity of such documents.

Caveat Emptor

Prospective foreigners interested in purchasing a property in Nigeria must be aware that it is not without its risk. Howbeit, when purchased correctly, it can be a worthwhile investment and inheritance for generations to come.

Source of image: http://logbaby.com

Author’s Bio: Awosusi Damilola is a trained chemist and writer with a love for content curation and creation. She is enthusiastic about natural health, business and fashion designing.