Property Ownership Rules & Regulations for Foreigners in Nigeria

African Land is the go-to source for anyone interested in learning about property ownership rules & regulations for foreigners in Nigeria. Get informed on capital control implications and more with our comprehensive research.

Uncategorized
Book an online consultation
Get in touch on Whatsapp now:
2085 views

Foreign land and property ownership in Nigeria is governed by various laws and regulations, and it's important to note that these laws can change, so it's advisable to consult with legal experts and relevant government authorities for the most up-to-date information. Here are some key points to consider regarding foreign land and property ownership in Nigeria, along with capital control implications:

  1. Land Tenure System:

    • Nigeria has a dual land tenure system, consisting of statutory and customary land ownership. Most land in Nigeria is held under customary tenure, and statutory ownership is usually limited to urban areas.
  2. Land Use Act:

    • The Land Use Act of 1978 is a key piece of legislation that governs land ownership in Nigeria. It vests all land in the state governments and grants individuals and entities the right to occupy and use land through the issuance of Certificates of Occupancy (C of O).
  3. Acquisition of Land:

    • Foreign individuals and entities can acquire land in Nigeria by obtaining a Certificate of Occupancy from the relevant state government. However, the Land Use Act prohibits non-Nigerians from directly owning land.
  4. Leasehold:

    • Foreigners can enter into lease agreements for land and property. The duration of leasehold agreements can vary but is often for a long term, such as 99 years.
  5. Property Ownership:

    • Foreign individuals and entities can own and invest in buildings and structures on leased land in Nigeria.
  6. Capital Control Implications:

    • Nigeria has a history of strict foreign exchange controls, and this can impact the repatriation of funds from property transactions.
    • The Central Bank of Nigeria (CBN) establishes policies and regulations regarding foreign exchange transactions, and these policies can change frequently. Foreign investors may face challenges in transferring sale proceeds and rental income out of Nigeria due to capital controls and foreign exchange restrictions.
  7. Legal Advice and Due Diligence:

    • Legal advice and thorough due diligence are essential when investing in Nigerian real estate to ensure compliance with local laws and regulations and to manage potential risks.
  8. Investment Promotion:

    • Nigeria has made efforts to attract foreign investment, and there are incentives and programs in place to encourage foreign participation in the real estate sector. These incentives can change, so it's important to stay informed about current offerings.

It's important to note that Nigerian real estate laws and regulations can change, and the application of these laws may vary from state to state. Therefore, it is highly advisable to work with experienced legal professionals who are knowledgeable about the specific regulations in the state where you plan to invest. Additionally, keep abreast of changes in capital control policies and foreign exchange regulations, which can significantly impact your ability to repatriate funds from property transactions.

Comments

No comments has been added on this post

Add new comment

You must be logged in to add new comment. Log in
Categories
Rent
Lately commented