Real Estate Due Diligence in Nigeria: The Complete Legal Guide for Buyers, Investors and Developers (2026)

Why Due Diligence Is Non-Negotiable in the Nigerian Property Market

Nigerian property fraud takes many forms but follows consistent patterns. Forged Certificates of Occupancy account for approximately 40% of all fraudulent property transactions reviewed by real estate professionals. Fake Governor’s Consent documents account for 25% of cases. Sellers presenting title documents for different parcels of land — using real documents from one property to sell another — represent a significant share of the remaining cases.

The most dangerous feature of Nigerian property fraud is that fraudulent documents can be visually indistinguishable from genuine ones. A professionally fabricated C of O — complete with file numbers, official-looking stamps, and the right formatting — will pass a visual inspection. It will not pass a formal Land Registry search.

In 2026, the EFCC arrested an Abuja-based property agent over alleged fraud totalling ₦288 million — and in every major property fraud case, the pattern is the same: no proper title verification was conducted before money changed hands. Due diligence is not a luxury for cautious buyers. It is the minimum standard of care that protects any property investment in Nigeria.

The Legal Framework: Land Use Act and Title Perfection

All land in Nigeria — with the exception of land vested in the Federal Government for federal purposes — is subject to the Land Use Act 1978 (Cap L5, LFN 2004). The Land Use Act vested all land within each state in the Governor of that state, to be held in trust for the benefit of all Nigerians. What property buyers in Nigeria own is not the land itself but a right of occupancy — either a statutory right of occupancy (granted by the Governor) or a customary right of occupancy (granted by the Local Government for rural land).

The single most important consequence of this framework for property buyers is Section 22 of the Land Use Act: it shall not be lawful for the holder of a statutory right of occupancy granted by the Governor to alienate his right of occupancy or any part thereof by assignment, mortgage, transfer of possession, sublease or otherwise howsoever without the prior consent of the Governor first had and obtained.

A transfer of property without Governor’s Consent is not merely irregular or incomplete — it is null and void under the Act. No Nigerian court will recognise a transfer that did not obtain the required consent. This means that if the seller in your transaction did not properly obtain Governor’s Consent when they acquired the property, that defect runs directly through to your purchase. You cannot obtain good title through a bad transaction.

The Eight-Step Due Diligence Process

1. Verify seller identity and capacity. Confirm the seller is who they claim to be — request government-issued ID, proof of address, BVN where relevant. If the seller is a company, conduct a CAC search to confirm the company is duly registered, is not being wound up, and that the persons signing on its behalf have authority to do so. If the property is being sold by an estate (following a death), confirm that the personal representative has a valid grant of probate or letters of administration.
2. Obtain and review all title documents. Request copies of all title documents the seller holds for the property. Common title documents in Lagos include the Certificate of Occupancy, Governor’s Consent, Deed of Assignment, Deed of Sublease, Registered Conveyance, Gazette, Excision, Court Judgment, Deed of Gift, and Survey Plan. Do not rely on photocopies — request certified true copies. A visual review is necessary but insufficient — it must be followed by official verification.
3. Conduct a formal Land Registry search. Submit a formal search application to the Land Registry in the state where the property is located. In Lagos, this is the Lagos State Land Registry at Block 14, The Secretariat, Alausa, Ikeja. The search costs approximately ₦15,000 and takes five to fourteen working days. The search report will confirm whether the title documents presented by the seller match the records in the Registry — whether a C of O file number exists, whether the registered owner matches the seller, and whether there are any encumbrances, mortgages, or charges registered against the property.
4. Chart the survey plan at the Office of the Surveyor-General. A survey plan identifies the exact location, size, coordinates, and boundaries of the land. Charting the survey plan at the Office of the Surveyor-General confirms whether the land falls within government acquisition, committed acquisition, road alignment, drainage channels, coastal regulation areas, or other restricted zones. In Lagos, this office is also at Alausa, Ikeja. If the land is within government acquisition, the government can revoke the right of occupancy and take the land — and compensation is based on improvements only, not market value.
5. Conduct probate and litigation searches. Search the probate registry to confirm that no competing claims to the property exist through the estate of a deceased former owner. Search the court records to confirm that the property is not the subject of pending litigation — a court case affecting title that was filed after you completed your Land Registry search would not appear in that search but could still affect your ownership.
6. Verify planning permission and development approvals. Confirm that any existing structures on the land have the required planning approval from the Lagos State Physical Planning Permit Authority (LASPPPA) or the equivalent body in the relevant state. Unpermitted structures create legal liability for the buyer after purchase and can result in demolition notices.
7. Conduct tax verification. Confirm that ground rent and other land charges are current — outstanding charges can be inherited by a buyer. In Lagos, the Lagos State Internal Revenue Service (LIRS) and the Lands Bureau can confirm the status of any outstanding charges.
8. Verify developer or agent credentials. In Lagos, confirm that the developer or estate agent is registered with the Lagos State Real Estate Regulatory Authority (LASRERA). LASRERA maintains a public database of licensed practitioners. Since 2020, LASRERA has processed 1,702 real estate fraud complaints — the registration requirement exists precisely because unregistered agents and developers have been the primary vectors for property fraud in the Lagos market.

Title Documents: What Each One Means and Which Is Strongest

The Official Searches Every Buyer Must Conduct

LASRERA: Lagos State’s Real Estate Regulatory Body

The Lagos State Real Estate Regulatory Authority (LASRERA) was established under the Lagos State Estate Agency Regulatory Law and updated in 2022. All real estate practitioners — estate agents, property developers, and valuers — operating in Lagos State are required to be licensed and registered with LASRERA.

LASRERA maintains a public database of licensed practitioners that buyers can search before engaging any agent or developer. This verification step is free and takes less than two minutes — it is the fastest single due diligence step available to any Lagos property buyer.

Since 2020, LASRERA has processed 1,702 real estate fraud complaints and recovered over ₦478 million and 38 properties for victims in the 2024 to 2025 period alone. Virtually every major property fraud complaint LASRERA receives involves an unregistered agent or developer. Checking LASRERA registration before engaging anyone is therefore not optional — it is the first line of defence in any Lagos property transaction.

Title Perfection: The Step Most Buyers Skip

Paying for a property and receiving a Deed of Assignment is not the end of a property transaction. It is the middle. The final step — title perfection — is what most Nigerian buyers skip, creating problems that compound over time.

Title perfection in Lagos involves three steps after the purchase is complete: obtaining Governor’s Consent to the assignment under Section 22 of the Land Use Act; stamping the Deed of Assignment at the relevant stamp duties office; and registering the stamped, consented deed at the Lagos State Land Registry.

Without these three steps, the transfer is contractually effective between the parties but not perfected — meaning it is not fully recognised under the Land Use Act, cannot be used as security for a bank loan, cannot be easily transferred to heirs, and creates complications when the property is eventually resold. Every year that passes without perfection makes the process more administratively complex and potentially more expensive.

The fees for Governor’s Consent in Lagos are structured as a percentage of the assessed fair market value: consent fee at 1.5%, Capital Gains Tax at 0.5%, stamp duty at 0.5%, and registration fee at 0.5% — a total of approximately 3% of assessed value, plus the Neighbourhood Improvement Charge and administrative fees. The application is submitted to the Directorate of Land Services at the Lagos State Lands Bureau.

The Most Dangerous Mistakes Nigerian Property Buyers Make

• Paying before conducting a Land Registry search. The most common and most costly mistake. Sellers create urgency — “another buyer is interested,” “the price goes up next week” — to pressure buyers into paying before verification is complete. A Land Registry search takes five to fourteen days. That wait has saved buyers tens of millions of naira. No legitimate seller should object to a buyer completing due diligence before payment is made.
• Accepting photocopies of title documents. Fraudsters present photocopies or scanned images because the forgery is harder to detect in a non-original format. Always request certified true copies — issued by the Land Registry or a solicitor — for any document you are relying on. Better still, verify the documents directly at the Land Registry rather than relying on copies at all.
• Not checking whether the property is in a government acquisition zone. Large areas of Lagos — particularly in Ibeju-Lekki, Epe, and areas near major road expansion corridors — are within government acquisition zones. Sellers and developers in these areas do not always disclose this. The government can revoke a right of occupancy in an acquisition zone and pay compensation based on improvements only, not market value. Charting the survey plan at the Surveyor-General’s office before paying is the only reliable way to confirm acquisition status.
• Skipping title perfection after purchase. Completing due diligence before purchase and then failing to perfect the title after purchase leaves the buyer in a legally incomplete position. An unperfected title cannot secure a mortgage, is difficult to transfer to heirs, and creates complications at resale. The cost of perfection — approximately 3% of assessed value — is a known, budgetable expense that should be planned for from the outset.
• Engaging unregistered estate agents or developers in Lagos. LASRERA registration is a legal requirement for all real estate practitioners in Lagos. An unregistered agent or developer has no professional accountability, is not subject to LASRERA’s disciplinary process, and cannot be pursued through LASRERA’s complaint mechanism if things go wrong. Always check LASRERA registration before engaging anyone in a Lagos property transaction.