How overseas buyers buy property in Nigeria

What to know first

• GDP growth around 4.0% in 2025, projected to reach 4.49% in 2026 per CBN and AfDB estimates
• Inflation has eased substantially — from 33.2% down to roughly 23% — but remains elevated, with a 12-16% range targeted for 2026 contingent on FX stability
• A genuinely distinct land-tenure structure: under the Land Use Act, all land (including for citizens) is a state-granted Right of Occupancy rather than freehold, but foreigners specifically ("aliens") receive a materially shorter maximum term — up to 25 years, versus longer terms for citizens — and require the state Governor's consent; acquiring through a Nigerian-registered company/entity is the common workaround
• The naira has been comparatively calmer through 2026 (roughly a 1,338-1,445/USD range) after the severe 2023-2024 devaluation crisis, though that recent history should be underwritten carefully
• Victoria Island, Lagos (featured on this platform) is Nigeria's most prestigious waterfront business and residential address

The general process

1. Confirm what foreigners may own in Nigeria and in which areas.
2. Set your budget in NGN, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Maximum loan to value

Very limited for non-resident foreigners — Nigeria's mortgage market is underdeveloped even by regional standards

Typical rate

CBN Monetary Policy Rate 26.5% (May 2026, after a 50bp cut from 27.0%) — one of the highest policy-rate environments of any market on this platform

Notes

Most foreign buyers purchase in cash or via developer instalment plans; local mortgage financing at this rate level is rarely competitive

Residency through property

Programme

No golden-visa programme, but Proclamation 1388/2025 Art 8(2) lets a qualifying foreign home owner seek a residence permit for themselves and family, or a multiple-entry visa of up to five years

Threshold

Lawful ownership under the Proclamation; the permit or visa is issued by the relevant authority. Buying does not give citizenship. Confirm current terms with immigration counsel

Timeframe

Not confirmed

Taxes and running costs

Income tax on rent

Rental income from Nigerian property is taxable regardless of the owner's residence; non-residents are taxed only on Nigerian-sourced income

Capital gains tax

Since the Nigeria Tax Act 2025 (effective 1 January 2026), individual property gains are folded into personal income tax bands rather than a flat rate — up to 25% depending on income band

Area guides in Nigeria