Can a foreigner buy land in Nigeria?
The question of whether foreigners can purchase land is a topic that often sparks curiosity and uncertainty among many.
In Nigeria, the prospect of a foreigner owning land is indeed within reach. The legal framework permits non-citizens to acquire land for various purposes, including residential, commercial, or agricultural endeavors. However, the ability of foreigners to acquire land in Nigeria is circumscribed by specific legislative provisions designed to regulate and control foreign land ownership.
The Land Use Act of 1978, as enshrined in Section I, vests all lands within each state in the Federation in the Governor of that State. This legal framework emphasizes that land is held in trust and administered for the common benefit of all Nigerians, setting the stage for controlled foreign ownership.
The crux of the matter lies in the Acquisition of Lands by Foreigners Act, which governs the ownership of Nigerian lands by foreigners. The act stipulates that no foreigners in land transactions, can acquire any interest or right in land from a Nigerian native without prior written approval from the Governor.
In Nigeria, foreigners are referred to as aliens in land transactions, the Acquisition of Lands by Aliens (ALAL) clarifies that any agreement or instrument by which an alien seeks to acquire land without proper approval is void and of no effect. In essence, an alien can acquire land from a Nigerian native only if the Governor's written consent is obtained before finalizing the transaction.
So, what does this government approval entail? The approval is a document containing essential information, including a treasury receipt confirming payment of the statutory fee and a stamp from the Governor's office signifying approval. This crucial step ensures that the foreign investor's proposal has been officially granted.
Once the government's written approval is secured, the parties involved can proceed to formalize the transaction by executing a registrable instrument, following formal authorization from the Governor. It's important to note that the tenure of the interest or right acquired, along with any opportunity for renewal, must not exceed twenty-five years.
Governors retain the authority to waive or alter criteria outlined in the Acquisition of Lands by Aliens Act, providing a degree of flexibility in the process. The applicant receives formal permission from the Governor in the ALAL Regulation format, solidifying the legality of the foreigner's land acquisition.
Embarking on the journey of foreign land ownership in Nigeria requires a nuanced understanding of legal processes and meticulous adherence to regulations. Aspiring investors can equip themselves with the knowledge and skills needed to navigate these complexities through our Real Estate Business Course. Take the first step towards informed decision-making and success in the dynamic realm of Nigerian real estate.
