Few areas of Nigerian legal practice carry as much recurring, preventable risk as real estate transactions. Nearly every serious land dispute I have handled traces back to the same root cause: due diligence that was skipped, rushed, or delegated to someone without the expertise to actually assess what they were looking at.
Why Land Transactions in Nigeria Carry Distinct Risk
Nigeria's land tenure system, governed principally by the Land Use Act, 1978, vests land in the Governor of each state in trust for the people, with individuals and entities holding rights of occupancy rather than absolute title in the way some other jurisdictions frame land ownership. This structure, combined with a still-incomplete land registration infrastructure in many states, means that the same parcel of land can sometimes be sold — knowingly or unknowingly — to multiple buyers, or held under conflicting claims (statutory right of occupancy, customary right of occupancy, and family/communal claims).
What a Proper Title Search Actually Involves
A title search is not simply requesting a copy of a Certificate of Occupancy from the seller. A thorough search should include:
1. Search at the Relevant Land Registry
Confirming the registered owner, any encumbrances (mortgages, liens), and the registration history of the specific title document at the state Land Registry.
2. Governor's Consent Verification
Under the Land Use Act, any assignment, mortgage, or transfer of a right of occupancy requires the Governor's consent to be valid. A title that has changed hands previously without proper consent carries latent risk for every subsequent buyer, including you.
3. Physical Verification and Survey
Confirming that the physical boundaries of the land match the survey plan attached to the title document — encroachments and boundary disputes are a common and avoidable source of litigation.
4. Family and Communal Claims Check
Particularly relevant for land not yet fully converted to statutory title, verifying that all principal family members or communal stakeholders have consented to the sale, where the land traces to customary or family ownership.
5. Litigation Search
Checking court records for any pending or past litigation affecting the specific parcel — a step frequently skipped, and frequently the source of unpleasant surprises.
The "Omo Onile" Problem
No honest discussion of Nigerian real estate risk can avoid mentioning the informal land-levy practice often associated with certain community land agents (colloquially "omo onile") in parts of the country, particularly around Lagos. Beyond the commercial nuisance this can represent, it also signals a deeper due diligence question: is the party purporting to sell actually in a position to convey clean title, or are there parallel community-level claims that a Certificate of Occupancy alone will not resolve?
Practical Steps for Buyers
- Never rely solely on documents presented by the seller. Conduct independent verification at the Land Registry.
- Engage a surveyor and a lawyer separately — do not rely on a single party (particularly one introduced by the seller) to verify both legal and physical aspects of the transaction.
- Budget for Governor's Consent and registration costs as part of the transaction, not an afterthought — an unregistered or unconsented transfer leaves you exposed regardless of the purchase price paid.
- Get a proper Deed of Assignment, not an informal receipt or a "Contract of Sale" alone, and ensure it is properly stamped and registered.
Closing Thought
Real estate due diligence in Nigeria is not an area where cutting corners saves meaningful time or money. The transactions that go wrong are, almost without exception, the ones where a buyer trusted representations instead of verifying them independently. A thorough title search costs a fraction of what a land dispute costs — in money, time, and peace of mind.
If you are considering a property acquisition and need due diligence support, get in touch for a consultation.