This is the foundation. Every conversation about property ownership in Nigeria starts here.

The Land Use Act vested all land in each state in the Governor, to be held in trust for the people of that state. Before the Act, land was held under various customary, freehold, and statutory arrangements that varied by region. The Act standardised this by replacing all those arrangements with a single national system.

In practice this means:

• Land is held by the Governor in trust, not as the Governor’s personal property
• Individuals and entities get rights through a Certificate of Occupancy (C of O) issued by the Governor
• Most C of Os are issued for 99-year terms (some shorter, some for specific commercial uses)
• Any transfer of an interest in land — sale, mortgage, lease — requires the Governor’s Consent under section 22 of the Act
• Without Governor’s Consent, the transaction is not enforceable against the state, even if the parties have signed everything

The Governor’s Consent requirement is one of the biggest sources of delay and cost in Nigerian property transactions. In Lagos, processing through the Lands Bureau can take 3-6 months and costs several percentage points of property value in fees and taxes. AMP-certified practitioners should know the local Lands Bureau process, the current consent fees, and which agents have a good track record.

Despite the Land Use Act, customary land — especially in the South-East and South-West — operates with parallel realities. A piece of land may have a Certificate of Occupancy but also have family or community claims that the C of O process didn’t fully extinguish.

For mortgage purposes, customary or family land without proper documentation cannot be used as collateral. Lenders will not accept it. An AMP-certified practitioner advising a community or a family should be honest about this — until proper title is regularised, the land cannot back a mortgage.

Many states now have a Land Use Charge regime that documents and taxes property holdings, which over time helps formalise these holdings. Lagos’s Land Use Charge Law 2018 (as amended) is one of the most developed. Other states are catching up.

The Mortgage Institutions Act sets up the regulatory framework for Primary Mortgage Banks. It defines what a PMB is, what they can and cannot do, and how the CBN supervises them.

Key features:
– PMBs are licensed by the CBN under the Mortgage Institutions Act, not the regular Banks and Other Financial Institutions Act (BOFIA)
– Minimum capital requirements (₦5 billion for national PMB licence, ₦2.5 billion for state-level PMB licence under recent CBN guidelines)
– PMBs are restricted in the types of products they can offer — they must focus on housing finance
– Specific rules on liquidity, capital adequacy, and corporate governance apply

You don’t need to memorise the statute. You do need to understand that PMBs are CBN-licensed specialists in housing finance, and that their existence is the legal infrastructure that makes accessible mortgages possible.

The NHF Act establishes the National Housing Fund and the contribution system administered by FMBN. Key provisions:

• Mandatory 2.5% contribution by workers earning above the prescribed minimum
• Contributions held in trust by FMBN
• Contributors become eligible for NHF loans through partner PMBs after 6 consecutive months of contributions
• Loans currently capped at ₦50 million per applicant
• 6% interest rate, repayment tenor up to 30 years
• Withdrawal of contributions on retirement or after specified events

Other mortgage-relevant federal laws: the Federal Mortgage Bank of Nigeria Act (establishes FMBN), the Pension Reform Act 2014 (enables pension-backed mortgages), the Banks and Other Financial Institutions Act (BOFIA) 2020.

AMP-certified practitioners must understand the NHF process because it’s the most accessible mortgage product for working Nigerians. A fellow practitioner who can clearly explain NHF eligibility, application steps, and the role of the partner PMB has immediate value to anyone they meet — literacy campaigns should prioritise this.

The Investments and Securities Act 2025 (ISA 2025) replaced the older 2007 Act and introduced major changes:

• Brought digital assets formally under SEC regulation
• Established the framework for Real-World Assets Tokenisation and Offering Platforms (RATOPs) with ₦1 billion minimum capital
• Strengthened investor protection rules
• Updated rules for collective investment schemes including REITs

What this means for property practice: investors now have additional regulated channels into real estate beyond direct ownership. The market is becoming more diverse, more regulated, and more accessible.

This section follows the canonical workflow from the IMBL Manual of Practice — the exact procedure your fellow professionals will guide clients through, with the fees and taxes that apply at each step. Memorise the shape of this workflow; the dollar values change with time but the structure is stable.

3.6.1 Initial Due Diligence and Search

1. Engage a Professional — the client first engages a licensed real estate agent (and a lawyer) to guide the process.
2. Identify the Land and Verify Seller’s Identity — once a parcel is identified (via government allocation, private sale, family land, etc.), verify the identity of the purported owner. The land identified must match documents presented.
3. Application — submit a formal application to the relevant land registry or Ministry of Lands / Urban Development with application letter, identification, passport photos, and sometimes evidence of tax payment.
4. Conduct a Title Search (Legal Search) — the critical step. Search at the state’s Land Registry (and at the Corporate Affairs Commission if the seller is a company) to confirm:
   – The seller is the legitimate owner
   – The nature of the title (C of O, Governor’s Consent, Deed of Assignment)
   – That the property is free from encumbrances (mortgages, liens, government acquisition, litigation)
   – Search fee: typically ₦10,000–₦50,000 (varies by state)

3.6.2 The Transaction — Application and Documentation

5. Survey Plan — engage a registered surveyor to conduct a survey and produce a Survey Plan showing boundaries and location. The plan must be “charted” at the state Surveyor-General’s office.
6. Execute a Contract of Sale — once title is confirmed good, the buyer’s lawyer drafts a Contract of Sale signed by both parties upon agreement on price. The buyer typically makes a deposit (commonly 10%) at this stage.
7. Pay Fees — application fee, survey fee, processing fee, and sometimes development levy. Get receipts for all payments.
8. Execute a Deed of Assignment — after final payment, the lawyer prepares the Deed of Assignment, which transfers the seller’s unexpired interest in the land to the buyer.

3.6.3 Perfecting the Title — Obtaining or Updating the C of O

This is often called “perfection” or “registration” of title.

9. Obtain Governor’s Consent — required under section 22 of the Land Use Act for any transfer of land interest. Submit the Deed of Assignment, Survey Plan, tax clearance certificates of the parties, and other required documents. Fees apply:
   – Consent Fee: percentage of property value, typically 1.5%–3% in Lagos
   – Stamp Duty: typically 0.75% for mortgages, 1.5% for conveyances (paid to FIRS or state revenue authority)
   – Registration Fee: 0.5%–1% of property value
   – Other administrative fees, charting fees, assessment fees
10. Stamping of the Deed — the Deed of Assignment must be stamped by the Stamp Duties office. An unstamped deed is inadmissible in court as evidence of title.
11. Registration of the Deed — the stamped Deed of Assignment, Survey Plan, and receipts of payment are filed at the state’s Land Registry. This officially records the transaction and gives public notice of the change in ownership.

3.6.4 Application for a New C of O (Virgin Land or Regularisation)

• For Virgin Government Land: apply directly to the state government for an allocation. If successful, you receive a Right of Occupancy (R of O) and subsequently a Certificate of Occupancy.
• For Regularisation: if the land was previously unregistered (e.g., family land), apply to the state to “regularise” your title and be issued a new C of O.
• Process: formal application, submission of survey plan, proof of ownership (registered Deed of Assignment), and payment of various fees (application fee, processing fee, premium).
• Register the C of O at the land registry; pay registration and stamp duty fees.

3.6.5 Commissions, Fees, and Taxes — The Summary

An AMP-certified practitioner should be able to quote this from memory when asked:

These numbers, taken together, mean that on a ₦40 million property purchase a buyer typically faces ₦5–8 million in transaction costs beyond the purchase price. AMP-certified practitioners who explain this upfront help clients budget realistically; those who don’t, leave clients shocked at closing.

A mortgage transaction needs a clean title chain. The documents that prove ownership and enable transfer include:

• Deed of Assignment — transfers ownership; must be properly executed (signed, witnessed, stamped, registered)
• Stamping at FIRS or state revenue authority (unstamped documents are inadmissible)
• Registration at the relevant Lands Registry (perfects title transfer, gives notice to third parties)
• Survey Plan signed by a registered surveyor, charted at Surveyor-General’s office
• Building Approval from LASBCA (Lagos), FCDA (Abuja), or equivalent state agency

When a mortgage is being processed, the lender’s solicitors verify every one of these documents. Missing or defective documents will stop the mortgage from closing.

When a mortgage is granted, the borrower executes a Mortgage Deed in favour of the lender. This document creates the security interest. It typically includes:

• A legal description of the property
• The loan amount and repayment terms
• The borrower’s covenants — to repay, to insure, to maintain the property
• The lender’s power of sale if the borrower defaults
• An acceleration clause — the right of the lender to demand the entire remaining loan if there is a serious default

The power of sale is the lender’s enforcement mechanism. In Nigerian practice, exercising power of sale requires notice to the borrower, an opportunity to remedy, and often a court process. The procedure is regulated by case law and by specific provisions in the Mortgage Institutions Act.

For AMP-certified practitioners, the practical point: borrowers in distress should approach their lender early, not hide. Many distressed mortgage situations can be restructured if the borrower communicates.

The Federal Competition and Consumer Protection Commission (FCCPC) regulates consumer protection across the financial sector, including mortgage. Specific issues:

• Misleading advertising of mortgage products (artificially low headline rates that disguise the effective rate)
• Hidden fees and charges not disclosed in initial product documents
• Unfair contract terms in mortgage deeds
• Discriminatory lending practices

The CBN’s own Consumer Protection Department also handles complaints about regulated banks and PMBs. AMP-certified practitioners may receive complaints from the public and should know how to direct them.

The legal framework for Nigerian property and mortgage practice rests on the Land Use Act 1978 at the foundation, with the Mortgage Institutions Act, NHF Act, and FMBN Act layered above for housing finance. ISA 2025 brings the modern capital market and digital asset elements into the picture. The A-Z land acquisition workflow — initial due diligence, transaction execution, title perfection — runs through specific Nigerian agencies with specific fees at every step.

You are not the lawyer. You are the AMP-certified practitioner who knows enough to ask the right questions, direct people to the right professionals, and prevent obvious mistakes at the state level.

1. What did the Land Use Act 1978 do, and what is Governor’s Consent under section 22?
2. What are the four stages of the A-Z land acquisition workflow, and what is the first thing to do in each?
3. Quote from memory: typical Lagos Consent Fee, Stamp Duty rate for mortgages, Stamp Duty for conveyances, and Registration Fee.
4. What are the NIESV scale commission rates for sale and for lease?
5. Why must a Deed of Assignment be stamped, and what happens if it is not?

— End of Lesson 3 —

Next: Lesson 4 — The Nigerian Mortgage Market