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Buying a house or land in Nigeria comes with more than just the listing price. Many first-time buyers save up for the property price, only to be surprised by additional fees and charges that crop up before and after the sale. These hidden costs of buying property in Nigeria can add up to a significant amount.

In this guide, we’ll break down the commonly overlooked costs, including legal fees, agent commissions, land use charges, survey/valuation fees, and title registration, with updated 2025 figures and examples. By understanding these expenses ahead of time, you can budget wisely and avoid last-minute surprises when buying a house in Nigeria.

Legal Fees

One of the first extra costs you’ll encounter is the fee for hiring a lawyer. In Nigeria, it’s strongly advised to use a property lawyer to review contracts, verify titles, and handle documentation for a real estate purchase. Typically, legal fees are around 5% of the property’s price (sometimes ranging up to 10% for more complex transactions). For example, on a ₦20 million home, you might pay about ₦1 million or more in legal fees. While some buyers try to avoid this cost, skipping proper legal help can lead to costly problems later (such as faulty titles or fraud). It’s a price well worth paying to ensure the property truly belongs to you.

Agency Commission

If you use a real estate agent or broker to find or negotiate the property, an agency commission will apply. In Nigeria, the agent’s commission for property sales is often about 5% of the purchase price (the exact percentage can vary by agent and region). This means for a ₦20 million property, expect to pay around ₦1 million in agency fees. Sometimes this fee is split between buyer and seller or negotiated, but as a buyer you should budget for it unless you have a no-agent deal. It’s a “hidden” cost in the sense that many listings don’t mention that the buyer will owe an extra fee to the agent facilitating the deal. Always clarify the agent’s commission upfront to avoid misunderstandings.

Land Use Charge and Property Taxes

Land Use Charge is an annual property tax that many new property owners don’t anticipate when budgeting for a purchase. For instance, in Lagos State, the Land Use Charge (LUC) is a consolidated tax on property ownership, billed yearly. The amount varies based on the property’s location, size, and usage (residential or commercial). While it’s not a one-time purchase cost, it’s essential to factor in because you might need to clear any outstanding charges on the property during the sale, and you’ll have to pay this tax every year going forward. For example, a modest home in Lagos valued at ₦50 million could have an annual Land Use Charge on the order of tens of thousands of Naira. Each state has its own rates (and names) for property taxes – e.g. “tenement rates” or ground rents – so check with the local authorities. Ignoring land use charges can lead to penalties or issues down the line, so ensure the seller has paid up to date and be prepared to cover the ongoing costs as the new owner.

Survey Plan and Valuation Fees

Before a property transaction is completed, especially for land purchases, you will likely need a survey plan to verify boundaries and a valuation to confirm the property’s market value. Surveying the land is crucial in Nigeria, to avoid encroachment or buying the wrong plot. Professional surveyors charge anywhere from ₦100,000 to ₦500,000 for a survey plan, depending on the size and location of the land.

If you’re buying a house, a formal valuation might be required by your lender (or for your own peace of mind) to ensure the property is worth the price. Valuation fees vary, but you should expect to pay at least a few hundred thousand Naira for a qualified valuer’s report. These costs often catch buyers off guard because they come before the purchase is finalized – you pay for survey and valuation services out-of-pocket during due diligence. However, they are necessary expenses to confirm you’re making a sound investment and to process certain documents.

Title Registration and Documentation

Perhaps the most significant hidden costs come from title registration and related documentation fees. When you buy property in Nigeria, it’s not enough to exchange money and sign a deed; you must formally register the change of ownership with the government and obtain the proper titles. Key components of this process include obtaining the Governor’s Consent, stamping and registering the deed (often called stamp duty), and possibly getting a Certificate of Occupancy (if the property hasn’t had one issued). These come at a price:

Governor’s Consent Fee: This is required by law for the transfer of most property titles (since all land is ultimately owned by the state under the Land Use Act). The consent fee in 2025 typically ranges from 3% up to about 10% of the property’s value (exact rates depend on the state and property type). Many states have a schedule; for example, if you’re buying a ₦30 million property, the Governor’s Consent might cost around ₦900,000 (at 3%) up to ₦3 million or more in some cases. This fee goes to the state government.
Stamp Duty and Registration Fees: To register the deed of assignment or title, you’ll pay stamp duties which are often around 1.5% of the purchase price (this can vary; one guideline puts it roughly in the range of ₦50,000 to ₦500,000+ depending on the property value and state). There may also be a separate registration fee or capital gains tax (for the seller) and other minor levies. For example, Lagos State charges a registration fee and a nominal survey plan lodgment fee, etc., which can sum up to a substantial figure.

All told, the combination of consent fee, stamp duty, and registration can easily add another 5–10% on top of the purchase price for the buyer. For instance, on a ₦20 million property, these title-related charges might amount to over ₦1–₂ million (or much more on higher-valued properties). These costs are often the largest “hidden” expenditure, and they’re non-negotiable if you want the title legally in your name. Skipping title registration is not an option – it would leave your ownership unperfected and expose you to legal risks.

Other Potential Hidden Costs

Beyond the major categories above, there are a few other expenses that can surprise property buyers in Nigeria:

Omo-Onile and Community Fees: If you’re purchasing undeveloped land (especially in parts of Lagos, Ogun, etc.), local landholding families (nicknamed “Omo Onile”) or community youth associations may demand various levies; for example, fees for marking the foundation, roofing, or “settlement” fees for the local community. These are unofficial but common. They can range widely, often ₦200,000 upward into the millions in total depending on the area. Buying land from a reputable estate developer can mitigate this, but it’s something to be aware of in informal land purchases.
Infrastructure / Development Levy: If your property is in a private estate or a new development, there might be a fee for infrastructure such as roads, drainage, electricity, and security within the estate. Developers often pass this cost to buyers. It could be a flat fee (say several hundred thousand Naira) or embedded in the property price. Always ask if the property is “all inclusive” or if estate infrastructure attracts a separate charge.
Moving and Renovation Costs: While not Nigeria-specific fees, don’t forget that after purchase you might incur costs for moving, minor renovations or repairs, connection of utilities, and so on. New homeowners often underestimate how much these add to the initial outlay.

Budgeting Tips for Buyers in 2025

To avoid being caught off guard by these hidden costs, experts recommend adding an extra 10–20% to your budget for the purchase. In fact, seasoned real estate investors in Nigeria often budget around 15% extra for closing costs and fees. For example, if the property itself costs ₦50 million, be prepared that the total money out of your pocket could be in the range of ₦57.5 million to ₦60 million after adding taxes, fees, and ancillary costs.

Do your homework ahead of time: Ask your real estate agent or lawyer for a breakdown of all expected closing costs specific to the property’s location and title status. Each state may have slight differences in fees (for instance, buying in Abuja versus Lagos). By getting an itemized list, you can plan properly.

Lastly, remember that buying property in Nigeria is a significant investment, and part of investing is accounting for all expenses. The good news is that once you’ve paid for proper documentation and fees, you’ll have peace of mind knowing your ownership is secure and recognized by law. Plan for these hidden costs, and they won’t be nasty surprises – they’ll just be another step toward getting the keys to your new home.