Land and Property Charges in Nigeria: What Buyers Must Budget For

When budgeting to buy property in Lagos, many buyers are caught off guard by the fees and charges that come on top of the purchase price. In some cases, these additional costs add up to 15–25% of the property price. Here is a comprehensive breakdown so you can plan accurately.

Lagos State Land Use Charge

The Land Use Charge (LUC) is an annual charge payable by property owners in Lagos State, consolidating property rates, tenement rates, and ground rent. The amount varies depending on property type, location, and use. Residential properties typically attract lower rates than commercial ones.

When buying, verify that all outstanding LUC payments are up to date. Arrears transfer to the new owner at purchase.

Capital Gains Tax (CGT)

Capital Gains Tax at 10% is payable by the seller on the gain from the sale of a property. As a buyer, you are not directly liable, but understanding CGT helps in negotiations — sellers sometimes try to pass this cost on to buyers.

Stamp Duty

Stamp duty is payable on property transactions in Nigeria. For residential property sales, the Federal Inland Revenue Service (FIRS) charges stamp duty at 1.5% of the property value for amounts above ₦10,000. This is typically a buyer's cost.

Governor's Consent Fee

When a property with a C of O changes hands, the buyer must obtain Governor's Consent from the Lagos State Government. The consent fee is typically 3% of the property value, plus registration fees. This is often the largest single additional cost of buying in Lagos.

Legal Fees

Your solicitor's fees for the conveyancing transaction are typically 2–5% of the purchase price, depending on the complexity of the deal. Do not try to save money here — good legal representation protects your investment.

Agent's Commission

In Lagos, agency fees are typically 5–10% of the purchase price, split between the buyer's and seller's agents. Confirm the fee arrangement before signing any agreement with an agent.

Valuation Fee

Lenders typically require a formal property valuation before approving a mortgage. Valuation fees vary depending on the property value but typically range from ₦50,000 to ₦200,000.

Summary Budget Estimate

As a rough rule of thumb, budget an additional 15–20% on top of the purchase price to cover all fees, taxes, and charges. For example, on a ₦50M property, budget approximately ₦57M – ₦60M all-in.

Amuwo Properties Solutions provides transparent fee guidance to all our buyers. Contact us for a full cost breakdown on any property you are considering.