07/10/2025
KEY CHALLENGES IN PROPERTY ACQUISITION IN LAGOS STATE (The untold circumstances)
Here are some of the major challenges in acquiring property in Lagos State, and how they affect “smart investors” (i.e. those who plan carefully, want good returns, and try to avoid pitfalls). If you like, I can also suggest strategies to deal with the risks.
PROBLEM ARISING
1. Unclear or Weak Land Title / Ownership Disputes.
Many properties lack clear legal title, or different parties may claim ownership.
Traditional/customary ownership (family land, “Omo-onile”) complicates matters. Sometimes multiple family members must consent; sometimes unauthorized persons claim to act on behalf of the family.
2. Fraud, Multiple Sales, and Fake Documents.
“Double sales” of the same plot happen frequently.
Fake or forged documents (fake C of O, fake survey plans, forged Governor’s Consents, etc.) are a recurring risk.
3. Government Acquisition and Zoning / Regulatory Risk.
Sometimes land is “acquired” by government for public projects, and investors end up losing the land or suffering loss because the land is in a zone reserved for infrastructure, or under a “committed” status.
Zoning regulations, urban planning or physical planning laws may be ignored by some developers; properties built in violation of these risk demolition.
4. Bureaucracy, Delays, Regulatory Bottlenecks.
Obtaining governor’s consent, land registry searches, titles, survey approvals are slow processes.
Changing policies or inconsistency in implementation can delay or add unexpected costs.
5. High Costs and Unpredictable Additional Charges.
Beyond the purchase price: legal fees, survey costs, registration, government levies, taxes, etc. These can raise the actual cost significantly.
Construction costs, infrastructure (roads, water, electricity) may be poor or require extra outlay.
6. Infrastructure & Location Risks.
Many areas lack good roads, drainage, solid water/electricity supply; flooding is a real concern.
Areas far from economic centers may promise cheaper land but could suffer from underinvestment in public services or transport links, delaying appreciation.
7. Scams, Unreliable Agents, Poor Due Diligence.
Buyers sometimes rely on verbal assurances, non-verified agents, or skip legal/professional inspection.
Lack of centralized, transparent property data or registry makes verification difficult.
8. Financing Difficulties.
Mortgages are expensive, interest rates are high; many buyers must raise large cash sums.
Developers may also struggle with financing their construction, leading to delays or poor quality.
9. Land Scarcity & Price Inflation.
Because Lagos is densely populated and land is limited, the competition pushes land prices high, especially in good locations.
Emerging areas may seem cheap but often come with longer lead times for infrastructure and high risk.
10. Environmental and Risk Factors.
Flooding, erosion, sea-level rise especially in coastal and low-lying areas. Properties in such zones may lose value or require significant extra investment.
IMPACT ON SMART INVESTORS
For someone aiming to invest wisely, these challenges lead to several risks and impacts:
Capital Loss / Legal Loss If title disputes or government acquisition force sale or demolition, investor may lose part or all invested capital.
Higher Costs & Lower Margins Delays and red tape cause holding costs; legal fees, unforeseen bureaucratic charges erode profits.
Delayed Returns Long time to completion, or delays in obtaining approvals or infrastructure reduce cash flow and delay rental income or resale.
Lower Liquidity Properties with unclear titles or in risk areas are harder to resell; fewer buyers are willing to take on the risks.
Unpredictable Market Value Infrastructure projects, zoning changes, or environmental risks can either increase or reduce value unexpectedly.
Reputational Risk Getting involved in disputed land or estates flagged for illegal development could harm reputation.
High Operational Risks Costs of managing security, dealing with “Omo-onile”, ensuring compliance, dealing with flooding, etc., add to overhead.
Risk of Fraud / Loss of Investment (Scams) Without full due diligence, investors may pay for property that doesn’t exist or is already sold, or for documents that are fake.
In our next conversation we will outline best practices or a checklist to avoid these risks and that which would tends to help smart investors significantly in their acquisition.
Frank Consultancy; Pwan Group Estate Consultant and Property Experts in Nigeria. Thanks🙏💯 🙏
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