Are foreigners allowed to invest by directly purchasing a commercial real estate asset?
Generally, under Nigerian law, there are specific restrictions and limitations over direct ownership of real estate assets by foreigners such as the grant of a reduced term of years under a state right of occupancy by the Governor for a period not exceeding 25 years and acquisition by an alien of a real estate asset must be subject to the consent of the Governor where the real estate asset is located .
However, a foreign investor may acquire real property in Nigeria through any company or entity registered in Nigeria. A company duly registered in Nigeria may acquire land in Nigeria like a Nigerian citizen, whether wholly owned by foreigners or not.
Furthermore, a foreign investor may also acquire real property in Nigeria by ensuring that it has obtained the prior approval of the State Governor and followed the required procedure for the application for approval to acquire any interest or right in land by a foreigner. Section 6 of the Acquisition of Land by Alien Law empowers State Governors to lay down individual procedures for the acquisition of land by aliens in their States. It is important to note that there are certain restrictions to the above. For example, in the oil and gas sector, the government retains ownership of the mineral resources found in any land purchased in Nigeria.