5 Nigerian Property Investments That Will Make You Poor — Avoid These Traps

Buying real estate in Nigeria can be one of the most profitable decisions — if done right. Unfortunately, many investors lose everything because they fall into hidden traps. In this post, you will learn about five types of property investments to avoid in Nigeria, the real risks involved, how to detect the traps before you pay, and what to do if you’ve already invested.

Why this matters

Over the last decade, Nigeria has experienced a surge in real estate demand, ranging from diaspora Nigerians returning home to middle-class homebuyers to speculators seeking rapid appreciation. However, with demand comes fraud, poor regulation, and a thriving “grey market” of unregistered, poorly documented, or nonexistent schemes. Without proper due diligence, a promising land deal can end in total loss.

This article aims to show you, in no uncertain terms, which property investments to avoid in Nigeria, why they fail, and how you can protect yourself:

1. Fake “Master-Plan” Estates & Branding Schemes

What it is & why it fails

Some developers create estates with glamorous names — “New Victoria Gardens”, “Golden Paradise Estate”, “Paradiso Grand Estate,” etc. On paper or promotional brochures, everything looks legit: site maps, marketing renderings, flashy ads. However, behind the marketing shine, many of these estates lack legitimate approval, a valid survey, or a registered title. These are sometimes called “paper estates”.

Investors buy plots based on name, marketing hype or FOMO (fear of missing out), pay substantial funds — only to discover that:

• The layout is not registered with the relevant state land registry.
• There is no valid Certificate of Occupancy (C of O), or the C of O is forged. TBIL PROPERTY+2LinkedIn+2
• The “estate” exists only in promotional materials or on WhatsApp — actual, usable plots may not exist or may be double-sold.

Although public records often omit details, there are multiple reports from buyers in Lagos and other states complaining that after paying for land in branded estates, they could not get physical possession because the “estate layout” was never registered or surveyed. Legal site visits revealed no markers, no beacons, and no official status at the land registry.

Detection checks (before you buy)

• Ask for a registered survey plan and check with the Office of the Surveyor-General for verification.
• Visit the state’s Land Registry and confirm whether the “estate name” or layout is registered.
• Demand a valid C of O, Gazette, or Excision document (if land was excised), not just a glossy brochure.
• Avoid deals with heavy pressure to pay quickly because of “limited plots” or “price about to go up”.

Remedies / Safer alternatives

• Insist on verified, titled lands — with legit C of O or Gazette, survey plan, and registry record — before payment.
• If you want a modern estate, opt for one managed by a reputable, registered developer, ideally with a track record — not just flashy marketing.
• Hire a licensed surveyor and property lawyer to independently verify all documents.

2. “Dry-Sale” or Unverified Resales Without Governor’s Consent / Proper Title Transfer

What it is & why it fails

Under the Land Use Act, 1978, land in Nigeria is held by state governments and allocations are granted via Certificates of Occupancy (C of O) or, in some cases, excision from government land. Even when a plot has a C of O, resale requires the original owner’s deed, a proper Deed of Assignment, and approval (Governor’s Consent).

A “dry sale” happens when a seller transfers a plot informally — with a receipt or letter only — without registering the new ownership or obtaining the Governor’s Consent. This may render the “buyer’s” ownership invalid.

As a result, the government may reclaim the land later, or a legitimate buyer may challenge ownership, leaving the “investor” with nothing despite paying.

Many fraud-prevention guides cite examples of buyers in Lagos who purchased plots via dry sale and later discovered that the state had reallocated or repossessed the land because the transfer was never regularised.

Detection checks (before you buy)

• Demand and review the Deed of Assignment from the current title holder.
• Confirm that Governor’s Consent has been granted for resale (where required), especially if the original title was a C of O.
• Visit the state Land Registry (or Surveyor-General’s office) to carry out a formal title search.
• Engage an independent surveyor to verify the survey plan on site and ensure land boundaries match registry coordinates.

Remedies / Safer alternatives

• Only accept resale if the Deed of Assignment is registered and the Governor’s Consent is obtained.
• After payment, expedite registration of the transfer (Deed of Assignment) to ensure the registry reflects you as the current owner.

Use a qualified real estate lawyer to handle documents and registry submissions.

3. Land Under Government Acquisition or Unexcised Government Land

What it is & why it fails

At times, plots sold to investors are part of land still under government acquisition — i.e., reserved for public infrastructure, right-of-way, future projects, or environmental/zoning plans. Such lands are not “freehold” and can be reclaimed.

Sometimes sellers disguise this by offering “excision in progress,” promising that once the government releases the land and issues a Gazette, the investor will get a full title. But excision processes are uncertain, lengthy, and often unpredictable — leaving you with no guarantee.

Investing early under such promises carries the risk of total loss if the excision is delayed or cancelled.

Detection checks

• Ask for a Gazette notice or official excision papers, not just a verbal “excision promised”.
• Cross-check with the state land registry or the surveyor-general’s office whether the land is listed under “government reserved” or “acquisition” zones.
• Check planning/zoning status, environmental laws, or maps showing government projects to see if the area is earmarked.

Safer alternative

• Prioritise lands already excised and officially gazetted, or already issued a valid C of O/Gazette.
• If investing in excision projects, treat it as high-risk speculative land banking — invest only what you can afford to lose.

4. “Omo-Onile” / Communal / Ancestral Land Without Proper Documentation

What it is & why it fails

In many parts of Nigeria — especially peri-urban or rural zones — land is under communal or ancestral ownership by families or local communities (“Omo-Onile”). People claiming to be “owners” sometimes sell plots without any formal land registry allocation, survey plan, or C of O.

After payment, buyers often face repeated demands from local families and conflicts over who owns what. Worse yet, multiple buyers may be sold the same plot. This scenario is common across Lagos and other states.

Detection checks

• Ask for formal land title documents (C of O, Gazette, survey plan) — not informal assignment or “community title”.
• Visit local community members / traditional authorities to understand land history; check if land has been formally excised or allocated.
• Use a licensed surveyor to mark coordinates and verify boundaries on the ground.

Safer alternative

• Avoid buying communal/ancestral lands unless there is documented excision, title, and registry registration.
• Prefer land with a registered title (C of O, Gazette) over “community-owned” plots.

5. Overhyped Speculative Land — Chasing Infrastructure Announcements

What it is & why it fails

Some buyers invest in land purely based on future infrastructure announcements — for example, planned highways, new ports, rail lines, or mega-city developments. The hope is high appreciation. But many such projects never materialise, get delayed, or are redesigned, leaving the land isolated, undeveloped, or with no buyer demand.

Speculative land purchased under hype may thus remain illiquid for years, and investors may lose access to capital.

Risks/What really happens

• The government may change plans; the original “infrastructure corridor” may shift.
• Land may become undevelopable due to zoning, environmental protections, or right-of-way demands.
• Holding costs, taxes, insecurity, or development costs may erode gains.

Note: Because speculative land value depends on “what might be,” there is no guarantee — essentially, you’re gambling.

Read: Is Freehold Title a Legitimate Title in Nigeria?

Detection and caution

• Treat infrastructure plans as potential, not a guarantee. Verify with official government development plans, not just social media or marketer claims.
• Confirm whether the land is already legally zoned and approved for the kind of development you have in mind.

Do not overpay based on “potential” — if buying, treat it as a long-term land banking, not a quick flip

Summary Table — 5 Traps, Red Flags & Quick Buyer Checks

#	Trap	Common Red Flags	Quick Pre-Purchase Checks
1	Fake “Master-plan” Estates	Just brochure/ads, no registry record, no survey	Request registered survey plan; verify with Surveyor-General & Land Registry
2	Dry-sale / Unregistered Resale	No Deed of Assignment; no Governor’s Consent; informal receipt	Demand Deed of Assignment; verify Governor’s Consent; register transfer
3	Government-owned or Un-excised Land	“Excision pending”, no Gazette, ambiguous history	Ask for Gazette/excision papers; check land registry and zoning lists
4	Omo-Onile / Communal Land	No C of O or Gazette; community-only “ownership” claims	Demand formal title; use licensed surveyor; check registry records
5	Speculative Land (based on future projects)	Big promises, hype, high price expectations	Confirm project plans; check zoning/viability; treat as long-term speculative land bank

Buyer Checklist — 10 Checks You Must Do Before Paying Any Naira

1. Request and inspect original land title documents (C of O, Gazette, Excision papers, Deed of Assignment).
2. Visit the relevant state Land Registry (or office of the Surveyor-General) and perform a formal title/search check.
3. Hire a licensed surveyor to mark the land boundaries and confirm coordinates match the registry survey plan.
4. Obtain the Governor’s Consent if the title requires a resale transfer.
5. Check for encumbrances or litigation — e.g., court suits, government acquisition, mortgages.
6. Visit the site physically — inspect the land, surroundings, accessibility, and infrastructure promises.
7. Verify seller identity and history — ask previous owners, community, or check registry history.
8. Avoid FOMO-driven quick deals — don’t pay under pressure; allow time for due diligence.
9. Engage a qualified property lawyer to handle documentation and registration.
10. Budget for extra costs — survey, registration, legal fees, possible delays for consent or excision.

Read: How to Buy Property in Nigeria from Abroad

Legal Remedies If You Already Bought — What To Do Next

If you have already paid for a plot but fear it falls under one of the traps above, here are steps to protect yourself:

• Immediately visit the state Land Registry (or Surveyor-General’s office) to verify the title, survey plan, and registration status. If the property isn’t registered, request the registry to log a caveat or notice of interest, if that’s allowed.
• Engage a qualified real estate lawyer to examine the transaction documents (Deed of Assignment, receipts, correspondences) and assess options — including application for retroactive Governor’s Consent or court challenge (if the sale was fraudulent). Always ensure a proper title transfer.
• If there is community / Omo-Onile interference, mediate formally — using traditional authorities or legal channels; document all interactions.
• If land was sold under false pretences (fraud, fake documents, misrepresentation) — lodge a formal complaint with the state Land Bureau, and consider actions for compensation or restitution.

Real Estate Case Studies

1. An investor in Ibeju-Lekki (Lagos) bought a plot in a newly branded estate. The developer provided a survey layout plan and promised fast appreciation. Later, he discovered there was no record of the estate at the state land registry — the layout wasn’t registered, and there was no valid C of O. The developer disappeared after collecting funds. (Anonymised composite based on multiple victim reports.)
2. A resale buyer in Lagos paid via informal agreement (receipt only), with no Deed of Assignment or Governor’s Consent. After 2 years, the original owner re-sold the same plot to another buyer; the land registry only showed the original owner. The “investor” lost legal claim to the land. (Reported in multiple title-verification advisories.)
3. A rural buyer in a peri-urban area purchased from a family claiming ancestral land. There was no Gazette or formal documentation; after payment, the community demanded additional “settlement fees” and threatened eviction. The buyer had no legal recourse because the title was never formalised. (Composite of common “Omo-Onile” risk scenarios.)

The Safest Approach for Cautious Investors

If you want to avoid ending up poor or in court, treat property investment in Nigeria as a legal transaction, not a lottery ticket. Insist on valid title documents, registered survey plans, proper registry record, and legal transfer. Skip deals based on hype, marketing, or family assurances.

When in doubt, hire a competent surveyor and property lawyer. That way, your investment is protected — and your dream home or land bank remains real.

FAQs on Property Investments to Avoid in Nigeria

Before signing any agreement or paying for land, get a free title check with a licensed surveyor and property lawyer. Better yet: submit the documents to your state land registry for verification before you transfer a kobo.

Looking to buy a property in Lagos or Abuja? Chat with us in real time