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Avoiding Legal Problems: The Importance of Due Diligence Before Buying Property in Nigeria by Dennis Isong

Skipping due diligence before buying property in Nigeria can lead to devastating legal problems.

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Consider Tunde’s story. Tunde, a hopeful investor, trusted in promises and skipped due diligence.

He ended up with land under government acquisition, facing the bitter consequences of a hasty decision.

His story echoes through the real estate market, serving as a cautionary tale to those who believe shortcuts are harmless.

As a realtor with years of experience, I’ve seen many lessons in real estate, and Tunde’s story is one of them.

In September 2020, Tunde reached out to me after reading one of my articles.

He was thrilled about buying land in Folu Ise village, Ibeju-Lekki, because it was very cheap—just around N300,000.

I advised him to verify the land’s documents to ensure it wasn’t under government acquisition.

However, because the real estate company behind the deal was popular,

Tunde chose to trust them and rushed into the purchase.

Later, Tunde found out the land was under government acquisition and couldn’t be used.

He lost a significant amount of money and learned a painful lesson.

Unfortunately, this wasn’t an isolated case—many investors who bought land in that location around that time have faced similar losses.

This is why working with an experienced and thorough realtor is crucial. I ensure my clients avoid these pitfalls and make secure, informed investments.

Whether you’re a first-time buyer or a seasoned investor, taking the time to verify, investigate, and confirm every aspect of a property before purchasing is a prudent decision that can save you from heartache and financial ruin.

It’s a humid afternoon in Lagos, and you’re sitting across from a beaming seller at a bustling cafe.

He’s selling you a dream—a piece of land in a prime location, promising high returns and a secure future.

The deal seems too good to pass up. Excited by the possibilities, you shake hands, exchange money, and leave with a sense of accomplishment. But what happens next?

Months down the line, reality hits hard. You receive a letter from a government agency claiming ownership of the land.

The seller has disappeared, and your dreams of building a home or starting a business are shattered.

The money you invested seems irretrievable, and legal battles loom ominously on the horizon.

The regret sinks in—why didn’t you verify everything before signing the dotted line?

Skipping due diligence before buying property in Nigeria can lead to devastating legal problems.

It’s not just about securing a good deal; it’s about protecting your investment, your future, and your peace of mind.

The Heartbreak of Legal Issues Imagine the emotional turmoil of realizing that the property you thought was yours is entangled in legal disputes.

The stress of navigating complex legal systems, the financial burden of legal fees, and the uncertainty of the outcome can weigh heavily on anyone.

It’s a scenario that no one wants to experience, yet many unwitting buyers find themselves in precisely this predicament.

Why Due Diligence Matters

Due diligence isn’t just a formality—it’s your shield against potential disasters.

Here’s why taking the time to investigate before buying property in Nigeria is crucial:

1. Verifying Ownership and Title The first step in due diligence is confirming that the seller has legal ownership of the property and can transfer that ownership to you.

In Nigeria, where land ownership can be contentious and documentation irregular, verifying the title is non-negotiable.

Without this step, you risk buying property that someone else may claim as theirs, leading to legal battles that could tie up your investment indefinitely.

2. Uncovering Hidden Liabilities Properties can come with hidden liabilities such as unpaid taxes, mortgages, or pending litigation. Without due diligence, you might inherit these financial burdens along with the property. Imagine buying what seems like a lucrative plot of land, only to discover hefty tax bills or unresolved disputes that threaten your financial stability.

3. Ensuring Compliance with Regulations Local regulations, zoning laws, environmental restrictions—these are just some of the regulatory aspects that can affect your property’s use and value.

Ignoring these factors can result in penalties, restrictions on developmand ent, or even demolition orders. Due diligence ensures that the property you intend to buy aligns with your plans and complies with all legal requirements.

4. Assessing Market Value A property’s market value isn’t always what it seems. Sellers may inflate prices, especially in high-demand areas or emerging markets.

By conducting due diligence, including market analysis and comparative valuations, you can negotiate from a position of knowledge.

Knowing the true value protects you from overpaying and ensures that your investment is financially sound.

5. Protecting Your Peace of Mind Investing in real estate should be exciting, not anxiety-inducing.

Proper due diligence provides peace of mind, knowing that you’ve done everything possible to safeguard your investment.

It’s about making informed decisions rather than taking blind risks, ensuring that your property purchase is a step towards your goals, not a leap into uncertainty.

Conclusion

In the fast-paced world of real estate investment in Nigeria, due diligence isn’t just advisable—it’s essential.

It’s the difference between a successful transaction and a costly mistake.

Whether you’re a first-time buyer or a seasoned investor, taking the time to verify, investigate, and confirm every aspect of a property before purchasing is a prudent decision that can save you from heartache and financial ruin.

So, before you sign that contract or transfer that payment, ask yourself: Have I done my due diligence?

The answer could make all the difference in your real estate journey.

Written by Dennis Isong, your trusted advisor in Nigeria’s real estate market.

Let’s ensure your next investment is a smart and secure one.

STOP LOSING MONEY IN LAGOS REAL ESTATE! Learn How to Protect Your Investment Today. => LandProperty.ng/free

Your future deserves the assurance of due diligence.

Business

MTN Group says it’s under US investigation

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South African mobile operator MTN Group said Monday it was under US investigation over its activities in Iran and Afghanistan, at a time of icy ties between Washington and Pretoria.

Africa’s biggest telecoms company is already facing court challenges in South Africa by Turkey’s Turkcell, which accuses it of winning the Iranian market through corruption.

In 2006, MTN was chosen over Turkcell to become the 49 percent minority shareholder in Iranian government-controlled mobile phone carrier Irancell.

MTN had been made aware of a US Department of Justice (DoJ) grand jury investigation relating to its former subsidiary in Afghanistan and Irancell, the company said in a statement.

“MTN is cooperating with the DoJ and voluntarily responding to requests for information,” said the statement accompanying the group’s financial results.

Grand juries typically decide whether or not to formally lay charges in a case and take it to trial.

The South African multinational is also facing a court case in the United States from US veterans wounded in Iraq and Afghanistan, as well as relatives of soldiers killed in action, the statement said.

“The plaintiffs’ complaints allege that MTN supported anti-American militias in Iraq and Afghanistan .

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Business

UBA Secures N5bn BoI MSME fund for disbursement to key sectors

The facility provides a maximum loan amount of N5 million per obligor, with a three-month moratorium on principal repayments, ensuring businesses have ample time to stabilise before they begin to service the loans.

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•GMD/CEO UBA), Oliver Alawuba.

United Bank for Africa (UBA) Plc, has secured a N5 billion loan facility from the Bank of Industry (BOI), to boost key sectors of the economy and support the growth of sustainable and viable businesses in the country, especially the micro, small, and medium enterprises (MSMEs) owned by women.

The facility disbursed through the Federal Government’s MSME Fund, is designed to stimulate key sectors of the economy, while offering affordable financing to support businesses, with a primary focus on Green Energy, Education, Healthcare, and Women-Owned Enterprises.

UBA’s Group Managing Director/CEO, Oliver Alawuba, who spoke about the facility emphasised the bank’s commitment to fostering economic growth by empowering MSMEs, which he described as the “livewire of any developing economy.

He said, “At UBA, we recognize the pivotal role MSMEs play in driving economic development, and how they make up a sizeable portion of what drives our economic growth.

It is in this vein that we have decided not to rest on our oars by facilitating initiatives dedicated to empowering businesses with the financial support they need to thrive.”

Alawuba maintained that, “by offering loans at a competitive 9% interest rate with a three-year tenor, we are removing the traditional barriers that hinder SME growth in Nigeria and Africa. And by this, our message to business owners is simple: Don’t let this once-in-a lifetime-opportunity elude you.

”The facility provides a maximum loan amount of N5 million per obligor, with a three-month moratorium on principal repayments, ensuring businesses have ample time to stabilise before they begin to service the loans.

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Business

CPPE Proposes Policy Action to Reduce Food Prices

Dr Muda Yusuf, the Director/CEO of CPPE, noted that while progress has been made in moderating headline and core inflation, the persistence of food and month-on-month price increases highlights unresolved structural weaknesses.

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The Centre for the Promotion of Private Enterprise (CPPE) says that a coordinated mix of monetary, fiscal, and structural interventions will be required by the Central Bank of Nigeria, and the Ministry of Finance to consolidate recent drops in inflation and steer the economy toward sustained stability.

CPPE suggested in reaction to the July 2025 inflation reported by the NBS

The headline inflation declined for the fourth consecutive month, easing from 22.22% in June to 21.88% in July, a deceleration of 0.34%Month-on-month food inflation also moderated, falling from 3.25% in June to 3.12% in July, while core inflation posted marginal declines year-on-year (-0.03%) and a sharp slowdown month-on-month, from 3.46% to 0.97%.

Dr Muda Yusuf, the Director/CEO of CPPE, noted that while progress has been made in moderating headline and core inflation, the persistence of food and month-on-month price increases highlights unresolved structural weaknesses.

“The July 2025 inflation figures present a mixed outlook for the Nigerian economy, with notable improvements in key indicators but lingering risks that demand policy attention,” he said.

These developments reflect a gradually stabilising macroeconomic environment, supported by exchange rate stability, improved investor confidence, and the lingering impact of import duty waivers on key staples such as rice, maize, and sorghum.

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