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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

FG Announces New Procurement Policy Shift Favouring Local Manufacturing

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The Federal Executive Council (FEC) has approved a “Nigeria First Policy” aimed at prioritising the use of locally made goods and services in all government procurements.

The Minister of Information, Mohammed Idris, made the disclosure saying that the policy seeks to domesticate all government processes.

The Nigerian government expects that with the new policy, local manufacturers will get priority in the provision of goods and services.

“No procurement of foreign goods or services already available locally shall proceed without justification, and where there is an exceptional need for these services to procure from outside, there must be a waiver to be obtained, written waiver to be obtained by the Bureau of Public Procurement (BPP),” Mr Idris said.

“Where no viable local option exists, contracts must include provisions for technology transfer, local production or skills development.

For example, the provision of portal allocations under the sugar master plan should take into consideration participants’ backwards integration plans and investment in Nigeria and ensure compliance with the Master Plan.

“The MDAs have also been directed to immediately conduct an audit of all procurement plans and submit revised versions in line with these directives. Breaches will attract sanctions, including cancellation of procurement processes by such MDAS, and indeed disciplinary action against responsible officers,” the minister noted.

The federal cabinet approved these proposals on Monday and the office of the Attorney General of the Federation has been directed to prepare an Executive Order to be issued by President Bola Tinubu.

This is a major shift in government policy, Mr Idris added. “It puts Nigeria – not foreign companies, not imports – at the heart of our national development.”Once signed into law, Mr Idris said, the legislation will “foster a new business culture that will be bold, confident, but also very, very Nigerian, and it aims at making the government invest in our people and our industries by changing how the government spends money, how we procure and how we also build our economy.”“Going forward, Nigerian industry will take precedence in all procurement processes,” the minister said.

This is a major shift in government policy, Mr Idris added. “It puts Nigeria – not foreign companies, not imports – at the heart of our national development.

”Once signed into law, Mr Idris said, the legislation will “foster a new business culture that will be bold, confident, but also very, very Nigerian, and it aims at making the government invest in our people and our industries by changing how the government spends money, how we procure and how we also build our economy.”

Where local supply falls short, contracts will be structured to build capacity domestically, according to Mr Idris. “Contractors will no longer serve as intermediaries sourcing foreign goods where local factories die. I take the example of the sugar industry.”

“For example, we still have so much importation of sugar coming into this country, yet we have the Nigerian sugar council that was set up to look inward to see how sugar production can be produced, you know, for the benefit of Nigerians.

President Tinubu has proposed that we will no longer just sit there and allow importation to come into this country where there is the capacity for production of these commodities locally.

Now, as I said, the president has proposed the following directives, and all of them have been approved by the Federal Executive Council.”

President Tinubu has proposed that we will no longer just sit there and allow importation to come into this country where there is the capacity for production of these commodities locally. Now, as I said, the president has proposed the following directives, and all of them have been approved by the Federal Executive Council.”

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Business

Dangote Group Sponsors Nasarawa Trade Fair

The fair is a collaboration between NASSI and the Nasarawa State Chamber of Commerce Agriculture and Industries.

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The Dangote Group is sponsoring the 2025 Nasarawa Trade Fair Exhibition, which officially opens this Wednesday in Lafia, the state capital.

The Theme for this year’s Fair is: Investing in Nasarawa’s Future: Fostering Economic Development Through Mineral and Agricultural Cottage Industrialisation

The trade fair, according to the Chairman of the Nigeria Association of Small-Scale Industrialists (NASSI), Nasarawa State Chapter, Nidan Sambo Manasseh, will be declared open by the state governor, Abdullahi Sule.

He said the fair is a collaboration between NASSI and the Nasarawa State Chamber of Commerce Agriculture and Industries.

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Rite Foods Drags Mamuda Beverages to Court Over Products Semblance

Justice Nwite has scheduled a hearing for May 28, where the court will deliberate on Mamuda Beverages’ objection to the case and determine whether Rite Foods’ lawsuit can proceed.

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Rite Foods Ltd, the manufacturer of Fearless Energy Drinks, has filed a N1.6 billion lawsuit against Mamuda Beverages Nig. Ltd, producer of Pop Power Energy Drinks, citing trademark infringement and unauthorized replication of its product design.

The lawsuit seeks both damages and an injunction to prevent Mamuda Beverages from continuing to manufacture energy drinks that bear a striking resemblance to Rite Foods’ registered products.

In the writ of summons filed on April 14 before Justice Emeka Nwite of the Federal High Court in Abuja, Rite Foods claims that Mamuda Beverages has violated its intellectual property rights by introducing a nearly identical design for its Pop Power Energy Drinks.

The plaintiff alleges that the defendant has copied its distinctive bottle design, ornamental features, and brand identity, leading to consumer confusion.

Rite Foods Ltd, stated that its Fearless Energy Drinks feature a unique 500ml plastic bottle design incorporating a lion head logo, a specific shape, and color scheme, all of which were officially registered under the Patents and Designs Act on August 24, 2020.

The plaintiff argues that Mamuda Beverages’ 330ml Pop Power Energy Drinks replicate the shape, color, and overall aesthetic of the Fearless brand, with some consumers referring to it as “small Fearless” due to its resemblance.

The lawsuit demands an order of perpetual injunction restraining Mamuda Beverages, its distributors, and associates from further infringing on Rite Foods’ trademark, including manufacturing, distributing, or selling energy drinks that imitate its design.

The plaintiff also seeks N1 billion in damages for losses incurred due to the alleged unlawful use of its registered design, as well as N60 million in legal costs.

Previous injunction Rite Foods had previously secured an injunction against Mamuda Beverages in January 2025 before Justice Inyang Ekwo, restraining the defendant from continuing the production and distribution of Pop Power Energy Drinks.

The parties later reached a settlement agreement , which required Mamuda Beverages to alter elements of its product design to ensure differentiation from Fearless Energy Drinks.

However, Rite Foods claims that Mamuda Beverages has since violated the terms of the settlement, reintroducing a “remodeled” version of the Pop Power Energy Drinks that remains substantially identical to the original design.

This alleged breach prompted the fresh lawsuit, as Rite Foods insists that court intervention is necessary to protect its exclusive rights over its registered trademark and product design.

Mamuda Beverages has responded with a preliminary objection, urging the court to dismiss the case because the lawsuit constitutes an abuse of the court process.

The defendant argues that the matter was already litigated and resolved in an earlier consent judgment, rendering the court functus officio—a legal principle preventing the relitigation of settled disputes.

Justice Nwite has scheduled a hearing for May 28, where the court will deliberate on Mamuda Beverages’ objection to the case and determine whether Rite Foods’ lawsuit can proceed.

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