Business
Responses That Should Turn You Off While Doing Due Diligence in Nigeria’s Real Estate By Dennis Isong
Don’t Worry, the Land is Clean” Whenever a seller or agent says, “Don’t worry, trust me,” without providing proof, you should immediately worry. In Nigeria’s real estate market, trust is earned, not assumed.
Let me share a story. A painful one. In November 2023, I met Chika, a young entrepreneur full of ambition.
She had saved for three years to buy her first plot of land in Lagos.
She dreamed of building her own bakery there someday—a dream she’d nurtured since childhood. Chika found a seller through a friend’s recommendation.
The location seemed perfect, and the price was “a steal.” When she began asking basic questions during due diligence, the seller’s responses were… strange.
When she asked about the land’s title, the seller waved her off. “Ah, no need to stress yourself. Trust me, this land is clean!” he said, flashing a reassuring smile.
When she pressed further, he added, “See, other buyers are waiting. If you waste time, someone else will grab it!” Against her better judgment, Chika paid.
The fear of missing out overpowered her. Months later, she discovered that the land was already sold to two other buyers.
Her N3 million vanished. Her bakery dream was shattered. She sat in my office, teary-eyed, asking, “Dennis, why didn’t I see the red flags?
How could I have been so blind?” Her story is a painful reminder that some responses during due diligence are major red flags.
If you hear any of the following phrases or behaviors, it’s time to step back and protect yourself.
1. “Don’t Worry, the Land is Clean” Whenever a seller or agent says, “Don’t worry, trust me,” without providing proof, you should immediately worry. In Nigeria’s real estate market, trust is earned, not assumed.
A land being “clean” means it is free of disputes, government acquisition, or other issues. If the seller refuses to provide documents like the Certificate of Occupancy (C of O), Deed of Assignment, or Survey Plan, it’s a glaring warning sign. What they’re really saying is, “I have something to hide, and I don’t want you to find out.”
2. “You Don’t Need a Lawyer” Ah, this one. Many shady sellers will try to convince you that involving a lawyer is unnecessary. They’ll say things like:
● “I’ve done this for years; lawyers just want to collect your money.”
● “You’ll waste time if you involve a lawyer.” This is manipulation, plain and simple. A lawyer ensures that all documents are valid and protects you from legal pitfalls. If someone discourages you from hiring a lawyer, it’s a sign they’re trying to cut corners—and possibly scam you.
3. “The Price Will Increase Tomorrow” Pressure tactics are a classic move in real estate fraud. When a seller tells you, “Other buyers are waiting,” or “If you don’t pay today, the price will go up tomorrow,” it’s often a ploy to rush you into making a hasty decision.
Think about it: Why would a genuine seller rush you? Good land doesn’t sell itself in one day, especially when proper documentation is involved. If they’re pushing you to act fast, it’s likely because they don’t want you to uncover the truth.
4. “I’ll Handle All the Documents for You” While it may sound convenient, a seller offering to handle all documentation should raise your suspicions. Why don’t they want you to see the process?
Here’s the truth: handling documentation gives you control and ensures transparency. If you blindly trust a seller to “take care of it all,” you might end up with fake or incomplete papers.
5. “It’s Family Land; We Don’t Have Titles Yet” In Nigeria, many disputes arise from “family land.” Sellers often claim they inherited the land and don’t have titles yet but promise to “regularize” the documents after you pay.
This is risky. Without proper titles, you could be buying into a web of family disputes. If they can’t produce a clear document, walk away.
6. “You Don’t Need to Inspect the Land” Imagine paying for land you’ve never seen. Unbelievable, right? Yet, it happens more often than you think. Some sellers will discourage you from inspecting the property by saying:
● “The land is far; I’ll show you pictures.”
● “The area is still developing, but it’s a good investment.” Never buy land without seeing it yourself—or better still, with a professional surveyor. Pictures can be deceiving, and some sellers will show you land that doesn’t even exist. 7. “Don’t Involve the Community” In many parts of Nigeria, land transactions involve local communities or traditional rulers. Some sellers, however, will warn you not to speak to the community, saying:
● “They’ll confuse you.”
● “The land doesn’t concern them.” This is a major red flag. Communities often have valuable information about the land, including its history, disputes, or encumbrances. If a seller is trying to cut them out of the process, something is likely wrong.
8. “The Survey Plan is With Someone Else” The survey plan is a crucial document that shows the exact location and size of the land. If a seller says it’s “with someone else” or promises to provide it after payment, be careful.
How can you verify what you’re buying without a survey plan? This excuse often hides fraudulent intentions.
9. “Don’t Worry About a Search; It’s Stressful” Conducting a search at the land registry is one of the most critical steps in due diligence. It confirms whether the land has a valid title and is free from disputes.
If a seller tells you not to bother, they’re trying to hide something. The search process might take time, but it’s worth every second.
10. “Just Trust Me” Finally, the ultimate red flag is when a seller relies solely on trust without offering proof. Real estate is a business transaction, not a friendship. Trust is good, but documents are better. How to Protect Yourself
• Ask Questions: Don’t feel intimidated. Ask for every document—C of O, Deed of Assignment, Survey Plan, and any other relevant papers.
• Hire a Professional: Get a lawyer, surveyor, or real estate expert to guide you.
• Do a Search: Visit the land registry to verify the property’s status.
• Visit the Land: Inspect the property yourself to confirm its existence and condition.
• Involve the Community: Speak to locals to understand the land’s history and avoid disputes.
Final Thoughts Chika’s story—and countless others like it—reminds us of one thing: due diligence is not negotiable.
If a seller’s responses sound suspicious or dismissive, take a step back. It’s better to miss out on a deal than to lose your hard-earned money.
In Nigeria’s real estate market, red flags are everywhere. Your job is to spot them, avoid them, and protect your investment. Don’t let pressure or promises cloud your judgment.
Always remember: it’s better to walk away than to walk into trouble. Your investment deserves protection. Don’t rush. Don’t assume. Verify everything.
Written by Dennis Isong, your trusted partner in Nigeria’s real estate market. Let’s guide you to safe and profitable property investments.
Business
NTA didn’t introduce VAT on charges collected by banks — NRS
The Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions, or electronic money transfers.
Photo: NRS chairman, Zacch Adedeji
The Nigeria Revenue Service (NRS) has clarified that the Nigeria Tax Act (NTA) did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.
In a statement made available to newsmen and signed by Dare Adekanmbi, Special Adviser on Media to the NRS chairman, Zacch Adedeji, the service said the claims are incorrect.
According to the NRS, VAT has always applied to banking services and was not introduced by the Nigeria Tax Act.
The statement reads:
“The Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions, or electronic money transfers.
This claim is categorically incorrect.
“VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime.”
Business
LIRS gives employers Jan 31 deadline for filing 2025 tax returns
The Executive Chairman of LIRS, Dr Ayodele Subair, who gave the directive on Thursday, reminded employers that the obligation to file annual returns is in line with the provisions of the Nigeria Tax Administration Act 2025.
The Lagos State Internal Revenue Service(LIRS) fixed statutory deadline of January 31, 2026, for all employers of labour in the state to file their annual tax returns for the 2025 financial year.
The Executive Chairman of LIRS, Dr Ayodele Subair, who gave the directive on Thursday, reminded employers that the obligation to file annual returns is in line with the provisions of the Nigeria Tax Administration Act 2025.
Subair explained that employers are required to file detailed returns on emoluments and compensation paid to their employees, as well as payments made to service providers, vendors, and consultants, and to ensure that all applicable taxes due for the 2025 year are fully remitted.
He emphasised that the filing of annual returns is a mandatory legal obligation and warned that failure to comply would attract statutory sanctions, including administrative penalties, as prescribed under the new tax law.
Business
Nigeria To Review Inflation Reporting First Time In 15 years
The agency said the expected spike in December inflation did not reflect actual price movements in the economy but was largely a statistical distortion caused by the rebasing of the Consumer Price Index.
Nigeria’s National Bureau of Statistics (NBS) has announced plans to revise its inflation reporting methodology.
This followed concerns that December’s year-on-year figure may be artificially inflated due to the impact of last year’s rebasing exercise.
The agency said the expected spike in December inflation did not reflect actual price movements in the economy but was largely a statistical distortion caused by the rebasing of the Consumer Price Index.
Reuters reported that the rebasing, the first in 15 years, adopted December 2024 as the index reference point.
Officials explained that the change is likely to exaggerate the year-on-year inflation figure for December without accurately capturing prevailing market trends.
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