INTRODUCTION TO CAN FOREIGNERS OWN LAND

The question “Can foreigners own land in Nigeria?” arises frequently in both academic settings and in practice. Land in Nigeria is a unique legal asset: it is not “owned” in the traditional common‑law sense, but rather held under statutory rights of occupancy granted by the state.

The legal structure behind it is detailed and carefully regulated. Therefore, anyone considering buying land in Nigeria must understand the governing framework. This need becomes even more pressing where the purchaser is not a Nigerian citizen. This article examines the legal framework governing ownership of land by non‑Nigerians (foreigners), the relevant statutory provisions, and key authorities clarifying the position of the law.

The Constitutional Foundation

To begin with, Section 43 of the 1999 Constitution¹ grants every Nigerian citizen the right to acquire and own immovable property. Notably, this right expressly mentions citizens of Nigeria. While the Constitution does not explicitly prohibit foreigners from acquiring land, it does not extend the same proprietary protection to them.

Although, if one were to apply the canon of construction Expressio unius est exclusio alterius,²one could outrightly say that the express mention of every citizen of Nigeria is to the exclusion of non-citizen of Nigeria.

It is important to note, however, that the constitution does not take the same interpretation as that of statutes. Unlike statutes, the Constitution requires constitutional interpretation. The courts may use a literal approach, but they also favour a liberal approach and are guided by the decision which is best in the furtherance of justice.

Furthermore, the Constitution preserves the continued operation of the Land Use Act under Section 315(5)(D)³. Thus, land ownership in Nigeria must always be understood alongside that Act.

The Framework of the Land Use Act 1978

Although the Constitution explicitly guarantees every Nigerian citizen the right to acquire and own immovable property, it does not detail the legal mechanism through which this right is exercised. This is where the Land Use Act 1978 comes in.

The Land Use Act is the principal legislation governing land in Nigeria. Under Section 1, all land in each state is vested in the Governor. It provides thus, 

“Subject to the provisions of this Act, all land comprised in the territory of each State in the Federation is hereby vested in the Governor of that State, and such land shall be held in trust and administered for the use and common benefit of all Nigerians in accordance with the provisions of this Act.”⁴

The Governor holds such land in trust for the people. Therefore, individuals do not own land absolutely. Rather, they hold statutory or customary right of occupancy.

Importantly, this structure transformed Nigeria’s traditional land tenure system. The Supreme Court affirmed this shift in Nkwocha v Governor of Anambra State.⁵ In that case, the Court confirmed that radical title now resides in the Governor. Also, Abioye v Yakubu⁶ shows that existing interests in land were not extinguished but only reduced to right of occupancy.

Moreover, Section 5 empowers the Governor to grant statutory rights of occupancy to any person. The word “person” includes both natural and corporate entities. However, these rights remain subject to statutory control. For example, Section 22 requires Governor’s consent before any assignment or transfer.

Can Foreigners Own Land in Nigeria?

Flowing from the discussion above, it is clear that a foreigner cannot outrightly in their own individual capacity own land.

Acquisition of Lands by Aliens Laws (ALAL)

In the state level, there is the law known as the Acquisition of Lands by Aliens Laws (ALAL). First, the Law defines an “alien” as Any individual other than a Nigerian.⁷ Broadly, these laws provide that:

1. A foreigner cannot acquire any interest or right over land from a Nigerian without prior written approval from the State Governor.
2. Any agreement or document that tries to grant land rights to a foreigner without this approval is legally void.
3. Any occupation or use of land by a foreigner acquired without the required approval is illegal and punishable under the law.

Corporate Ownership Under CAMA

Nevertheless, a foreigner can adopt a corporate structure. Under the Companies and Allied Matters Act 2020, a company incorporated in Nigeria becomes a separate legal person. This principle was famously established in Salomon v A. Salomon & Co Ltd. Consequently, a Nigerian-incorporated company may hold land in its own name.

In addition, CAMA grants companies the capacity of a natural person under Section 42. Therefore, such a company may acquire and dispose of property. However, it must still comply with the Land Use Act. Thus, incorporation does not eliminate the need for Governor’s consent.

Key Case: Huebner v Aeronautical Industrial Engineering & Project Management Co. Ltd

Facts of the Case

Gerhard Huebner, a German national resident in Nigeria, acquired and developed land in Kajuru, Kaduna State, where he built what later became known as Kajuru Castle. In the course of expanding the property, he sought to purchase additional hectares of land. However, he was allegedly advised that as a foreigner, he could not validly hold legal title to land in Nigeria in his personal capacity.

Consequently, the land was purchased in the name of Aeronautical Industrial Engineering & Project Management Co. Ltd, with the understanding, according to Huebner, that the company would hold the land in trust for him. A Certificate of Occupancy was eventually issued in the company’s name and not in his personal name. When disputes arose, Huebner instituted an action claiming that the company held the land on a resulting or constructive trust for his benefit.

Both the trial court and the Court of Appeal dismissed his claims. The matter proceeded to the Supreme Court for final determination.

Decision of the Court

Per Galinje JSC at pp. 13–16, paras. A–B:

“The law under which the case of Ogunola & Ors v. Eiyekole was decided, that is, the Land Use Act 1978, has not been repealed or altered. It remains the extant law regulating land administration in this country. The call on this Court to depart from the said decision is without merit.

I entirely associate myself with the decision of my learned brothers in Ogunola & Ors v. Eiyekole, and I hold that the appellant, being an alien, had no legal capacity to hold an interest in land in Kajuru Local Government Area of Kaduna State. This being so, and by virtue of the Latin maxim nemo dat quod non habet, the appellant cannot benefit from property which he was incapable of owning.”

The Supreme Court dismissed the appeal and affirmed the decisions of the lower courts. It held that Huebner, being a foreign national, lacked the legal capacity under the Land Use Act to hold a statutory or customary right of occupancy.

Furthermore, the Court declined to enforce the alleged trust arrangement. It reasoned that equity cannot be invoked to circumvent a statutory restriction. Since the claimant could not validly hold legal title under the Act, he could not rely on equity to obtain indirectly what he was incapable of holding directly. So, can foreigners own land in Nigeria? The answer still is not in their personal capacity. 

How Foreigners Can Invest in Nigerian Real Estate can foreigners own land in Nigeria

Foreign investment in Nigerian real estate is possible, but it must follow strict legal procedures. Below is a structured guide to ensure compliance and protect your investment.

1. Incorporate a Nigerian Company

Establish a locally registered company that will serve as the legal vehicle for acquiring property.

2. Obtain a Business Permit

Secure authorisation for foreign participation in the company.

Where the company has foreign shareholders, a Business Permit from the Federal Ministry of Interior is required. This permit formally recognises the company as eligible to operate in Nigeria with foreign ownership.

3. Secure Incorporation and Tax Documentation

Obtain and maintain all foundational corporate documents.

After incorporation, the company will receive essential documents, including, Certificate of Incorporation. 

4. Identify and Verify Suitable Property

Source property through credible channels and verify its authenticity. However, no payment should be made until title documents are independently verified.

5. Conduct Comprehensive Legal Due Diligence

Engage a qualified property lawyer to investigate the land thoroughly.

Due diligence typically involves confirming the validity of title documents (such as Certificate of Occupancy or Deed of Assignment) etc.

6. Obtain Governor’s Consent

Apply for and obtain the Governor’s written approval for the transaction. Failure to obtain consent may render the transaction void.

7. Register the Title at the Land Registry

Register the completed transaction with the appropriate State Land Registry.  Unregistered interests are vulnerable and harder to prove.

Registration serves several purposes:

• It formalises ownership
• It protects the company against competing claims
• Enables resale, mortgage, or development

Final Thoughts on Can Foreigners Own Land in Nigeria

In summary, land acquisition in Nigeria operates within a structured legal regime. Citizens enjoy constitutional protection, yet they must comply with statutory requirements. Non-citizens face additional regulatory conditions under state laws. 

So, the real question is not simply can foreigners own land in Nigeria, but how they can legally structure their interest in Nigerian property.

In practice, foreigners cannot freely acquire land in their personal capacity. However, they can invest in Nigerian real estate through companies that are properly incorporated in Nigeria. In that case, the company, not the foreign individual, holds the land.

Can Foreigners Own Land in Nigeria Can Foreigners Own Land in Nigeria Can Foreigners Own Land in Nigeri

aContributors

Justice Segun Ojienoh

Lead Partner, Eko Solicitors & Advocates

Ms. Bessie Obort Ofuka

Graduate Trainee, Eko Solicitors & Advocates

1.  Subject to the provisions of this Constitution, every citizen of Nigeria shall have the right to acquire and own immovable property anywhere in Nigeria. ↩︎
2. the express mention of one thing excludes all others ↩︎
3. (5) Nothing in this Constitution shall invalidate the following enactments, that is to say…(D) the Land Use Act, [Cap. L5] ↩︎
4. Section 1, Land Use Act 1978 ↩︎
5. (1984) 1 SCNLR 634 ↩︎
6. (1991) 5 NWLR part 190 ↩︎
7. Section 8 ↩︎

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