How to Legally Run a Real Estate Company in Nigeria

Estimated reading time: 26 minutes

The real estate sector in Nigeria is currently experiencing significant growth and expansion, offering a wide array of lucrative opportunities for entrepreneurs and investors alike. This thriving market presents numerous prospects for those looking to establish or grow their presence in the industry.

However, successfully operating a real estate company within Nigeria necessitates a thorough understanding and careful navigation of the country’s complex regulatory framework to ensure full legal compliance and sustainable business operations.

Aspiring real estate business owners, existing professionals, investors, and researchers all benefit from a clear understanding of the legal steps and ongoing compliance obligations involved in establishing and managing a real estate company in Nigeria.

This comprehensive and detailed guide thoroughly outlines the essential steps required to legally operate and run a successful real estate company in Nigeria. It covers all critical aspects, including the process of business registration, obtaining necessary licenses, and adhering to regulatory requirements, and offers practical, actionable tips to help you avoid common pitfalls that many new real estate entrepreneurs often encounter.

Understanding the Legal Framework for Real Estate Companies in Nigeria

A real estate company operating in Nigeria functions within a complex and multifaceted legal framework that is primarily governed by both federal and state authorities. This comprehensive regulatory environment is designed to ensure the legitimacy and proper conduct of business operations while simultaneously safeguarding the interests and rights of all stakeholders involved.

The fundamental legal instruments alongside the primary key regulatory bodies that together collectively shape, govern, and influence this highly intricate and complex framework include the following essential components:

• The Corporate Affairs Commission (CAC) is the regulatory body responsible for overseeing the registration and incorporation of companies throughout Nigeria. It ensures that all businesses comply with the established legal framework necessary for operation. Specifically, all real estate companies operating within Nigeria are required to be officially registered with the CAC to be recognized as legitimate legal entities. This essential legal foundation allows these companies to perform critical business functions such as opening bank accounts, entering into binding contracts, and accessing a wide range of business opportunities in a lawful and compliant manner.

• The Land Use Act of 1978 plays a vital and fundamental role in the regulation of real estate operations across the country, as it establishes the legal framework for land ownership, usage rights, and the overall administration of land resources. According to this important legislation, all land within the nation is vested in the government, meaning that individuals or entities do not own land outright but must obtain legal rights to use the land. These usage rights are often formalized through documents such as Certificates of Occupancy, which are essential legal instruments that must be properly acquired before any land development, transfer, or transaction can take place. This comprehensive law significantly influences various aspects of real estate activities, including property transactions, land development projects, and the resolution of ownership disputes, underscoring its critical importance in the real estate sector.

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• The Special Control Unit Against Money Laundering (SCUML), which operates as a specialized unit under the Economic and Financial Crimes Commission (EFCC), is responsible for regulating Designated Non-Financial Institutions (DNFIs). These institutions include various sectors, among them real estate companies. All real estate businesses must register with SCUML to fully comply with the established anti-money laundering regulations and standards. Additionally, real estate companies are required to diligently monitor and report any suspicious financial activities or transactions to this unit, thereby playing a crucial role in preventing illegal and illicit financial dealings within the industry.

• The Lagos State Real Estate Regulatory Agency (LASRERA) is a specialized state-level regulatory body responsible for overseeing, managing, and regulating all real estate activities and practices within Lagos State, which is widely recognized as Nigeria’s bustling economic capital. LASRERA’s primary goal is to effectively curb fraudulent and unethical practices in the real estate sector, while simultaneously improving and elevating the overall quality of services provided. The agency achieves this by diligently overseeing the issuance of licenses, permits and conducting regular compliance inspections for all real estate operators and stakeholders operating within the state.

• The Real Estate Developers Association of Nigeria (REDAN) serves as the primary professional organization within the real estate sector, actively representing and advocating for the interests of property developers throughout Nigeria. It plays a critical role in offering certification to qualified members, ensuring that they meet established industry standards. Additionally, REDAN is dedicated to promoting strict adherence to ethical practices and maintaining high professional standards in all aspects of real estate development across the country, thereby fostering growth and integrity within the Nigerian real estate market.

These pillars collectively ensure that real estate companies in Nigeria operate within the law, uphold due diligence obligations, and contribute to a transparent and secure real estate market. Understanding and complying with these regulatory frameworks is essential for anyone looking to start or maintain a real estate company in Nigeria, whether they are local entrepreneurs, existing practitioners, or investors.

By aligning with CAC registration, adhering to the Land Use Act, fulfilling SCUML’s anti-money laundering requirements, registering with LASRERA where applicable, and securing REDAN memberships, a real estate company demonstrates legal soundness, builds trust with clients and investors, and mitigates risks associated with land disputes and fraudulent activities in Nigeria’s dynamic real estate sector.

Choosing the Right Legal Structure for Your Real Estate Business in Nigeria

When establishing a real estate company in Nigeria, carefully selecting the most appropriate legal structure is a crucial and strategic decision that carries significant implications for various aspects such as liability protection, business credibility, access to funding sources, taxation policies, and compliance with regulatory requirements.

Among the different legal structures available under Nigerian law, the most common and highly recommended option for real estate companies is the Limited Liability Company (LLC), which is also commonly referred to as a Private Company Limited by Shares.

This legal form offers a balanced combination of benefits that suit the unique needs of real estate businesses operating within the country.

Benefits of a Limited Liability Company (LLC)

• Separation of Personal and Business Liability: Unlike sole proprietorships or partnerships, an LLC is a distinct legal entity. This separation protects shareholders’ personal assets from being used to settle business debts or liabilities, limiting their financial risk to the amount of their capital contributions.
• Enhanced Credibility: Operating as an LLC projects professionalism and reliability, which can build trust with clients, financial institutions, and regulatory authorities. This credibility aids in winning contracts and forming business partnerships.
• Easier Access to Financing: Investors and banks prefer dealing with LLCs because of the formalized ownership structure, governance rules, and limited liability protections. An LLC can issue shares to raise capital and accommodate multiple investors.
• Flexibility in Ownership and Management: LLCs can have one to 50 shareholders, who can be individuals or corporate entities. While shareholders own the company, appointed directors handle day-to-day management, providing a balance of control and accountability.

Other Legal Structures and Their Limitations

• Sole Proprietorship: This is the simplest form, where one individual owns and runs the business. While easy to establish, it offers no liability protection, meaning personal assets are fully exposed to business risks. It also may have less appeal to investors.
• Partnerships (General or Limited): Partnerships involve two or more individuals sharing business control and profits. General partners have unlimited liability, putting their personal wealth at risk. Limited partners have liability limited to their investments, but cannot participate in management decisions.
• Public Limited Company (PLC): While offering limited liability and public trading of shares, PLCs have more stringent regulatory and disclosure requirements, making them less suitable for most small or medium-sized real estate businesses.

Comparison of the Legal Structures for Real Estate Business in Nigeria

Legal Structure	Liability Protection	Ownership Flexibility	Credibility & Financing	Regulatory Burden
Limited Liability Company (LLC)	Limited to shareholders’ investment	Up to 50 shareholders, flexible	High, preferred by investors	Moderate
Sole Proprietorship	None, personal assets exposed	Single Owner	Low	Minimal
Partnership	General partners: unlimited	Varies (general or limited partners)	Moderate	Moderate
Public Limited Company	Limited	Unlimited shareholders	Very High, publicly traded	High, extensive compliance

To ensure legal compliance and optimize business growth, a Limited Liability Company is the preferred structure for running a real estate business in Nigeria. It balances risk management, professional image, investment potential, and manageable regulatory requirements effectively.

Starting a real estate company as an LLC requires registration with the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act (CAMA 2020), which formalizes the company’s legal existence and governance framework.

Choosing the right business structure is essential as it aligns closely with long-term business goals, safeguards the interests of investors, and creates a strong and reliable foundation for expanding operations within the ever-evolving and dynamic Nigerian real estate market. Making the correct choice ensures sustainable growth and stability in a competitive environment.

Step-by-Step Guide to Registering Your Real Estate Company in Nigeria

Successfully registering a real estate company in Nigeria involves a structured process primarily governed by the Corporate Affairs Commission (CAC). Below is a detailed step-by-step guide to help entrepreneurs navigate the legal requirements efficiently:

Name Reservation

• Choose two unique business names for your company, ensuring they reflect your brand or business focus.
• Conduct an online name search through the CAC portal to check the availability of these names.
• Reserve one of the approved names to secure legal rights to use it. The reservation is valid for 60 days, within which the registration must be completed.

Prepare Incorporation Documents

• Draft the Memorandum and Articles of Association (MEMART) defining your company’s objectives, governance structure, and operational guidelines. Clearly state your business as a real estate company and specify your specialization, such as property development, brokerage, or valuation.
• Complete the CAC Form CAC 1.1 (Application for Registration) with accurate company details.
• Gather supporting documents, including identification and passport photographs for all directors and shareholders.

Submit Registration Application

• Provide comprehensive information on the CAC portal:
  • Registered office address, telephone number, and email.
  • Full names, residential addresses, dates of birth, occupations, email addresses, phone numbers, National Identification Numbers (NIN), and valid IDs of all directors and shareholders.
  • Details of the company secretary.
  • Electronic signatures of authorized persons.
• Upload all required documents as part of your application.

Certificate of Incorporation

• After submitting your application and paying the requisite fees, the CAC reviews your documents.
• Upon approval, you will receive a Certificate of Incorporation, legally recognizing the existence of your real estate company, along with a Company Registration Number (RC Number).

Obtain Tax Identification Number (TIN)

• While CAC assigns an initial TIN during company registration, further formal tax registration with the Federal Inland Revenue Service (FIRS) is required.
• Register with FIRS to comply with tax obligations such as Income Tax, Value Added Tax (VAT), and others.
• Provide documents like your Certificate of Incorporation, set up a tax profile, and obtain your formal tax registration.

Register with the Special Control Unit Against Money Laundering (SCUML)

• Real estate companies are classified as Designated Non-Financial Institutions (DNFIs) and must register with SCUML under the Economic and Financial Crimes Commission (EFCC).
• This involves submitting:
  • Incorporation documents.
  • Tax Identification Number.
  • Bank Verification Number (BVN), bank name, and account details.
  • Membership certificate from the Real Estate Developers Association of Nigeria (REDAN).
• SCUML registration enables compliance with anti-money laundering laws and mandates reporting of suspicious transactions.

Membership with the Real Estate Developers Association of Nigeria (REDAN)

• Obtain REDAN membership to access industry support, advocacy, and regulatory endorsements.
• Requirements for REDAN registration include:
  • Completed application form and formal application letter on company letterhead.
  • CAC incorporation documents.
  • Audited financial statements.
  • Company profile detailing organizational structure and key personnel.
  • Project brochures.
  • Bank references or introduction letters.
  • Tax Clearance Certificate and proof of contribution to the National Housing Fund.
  • Identification of major shareholders and directors.
• Note that REDAN membership is a prerequisite for SCUML registration.

State-Level Registrations (e.g., LASRERA in Lagos)

• If your real estate company operates in states like Lagos, registration with the Lagos State Real Estate Regulatory Agency (LASRERA) or equivalent state authorities is mandatory.
• These agencies issue permits, enforce local regulations, and provide consumer protection in property transactions.
• Ensure all local government regulatory requirements are fulfilled before commencing operations.

Timeline and Fees

• Company incorporation through the Corporate Affairs Commission (CAC) can be completed within 24 hours when done online. This streamlined digital process allows entrepreneurs to register their businesses quickly and efficiently, eliminating the need for lengthy paperwork and in-person visits. By utilizing the online platform, applicants can expect their company registration to be finalized in just one day, making it a fast and convenient option for starting a new business.

• Post-incorporation steps, including essential processes like tax registration, SCUML registration, and obtaining REDAN membership, generally require a timeframe of about 6 to 8 weeks to complete. These procedures are crucial for ensuring full compliance and operational readiness following the incorporation of a business entity.

• Fees vary considerably depending on the specific type of company as well as the range of services required, but generally include several key components such as CAC filing fees, REDAN registration fees, which cover application, subscription, and development charges, in addition to various compliance-related costs that ensure adherence to regulatory standards.

Following this well-defined and structured process ensures not only full legal compliance but also operational legitimacy, paving the way for smooth and efficient business operations for your real estate company in Nigeria.

By carefully adhering to these essential steps, you will be able to confidently and effectively navigate the often complex regulatory landscape. This approach will help you establish a strong and reliable foundation that supports your enterprise’s sustained growth and long-term success in a competitive environment.

Licenses and Certifications Required to Operate Legally

To legally and effectively operate a real estate company in Nigeria, it is essential to obtain the appropriate licenses and certifications beyond just the basic company registration. Securing these licenses is crucial to ensure full compliance with various important regulations, including tax laws, anti-money laundering policies, professional industry standards, and specific local state regulations that govern real estate activities.

The primary licenses and certifications that are necessary to legally operate within the established legal framework include the following essential requirements:

Federal Inland Revenue Service (FIRS) Tax Registration

• This is mandatory for all companies operating in Nigeria to comply with tax obligations such as income tax and value-added tax (VAT).
• While the Corporate Affairs Commission (CAC) assigns an initial Tax Identification Number (TIN) during company registration, real estate companies must formally register with FIRS to maintain full tax compliance.
• Registration requires submitting an application letter on company letterhead, incorporation documents, particulars of company directors, and usually proof of business address.

Special Control Unit Against Money Laundering (SCUML) Registration

• Real estate companies are classified as Designated Non-Financial Institutions (DNFIs) under Nigerian law.
• Registration with SCUML, a unit of the Economic and Financial Crimes Commission (EFCC), ensures compliance with anti-money laundering laws.
• Required documents include incorporation papers, Tax Identification Number, Bank Verification Number (BVN), bank details, and a membership certificate from the Real Estate Developers Association of Nigeria (REDAN).
• Ongoing reporting of suspicious and high-value transactions to SCUML is mandatory.

Real Estate Developers Association of Nigeria (REDAN) Membership

• REDAN is the primary industry body representing real estate developers in Nigeria.
• Membership validates your reputation and commitment to compliance with housing development standards.
• Application requirements typically include a completed form, an application letter on company letterhead, CAC incorporation documents, audited financial reports, a company profile, project brochures, bank references, tax clearance certificates, proof of contributions to the National Housing Fund, and identification documents of shareholders and directors.
• REDAN membership is also a prerequisite for SCUML registration.

State Regulatory Agency Registration (e.g., LASRERA in Lagos)

• If operating in Lagos or other states with specific real estate regulatory agencies, registering with these bodies is compulsory.
• Agencies such as the Lagos State Real Estate Regulatory Agency (LASRERA) regulate real estate business practices, issue permits, monitor compliance, and protect consumers from fraud.
• Registration requirements include CAC documents, identification of company directors, proof of operational office, and payment of license fees.
• Licenses often have categories such as Housing Estate Developer, Property Developer, Real Estate Agency, Broker, Developer, and Marketer with corresponding fees and validity periods.

Professional Registration (Nigerian Institution of Estate Surveyors and Valuers, NIESV)

• If your real estate company offers surveying and valuation services, you must register with NIESV.
• NIESV is a professional body that licenses estate surveyors and valuers to ensure ethical practice and technical competence.
• Certification from NIESV is required to lawfully provide surveying and valuation services in the Nigerian real estate sector.

Together, these licenses and certifications establish the legal and professional foundation necessary for operating a legitimate and reputable real estate company in Nigeria. Ensuring compliance not only meets statutory obligations but also enhances trust with clients, investors, and regulatory bodies, reducing the risk of legal disputes and operational disruptions.

Regularly reviewing and diligently renewing these licenses as mandated by regulatory authorities should be established as a standard and essential practice to ensure ongoing compliance and long-term business sustainability. This proactive approach helps maintain adherence to legal requirements and supports the continuous operation and growth of the business.

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Complying with Key Real Estate Laws in Nigeria

Staying compliant with the law is crucial for running a successful and sustainable real estate business in Nigeria. The legal landscape is complex, with several key acts and regulations governing land ownership, transactions, and business operations.

We will carefully guide you through the most important laws and regulations that you need to be aware of to ensure that your business operates in a fully legal and ethical manner at all times. Our goal is to provide you with clear, comprehensive information so you can confidently manage your business while staying compliant with all relevant legal requirements.

Land Use Act, 1978

The Land Use Act of 1978 plays a crucial and foundational role in shaping real estate law across Nigeria, as it establishes that all land ownership within each state is vested in the hands of the state governor. The governor, acting as a trustee, holds the land on behalf of the people of the state, ensuring that land management aligns with public interest.

Consequently, this legal framework implies that individuals, companies, and property developers do not possess absolute ownership of land. Instead, they are granted a right of occupancy, which is essentially a leasehold interest officially conferred by the state government, allowing them to use and develop the land under specified terms and conditions.

Key implications include:

• Certificate of Occupancy (C of O): This official document, issued by the state government, is proof of the holder’s right to use and develop the land for a specified period, usually up to 99 years. Obtaining a valid C of O or analogous legal title before transacting land or property is mandatory to establish legitimate ownership rights.
• Governor’s Consent: Before any sale, transfer, lease, or mortgage of land can be legally recognized, the Governor’s consent must be obtained. Transactions lacking this approval are void and unenforceable. This requirement also applies to inherited or family land transfers.
• Land Revocation and Compensation: The government can revoke land rights for public purposes such as infrastructure projects. Compensation, typically for unexhausted improvements rather than the land itself, must be provided, although disputes may arise regarding valuation and adequacy.

Failing to comply with the provisions of the Land Use Act and neglecting to secure the necessary certificates or consents can significantly increase the risk of businesses becoming entangled in complex land disputes, facing potential fraud, and ultimately suffering the loss of their valuable property rights.

This failure to comply with regulations and requirements can result in severe legal repercussions and significant financial penalties, both of which could seriously threaten the overall stability and future growth prospects of the business.

Conveyancing Act and Urban Development Laws

The Conveyancing Act, together with a range of various Urban and Regional Planning Laws, plays a crucial role in governing the transfer of land interests and meticulously regulating development activities within municipal areas.

These laws function together in a coordinated manner to guarantee that all land transactions are carried out correctly and transparently. They also ensure that urban development proceeds in a way that is consistent with the established planning standards, zoning laws, and regulatory frameworks. By working in unison, these regulations help maintain order and promote sustainable growth within urban areas.

Key points to comply with include:

• Due Process in Transfers: All land transfers must be properly documented with executed deeds such as Sale and Purchase Agreements, Deed of Assignment, or Power of Attorney. Proper registration of these documents at the relevant land registry is necessary to perfect ownership titles.
• Governor’s Consent Application: Alongside deed execution, a formal application for the Governor’s consent must be submitted with supporting documentation such as tax clearance certificates, development fees, land use charges, approved building plans, and survey plans.
• Building and Development Permits: Property developers and owners must obtain building permits from local government or state planning authorities before commencing construction. These permits ensure compliance with zoning regulations, building codes, environmental standards, and safety requirements.
• State-Specific Planning Laws: Various states, including Lagos, have enacted urban and regional planning laws that regulate land use, zoning, and development permits. For example, Lagos State’s Urban and Regional Planning and Development (Amendment) Law 2019 governs the issuance and enforcement of building permits.

Strict adherence to these conveyancing and urban development laws guarantees that all property transactions are legally valid and fully enforceable, providing a solid legal foundation for buyers and sellers alike.

Additionally, compliance ensures that all developments meet essential safety requirements, adhere to environmental protection guidelines, and conform to established planning standards, promoting sustainable and responsible growth within the community.

In Summary

Real estate companies and all stakeholders involved must diligently and thoroughly secure all necessary land titles, ensure they obtain the Governor’s consent on every relevant transaction, register properties accurately at the appropriate land registries, and strictly adhere to established urban planning and building regulations.

These essential compliance steps are critical for protecting ownership rights, significantly reducing the risks of fraud, and enabling transparent, efficient real estate development within Nigeria’s often complex and evolving legal environment.

Avoiding Common Legal Pitfalls and Scams in Nigerian Real Estate

Navigating the complex and often challenging real estate market in Nigeria demands vigilant and meticulous attention to a wide range of legal details in order to effectively avoid costly disputes, lengthy legal battles, and potential fraud.

To assist real estate companies and investors in protecting and safeguarding their valuable interests, here are several practical and actionable steps that can be taken:

Verify Land Titles and Ownership

• Always conduct thorough due diligence on land ownership before any transaction.
• Confirm the authenticity of the Certificate of Occupancy (C of O), which legally proves land tenure rights under the Land Use Act.
• Request and review official records such as land registry documentation, search reports, deed of assignment, survey plans, and the Governor’s consent for property transfers.
• Verification can be done physically by visiting the state Land Bureau or remotely through authorized government portals in some states.
• Beware of forged or counterfeit C of Os, which remain a common source of fraud in Nigeria’s property market.
• An authentic C of O significantly reduces risks associated with property ownership and transactions.

Maintain Proper Documentation

• Keep clear, organized, and original copies of all transactional documents:
  • Sale and purchase agreements
  • Payment receipts and bank confirmations
  • Deeds of assignment
  • Survey and building plans
  • Correspondence with buyers, sellers, agents, and government agencies

Proper and thorough documentation creates a clear and detailed audit trail that proves to be invaluable when it comes to settling disputes, resolving conflicts, or verifying ownership and the legitimacy of transactions.

This thorough record-keeping process guarantees that every single step is clearly and transparently documented, creating undeniable and reliable evidence that can be easily referenced and reviewed whenever any questions, concerns, or issues arise.

Comply with Regulatory Reporting

• Real estate companies classified as Designated Non-Financial Institutions (DNFIs) must comply with reporting requirements for anti-money laundering laws.
• Timely and accurate filing of transaction reports with the Special Control Unit Against Money Laundering (SCUML) and tax authorities (FIRS) is essential.
• Inadequate compliance can attract penalties, sanctions, or operational suspensions.

Beware of Fraudulent Developers and Agencies

• Collaborate only with reputable, registered professionals and developers.
• Confirm their memberships with bodies like the Real Estate Developers Association of Nigeria (REDAN) and professional licenses such as those from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
• Insist on validating all property documents with government authorities to avoid getting involved in scam deals or dubious projects.

Ensure Transparent Financial Operations

• Follow all anti-money laundering protocols, including proper record-keeping for all payments and receipts.
• Avoid cash transactions where possible; utilize traceable payment methods such as bank transfers or official receipts.
• Screen clients and partners for legitimacy to prevent being unwittingly complicit in fraudulent or illegal activities.
• Transparent financial dealings boost client confidence and maintain regulatory goodwill.

By consistently adhering to these careful and thorough processes of validation, meticulous documentation, transparent reporting, and maintaining high ethical business standards, real estate companies operating in Nigeria can substantially reduce and mitigate potential legal risks.

This diligent and careful approach not only safeguards their well-established reputation but also effectively protects their valuable and hard-earned investments in a market that is becoming increasingly regulated, complex, and highly competitive.

Current Trends and Developments in Nigerian Real Estate Regulation

The Nigerian government has stepped up efforts to regulate the real estate sector more strictly to boost transparency, reduce fraud, and safeguard buyers and investors. This increased regulatory enforcement is particularly evident in Lagos, Nigeria’s commercial hub, where the Lagos State Real Estate Regulatory Agency (LASRERA) plays a proactive role in monitoring compliance with real estate laws, licensing requirements, and development standards.

A significant development shaping the regulatory landscape is the digitalization of land registries and company registration processes. The Corporate Affairs Commission (CAC) has enhanced its online portal for faster company incorporations and document submissions, making the registration of real estate companies more efficient and accessible.

Likewise, SCUML’s electronic reporting system streamlines mandatory anti-money laundering disclosures, improving oversight and reducing opportunities for illicit activities. Rising foreign investment in Nigerian real estate has also spurred regulatory tightening.

With increasing capital inflows from international investors seeking residential, commercial, and hospitality opportunities, Nigerian authorities are emphasizing formal registration, certification, and legal compliance to attract and protect such investments. This trend includes incentives and improvements in the ease of doing business, but also demands greater transparency and adherence to land laws and urban planning regulations to mitigate risks.

Additionally, emerging trends in sustainable and smart city developments—such as projects in Eko Atlantic and Centenary City—are influencing regulatory frameworks to include environmental standards and green building practices. State and federal agencies are progressively incorporating sustainability guidelines that align with global best practices and UN Sustainable Development Goals.

Heightened scrutiny on the real estate market is driven by several key factors that have increasingly drawn the attention of investors, regulators, and the general public alike. These factors include :

• Government initiatives to address the housing deficit with affordable and modular construction methods
• Enhanced enforcement of the Land Use Act and conveyancing regulations to reduce fraudulent land sales
• Adoption of mixed-use developments and retail spaces to meet urban lifestyle demands
• Policy adjustments responding to economic factors such as inflation and mortgage affordability

Overall, the convergence of technology-driven regulatory reforms, along with strengthened enforcement efforts by regulatory bodies such as LASRERA and SCUML, combined with increasing foreign and diaspora investments, and continuously evolving market demands, is collectively shaping a Nigerian real estate sector that is becoming significantly more transparent, compliant, and resilient.

This sector is exceptionally well-positioned to achieve sustainable growth and foster long-term development throughout the entirety of 2025 and extending well beyond that period, promising the emergence of a more robust and dynamic market environment that is capable of adapting to future challenges and opportunities.

FAQs

What is the minimum share capital to start a real estate company in Nigeria?

For real estate companies with foreign shareholders or directors, the minimum share capital required is ₦10 million. However, there is no prescribed minimum share capital for purely Nigerian-owned real estate companies, allowing more flexibility in local ownership structures.

Is it mandatory to register with SCUML?

All real estate companies in Nigeria must register with the Special Control Unit Against Money Laundering (SCUML) as part of anti-money laundering compliance. Registration ensures the company adheres to regulations on reporting suspicious financial activities and high-value transactions.

Do I need to register my real estate company with a state regulatory agency?

If your real estate business operates in states such as Lagos, registration with the Lagos State Real Estate Regulatory Agency (LASRERA) or other relevant state agencies is required alongside federal registrations. This facilitates compliance with local regulations and legal real estate operations within state jurisdictions.

Can foreigners start a real estate company in Nigeria?

Foreigners are permitted to establish real estate companies in Nigeria. They must comply with all company registration laws, which include meeting the minimum share capital of ₦10 million for foreign investors or directors, and satisfying other regulatory requirements.

How long does it take to register a real estate company in Nigeria?

The incorporation process with the Corporate Affairs Commission (CAC) can be completed within 24 hours when done online. However, the broader post-incorporation registrations and licensing processes—such as registering with FIRS, SCUML, REDAN, and state agencies—typically take between 6 to 8 weeks to finalize.

In Conclusion

Legally running a real estate company in Nigeria demands strict adherence to federal and state laws, comprehensive registration processes, and ongoing compliance with tax and anti-money laundering regulations. Selecting the right legal structure, registering with CAC, securing required licenses, and engaging with regulatory bodies like REDAN and LASRERA lays the foundation for a credible and sustainable business.

Aspiring and current real estate entrepreneurs in Nigeria should prioritize due diligence, stay updated on regulatory changes, keep thorough documentation, and seek professional legal and financial advice. Compliance not only mitigates risks but also builds trust with clients and investors, driving growth and success in Nigeria’s dynamic real estate market.

For individuals who are looking to start or significantly scale their real estate business, it is highly beneficial to consider downloading a comprehensive and detailed checklist of all the essential legal requirements involved.

Additionally, gaining access to professional expert consulting services can provide invaluable guidance and support, helping you successfully navigate this often complex and challenging landscape with much greater confidence, clarity, and ease throughout the entire process.