Lagos has some of the most highly-priced real estate in Africa, at around US$1,000 to US$1,200 per square metre (sq. m). Returns on investment are among the highest in the world for those who can afford the cost of purchase.
|LAGOS||COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|100 sq. m.||120,000||530||5.30%||1,200||5.30|
|150 sq. m.||160,000||700||5.25%||1,067||4.70|
|200 sq. m.||210,000||820||4.69%||1,050||4.10|
|250 sq. m.||260,000||890||4.11%||1,040||3.60|
|350 sq. m.||370,000||1,200||3.89%||1,057||3.40|
|500 sq. m.||520,000||1,800||4.15%||1,040||3.60|
|750 sq. m.||900,000||2,600||3.47%||1,200||3.00|
|1,000 sq. m.||1,200,000||3,200||3.20%||1,200||3.00|
|1,500 sq. m.||1,800,000||4,500||3.00%||1,200||3.00|
|250 sq. m.||240,000||1,200||6.00%||960||4.80|
|350 sq. m.||320,000||1,800||6.75%||914||5.10|
|500 sq. m.||430,000||2,600||7.26%||860||5.20|
|700 sq. m.||600,000||4,000||8.00%||857||10.00|
Strongly pro-landlord rental market
Rents: Can landlord and tenant freely agree rents in Nigeria?
There are no effective rent controls in Nigeria. Lagos has a “Rent Control of Residential Premises Law” but this is not implemented.
Rents are paid, in advance, for two to three years. Some landlords accept advance payments for only one to 1½ years; however, in that case rents are significantly higher.
What rights do landlords and tenants have in Nigeria, especially as to duration of contract, and eviction?
Contracts last for the duration of the advance payment, typically, one to three years. An option to renew with rent adjustment can be included in the contract. If the tenant pre-terminates a contract, no refunds are made. Subleasing can be included in the contract.
How effective is the Nigerian legal system?
Under the 1997 Recovery of Possession Law of Lagos State and the 1991 Recovery of Possession Edict 1991 of Rivers State, only the court can order the eviction of tenants. The court process is similar t that in UK and US.
The State of Lagos offers a Citizens Mediation Centre for resolving landlord and tenant issues. If mediation fails, the parties involved can seek redress in court.
The Land Use Act of 1978 covers the use and rental of public lands. The State of Lagos has an unenforced Rent Control of Residential Premises Law and Recovery of Possession Law. The Rivers State likewise has an unimplemented Recovery of Possession Edict.