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BUYING TROUBLE: WHY IGNORING GOVERNMENT CAVEATS ON PROPERTY IN NIGERIA IS FINANCIAL SUICIDE

 BUYING TROUBLE: WHY IGNORING GOVERNMENT CAVEATS ON PROPERTY IN NIGERIA IS FINANCIAL SUICIDE


By Daniel Okonkwo


Knowingly purchasing a property under a government caveat is akin to pouring salt into the ocean—completely futile and self-defeating. In Nigeria, some property buyers are fully aware of the legal red flags surrounding the properties they acquire, yet proceed with misplaced confidence that they can somehow outwit the system or “manage” future consequences.


A case in point is currently unfolding in Lagos, where the state government has commenced the demolition of several buildings in Megamound Estate, Oral Estate, and Lekki County. These structures, though structurally sound, were constructed directly along the alignment of the Ikota River, in violation of environmental and urban development regulations.


The Lagos State Commissioner for the Environment and Water Resources, Tokunbo Wahab, announced the development via his official X (formerly Twitter) handle, stating that the demolition exercise commenced on Friday, May 9.


According to Wahab:


> “Following the expiration of served notices, operatives from the Drainage Enforcement and Compliance Department of the Lagos State Ministry of the Environment and Water Resources on Friday commenced the removal of contravening structures within Megamound Estate and Oral Estate along the Ikota River alignment, Eti-Osa, to prevent perennial flooding in the area.”


He further noted that while the state government extended removal notices for some affected homeowners, this act of compassion should not be misconstrued as a weakness. The primary goal, he emphasized, is to restore the Right of Way and safeguard residents from avoidable environmental disasters.


A total of 39 buildings located within these upscale estates have been marked for demolition due to their illegal siting along the Ikota River’s setback in Eti-Osa Local Government Area. Ikota falls under the Maroko Okun Alfa ward in the Lekki axis of Lagos State.


THE LAW IS CLEAR: IGNORANCE IS NO EXCUSE


In Nigeria, purchasing land through illegal means—whether via land grabbing, fraudulent documents or collusion with unscrupulous agents—is a criminal offense with serious legal ramifications. The Land Use Act of 1978 and state-specific laws such as the Lagos State Properties Protection Law form the backbone of property regulation and protect legitimate landowners.


Courts can nullify illegal land transactions, especially where multiple claims exist.


Forceful entry, land fraud, and the forgery of land documents are criminal offenses punishable by imprisonment and fines.


Legal practitioners who facilitate such unlawful transactions can also be prosecuted.


A Certificate of Occupancy (C of O) obtained on illegally acquired land holds no legal weight—it cannot rectify an unlawful transaction.


A caveat is a formal legal notice lodged with the Land Registry indicating that someone other than the titleholder has an interest in the property. This legal mechanism acts as a red flag, effectively freezing all dealings—such as sales, mortgages, or transfers—on the affected property until the dispute is resolved.


For instance, an individual who believes they have a rightful inheritance claim on a piece of land may file a caveat to prevent its sale until the legal matter is resolved. Ignoring a caveat and proceeding with a property transaction is not just reckless—it is legally dangerous and financially ruinous.


To avoid becoming the protagonist in a tragic real estate cautionary tale, adhere to the following due process:


Investigate the property's legal status, ownership history, and any existing caveats or encumbrances.


Perform a thorough legal search at the Nigerian Land Registry.


Engage a competent real estate lawyer and confirm the seller's authority to sell the property. Avoid informal agents and handshake agreements.


Obtain key legal documents like survey plan, deed of assignment, and governor’s consent (a legal requirement for all land transfers)


Securing evidence of payment is very important. Demand and keep detailed receipts of all payments made.


Register the title. Ensure the deed of assignment is registered at the land registry to complete the transfer of ownership.


Take possession upon completion of all legal processes and assume full and legal control of the property.



Remember, in Nigeria, land is held in trust by the government. Individuals possess leasehold rights subject to government approval. Every land transaction must obtain the Governmental Consent to be valid under the law.


In the volatile world of Nigerian real estate, due diligence is your greatest defense. Buying property under a government caveat isn’t just a risky gamble—it’s financial suicide. Don’t recklessly invest your hard-earned money and then blame the system when it crumbles beneath you. The law is not a mere guideline; it is the final

BUYING TROUBLE: WHY IGNORING GOVERNMENT CAVEATS ON PROPERTY IN NIGERIA IS FINANCIAL SUICIDE

authority.


If you buy trouble, you will pay for it.

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