10 Hidden Costs to Consider Before Buying a House in Nigeria
For many Nigerians, owning a home is a lifelong dream. But while the property’s asking price grabs your attention, it’s rarely the final cost. Beyond the purchase price, several hidden costs can add millions of naira to your budget. Sadly, many first-time buyers overlook these expenses and face financial strain after closing the deal.
To help you prepare, here are the 10 hidden costs to consider before buying a house in Nigeria—with realistic price estimates to guide your budget.
1. Legal Fees (₦500,000 – ₦3 million)
Every property purchase in Nigeria requires legal verification. A lawyer will:
- Confirm ownership and title documents
- Conduct land registry searches
- Draft and review contracts
Typically, legal fees range from 5% to 10% of the property’s purchase price. For example, if you’re buying a house worth ₦30 million in Lagos, you should budget at least ₦1.5 million – ₦3 million for legal services.
2. Survey Fees (₦150,000 – ₦500,000+)
A survey defines the exact size and boundaries of your land. Without it, you risk disputes or government encroachment.
- In Lagos and Abuja: ₦300,000 – ₦500,000
- In smaller cities: ₦150,000 – ₦250,000
3. Governor’s Consent (3% – 8% of property value)
Even if the land already has a Certificate of Occupancy (C of O), you still need the Governor’s Consent to complete the transfer.
For a ₦40 million property, expect to pay between ₦1.2 million – ₦3.2 million, depending on the state.
4. Stamp Duties (₦200,000 – ₦2 million)
Stamp duty is a government tax on property documents.
- It usually ranges from 1% – 2% of the property’s value.
- For a ₦20 million property, stamp duty may cost ₦200,000 – ₦400,000.
5. Agency Fees (5% of purchase price)
Most buyers use agents to find properties. Standard commission in Nigeria is 5% of the property price.
- For a ₦25 million house, that’s ₦1.25 million in agency fees.
6. Development Levies (₦250,000 – ₦2 million+)
In gated estates, developers or community associations often charge buyers for infrastructure like roads, drainage, or electricity poles.
- In Lagos estates, fees can range from ₦500,000 – ₦2 million.
- In smaller towns, expect ₦250,000 – ₦500,000.
7. Registration Fees (₦300,000 – ₦2 million)
After purchase, you must register your property at the state land registry.
- Rates are about 1% – 3% of property value.
- For a ₦30 million house, registration may cost ₦300,000 – ₦900,000.
8. Renovation & Finishing Costs (₦2 million – ₦15 million)
Many Nigerian houses are sold as “carcasses” (uncompleted). Buyers must spend extra on:
- Tiling
- Plumbing
- Painting
- Electricals
For a modest 3-bedroom house, finishing may cost ₦3 – ₦5 million. For luxury homes, it can exceed ₦15 million.
9. Utility Connection Fees (₦100,000 – ₦500,000)
Connecting to PHCN (electricity), water, or sewage is not always free. In some estates, developers demand ₦150,000 – ₦300,000 upfront before connecting you to services.
10. Ongoing Service Charges (₦10,000 – ₦50,000 monthly)
If you buy into a serviced estate, budget for recurring charges. These cover:
- Security
- Waste management
- Cleaning and maintenance of common areas
In Lagos estates, monthly service charges can be ₦25,000 – ₦50,000. In smaller cities, they may be ₦10,000 – ₦20,000.
Conclusion
The price you see on a property listing is just the beginning. By the time you add legal fees, taxes, agency commissions, and finishing costs, your budget may swell by 20% – 30%. For example, a ₦30 million property could easily cost ₦36 – ₦40 million when all hidden charges are included.
Being aware of these expenses upfront helps you prepare properly and avoid unpleasant surprises.
Are you planning to buy a house in Nigeria? Don’t let hidden costs catch you off guard. At ArrowHead Homes and properties, we provide transparent guidance, verified listings, and professional support to make your homeownership journey stress-free. Contact us today to start your property journey with confidence!
