Operators in Nigeria’s built environment estimate that the country loses approximately N36 trillion annually due to untitled lands. With only about 10% of the 40 million households having formal property titles, the vast majority around 36 million remain in the informal housing market, which deprives the government of significant revenue from property taxes and registration fees. This figure, based on an average registration fee of N1 million per household, underscores the financial implications of unregistered land.
The cost of land registration varies widely across Nigeria, with average fees depending on location. For instance, in Lagos, registration can range from N3.5 million in Ikeja to as high as N4.5 million in Epe. Some developers report costs nearing N5 million per plot, reflecting a substantial increase from historical fees, which were much lower in the past. Experts argue that land registration should ideally not exceed 2.5% of the land value to align with global best practices.
In response to the challenge of untitled lands, the Ministry of Housing and Urban Development, in collaboration with the World Bank Group, is committed to addressing the issue of unregistered properties. Legal practitioners and land developers highlight the complexities and delays in the land titling process, which contribute to the high costs and hinder formalization efforts. Without significant reforms, Nigeria’s untitled land issue may continue to impede economic growth and revenue generation.
