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The short answer
A farmland lease should fix the parties, the surveyed land, the term, the rent and its reviews, permitted farm uses, what happens to improvements at the end, and how disputes are settled. Who can grant it depends on the title: under the Land Use Act a customary right cannot be alienated without consent or local government approval, and family land needs the family head and principal members to agree. Stamp and register the lease so it can be relied on.
Why leasing rather than buying
For many diaspora investors a lease is the practical way into farming: less capital tied up in land, a defined term, and land that is often in rural areas where outright purchase is complicated. The Land Use Act shapes what is possible. Section 6 lets a local government grant customary rights of occupancy for agricultural purposes of up to 500 hectares (grazing up to 5,000 hectares), with larger areas needing the Governor's consent. Section 36 treats holders of non-urban agricultural land as holding a customary right and says such land is not to be subdivided or transferred by the person in whom it is vested.
Who can grant the lease
- Statutory right of occupancy (a certificate of occupancy): under section 22, the holder cannot sublease or otherwise alienate it without the Governor's consent first obtained.
- Customary right of occupancy: under section 21, it cannot be alienated by assignment, mortgage, transfer of possession, sublease or otherwise without the Governor's consent (for a court-ordered sale) or local government approval in other cases.
- Family or communal land: T&A Legal's 2025 Mondaq guide says the family head and principal members must consent, citing Supreme Court cases where sales without that consent were treated as void, and notes that customs excluding women have been held repugnant.
Section 26 makes transactions contrary to the Act null and void, so getting the grantor right is not a formality. For family land, record the meeting at which consent is given, list who attended, and have the family head and principal members sign the lease. See family land and diaspora members for how these disputes arise.
What the lease should cover
- Parties
- The grantor exactly as the title or family shows it, and you (or your company) as lessee.
- Land
- A description tied to a survey plan with coordinates, plus a site map. Have your own surveyor check it; see hiring a surveyor from abroad.
- Term
- Start date, length, and any option to renew with the notice period for exercising it.
- Rent
- Amount, currency (naira), when it is paid, whether years are paid in advance, and how reviews work.
- Use
- Crops, livestock, fish ponds, structures, boreholes, clearing and fencing you may do.
- Existing occupiers
- Whether anyone farms the land now, and what compensation or arrangement applies.
- Access
- Roads and paths to the plot, and water.
- Improvements
- Who owns buildings, boreholes and trees at the end, and whether you are paid for them.
- Default and termination
- Notice periods, cure periods, and what happens to growing crops.
- Disputes
- Mediation first, then the courts of the state, with the governing law stated.
A worked rent example
Example only. You lease 50 hectares for 10 years at ₦100,000 per hectare per year, with a 10% review every three years. Rent is ₦5,000,000 a year in years 1 to 3 (₦15,000,000), ₦5,500,000 in years 4 to 6 (₦16,500,000), ₦6,050,000 in years 7 to 9 (₦18,150,000) and ₦6,655,000 in year 10. Total rent over the term: ₦56,305,000. If the grantor asks for several years upfront, the lease should say what is refunded if it ends early.
Checks before you sign
- A land registry search where the land is registered, and charting of the survey plan at the state Surveyor-General's office.
- A walk of the boundaries with your surveyor and a community representative, noting any farms, graves, shrines or houses on the land.
- A litigation search at the court registry, and questions to neighbouring landowners about disputes.
- Written evidence that the person signing for a family or community has the authority to do so.
Stamping and registration
An unstamped, unregistered lease is weak evidence. LawPavilion's guide notes that instruments affecting land are registrable under state land instruments registration laws, that stamping precedes registration, and that an unregistered registrable instrument is inadmissible. In Lagos, Legal500's guide gives the deadlines as stamping within 30 days of execution and registration within 60 days; other states set their own. Where consent is needed, it comes first. Ask your lawyer for the timeline and the fees in the state where the land sits.
Managing it from abroad
- Appoint a lawyer in the state to run searches, draft and perfect the lease.
- Appoint a farm manager under a written contract, separate from the lease.
- If someone will sign or pay for you, give them a power of attorney witnessed by a notary public, judge or magistrate where you live; see powers of attorney signed abroad.
- Pay rent to the grantor's account named in the lease, not to individuals, and collect a receipt for each payment.
- Keep a relationship with the community: introductions, agreed access, and a contact for complaints.
Where Pryme fits
Rent, wages and inputs are paid in naira. A Pryme naira balance lets you send rent to the grantor's account with a reference, and you can generate a regular or verifiable receipt for each payment through Pryme's partnership with VerifyDoc.ai (receipts).
Questions people ask
Can I lease farmland in Nigeria while living abroad?
Yes, through a lawyer and, if needed, a representative holding your power of attorney. The lease must be granted by the right person and perfected.
Who signs a lease for family land?
The family head and principal members, according to case law summarised in a 2025 Mondaq guide. Sales without that consent have been treated as void.
Does a farmland lease need Governor's consent?
If the land is held under a statutory right of occupancy, yes, under section 22 of the Land Use Act. Customary rights need consent or local government approval under section 21.
How long should a farmland lease be?
Long enough to recover your investment in clearing, boreholes and structures, with a renewal option. There is no single legal minimum.
Sources
- PLAC Laws of Nigeria: Land Use Act, Cap L5 LFN 2004 · accessed Oct 2026
- Mondaq (T&A Legal): Key legal considerations when purchasing family or communal land (2 Sep 2025) · accessed Oct 2026
- LawPavilion: Power of attorney in Nigeria, the law, the power and the practice · accessed Oct 2026
- Legal500 (Tope Adebayo LP): Perfection of title to land in Lagos State · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.