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The short answer
Nigerian banks rarely lend to buy bare land because title is often uncertain, land produces no income, and under the Land Use Act a mortgage over a statutory right of occupancy needs the Governor’s consent. The realistic routes are developer instalment plans, cooperative land schemes, employer schemes and saving towards the price. Land with a Certificate of Occupancy and Governor’s consent is far easier to borrow against.
Land is one of the most common reasons Nigerians save, and one of the hardest things to borrow for. People with good salaries are often surprised when their bank declines a request to fund a plot. The reasons are legal and practical, and understanding them helps you choose a route that works.
Why banks are wary of financing bare land
- Title risk. Much land is sold on family or community title, sometimes to more than one buyer, or sits in areas under government acquisition. A lender cannot safely take security over land whose ownership may be disputed.
- Consent requirements. Section 22 of the Land Use Act says the holder of a statutory right of occupancy may not alienate it "by assignment, mortgage, transfer of possession, sublease or otherwise" without the Governor’s consent first obtained. Section 21 sets similar rules for customary rights, requiring local government approval. Section 26 says transactions contrary to the Act are null and void. A mortgage without consent is a risk the lender may not be able to enforce.
- No income. A plot does not generate rent, so repayment depends entirely on the borrower’s other income.
- Hard to sell. If the borrower defaults, selling bare land can take a long time, and its value is hard to prove.
Banks also price risk by how quickly they can recover their money. A house with tenants can be sold or let; an empty plot on the edge of a growing city may have willing buyers one year and none the next.
This is general information about the law, not legal advice. A property lawyer can explain how the rules apply to a particular plot and state.
The routes that do work
| Route | How it works | What to watch |
|---|---|---|
| Developer or estate instalment plan | You pay a deposit and the balance over months; the developer holds the documents until you finish. | Instalment prices are often higher than the outright price; check the developer’s own title. |
| Cooperative land scheme | Members pool savings to buy and subdivide land, or the cooperative lends against members’ savings. | You usually need to be a saving member first; check how plots are allocated and titled. |
| Employer scheme or staff loan | Some employers lend or partner with developers for staff. | Usually repaid from salary; leaving the job can make the balance due. |
| Personal loan | A bank or MFB personal loan used to pay for the plot. | You repay from income; the loan is not secured on the land, so cost is higher. |
| Saving towards the price | Build the sum in fixed-term savings. | Slower, but no interest and no lender over your title. |
See how to save for land or a house and how cooperative loans work.
Title documents that make lending possible
Once land has clear, registered title, it becomes useful as collateral for other borrowing, such as a construction loan. Lenders typically look for:
- Certificate of Occupancy (C of O)
- Evidence of a statutory right of occupancy granted by the state Governor.
- Governor’s consent
- Consent to an assignment or mortgage of that right, needed under section 22.
- Registered deed of assignment
- The document transferring the land to you, registered at the state land registry.
- Survey plan
- A plan by a registered surveyor showing the exact boundaries.
- Search report
- A search at the land registry confirming who holds title and any charges on it.
Lenders also want the land valued by a valuer they approve. See collateral Nigerian banks accept and construction loans.
Worked example: instalment plan versus saving first
Example only, with illustrative prices. A developer sells a plot for ₦6,000,000 outright, or ₦6,600,000 on a 12-month instalment plan with a 30% deposit.
| Instalment plan | Save, then buy outright | |
|---|---|---|
| Deposit | ₦1,980,000 | ₦0 |
| Monthly payment | ₦385,000 for 12 months | Save ₦500,000 a month for 12 months |
| Total paid | ₦6,600,000 | ₦6,000,000 |
| Extra cost of buying now | ₦600,000 | ₦0, but the price may rise while you save |
Check the sums: the balance after the deposit is ₦4,620,000, which is ₦385,000 for 12 months. Whether the instalment plan is worth ₦600,000 depends on how fast prices in that area are rising and how confident you are in the developer’s title.
What to check first
- Search the title at the state land registry before paying anything.
- Confirm the land is not under government acquisition or in dispute.
- Ask whether the developer holds a C of O or a global title, and how you will get yours.
- Get the full payment schedule, any penalty for late instalments, and what happens to your money if you stop paying.
- Use a lawyer for the deed of assignment and consent application.
Where Pryme fits
Pryme does not lend to buy land. If you are saving towards a plot, a Fixed Savings Box keeps the money set aside until a date you choose, with the rate shown in the app before you commit.
Questions people ask
Can I get a bank loan to buy land in Nigeria?
It is uncommon for bare land. Banks prefer land with clear title and Governor’s consent, and usually lend for building or against existing property. A personal loan used for land is possible but is repaid from income.
Why do I need Governor’s consent for a land mortgage?
Section 22 of the Land Use Act prohibits mortgaging a statutory right of occupancy without the Governor’s consent first obtained, and section 26 makes contrary transactions void.
Is buying land in instalments safe?
It can be, if the developer has clear title and the contract says what happens if you miss payments. Search the title at the land registry first.
Do cooperatives give land loans?
Some cooperatives run land schemes or lend members against their savings. Membership and a savings record are usually required first.
Sources
- Land Use Act Cap L5 LFN 2004 (PLAC Laws of Nigeria) · accessed Oct 2026
- Access Bank: Personal Loan · 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.