Why It Matters
Taxes are eating into investor profits across Nigeria. From Lagos to Abuja, property owners are paying more in 2025. Knowing what is legal and what is not will save you money.
The Facts
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Property Tax Rates: Lagos applies between 0.394% and 0.75% of property value, depending on use.
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Capital Gains Tax: Fixed at 10% when you sell.
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Stamp Duty: Paid on property transfer documents, between 1% and 2%.
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Rental Income Tax: Landlords must pay based on their income bracket.
My Take
Many investors ignore property taxes until they face penalties. States are tightening collections, especially Lagos, Ogun, and FCT. Smart investors now hire tax consultants before closing deals.
Example
A ₦50 million apartment in Lekki could attract:
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₦250,000 annual property tax
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₦5 million capital gains tax if sold
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Up to ₦500,000 stamp duty on purchase
Quick Tip
Always add tax costs into your property investment calculation. It changes the real yield.
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