HOW TO CHANGE CAR OWNERSHIP IN NIGERIA
Understanding how to change car ownership in Nigeria, particularly in Ogun State, is far more than an administrative task at a motor registry. It is a legal process with serious consequences for liability, taxation, criminal exposure, insurance, and asset protection. Many Nigerians mistakenly believe that once money is paid and the vehicle is handed over, ownership has automatically changed. In law, this assumption is dangerously incorrect.
For business owners, startups, tech founders, SMEs, entrepreneurs, investors, and professionals, vehicles are not merely means of transportation. They are business assets, logistics tools, executive resources, and in some cases, collateral. Where ownership is not properly transferred, the original owner may remain legally responsible for accidents, crimes, debts, or regulatory violations linked to that vehicle.
This article provides a comprehensive, authoritative, and practical guide on how to change car ownership in Nigeria, with specific reference to Ogun State. It explains the legal framework, step-by-step procedures, documents required, costs, timelines, common mistakes, what usually goes wrong in practice, and what courts and regulators care about when disputes arise.
What Does “Change of Car Ownership” Mean Under Nigerian Law?
Change of car ownership refers to the lawful transfer of proprietary and possessory rights in a motor vehicle from one person or entity to another, accompanied by official recognition of the new owner by relevant government authorities.
In Nigerian law, ownership of a vehicle is not determined solely by physical possession. It is evidenced through registration records, licensing details, and supporting documentation maintained by motor registries and road traffic authorities. Until these records are updated, the law continues to recognise the registered owner as the legal owner.
Legal Framework Governing Car Ownership in Nigeria
Road Traffic Laws and Motor Registry Practice
Motor vehicle ownership and registration in Nigeria are regulated primarily at the state level through road traffic laws, motor registry regulations, and administrative guidelines. In Ogun State, the Motor Licensing Authority (MLA) and Motor Registry operate under state traffic regulations.
While there is no single federal statute exclusively governing car ownership transfer, the process is backed by enforceable administrative law and supported by judicial decisions recognising registration records as prima facie evidence of ownership.
Liability Principles Under Nigerian Law
Under Nigerian law, liability often follows ownership. Courts routinely rely on registration details to determine responsibility in cases of road traffic accidents, criminal investigations, insurance claims, and civil suits.
This principle is reinforced by judicial reasoning that the person whose name appears in official records is presumed to have control and responsibility over the vehicle unless proven otherwise.
Constitutional and Property Rights Context
Although vehicle ownership is personal property, it is protected under Section 44 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), which provides that “no movable property or any interest in an immovable property shall be compulsorily taken possession of except in the manner and for the purposes prescribed by law.”
This underscores the importance of lawful transfer procedures rather than informal arrangements.
Who Needs to Change Car Ownership in Ogun State?
Change of car ownership is required whenever a vehicle is sold, gifted, inherited, transferred between companies, reallocated within corporate groups, or transferred upon dissolution of a business.
Business owners transferring fleet vehicles, startups restructuring assets, investors acquiring used vehicles, professionals selling personal cars, and families handling deceased estates all fall within this category. Failure to effect proper transfer exposes all parties to unnecessary legal risk.
Documents Required to Change Car Ownership in Nigeria
In Ogun State, changing car ownership requires a combination of statutory and administrative documents. These typically include proof of purchase or transfer, previous vehicle registration documents, valid means of identification, tax clearance where applicable, and sworn declarations or affidavits confirming transfer.
A lawyer’s practical experience shows that incomplete or inconsistent documentation is one of the most common causes of delay or rejection at motor registries.
Step-by-Step Procedure for Changing Car Ownership in Ogun State
The process begins with the preparation of transfer documents evidencing the transaction between the seller and buyer. Once this is done, both parties or their authorised representatives proceed to the Motor Registry for verification.
Vehicle particulars are inspected, records are cross-checked, and the buyer’s details are captured. Applicable fees are assessed and paid. Upon completion, the vehicle registration is updated to reflect the new owner, and fresh documentation is issued.
This administrative process is what gives the transaction legal effect against third parties.
How Long Does It Take to Change Car Ownership in Ogun State?
In practice, the process can be completed within a few days if documentation is complete and there are no discrepancies. However, delays often occur due to missing records, unpaid fines, or unresolved discrepancies in vehicle data.
From professional experience, engaging knowledgeable agents or legal practitioners significantly reduces processing time and prevents avoidable complications.
Cost of Changing Car Ownership in Nigeria
The cost varies depending on vehicle type, engine capacity, and applicable state fees. Costs may include processing fees, administrative charges, and issuance of updated documents.
Attempting to avoid official fees or using informal routes often results in invalid records, which later cause serious legal problems.
Common Mistakes Nigerians Make When Transferring Car Ownership
One of the most frequent mistakes is relying solely on a handwritten receipt or verbal agreement. Another is failing to follow through with registry updates after purchase.
Many sellers believe that once the car leaves their possession, their responsibility ends. This is false. In law, responsibility continues until records are updated. Courts have repeatedly held previous owners liable where proper transfer was not effected.
A Lawyer’s View: What Usually Goes Wrong in Practice
In real-life cases, vehicles sold years earlier are traced back to former owners during criminal investigations or accident claims. The common defence—“I sold the car”—often fails without documentary proof of registry transfer.
Courts focus on official records, not personal narratives. This is why lawyers consistently advise clients to complete transfer procedures immediately after sale.
Insurance, Accidents, and Criminal Liability Risks
Where ownership is not updated, insurance claims may be denied, or liability may attach to the wrong party. If a vehicle is used in a crime, law enforcement agencies rely first on registry records.
Changing ownership properly is therefore a risk management strategy, not a mere formality.
Business Vehicles and Corporate Transfers
For companies, changing car ownership involves additional considerations such as board resolutions, asset registers, and corporate documentation. Failure to regularise ownership may distort company accounts and expose directors to compliance issues.
Just as intellectual property owned by a company must be properly registered and assigned under laws like the Trademarks Act or Copyright Act, vehicles owned by a business must be properly recorded to preserve asset integrity.
Intellectual Property and Asset Documentation Parallels
Although car ownership is not an intellectual property right, the principle of documentation and registration is identical. Intellectual assets are protected through formal registration with bodies such as the Trademarks, Patents and Designs Registry and enforced under the Copyright Act, Trademarks Act, and Patents and Designs Act.
Similarly, vehicle ownership gains legal strength only through proper registration. In both cases, undocumented ownership is weak ownership.
Disputes, Enforcement, and Court Considerations
Where disputes arise over vehicle ownership, courts examine registry records, payment evidence, transfer documents, and conduct of parties. Courts are less sympathetic to parties who failed to regularise ownership through official channels.
Law enforcement agencies and insurers adopt the same approach. Official records are decisive.
Frequently Asked Questions (FAQs): How to Change Car Ownership in Nigeria
Is payment alone enough to transfer car ownership?
No. Ownership changes only when registry records are updated.
Can I change ownership without the seller present?
Yes, with proper documentation and authorisation.
What happens if I don’t change ownership after selling a car?
You may remain legally liable for accidents, crimes, or liabilities linked to the vehicle.
Is car ownership transfer compulsory by law?
Yes, for legal recognition and protection of both parties.
Can a company own a vehicle in Nigeria?
Yes, provided registration reflects the company as owner.
Conclusion: Proper Car Ownership Transfer Is a Legal Necessity
Understanding how to change car ownership in Nigeria, especially in Ogun State, is essential for protecting yourself from liability, financial loss, and legal exposure. Vehicle ownership is not determined by possession or payment alone but by lawful registration and documentation.
For individuals and businesses alike, proper transfer safeguards assets, clarifies responsibility, and prevents disputes.
Call to Action
If you are buying, selling, or transferring a vehicle in Ogun State and want to ensure the process is legally sound, seek professional legal guidance. A qualified Nigerian lawyer can review documentation, advise on compliance, and protect you from future liability.
Nigerian Lawyers Centre remains a trusted platform for legal education and guidance on property, asset protection, intellectual property, and regulatory compliance in Nigeria. Taking the right legal steps today prevents costly problems tomorrow.
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