How to Safely Transfer Funds for Property Purchases in Lagos from Abroad
Introduction
When you purchase property in Lagos from outside Nigeria, the money trail is evidence. Courts, banks, tax authorities—and most importantly your future buyer or lender—will judge the integrity of your acquisition not only by the documents, but by how the funds moved. The safest transactions hard-wire escrow, bank verification, and documentary triggers into the contract so that not a Naira leaves custody until title risks are defused.
This counsel-grade guide gives Nigerians in the diaspora and foreign investors a step-by-step playbook: the correct channels to remit funds, how to structure law-firm/bank escrow, what to put in your sale contract about payment milestones, how to manage FX conversion and receipts, and the precise red flags that should make you pause. Use this to move money once, safely—and sleep.
Doctrine: Never pay for land—pay through escrow, against documentary deliverables.
Call to Action: If you want us to design your escrow schedule, review your FX path, and run your acquisition to bank standard (Stamp Duties → Governor’s Consent → Registration), contact Chaman Law Firm (details at the end). We structure files that lenders and courts respect.
Part 1 — The Three Golden Rules of Safe Property Funding
Escrow or don’t pay.
Funds should sit in law-firm or bank escrow—not a seller’s personal account—released only when Conditions Precedent (CPs) and documentary deliverables are met.Document every hop.
Keep SWIFT messages, bank TT/MT103, deposit slips, exchange memos, escrow receipts, and a reconciliation sheet tying each payment to a contract milestone.Sequence money with title.
Payments are not calendar-based; they are evidence-based. The sequence is Search/Charting → Execute Deed → Stamp → Consent → Register. Your releases mirror that order.
Part 2 — The Safe Channels to Send Money into Nigeria
2.1 From your foreign bank to Nigeria (cleanest paths)
International Wire (SWIFT) to a Nigerian commercial bank, in USD/GBP/EUR (or other supported currency).
International Wire to a Nigerian law-firm client/escrow account (when the law firm is your escrow agent).
Transfer to your Nigerian domiciliary account, then on-pay from that account into escrow.
Practical counsel: Avoid non-bank conduits for principal. Remittance apps may be fine for minor fees, never for purchase price.
2.2 Domiciliary vs. Naira accounts
A domiciliary account (USD/GBP/EUR) lets you receive foreign currency and control FX conversion timing.
If you wire straight into escrow, ensure the escrow can hold USD/GBP/EUR and convert under written instruction with FX memos issued to you.
2.3 Proofs you must keep (every time)
MT103/SWIFT copy for each international wire.
Nigerian bank credit advice showing your name, amount, currency, date.
FX conversion memo (if converted), showing rate, date, and resulting Naira.
Escrow receipt referencing the purchase matter name and milestone.
Part 3 — Build a Proper Escrow (The Heart of Safe Funding)
3.1 Who should hold escrow?
Bank escrow (dedicated escrow department) or
Reputable Nigerian law firm with a client/escrow account and documented escrow policy.
3.2 What your escrow agreement must say
Parties: Buyer, Seller, Escrow Agent (bank/law firm).
Purpose & property description: Tie to survey plan (attach as Schedule).
Milestones & release triggers (documentary, not verbal).
Permitted accounts & currencies; FX conversion mechanics and who bears fees.
KYC/AML: documents required and right to freeze on suspicion.
Interest & bank charges: who gets what.
Dispute/long-stop clause: if a milestone isn’t met by date X, either refund to buyer, or hold pending written joint instruction or court/ADR order.
Audit trail: escrow must issue receipt and completion statements.
3.3 Sample escrow release schedule (adapt to your deal)
10% (or less) – Deposit → Release when OSG charting report is clean (no acquisition/ROW/pipelines/coastal/drainage/overlap) and Registry search pack/CTCs are delivered.
30% – Contract execution → Release when Deed of Assignment (or Lease/Sublease) is properly executed with survey annexed; names/descriptions harmonized.
40% – Consent → Release when Governor’s Consent is endorsed on your deed (copy to buyer).
20% – Registration & discharge → Release when registration particulars issue and any charge/mortgage is discharged and reflected on the register; buyer receives CTCs.
(Percentages are illustrative. Many investors also keep a retention until estate onboarding/no-arrears letters and fiscal papers are delivered.)
Part 4 — The Sale Contract Must Protect Your Money
4.1 Embed Conditions Precedent (CPs)
OSG charting clean (using soft coordinates);
CTCs of root and chain;
Discharge of any registered charge (or retention until register reflects);
Delivery of originals at completion.
4.2 Payment clause (evidence-based)
“All sums shall be paid into Escrow and may be released only upon delivery to Escrow Agent of the documentary evidence specified for each milestone in Schedule 2 (the Release Conditions). No payment shall be made to the Seller outside Escrow.”
4.3 Long-Stop & refund
“If any Release Condition is not satisfied by the Long-Stop Date, the Buyer may instruct the Escrow Agent to refund all un-released funds within five (5) business days, without prejudice to accrued rights.”
Part 5 — Foreign Exchange (FX) Considerations for Diaspora Buyers
5.1 Timing and rate risk
Wire in hard currency and convert only when a milestone is imminent.
Instruct escrow in writing to convert exact amounts; keep FX memos.
5.2 Bank charges and intermediary banks
International wires may pass through intermediary banks—expect lifting fees.
Ask your sending bank for all-in charges and typical time to credit.
5.3 Evidence for your future sale or finance
Keep a funds provenance bundle: SWIFT/TT, credit advices, FX memos, escrow receipts, and a reconciliation tying them to milestones. Future buyers, auditors, and lenders will ask.
Part 6 — Taxes, Deductions & Government Fees (Cash Flow Planning)
Stamp Duties (ad valorem on consideration): pay promptly (best practice: within 30 days of execution) to avoid penalties; escrow can disburse directly to the State and keep receipts.
Consent processing: escrow pays assessments and filing fees; retain official receipts.
Registration: similar approach; get acknowledgements and particulars.
Seller-side taxes (e.g., Capital Gains Tax) are usually seller’s responsibility; do not let your escrow pay seller taxes unless explicitly provided and netted in the contract.
Part 7 — Using a Power of Attorney (PoA) Safely for Payments
Draft the PoA narrowly: it may authorize your attorney to sign documents and receive notices, but not to re-direct purchase funds.
All fund releases must occur via escrow against documentary triggers, not via an attorney’s account.
If you must reimburse minor expenses, pay to the law-firm client account with invoice + receipt.
Part 8 — Bankable Evidence Pack (What You Should Receive at Each Stage)
After Search & Charting deposit release (Stage 1):
Lands Registry search receipts + CTCs of root/chain;
OSG charting report stating clean;
Escrow receipt stating “Stage 1 Release”.
After Execution & Stamping (Stage 2):
Executed Deed of Assignment (scan), execution page;
Stamping endorsement and duty receipt;
Escrow statement noting Stage-2 disbursement.
After Consent (Stage 3):
Governor’s Consent endorsement page (scan/certified);
Escrow statement noting Stage-3 release.
After Registration & Discharge (Stage 4):
Registration particulars (folio/e-folio);
CTCs of your deed as registered;
Deed of Release/Discharge filed and reflected on the register (if applicable);
Final escrow completion statement and reconciliation.
Part 9 — Common Funding Scenarios & Counsel Strategy
9.1 Buying off-plan from a reputable Lagos developer
Escrow should sit with a bank or independent law firm, not the developer.
Release schedule may be tied to construction milestones and title deliverables (mother title checks, deed of sublease template, service-charge constitution).
Keep a retention until you receive keys + defect list + estate onboarding.
9.2 Secondary market (assignment from an individual)
Expect legacy issues: missing historic consent, old charges, or survey anomalies.
Make cures Conditions Precedent; your escrow only releases when documentary cures are produced.
9.3 Corporate seller with existing bank charge
Insist on bank’s pay-off letter; escrow pays the bank to procure Deed of Release; keep retention until the register reflects discharge.
9.4 Diaspora buyer using a Nigeria SPV
Open corporate domiciliary & Naira accounts; wire to the SPV, then to escrow.
Maintain board resolution authorizing the transaction; keep KYC pack ready.
Part 10 — Red Flags (Pause or Walk)
Seller refuses escrow or demands direct payment to a personal account.
“Consent is in process—pay now” without CPs, long-stop, or retention.
Survey has no soft coordinates; OSG charting is skipped or “cannot be done.”
Name/description mismatches across survey, forms, deed, and consent pack—yet seller pushes for payment.
Broker pushes non-bank remittance for principal.
A registered charge shows on search, with promises to “sort it out later.”
Part 11 — FAQs (Concise Counsel)
Q: Can I send money straight to the seller after we sign?
A: No. Pay into escrow; release only against documentary conditions.
Q: Can registration cure a missing Governor’s Consent?
A: No. The enforceable sequence is Stamp → Consent → Register. Your release milestones should mirror this.
Q: Do I need a domiciliary account?
A: Helpful but not mandatory. You can wire directly to escrow in hard currency; escrow converts under your written instruction with FX memos.
Q: What receipts must I keep?
A: SWIFT/MT103, bank credit advices, FX memos, escrow receipts/statements, stamping receipts, consent endorsement, registration particulars, and CTCs.
Q: Who pays government fees?
A: Typically buyer for Stamp/Consent/Registration; seller for discharge of its charge and seller taxes—put this in the contract.
Part 12 — One-Page Diaspora Funding Checklist (Print & Carry)
Escrow agent appointed (bank or reputable law firm); escrow agreement signed
Sale contract with CPs, escrow clause, long-stop, retention, and documentary milestones
Wire path set (foreign bank → Nigerian bank/law-firm escrow); test a small transfer first
SWIFT/TT and credit advice saved for each transfer
OSG charting clean; CTCs of root/chain on file before first release
Executed deed and stamping before second release
Governor’s Consent before third release
Registration particulars & CTCs (+ discharge reflected, if any) before final release
Reconciliation sheet tying every payment to a milestone
Completion binder: digital vault + inventory of originals
Conclusion
In Lagos property, money moves last—and only when the paper is perfect. The safest diaspora transactions route funds through escrow, release them against documentary triggers, and leave a bank-grade audit trail from SWIFT to registration particulars. Wire cleanly, contract intelligently, and you will convert cash into defensible ownership—assets you can finance, refinance, or sell without excuses.
Call to Action
Planning to fund a Lagos property from abroad and want zero-drama execution?
Engage Chaman Law Firm. We will design your escrow schedule, verify title, coordinate OSG charting, manage Stamp Duties, obtain Governor’s Consent, and perfect registration—delivering a finance-grade completion pack with a full audit trail.