Believe it or not, a lot of real estate companies selling land in Nigeria acquired their lands from families without paying for the land. Yes, they did not pay for the land! Instead, they paid for something that the family wanted and in return, the family gave them land. This method of land acquisition is generally called Sponsorship and in most times, it is far cheaper compared to paying for the land itself. There are 3 basic types;
In this case, you don’t pay for the land. Instead, you pay for the registration of the survey plan of the land. Families that own vast amounts of lands often times don’t have the money to do a registered survey of the land because it cost millions of naira. So, they look for someone who will “sponsor” the survey and registration. In exchange, they give the sponsor at least 1 plot per acre of the land. This means that if the land is 200 acres, the sponsor of the survey will get 200 plots.
In this case, the family already has a registered survey of the land but they want to obtain a title from the government in order to properly secure their land and significantly increase its value. A sponsor helps them obtain a title such as excision or certificate of occupancy and gets land in return. The sponsor can negotiate for 1 and half plot per acre or 2 plots per acre in this case because obtaining title is for a large parcel of land is quite expensive.
This is very similar to the survey sponsorship but the sponsor pays for the clearing of the land instead of the survey. In most cases, the remuneration is the same with survey sponsorship (1 plot per acre).
Regardless of the option you choose, make sure you do this kind of transaction with a family that is trustworthy and easy to deal with. In addition, ensure you do a boundary survey to check the status of the ENTIRE parcel of land first so you don’t end up exchanging your hard-earned money for a government committed land.