Deed of Lease (Nigeria)
DEED OF LEASE
Land Use Act 1978 | Conveyancing Act 1881 | Stamp Duties Act (Cap S8, LFN 2004)
THIS DEED OF LEASE is made this [Deed Date]
BETWEEN:
(1) [Lessor Name] of [Lessor Address] (hereinafter referred to as the "Lessor"); AND
(2) [Lessee Name] of [Lessee Address] (hereinafter referred to as the "Lessee").
NOW THIS DEED WITNESSETH as follows:
1. DEMISE
1.1 In consideration of the rent hereinafter reserved and the covenants and conditions herein contained, the Lessor hereby demises and leases unto the Lessee ALL THAT [Property Description] ("the Premises") TO HOLD the same unto the Lessee for a term of [Lease Term], commencing on [Lease Commencement Date] and expiring on [Lease Expiry Date] ("the Term"), subject to the terms and conditions herein.
2. RENT
2.1 The Lessee shall pay to the Lessor a rent of [Annual Rent] (exclusive of VAT), payable [Rent Payment Schedule].
2.2 The Lessee shall pay Value Added Tax (VAT) at 7.5% on the rent in accordance with the Value Added Tax Act (Cap V1, LFN 2004) as amended.
2.3 The rent shall be subject to review [Rent Review Period].
2.4 The Lessee shall pay a security deposit of [Security Deposit] upon execution of this Deed, to be held by the Lessor and returned (without interest) within 30 days of expiry of the Term, subject to deduction for any outstanding rent or damages.
3. LESSEE'S COVENANTS
3.1 The Lessee covenants with the Lessor to: (a) pay the rent at the times and in the manner prescribed; (b) use the Premises for [Permitted Use] only; (c) keep the Premises in good repair and condition; (d) not sublease, assign, or part with possession of the Premises without the Lessor's prior written consent; (e) comply with all applicable laws and regulations; (f) not carry out any structural alterations without prior written consent; and (g) vacate and yield up the Premises at the expiry of the Term in good repair.
4. LESSOR'S COVENANTS
4.1 The Lessor covenants with the Lessee to: (a) grant the Lessee quiet enjoyment of the Premises during the Term; (b) maintain the structural and external elements of the building in good repair; and (c) comply with all statutory requirements in relation to the Premises.
5. LAND USE ACT 1978
5.1 This Lease is subject to the Land Use Act 1978 and is conditional upon the receipt of Governor's Consent, reference [Governor's Consent Reference], under Section 22 of that Act where such consent is required.
6. GOVERNING LAW
6.1 This Deed is governed by the laws of Nigeria and the laws of [State] State. The courts of [State] State shall have jurisdiction over disputes.
Lessor
________________
Signature
Lessee
________________
Signature
What Is a Deed of Lease (Nigeria)?
A Deed of Lease in Nigeria records the terms on which a tenant occupies premises, including payment, repairs and notice requirements. It records the rental price, deposit, term, maintenance duties, and notice periods between landlord and tenant.
The formal requirements for a valid Deed of Lease in Nigeria vary by state. In southern states applying the Conveyancing Act 1881, a lease for a term exceeding three years must be by deed — that is, a formal document signed, sealed, and delivered. In Lagos State, the Tenancy Law 2011 (Lagos State Law No. 5 of 2011) governs residential tenancies and prescribes minimum notice periods, security deposit limits (six months' rent for residential tenancies), and the landlord's right of re-entry upon forfeiture. Commercial leases are generally governed by the terms of the deed and the Conveyancing Act 1881.
Governor's consent under Section 22 of the Land Use Act 1978 is required for leases exceeding a term of three years. The Supreme Court of Nigeria held in Suberu v Sunmonu [1957] WRNLR 97 that a lease of land by the holder of a right of occupancy for a period exceeding three years without governor's consent is unlawful. Stamp duty under the Stamp Duties Act (Cap S8, LFN 2004) applies to lease agreements at rates based on the annual rent and the term of the lease. The Federal Inland Revenue Service (FIRS) assesses stamp duty for leases involving companies; state internal revenue services assess duty for individual parties.
Long-term commercial leases in Nigerian cities such as Lagos, Abuja, Port Harcourt, and Kano typically include rent review clauses — often linked to the Consumer Price Index or a fixed percentage uplift — repairing covenants allocating maintenance obligations between landlord and tenant, permitted use clauses restricting the tenant to specified commercial activities, and break clauses allowing early termination upon notice.
The legal framework governing the Deed of Lease (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Deed of Lease (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Land Use Act 1978 (Cap. L5) sets the foundational requirements.
When Do You Need a Deed of Lease (Nigeria)?
A Deed of Lease is needed in Nigeria whenever land or property is to be let for a defined period exceeding a simple month-to-month arrangement, or when the parties require a formal document evidencing the terms of their tenancy.
A Deed of Lease is required when a commercial landlord grants a retail tenant occupation of shop or office premises for a term of two to five years — the typical commercial lease term in Nigerian cities. The deed protects both parties by defining rent, permitted use, repair obligations, and re-entry rights.
A Deed of Lease is needed when an individual or company takes a long lease of a residential property in Lagos or Abuja for a term exceeding 12 months, where the Tenancy Law 2011 (Lagos) or the FCT Rent Relief Act requires written documentation of the tenancy terms and security deposit arrangements.
A Deed of Lease is required for industrial and warehouse properties where the tenant's occupation may involve alterations to the building, installation of specialist equipment, or activities subject to environmental or regulatory requirements — the deed precisely allocates compliance obligations between the parties.
A Deed of Lease is needed when a multinational or large Nigerian company takes a long-term lease of substantial office space in a Grade A commercial building, typically for five to ten years with rent review provisions, requiring a thorough deed drafted to international commercial standards.
A Deed of Lease is used when agricultural land is let to a farmer or agribusiness for a term of years, covering payment of farm rent, crop restrictions, permitted farming activities, and compliance with the Agricultural Land Holdings Act applicable in the relevant state.
Parties in Nigeria should prepare a Deed of Lease (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Deed of Lease (Nigeria)
A thorough Deed of Lease for Nigeria must contain the following essential elements.
Parties: Full legal names, addresses, and descriptions of the lessor (landlord) and lessee (tenant). For corporate parties, include CAMA 2020 RC numbers and CAC-registered addresses.
Demised Premises: A precise description of the property being leased, including the address, plot number, survey plan reference (SURCON-registered), local government area, and state. For part of a building, describe the specific floor, unit, or area.
Lease Term: The commencement date and expiry date of the lease, expressed as a fixed term (e.g., 'for a term of five (5) years commencing on [date] and expiring on [date]').
Rent: The annual or monthly rent in NGN, payment frequency, payment method, and the tenant's obligation to pay value added tax (VAT) on commercial rent at the rate of 7.5% under the Value Added Tax Act (Cap V1, LFN 2004) as amended by the Finance Act 2020.
Rent Review: For leases of three or more years, a rent review mechanism specifying the review dates, the basis of review (open market rent, fixed uplift, or index-linked), and the procedure for determining the reviewed rent.
Security Deposit: The amount and terms of the security deposit, and the conditions for its return. Under the Lagos State Tenancy Law 2011, security deposits for residential tenancies are capped.
Repairing Covenants: Allocation of internal and external repair obligations between landlord and tenant.
Governor's Consent: Reference to the governor's consent required under Section 22 of the Land Use Act 1978 for leases exceeding three years.
Forfeiture and Re-Entry: The landlord's right to forfeit the lease upon breach by the tenant, subject to the tenant's right of relief against forfeiture.
Additional compliance elements for a Deed of Lease (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Deed of Lease (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/real-estate/leases/deed-of-lease-nigeria
"Deed of Lease (Nigeria) (Nigeria)." Forms Legal, 2026, https://forms-legal.com/nigeria/real-estate/leases/deed-of-lease-nigeria.
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author = {{Forms Legal}},
title = {Deed of Lease (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/real-estate/leases/deed-of-lease-nigeria}},
note = {Free legal document template. Based on Land Use Act 1978 (Cap. L5)}
}Frequently Asked Questions
Under the Land Use Act 1978, Section 22, the holder of a statutory right of occupancy requires governor's consent before creating a sublease or assigning the right of occupancy. The courts have interpreted this to mean that any lease granted by a holder of a right of occupancy for a term exceeding three years requires governor's consent. The Supreme Court in Suberu v Sunmonu [1957] confirmed this threshold. In practice, short-term residential leases of one to two years are commonly executed without formal governor's consent applications, and many state governments have adopted administrative procedures that enable consent for standard residential tenancies. However, for commercial leases of significant term and value — particularly those involving large corporations or major properties in Lagos, Abuja, or Port Harcourt — obtaining governor's consent is strongly advised to protect the lessee's interest and to ensure the lease can be admitted in evidence in enforcement proceedings.
Stamp duty on a Deed of Lease in Nigeria is assessed under the Stamp Duties Act (Cap S8, LFN 2004). The applicable duty for lease agreements depends on the annual rent and the term: for leases not exceeding 7 years, duty is assessed at 0.78% of the total rent payable over the term; for leases exceeding 7 years but not exceeding 21 years, the rate is 3% of the average annual rent; and for leases exceeding 21 years, the rate is 6% of the average annual rent. These rates were revised by the Finance Act 2020 and subsequent FIRS circulars. For transactions between companies, FIRS assesses and collects stamp duty. For transactions between individuals, the relevant state Internal Revenue Service collects it — for example, the Lagos State Internal Revenue Service (LIRS) for Lagos leases. A lease that has not been stamped is inadmissible in evidence and cannot be registered at the State Land Registry. Stamp duty on a commercial lease is typically borne by the tenant in Nigerian practice.
Under a Deed of Lease governed by Nigerian law, a landlord has several remedies upon breach by the tenant. For non-payment of rent, the landlord may: (1) distrain (levy distress) on the tenant's goods for arrears under the common law remedy preserved by Nigerian courts, though this remedy is subject to restrictions under state tenancy laws; (2) forfeit the lease by re-entering the premises, subject to any right of relief against forfeiture available to the tenant under the Conveyancing Act 1881 or the court's equitable jurisdiction; or (3) sue for arrears of rent as a debt. For breach of other covenants — such as breach of repair obligations or unlawful subletting — the landlord may serve a notice to remedy the breach (a Section 146 notice under the Conveyancing Act 1881 equivalent), and if the breach continues, may forfeit the lease. Under the Lagos State Tenancy Law 2011, residential landlords must obtain a court order before recovering possession — self-help eviction without a court order is illegal. Commercial landlords have somewhat more flexibility but should still follow due process to avoid liability for trespass.
A Deed of Lease should be registered at the State Land Registry in the state where the property is located to protect the lessee's interest against subsequent purchasers and encumbrancers. In Lagos State, the Lagos State Land Registration Law 2015 governs registration of leases; leases exceeding three years must be registered. The registration process involves: stamping the deed at the Lagos State Internal Revenue Service (LIRS); obtaining governor's consent from the Lagos State Lands Bureau for leases exceeding three years; and presenting the stamped deed at the Lagos Land Registry, Alausa, with the prescribed forms and registration fees. Upon registration, the lessee receives a registered copy of the deed evidencing the leasehold interest. In the FCT (Abuja), leases are registered with the Abuja Geographic Information Systems (AGIS) under the FCT Land Administration Act 2015. An unregistered lease may still be enforceable between the parties as an equitable lease, but has reduced protection against third-party claims.
A Deed of Lease (Nigeria) does not legally require a lawyer in Nigeria, though legal advice is recommended. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) governs corporate documents through the Corporate Affairs Commission (CAC). The National Industrial Court of Nigeria (NICN) adjudicates employment disputes. The Nigeria Data Protection Regulation (NDPR) and NDPC impose data protection obligations. The Federal Inland Revenue Service (FIRS) requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Nigerian lawyer for significant transactions. Under Nigeria law, Land Use Act 1978 (Cap. L5), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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