Before renting or buying a warehouse in Nigeria, checking the building itself is only part of the process. You also need to establish that the person offering the property has the legal right to lease or sell it.
A proper warehouse due diligence process should cover the property title, Certificate of Occupancy, Governor’s Consent where applicable, survey documents, building approvals, outstanding charges and possible disputes.
This is particularly important for businesses planning to invest heavily in a warehouse, sign a long-term lease or purchase a property for logistics and distribution.
1. Verify the Property Title
Start by identifying the property’s root of title.
Depending on the property, documents may include:
- Certificate of Occupancy (C of O)
- Deed of Assignment
- Governor’s Consent
- Registered conveyance or other historical title documents
- Excision and Gazette documents where applicable
- Allocation documents
- Survey plan
Do not assume that having a photocopy of a title document proves that the property is properly documented.
Your property lawyer should conduct an official search at the relevant State Land Registry and compare the information on the documents with the government’s records.
2. Check the Certificate of Occupancy
A Certificate of Occupancy is one of the key documents you may encounter when checking a warehouse property.
Check that the details on the C of O correspond with the actual property, including:
- Name of the holder
- Property description
- Plot or parcel information
- Size of the property
- Location
- Term of the interest
- Purpose or permitted use
- File and registration details
A mismatch between the document and the physical property should be investigated before you proceed.
The Land Use Act provides the legal framework for rights of occupancy over land in Nigeria, so title verification should not be treated as a simple paperwork exercise.
3. Check Governor’s Consent
Governor’s Consent is particularly important when a property that already has a title is subsequently transferred.
For example, if a warehouse owner acquired a property under a C of O and later sells or assigns that interest to another person, the transfer may require the Governor’s Consent applicable in that state.
The consent process is part of the title-perfection process for subsequent transfers. (ONYX Data & Intelligence)
Ask to see:
- The Deed of Assignment
- Evidence of Governor’s Consent where applicable
- The underlying title
- Registration details
- Evidence that the transaction was properly recorded
Do not simply accept a statement that “Governor’s Consent is being processed.” Have your lawyer establish exactly what stage the title is at and what remains outstanding.
4. Conduct an Official Land Registry Search
An official search can help reveal information that may not be obvious from documents supplied by the landlord or seller.
Your lawyer should investigate whether there are:
- Existing mortgages
- Registered charges
- Previous assignments
- Caveats
- Government acquisition issues
- Litigation
- Competing interests
- Restrictions on the property
The purpose is to establish the legal position of the property before committing substantial money.
5. Confirm the Survey Plan
The survey plan should correspond with the property you are actually inspecting.
Check:
- Land size
- Coordinates
- Plot number
- Survey plan number
- Boundaries
- Location
- Registered survey information
A licensed surveyor can help confirm whether the warehouse occupies the land described in the documents.
This is especially important where the warehouse sits on a large industrial plot or where multiple adjoining properties share boundaries.
6. Confirm the Warehouse’s Approved Use
A properly documented property may still have restrictions affecting how you intend to use it.
Find out whether the property is suitable for your proposed operation, such as:
- General storage
- Distribution
- Manufacturing
- Cold storage
- Food processing
- Commercial logistics
- Heavy vehicle operations
Ask for relevant planning and building approvals before signing a long-term agreement.
For a warehouse business, planning issues can become expensive if discovered after you have already moved inventory and equipment into the facility.
7. Check Building Approvals and Physical Condition
Legal title is not the only thing that matters.
Inspect the building for:
- Structural condition
- Roof condition
- Floor strength
- Drainage
- Loading areas
- Truck access
- Fire-safety equipment
- Electrical installation
- Water supply
- Security
- Ventilation
- Ceiling height
- Office facilities
If the warehouse will store heavy goods, machinery or large quantities of inventory, have the appropriate professional inspect the structure before committing to the property.
8. Check Outstanding Land and Property Charges
Ask whether there are outstanding obligations connected with the property.
Depending on the location and transaction, these may include:
- Land use charges
- Ground rent
- Service charges
- Property-related taxes
- Utility bills
- Estate charges
- Maintenance obligations
Where applicable, request evidence that relevant payments are up to date.
For Governor’s Consent applications, documentation and evidence relating to items such as tax clearance, land charges and other applicable payments can form part of the process. (World Bank)
9. Investigate the Landlord or Seller
Do not investigate only the property. Investigate the person offering it.
Confirm:
- Their full legal name
- Identification
- Ownership interest
- Authority to sell or lease
- Company registration where applicable
- Power of Attorney where someone is acting for another person
- Authority of trustees, executors or representatives where relevant
If the property belongs to a company, make sure the person signing the agreement has the authority to represent that company.
10. Be Careful With Long-Term Warehouse Leases
For a warehouse lease, your lawyer should review the agreement before payment.
The lease should clearly state:
- Exact property being leased
- Lease duration
- Rent
- Renewal terms
- Rent review provisions
- Permitted use
- Repairs and maintenance
- Insurance responsibilities
- Security arrangements
- Termination conditions
- Subletting restrictions
- Access rights
- Loading and parking arrangements
For a logistics business, also clarify whether trucks, delivery vehicles and loading operations are permitted at the property.
11. Don’t Ignore Access and Logistics
A warehouse can have clean documentation and still be a poor operational choice.
Visit the property at different times and consider:
- Road condition
- Traffic
- Truck access
- Turning space
- Loading and unloading
- Flooding
- Security
- Distance from customers
- Distance from ports or major highways
- Restrictions on heavy vehicles
A slightly more expensive warehouse may have a very different operating cost if trucks can enter and leave efficiently.
Tribal and Cultural Considerations
Nigeria’s land and property markets involve people from different ethnic, cultural and community backgrounds.
Do not rely on assumptions about a landlord, seller or local community based on ethnicity or tribe. Instead, verify ownership, documentation, community arrangements and contractual rights through proper legal and official channels.
Where a property has community-related considerations, your lawyer should establish the actual legal and practical position before you commit funds.
Warehouse Due Diligence Checklist
Before paying a major deposit or purchase price, confirm that you have checked:
- Property title
- C of O or applicable root of title
- Governor’s Consent where applicable
- Deed of Assignment
- Survey plan
- Official Land Registry search
- Encumbrances and mortgages
- Litigation or disputes
- Planning and building approvals
- Permitted use
- Land and property charges
- Seller or landlord identity
- Authority to sell or lease
- Physical condition
- Drainage and flood risk
- Truck access
- Security
- Lease or purchase agreement
Use a Property Lawyer Before Paying
Warehouse transactions can involve substantial amounts of money, particularly for large industrial properties.
A property lawyer should handle the legal due diligence, conduct the appropriate searches and review the transaction documents before you make an irreversible payment.
Do not rely solely on documents provided by an agent or landlord. The purpose of due diligence is to independently verify what you are being told.
Warehouse Due Diligence and Travo.ng
For businesses setting up warehouses for distribution, delivery, relocation or cargo operations, property due diligence should be considered alongside the logistics requirements of the business.
Travo.ng can support related transportation, delivery, cargo and logistics coordination once your warehouse operation is ready.
A warehouse is a major business decision, so confirm the title, verify the property, understand the lease or purchase terms and calculate the logistics costs before committing your money.
