Commercial lease in Nigeria: Template, Key Clauses and Local Law (2026)

What is a commercial lease in Nigeria, and what does the law require? A commercial lease in Nigeria is a contract under which a landlord grants a tenant the right to occupy and use business premises for a term in return for rent. Land in Nigeria is governed state by state, and the starting point is the Land Use Act 1978, which vests land in each state in the Governor and gives occupiers a right of occupancy rather than freehold ownership in the English sense. A commercial lease is a grant out of that right of occupancy, shaped by the general law of contract, by state property and tenancy laws, and by the terms the parties negotiate. Three local points matter from the outset. First, the Governor's consent. Section 22 of the Land Use Act makes it unlawful to assign, mortgage, sublease or transfer possession of a statutory right of occupancy without the Governor's consent. A long lease or an assignment that skips consent can be challenged as invalid, so consent is part of perfecting a serious lease, alongside stamping and registration. Second, state tenancy law. In Lagos, for example, residential tenancies are governed by the Lagos State Tenancy Law 2011, while commercial leases are governed mainly by common law and the negotiated terms. Confirm how the tenancy law of the relevant state treats business premises. Third, stamping and registration. A lease should be stamped under the Stamp Duties Act and registered where state law requires, so it is admissible and enforceable. This article is general information, not legal advice. Land rules differ by state, so confirm the position with Nigerian counsel in the relevant state. Last verified October 2026. ## A Nigeria commercial lease template you can copy ```

LEASE AGREEMENT This Lease is made on [DATE] BETWEEN: [LANDLORD NAME], [RC / ID number], of [address] ("Landlord") AND [TENANT NAME], [RC / ID number], of [address] ("Tenant") 1. PREMISES The Landlord leases to the Tenant the premises at [full address and description, including any parking and shared areas] (the "Premises"). 2. PERMITTED USE The Tenant may use the Premises only for [permitted business use] and must comply with planning, zoning and regulatory requirements. 3. TERM The lease runs for [N] years from [commencement date]. [Renewal option: the Tenant may renew for a further [N] years on [N] months written notice on the same terms save as to rent.] 4. RENT AND REVIEW Rent is [amount] naira per [year], payable [annually in advance / as agreed]. Rent is reviewed [every N years to [open market / a stated increase]]. [State whether VAT applies.] 5. SECURITY DEPOSIT / SERVICE CHARGE The Tenant pays a deposit of [amount] naira, refundable at the end of the term less lawful deductions, and a service charge of [amount] for [common area services]. 6. OUTGOINGS AND UTILITIES The Tenant pays for [electricity, water, waste, and its share of common costs]. [State who bears tenement rates and statutory charges.] 7. REPAIR AND MAINTENANCE The Landlord keeps the structure and roof in repair. The Tenant keeps the interior in good order and makes good damage it causes, fair wear and tear excepted. 8. ALTERATIONS The Tenant may not alter the Premises without the Landlord's prior written consent. [State the position on fixtures at the end of term.] 9. CONSENT, STAMPING AND REGISTRATION Where required, the parties will obtain the Governor's consent and the Tenant will stamp and register this Lease. [Allocate the costs.] 10. ASSIGNMENT AND SUBLETTING The Tenant may not assign or sublet without the Landlord's prior written consent and, where required, the Governor's consent. 11. FORFEITURE AND REMEDIES If the Tenant breaches and fails to remedy within [N] days of written notice, the Landlord may re-enter and determine the lease through due legal process and recover arrears and damages. 12. GOVERNING LAW This Lease is governed by the laws of [State] and the Federal Republic of Nigeria. Signed: Landlord: __________ Tenant: __________ Name / capacity / date Name / capacity / date

- **Term, rent and review (clauses 3 and 4).** Commercial rent in Nigeria is often paid annually in advance, sometimes several years up front. Set the review mechanism clearly, whether open market or a fixed increase, and say whether VAT applies to the rent.
- **Consent, stamping and registration (clause 9).** This is the Nigerian backbone. For a lease long enough to need it, the Governor's consent under section 22 of the Land Use Act, followed by stamping under the Stamp Duties Act and registration under state law, is what makes the lease secure against challenge. Decide who pays and who drives the process.
- **Assignment and subletting (clause 10).** A tenant who may restructure or move should secure consent that is reasonable to obtain. Remember that an assignment or sublease may itself need the Governor's consent.
- **Outgoings and service charge (clauses 5 and 6).** Spell out exactly what the tenant pays beyond rent, including tenement rates and any service charge, to avoid disputes.
- **Forfeiture (clause 11).** Set a clear default and cure mechanism. Recovering possession generally needs due legal process, and self-help eviction is unlawful. ## Red flags to watch for - **Skipping the Governor's consent.** A long lease, assignment or sublease that needs consent and does not get it can be challenged as invalid. Build consent into the timeline for any serious lease.
- **No stamping or registration.** An unstamped or unregistered lease can face problems with admissibility and enforceability. Stamp and register where required.
- **Vague rent review.** A review "to be agreed" with no fallback can fail. Give a mechanism, whether open market valuation or a set increase.
- **Unclear outgoings.** "Tenant pays running costs" invites argument. List the categories and any service charge.
- **Self-help eviction.** Forcing a tenant out by locking up or cutting services is unlawful. Follow the notice and court process. ## A note on jurisdiction and current law A Nigerian commercial lease sits on the Land Use Act 1978, state property and tenancy law, the general law of contract, and the Stamp Duties Act. The detail, including which tenancy law covers business premises and the current consent and stamping costs, differs by state and changes over time. Because the rules turn on the state and the premises, confirm the position with Nigerian counsel in the relevant state before you commit. Adira is built around Indian corporate law first and is architected to expand. Deeper, verified Nigerian property and lease coverage is on the roadmap rather than live today, so use this template as a sound starting point and have local counsel handle consent, stamping and registration. ## Where a contract workspace helps A commercial lease carries a chain of steps and dates: obtaining consent, stamping, registration, then the rent review, the renewal notice window and the end of term. Miss the renewal notice and a business can lose premises it depends on. Miss consent and the lease itself is at risk. The work that outlasts signing is tracking those steps and dates and keeping the lease, its schedules and any variations together. Keeping the drafting, the key dates and the version history in one AI workspace tuned to how your company leases means the review, renewal and consent steps stay visible and the terms stay consistent, with edits made in plain language. [Adira](https://adiralaw.com) is one workspace built to hold a lease and its deadlines together. The template above is enough to prepare a fair Nigerian commercial lease on its own. *This article is general information, not legal advice. Land, consent, stamping and tenancy rules differ by state and change, so have qualified Nigerian counsel review anything important. Last verified October 2026.*