How to Transfer Funds Legally for Property Investment in Nigeria
- Zikan Realtors
- Nov 5
- 3 min read
How to Transfer Funds Legally for Property Investment in Nigeria
For Nigerians in the diaspora, transferring funds to buy property back home can be surprisingly complex. Between anti-money-laundering laws, bank scrutiny, and unpredictable exchange rates, even genuine investors risk delays or blocked payments if not handled correctly.
This guide explains how to safely and legally move funds for real estate investments in Nigeria — without triggering compliance issues or losing money to unofficial channels.
1. Understand CBN and International Regulations
All cross-border property payments fall under the Central Bank of Nigeria (CBN) Foreign Exchange Guidelines.These rules ensure that every international transaction is:
Traceable through the formal banking system.
Supported by verifiable documentation.
Free from money laundering or fraud risks.
Never use unlicensed agents or black-market exchangers (“Abokis”) to send property funds — it may void your legal ownership and raise red flags with your bank.
2. Use Your Nigerian Domiciliary Account
The safest route for large property payments is via a domiciliary (DOM) account in Nigeria.This allows you to:
Receive USD, GBP, or EUR directly.
Convert to naira at official rates.
Pay developers or landowners legally.
If you don’t have a DOM account, your bank can help you open one remotely — some even allow virtual onboarding for diaspora clients.
3. Transfer via Licensed International Channels
Avoid money transfer apps that lack Nigerian banking integration. Instead, use:
SWIFT transfers through your home-country bank to your Nigerian DOM account.
CBN-approved fintech platforms such as:
Remitly
WorldRemit
Sendwave
Flutterwave Send
Afriex
These platforms are compliant with both CBN and FATF (Financial Action Task Force) regulations, ensuring your funds are traceable and accepted by Nigerian institutions.
4. Document the Purpose of the Transfer
When sending funds, always include a clear narration such as:
“Payment for real estate purchase at Zikan Prop Solutions, Lekki Phase 1.”
Attach supporting documents:
Property offer letter or invoice.
Your purchase agreement.
Acknowledgment of payment (for recordkeeping).
These documents create a paper trail that protects you in case of disputes or audits.
5. Request a Foreign Inward Remittance (FIR) Receipt
Once funds land in your Nigerian bank, request a Foreign Inward Remittance (FIR) receipt.This official document proves the money originated abroad — crucial for:
Capital repatriation (if you later sell the property).
Tax clearance and compliance.
Showing clean investment history.
Zikan Prop Solutions ensures every diaspora client receives a full FIR record for each transaction.
6. Avoid Cryptocurrency Transfers
Though crypto might seem convenient, it’s not approved by CBN for real estate payments.Transactions made this way are legally untraceable and can invalidate your property documentation. Always go through verified financial institutions.
7. Use Escrow or Trustee Accounts for Added Safety
If you’re unsure about direct payment to a developer, use an escrow account managed by a licensed trustee or legal firm.Funds are released only after:
Property verification is completed.
Legal documents are signed.
Title transfer is initiated.
Zikan Prop Solutions offers escrow-backed payment structures for diaspora investors to ensure full transaction security.
8. Manage Exchange Rate Volatility
Exchange rate fluctuations can eat into your investment value.To protect your funds:
Use forward contracts or hedged transfers if your bank offers them.
Time transfers to periods of currency stability.
Negotiate with your developer for flexible payment in foreign currency (if allowed).
9. Retain Proof of All Transactions
Keep digital and hard copies of:
SWIFT transfer receipts.
FIR certificates.
Bank emails confirming fund clearance.
Real estate invoices and receipts.
These documents prove that your investment is compliant and traceable — essential for resale, legal defense, or inheritance.
10. Consult a Real Estate Finance Expert
Before sending large sums, always consult:
A Nigerian real estate consultant familiar with CBN compliance.
A cross-border finance advisor in your country of residence.They’ll guide you on optimal transfer routes, tax exposure, and documentation to ensure a seamless purchase process.
Final Thought
Sending money for property investment in Nigeria shouldn’t feel risky. When you use licensed transfer channels, maintain transaction transparency, and partner with verified developers, you build not just real estate — but a secure, legal legacy.
Zikan Prop Solutions offers verified, compliant pathways for diaspora investors to fund property acquisitions safely and transparently — from any part of the world.
🏢 Zikan Prop Solutions
🥇 Certified Real Estate Consultant | Multi Award-Winning Realtor
Helping you make the best real estate purchase & investment decisions.
📱 +234 703 000 3514
📲 IG: @zikanpropsolutions
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