The legal profession in Nigeria is currently facing new dynamics as more lawyers are increasingly engaging in real estate ventures.
Traditionally, lawyers have been deeply involved in property transactions, primarily to ensure legal compliance and proper documentation.
However, the challenges posed by an unpredictable judicial system, delayed cases, and low litigation earnings are pushing many legal professionals to diversify their practices.
As Nigeria’s economy shifts and the real estate market grows, lawyers are finding new opportunities within this sector. But what exactly does this mean for the legal profession and its future?
The legal profession’s historic role in real estate transactions
The relationship between law and real estate in Nigeria has long been intertwined.
According to Barrister Gerald, a lawyer with over 20 years of experience, lawyers are not “venturing” into real estate per se, but are performing a role essential to the property sector.
He explains that every transaction involving land or property must be legally “franked” by a licensed lawyer.
A lawyer’s stamp is required on deeds of transfer, conveyance, or assignment, making them indispensable in real estate transactions. Without a lawyer’s stamp, such documents are considered void under Nigerian law.
This statutory requirement means that lawyers have always played a central role in real estate dealings, and their involvement is crucial for ensuring that transactions are legitimate.
In fact, lawyers receive significant remuneration for these services, with fees calculated as a percentage of the transaction value. Barrister Gerald elaborates:
“For instance, a lawyer who handles a transaction worth 10 million naira could earn up to 1 million naira, and sometimes more, depending on the deal size.”
Given the relatively straightforward nature of property transactions and their profitability, many lawyers are increasingly seeking to deepen their involvement in real estate. This shift is not necessarily a complete departure from their original practices, but rather an expansion of their portfolios.
Financial pressure and the shift to real estate
Mr. Icent, a lawyer with over a decade of experience, notes that no lawyer is likely to abandon their core area of practice, such as corporate law or litigation, to focus solely on real estate. Instead, it serves as a complementary avenue to boost their income.
Real estate investments, for example, offer lawyers the chance to earn significant sums with minimal effort once the deal is sealed. As Mr. Icent points out, “Real estate is profitable… you can sell one piece of land for N100 million and earn a significant amount.”
He suggests that lawyers often take on real estate matters as a side hustle, much like any other business opportunity. This allows them to supplement their earnings without abandoning their legal career.
However, the attraction to real estate lies not just in lucrative commissions but in the relative speed with which transactions are completed compared to litigation.
Litigation, as Mr. Icent explains, often involves prolonged court processes with uncertain outcomes, which makes it less appealing to many lawyers. “Nobody wakes up to say, ‘I want to leave contract law and focus solely on real estate,’” he asserts.
Instead, it is seen as a way to augment income while still maintaining other legal practices.
Real estate as a survival strategy for new lawyers
For many young lawyers entering the profession, the decision to focus on real estate is driven by survival instincts. Ms. Ngozi, a former lawyer who has since transitioned fully into another field, observes that younger lawyers often begin their careers with little financial backing and face significant challenges in securing clients or stable income through litigation.
“The financial security is more guaranteed in real estate than in litigation,” she says, adding that the demands of litigation—high costs, extended timelines, and a lack of guaranteed success—often lead to frustration.
Indeed, young lawyers are increasingly looking to real estate as a more stable and lucrative option. According to Ms. Ngozi, many new lawyers view real estate as a “fast money” venture, as opposed to the often slow and costly process of litigation. Real estate transactions, she points out, involve working with individuals or businesses that require legal documentation or guidance, making it easier for lawyers to step in without the intensive research and case preparation required for litigation.
New lawyers are also drawn to the potential for quick returns. With a single property deal, lawyers can earn substantial fees—often far more than they would through months of litigation. “Real estate is like the new oil money,” Ms. Ngozi says, noting that the returns from successful property transactions are much more immediate and tangible than the rewards from long-winded legal battles.
The impact on the legal profession
The surge in real estate activity among lawyers does not necessarily signal a decline in other areas of legal practice.
Lawyers like Mr. Icent argue that real estate is simply a side gig, a secondary source of income that does not overshadow the broader scope of legal work.
As he explains, even experienced senior lawyers still engage in real estate matters, alongside their corporate and litigation duties. This diversification allows them to sustain their practices during periods of uncertainty in other legal sectors.
However, the shift towards real estate could have long-term implications for the future of the legal profession in Nigeria. With increasing numbers of lawyers becoming involved in property transactions, there may be fewer lawyers dedicated solely to traditional areas of law, such as criminal or constitutional law.
This shift, while financially beneficial in the short term, could result in a lack of specialists in other key areas, leading to potential gaps in legal expertise across various fields.
Ms. Ngozi notes that the widespread appeal of real estate among lawyers also reflects the broader dissatisfaction with the judicial system.
“Most times when there are issues arising from agreements or business or any other thing that requires litigation, people prefer to settle out of court,” she says.
The declining enthusiasm for litigation can be attributed to a combination of factors, including lengthy court proceedings, judicial corruption, and a lack of public trust in the system.
While real estate offers clear financial incentives, it also comes with its own challenges. Lawyers would have to navigate a competitive market, maintain their legal expertise, and ensure that they stay compliant with relevant regulations.
Despite the rewards, lawyers like Barrister Gerald acknowledge that property transactions are still rooted in legal principles.
The move into real estate does not detract from a lawyer’s broader competence; rather, it serves as an additional dimension of their practice, leveraging their legal training to meet market demands.
What to know
The growing trend of Nigerian lawyers venturing into real estate is a reflection of the changing dynamics of the legal profession in a challenging economic environment.
- While property transactions offer immediate financial rewards, they also highlight deeper issues within the legal system, such as the prolonged nature of litigation and the uncertainty of judicial outcomes.
- Lawyers, particularly younger professionals, are increasingly turning to real estate as a way to supplement their income, achieve financial security, and navigate the complex realities of the Nigerian economy.
- With real estate attracting legal professionals, it is likely that the trend will persist, with more lawyers exploring property transactions as a complementary or even primary income source.
- However, the long-term implications for the legal profession remain to be seen, as the focus on real estate may shift attention away from other areas of law.
Ultimately, the growing prominence of real estate within the legal field reflects a broader desire for stability and prosperity, with many lawyers seeking the quickest route to financial success in an unpredictable economy.
