Power of Attorney (PoA) in property transactions is a powerful but frequently misused instrument in Nigeria. Used correctly, it enables diaspora buyers, distant investors, and unavailable principals to complete legitimate property transactions through trusted representatives. Used incorrectly — or fraudulently — it is one of the most common tools of property fraud. This guide explains everything you need to know.
What is a Power of Attorney?
A Power of Attorney is a legal document in which one person (the donor or principal) grants authority to another person (the attorney or donee) to act on their behalf. The authority granted can be broad (general) or narrowly defined (specific/limited).
In the context of Nigerian property transactions, a PoA may authorise the attorney to:
- Sign a Deed of Assignment to sell or purchase property
- Execute a tenancy agreement
- Apply for Governor's Consent or other permits
- Receive payments and sign receipts on behalf of the principal
- Manage a property (collect rent, instruct repairs)
- Represent the principal in legal proceedings relating to the property
Types of Power of Attorney
General Power of Attorney
A general PoA grants broad authority to act on all matters on behalf of the principal. It is convenient but risky — the attorney can act on any matter within the stated scope, often without case-by-case approval. General PoAs are best used only for trusted, close family members or solicitors under clear professional supervision.
Specific (Limited) Power of Attorney
A specific PoA limits the attorney's authority to a defined transaction or set of actions — for example, “authority to sign the Deed of Assignment for Plot 45B Lekki Gardens Estate only.” This is the recommended form for most property transactions because the scope is clear, the risk of misuse is lower, and the document automatically expires when the defined transaction is completed.
Irrevocable Power of Attorney
In some transactions (particularly property development and mortgage contexts), an irrevocable PoA is used — meaning the donor cannot revoke it. Irrevocable PoAs are typically linked to a financial interest and are used where the attorney has advanced funds or has a proprietary interest in the property. Be extremely cautious before signing any irrevocable PoA — it removes your ability to withdraw authority later.
How the diaspora uses Power of Attorney
Nigerians in the UK, US, Canada, and other countries frequently buy property in Nigeria without being able to travel for every transaction step. A PoA allows a trusted representative in Nigeria — a family member, solicitor, or trusted friend — to act on their behalf.
The safer diaspora approach:
- Choose a specific rather than general PoA.Define exactly what the attorney is authorised to do — “sign the Deed of Assignment for Plot X only” — not an open mandate.
- Grant PoA to a solicitor or trusted family member, not an estate agent. Estate agents should not have PoA authority — their role is to find and facilitate the transaction, not to execute it.
- Require step-by-step reporting. Your attorney should send you copies of every document before signing, with a video call review of key decisions.
- Set a time limit. The PoA should expire after the transaction is complete (or after a set period) — not remain open-ended.
- Register the PoA properly. The document should be sworn before a notary or commissioner for oaths in Nigeria (or the Nigerian High Commission or Consulate in your country of residence). For important transactions, register it at the State Land Registry.
Power of Attorney fraud: what to watch for as a buyer
If someone is selling a property using a PoA (claiming the owner is unavailable), you must be especially careful. Common fraud patterns:
- A fake PoA is presented, purportedly from the true owner, granting the fraudster authority to sell — the alleged owner has no knowledge of the transaction
- A genuine PoA was revoked, but the fraudster continues to act under it
- The PoA is genuine but overreaches its scope — it authorises specific acts but the attorney goes beyond those
To protect yourself:
- Independently verify the PoA by attempting to contact the alleged donor — in person, by video call, or through a solicitor directly instructed by the donor
- Confirm with a notary or commissioner for oaths that the PoA was genuinely executed
- Check the PoA was not revoked by searching relevant registers
- Have your own solicitor review the scope of the PoA before accepting that the attorney has authority to complete the transaction
Revoking a Power of Attorney
A revocable PoA can be cancelled at any time by the donor. To revoke: execute a formal Deed of Revocation, notify the attorney in writing, and notify any third parties (banks, registry) who may have relied on the PoA. Once revoked, any further acts by the former attorney are unauthorised.
Related guides: Diaspora Property Buyer's Guide Nigeria, Avoid Property Scams Nigeria, Deed of Assignment Nigeria.
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