Navigating Real Estate Joint Ventures in Nigeria

Why Joint Ventures Are Common in Nigerian Real Estate

Large-scale real estate and hospitality projects in Nigeria are frequently structured as joint ventures, bringing together landowners, developers, and investors who each contribute different resources — land, capital, or development expertise — toward a shared project.

While this model can unlock projects that would be difficult for any single party to undertake alone, it also introduces complexity around governance, profit-sharing, and control that must be addressed clearly from the outset.

Getting the Corporate Structure Right

Most joint ventures are structured through a special purpose vehicle (SPV), with the terms of the relationship governed by shareholders' agreements, subscription agreements, and board charters. These documents should clearly define decision-making authority, capital contribution obligations, and what happens if a party wants to exit the arrangement.

Ambiguity in these founding documents is one of the most common sources of dispute in real estate joint ventures, often surfacing only once a project is already underway.

Financing Considerations

Raising capital for a joint venture project typically involves a mix of equity contributions and project-level financing, supported by security packages and revenue models that satisfy lenders and investors alike. Structuring this financing in a way that is both bankable and fair to all parties in the joint venture requires careful legal and commercial coordination.

This is especially true where a project involves phased development, requiring financing structures flexible enough to accommodate future capital raises.

Protecting the Investment Long-Term

Beyond the initial structuring, joint venture partners need mechanisms for resolving disagreements, adapting to changing project circumstances, and eventually exiting the arrangement, whether through a sale, refinancing, or other exit strategy.

STOHB, BUCKNOR & DURSON advises developers, investors, and landowners on structuring real estate and hospitality joint ventures that are built to last — protecting each party's interests while keeping the underlying project commercially viable.