The legal profession in Nigeria is witnessing a notable transformation as increasing numbers of lawyers gravitate towards real estate ventures.
Traditionally known for their pivotal role in property transactions to ensure legal compliance and documentation, lawyers are now taking a more active interest in the sector, driven by economic pressures and the need for financial stability.
While the legal profession has always been intertwined with real estate, this emerging trend goes beyond the traditional boundaries. Lawyers are not just legal consultants for property transactions; they are now exploring real estate as a lucrative side hustle or even a primary income source. The shift comes as the country grapples with an unpredictable judicial system, extended case timelines, and diminishing earnings from litigation.
Lawyers like Barrister Gerald, who has over two decades of experience, argue that the move isn’t entirely new. Legal practitioners have always been central to real estate dealings, as Nigerian law mandates that property documents like deeds of transfer or conveyance be “franked” by a licensed lawyer. Without a lawyer’s stamp, these documents are void. This statutory requirement ensures that lawyers remain indispensable in the property sector.
Barrister Gerald highlights the financial allure of these transactions, explaining that lawyers earn fees based on the value of property deals. For instance, a transaction worth ₦10 million could yield fees up to ₦1 million. This profitability, combined with the straightforward nature of most property transactions, has made real estate an attractive avenue for legal professionals.
For lawyers like Mr. Icent, who has been in the profession for over a decade, the shift to real estate is less about abandoning traditional practices and more about diversification. He notes that most lawyers view real estate as a complementary venture to enhance their income. Real estate transactions offer significant earnings with relatively less effort compared to prolonged litigation.
“Real estate is profitable. You can close one land deal for ₦100 million and walk away with a substantial amount. It’s a good way to supplement your income without leaving the profession entirely,” Mr. Icent explains. He also emphasizes that this shift doesn’t diminish the importance of core legal practices like contract law or corporate litigation but allows lawyers to balance their portfolios.
For younger lawyers, however, real estate is increasingly seen as a survival strategy. Ms. Ngozi, a former lawyer who transitioned out of the profession, observes that fresh graduates often face daunting financial challenges. Litigation, with its high costs, extended timelines, and uncertain outcomes, offers little stability. In contrast, real estate provides quicker returns and a more predictable income stream.
“Real estate is like the new oil money,” Ms. Ngozi remarks, noting that a single successful property deal can yield fees that far surpass months of litigation work. For many young lawyers, this financial security is far more appealing than the frustrations associated with traditional legal battles.
Despite the opportunities, this trend raises questions about the long-term impact on the legal profession. While seasoned lawyers argue that real estate remains a secondary pursuit, there’s concern that the growing focus on property transactions could lead to a decline in expertise in other critical areas of law, such as criminal or constitutional law.
Moreover, the pivot to real estate reflects deeper issues within Nigeria’s judicial system. Lengthy court processes, allegations of judicial corruption, and waning public trust have led many Nigerians to favor out-of-court settlements. This declining enthusiasm for litigation further pushes lawyers towards alternative income streams like real estate.
However, the foray into real estate isn’t without challenges. Lawyers must navigate a competitive and dynamic property market, maintain their legal acumen, and ensure compliance with regulations. Even as they embrace real estate, the fundamentals of their legal training remain essential.
Barrister Gerald underscores this point, stating, “Real estate transactions are deeply rooted in legal principles. Lawyers bring a unique value to this space because of their training, ensuring that deals are secure and compliant.”
The growing interest in real estate among Nigerian lawyers highlights the profession’s adaptability in a challenging economic landscape. While property transactions offer financial rewards, they also underscore systemic issues within the judiciary that continue to drive legal professionals toward alternative ventures.
As more lawyers explore real estate as a viable income source, the trend reflects a broader desire for stability and prosperity in an unpredictable economy. While the immediate benefits are clear, the long-term implications for the legal field and Nigeria’s justice system remain uncertain. Nonetheless, this shift illustrates how lawyers are redefining their roles to align with the demands of a rapidly evolving economic environment.
