Joint Venture With a Landowner in Nigeria: Sharing Ratios Explained (50/50, 60/40, 70/30)
In a Nigerian property joint venture, the landowner contributes the land and the developer funds design, approvals and construction. They share the finished units, the profit, or both — commonly 50/50, 60/40 or 70/30 in the developer's favour, sometimes with an upfront premium to the landowner. The right ratio depends on how valuable the land is compared with the total project.
The three ways to share
1. Share of units
The landowner receives a fixed share of the completed houses or flats. Simple and common, but the developer must fund all construction from a smaller pool of sales.
2. Share of profit
Both parties share net profit after costs. Fairer when costs are uncertain, but it needs transparent accounting and trust.
3. Units and profit
The landowner takes some units plus a smaller share of profit — a middle ground that rewards both sides when the project performs well.
Worked example: what each ratio means for the developer
A small estate in Lekki — 4 terrace duplexes + BQ and six 2-bedroom flats on two plots (land valued at ₦1.01B):
| Units split (developer / landowner) | Landowner receives | Developer profit | Developer margin |
|---|---|---|---|
| 50 / 50 | ₦723.5M | ₦87.5M | 12.1% |
| 60 / 40 | ₦578.8M | ₦234.2M | 27.0% |
| 70 / 30 | ₦434.1M | ₦379.4M | 37.5% |
| 80 / 20 | ₦289.4M | ₦524.7M | 45.3% |
| 80/20 units + 20% of profit | ₦394.4M | ₦419.8M | 36.3% |
To keep a 20% margin on this project, the developer can offer the landowner at most 45.2% of the units. Offer more, and the deal stops being worth the risk.
Check the deal from the landowner's side too
At 70/30 the landowner receives about ₦434.1M in units — and even at the 45.2% ceiling only about ₦653.4M — while the land itself would sell for around ₦1.01B. A landowner would rather sell. On expensive land, a JV only works with a denser scheme (more units per plot, such as a taller block of flats), so test different unit mixes until both sides come out ahead.
Enter the land value, location and what you plan to build — the Developer Suite tells you the largest share you can offer and still hit your margin.
Open the Developer Suite →Upfront premiums
Some landowners ask for cash before construction. A premium reduces the developer's profit and increases day-one funding, so it should usually come with a smaller share of units or profit.
What to put in a JV agreement
- Sharing basis and ratio, and exactly which units each party gets
- Who pays for title perfection, approvals and infrastructure
- Timelines, penalties and what happens if either party defaults
- How sales, service charges and title documents are handled
General information, not legal advice. Use a property lawyer to draft and register the agreement.
Frequently asked questions
What is a good JV sharing ratio for land in Nigeria?
60/40 and 70/30 in the developer’s favour are common, but the right ratio depends on land value versus total project value — prime land justifies a bigger landowner share.
Can a JV share both units and profit?
Yes. Some agreements give the landowner a share of the units plus a smaller share of the net profit.
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