For Nigerians living abroad, managing affairs back home presents a constant challenge. Whether you need to sell property, manage a business, handle banking matters, or deal with legal issues, you cannot always be physically present. A Power of Attorney (POA) allows you to authorise someone in Nigeria to act on your behalf, but getting it wrong can lead to fraud, disputes, or invalid transactions.
What Is a Power of Attorney?
A Power of Attorney is a legal document that authorises another person, called your attorney or agent, to act on your behalf in specified matters. The person granting the power is called the principal or donor. In Nigeria, POAs are governed by the Powers of Attorney Act and various state laws.
The scope of a POA can be broad or narrow. A General Power of Attorney gives your agent wide authority to handle most of your affairs, while a Special or Limited Power of Attorney restricts authority to specific transactions, such as selling a particular property or managing a specific bank account.
Types of Power of Attorney in Nigeria
A General Power of Attorney grants broad authority to manage your affairs, including property transactions, banking, and legal matters. This is useful if you need ongoing representation but carries higher risk if your agent is not trustworthy.
A Special Power of Attorney limits authority to specific actions. For example, you might grant power only to sell a particular property at a specified price, or to collect rent from tenants. This is safer because it limits what your agent can do.
An Irrevocable Power of Attorney cannot be cancelled by the principal and is typically used in commercial transactions where the agent has a financial interest in the outcome. This type should be used with extreme caution.
How to Execute a POA from Abroad
If you are in the UK, US, or another country, you can execute a Power of Attorney at the Nigerian Embassy or Consulate. The process typically involves drafting the POA document with the help of a lawyer, booking an appointment at the embassy or consulate, appearing in person with valid identification, signing the document in the presence of a consular officer, and paying the required fees.
The consular officer will notarise the document, which gives it legal validity in Nigeria. Some embassies may also apostille the document for additional authentication.
Alternatively, you can execute the POA before a notary public in your country of residence and then have it authenticated at the Nigerian Embassy. This two-step process may be necessary if the embassy is far from your location.
Essential Clauses to Include
A well-drafted POA should clearly identify both the principal and the agent with full names, addresses, and identification numbers. It should specify exactly what powers are being granted and what limitations apply. The document should state the duration of the power, whether it is for a specific transaction or ongoing. It should include provisions for revocation and specify what happens if the agent becomes incapacitated or dies.
For property transactions, the POA should include a detailed description of the property, including survey plan numbers and location. For banking matters, it should specify which accounts and what types of transactions are authorised.
Registering Your POA in Nigeria
For property transactions, the POA must be registered at the Land Registry in the state where the property is located. An unregistered POA cannot be used to transfer property. Registration involves submitting the original POA, paying stamp duty and registration fees, and waiting for the registry to process the document.
Registration fees vary by state but typically range from N10,000-50,000. The process can take 2-6 weeks depending on the state.
Protecting Yourself from Abuse
POA fraud is unfortunately common in Nigeria. To protect yourself, only grant power to someone you trust completely. Use a Special POA rather than a General POA whenever possible. Include specific limitations on what your agent can do. Require your agent to provide regular reports and documentation. Consider appointing a lawyer to oversee your agent's actions. Register the POA to create an official record.
You can revoke a POA at any time by executing a Deed of Revocation and notifying all relevant parties, including banks, land registries, and anyone who might rely on the original POA.
When You Need Professional Help
While simple POAs can be drafted using templates, complex situations require professional legal advice. If you are granting power over significant assets, dealing with multiple properties or businesses, or have concerns about potential disputes, engage a Nigerian lawyer to draft and review the document.
The cost of professional drafting is minimal compared to the potential losses from a poorly drafted or fraudulent POA.
Sources: Powers of Attorney Act, Nigerian Bar Association, Lagos State Land Registry