What power of attorney means
A power of attorney hands somebody else the pen.
You are the donor. The person you appoint is the donee, often called the attorney, though they do not have to be a lawyer. Within the limits you set, whatever they sign binds you as though you had signed it yourself.
That is a serious grant of authority, which is why the document is executed as a deed, witnessed properly, and usually registered where land is involved.
How it is used
The classic Nigerian use is distance. Somebody lives in London, Toronto or Houston and owns land in Lagos. They cannot fly home every time a signature is needed, so they appoint a sibling or a lawyer to act.
It is also used in business, where a director authorises somebody to sign specific documents, and in personal matters, where a person appoints somebody to manage affairs during illness or absence. In property transactions a power of attorney is frequently how a seller who cannot attend completes the sale.
Key features
- Executed as a deed, signed, sealed and properly witnessed
- Can be general, covering wide authority, or special, limited to defined acts
- Should state clearly what the donee can and cannot do
- Generally revocable by the donor, unless expressly made irrevocable and coupled with an interest
- Usually terminates on the death or mental incapacity of the donor
- Registered at the lands registry where it relates to land transactions
How this works in Nigeria
A power of attorney does not transfer ownership of land. This is the misunderstanding that costs Nigerians the most money.
Sellers sometimes offer an irrevocable power of attorney as though it were a sale document. It is not. It authorises somebody to act, and while an irrevocable power coupled with an interest is a real instrument, it is not a substitute for a deed of assignment, Governor's consent and registration. A buyer who accepts a power of attorney instead of a proper transfer has bought authority, not land.
For use abroad, a Nigerian power of attorney often needs notarisation and, depending on the country, further authentication before a foreign institution accepts it.
General vs special power of attorney
A general power of attorney grants broad authority to act across your affairs. It is powerful and correspondingly risky, because the donee can do a great deal in your name.
A special or limited power of attorney authorises specific acts only, for example selling one named property or operating one bank account. It is narrower, safer, and usually the right choice.
The practical advice is to grant the narrowest authority that gets the job done. A general power handed to a relative for one transaction is how people lose control of assets they never intended to put at risk.
Limits and risks
A power of attorney generally ends on the donor's death, and anything done after that has no authority behind it. It also usually ends on the donor losing mental capacity, unless the document is structured to survive that, which is a point people planning for illness often miss.
It is also only as safe as the person appointed. The document gives real power, and Nigerian courts see a steady stream of cases where a donee sold or mortgaged property they were only authorised to manage.
Worth knowing
Never accept a power of attorney in place of a deed of assignment when buying land. It authorises somebody to act, it does not transfer ownership to you.