Land ownership and use in Nigeria are governed primarily by the Land Use Act of 1978, which remains the foundational law regulating land tenure, acquisition, and administration. The Act was introduced to streamline land ownership, curb land disputes, and ensure equitable land distribution for economic development. However, understanding its provisions is crucial for individuals, businesses, and investors who intend to acquire, lease, or develop land in Nigeria.
This blog post explores the key provisions of the Land Use Act, the rights of landowners, and the implications for businesses and real estate investors.
Key Provisions of the Land Use Act
1. Vesting of Land in the Government
The Act vests all land in each state in the Governor. This means that private individuals or businesses cannot technically “own” land outright but can only hold a right of occupancy granted by the government.
- The Governor of each state manages and controls all urban land.
- Local Governments manage non-urban (rural) land in their jurisdictions.
- The Federal Government has control over land it acquires for public use or projects.
2. Rights of Occupancy
Since individuals cannot own land in perpetuity, the Act provides for two main types of land tenure rights:
- Statutory Right of Occupancy: Granted by the Governor for urban land, usually for a period of 99 years, subject to renewal.
- Customary Right of Occupancy: Granted by Local Governments for rural land, mostly for farming or residential purposes.
Both rights require the holder to use the land according to specified purposes, such as residential, agricultural, or commercial use.
3. Governor’s Consent for Land Transactions
One of the most notable provisions of the Land Use Act is Section 22, which requires the Governor’s consent for the transfer of any land or interest in land. This includes:
- Selling or assigning land to another party.
- Mortgaging land for a loan or other financial arrangement.
- Leasing or subleasing land.
Without the Governor’s consent, any land transaction is legally void and unenforceable. This provision aims to regulate land speculation and ensure transparency in land transactions.
4. Revocation of Land Titles
The government has the power to revoke land rights if the land is required for:
- Public interest, such as infrastructure projects, roads, or schools.
- Breach of conditions, such as failure to develop the land within a given timeframe.
- Non-payment of rent or fees due to the government.
When land is revoked for public use, the law mandates that compensation be paid to the holder of the right of occupancy, but the compensation only covers improvements on the land, not the land itself.
5. Land Use and Development Regulations
Landowners must comply with zoning regulations and obtain government approval before developing land. This includes obtaining:
- Building permits for new constructions.
- Environmental impact assessments for large-scale developments.
- Conversion approvals for changing the land’s use (e.g., from residential to commercial).
Failure to obtain proper approvals may result in demolition, fines, or revocation of land rights.
Implications for Landowners, Businesses, and Investors
1. Land Acquisition Challenges
Due to the Governor’s consent requirement, land transactions can be slow and bureaucratic. Investors must ensure they obtain proper documentation to avoid disputes or invalid transactions.
2. Real Estate Investment Considerations
- Investors should conduct due diligence to verify a property’s land title before purchase.
- Leasehold terms (99 years for statutory rights) should be considered in long-term investment planning.
- Commercial property owners should check zoning laws to avoid regulatory issues.
3. Impacts on Agricultural Landowners
Farmers must obtain a Customary Right of Occupancy from Local Governments before using land for large-scale farming. The Act also limits individual land holdings, making large-scale farming difficult without government approvals.
4. Risk of Revocation and Compensation Issues
- Landowners risk losing their land if the government revokes it for public use.
- Compensation is only provided for developments on the land, not the land itself.
- Businesses and investors should ensure their land use aligns with government-approved development plans.
Conclusion: Navigating the Land Use Act Successfully
The Land Use Act of 1978 is a critical piece of legislation that controls land tenure in Nigeria. While it helps regulate land ownership and prevents land speculation, it also poses challenges, such as bureaucratic delays in obtaining approvals and the risk of revocation.
To successfully acquire or use land in Nigeria:
✔ Always verify land titles before purchase.
✔ Ensure you obtain Governor’s consent for land transfers.
✔ Comply with zoning and development regulations.
✔ Be aware of potential government revocation and compensation rules.
Are you planning to buy or lease land in Nigeria? Have you encountered challenges navigating the Land Use Act? Share your experiences in the comments!