PRINCIPLE STATEMENT

Local Governments have power to grant customary rights of occupancy only over land not in urban areas; Governors have power to grant statutory rights of occupancy over any land whether or not in urban areas; where land has been validly designated as within an urban area by Governor's order, Local Government has no power to grant rights of occupancy over such land, and any purported grant is null and void.

RATIO DECIDENDI (SOURCE)

Per Uwais, JSC, in Adene v. Dantunbu (1994) NLC-411988(SC) at P. 23; Para C, P. 23; Para D and PP. 23 – 24; Paras D – B.
"It shall be lawful for a Local Government in respect of land not in urban area- (a) to grant customary rights of occupancy to any person or organisation for the use of land in the Local Government Area…" "It shall be lawful for the Governor in respect of land, whether or not in an urban area (a) to grant statutory rights of occupancy to any persons for all purposes;" A Local Government only has the power to grant rights of occupancy over land situated in a non-urban area. The Governor has the power to grant statutory rights of occupancy in respect of any land, irrespective of whether it is in an urban or non-urban area. Where land has been validly designated as being within an urban area by a Governor's order, a Local Government has no power to grant a right of occupancy over such land. Any purported grant by the Local Government is null and void.
View Judgment

EXPLANATION / SCOPE

The Land Use Act creates jurisdictional division: Local Governments control non-urban land (granting customary rights of occupancy); Governors control all land including urban areas (granting statutory rights of occupancy). Urban designation is critical—once land is designated urban (through Governor’s gazette order), Local Government authority over it ceases. Local Government grants over designated urban land are ultra vires and void ab initio—they have no legal effect. Grantees receive nothing despite purported certificates. This protects: centralized control over urban development, planning coherence, and prevents conflicting grants. Prospective grantees must verify: whether land is designated urban, and who has granting authority. The designation effectively transfers jurisdiction from Local Government to Governor, making designation orders crucial in determining valid title

CASES APPLYING THIS PRINCIPLE