LEGAL PRINCIPLE: LAND LAW — Alienation of Statutory Corporation Land — Requirement of Ministerial Approval — Transaction Without Prior Approval Null and Void
PRINCIPLE STATEMENT
Under section 12(4) of the Nigerian Coal Corporation Act, prior ministerial approval is a condition precedent for any valid alienation of land by the Corporation; a transaction without such approval is null and void, and registration does not cure the defect.
RATIO DECIDENDI (SOURCE)
Per Wali, JSC, in Rockonoh Property Co. Ltd v. Nigerian Telecommunications Plc (2001) NLC-711995(SC) at pp. 32–34; Paras C–A.
"The corporation shall not alienate, demise, mortgage or charge any land vested in the corporation under the provisions of this section without the prior approval of the minister... It is a condition precedent that under section 12(4) of the Nigerian Coal Corporation Act... before the Corporation can make any valid and enforceable alienation, demise, mortgage or charge any land vested in it, it must obtain the prior approval of the Minister charged with the responsibility of the Corporation... In the present case, though Exhibit J was registered, there was no evidence upon which the Registrar satisfied himself that the Minister's approval was given to Exhibit J and therefore, its mere registration would not and did not confer to it the validity which it could have acquired had the Minister's approval been sought and granted."
EXPLANATION / SCOPE
Prior ministerial approval is a condition precedent for alienation of land by statutory corporations under relevant legislation. Without such approval, the transaction is null and void. Registration of the instrument does not cure the defect. The registrar cannot grant validity where the statute requires prior approval. The party claiming under the transaction must prove that approval was obtained. The principle applies to all statutory corporations with similar provisions. The requirement is mandatory, not directory. The court will declare such transactions void. The rule protects public property from unauthorised alienation. The corporation cannot waive the requirement; it is imposed by statute for public interest.