The Land Use Act 1978 remains one of the most important laws governing land ownership, occupation, transfer and administration in Nigeria.
The Act fundamentally changed the legal framework governing land by vesting land comprised in the territory of each State, subject to the Act’s provisions and specified exceptions, in the Governor of the State to be held in trust for the use and common benefit of Nigerians.
For anyone buying, selling, developing, leasing, mortgaging or otherwise dealing with land in Nigeria, understanding the Land Use Act is essential.
The Act is particularly important because a land transaction may involve more than a private agreement between two parties. Questions concerning right of occupancy, consent, registration, revocation, compensation, customary rights and jurisdiction may determine whether a transaction is legally effective.
This article highlights 20 important aspects of the Land Use Act that landowners, prospective purchasers, developers and lawyers should understand.
1. Land Is Vested in the Governor
The starting point is section 1 of the Land Use Act.
The section provides that, subject to the Act, land comprised in the territory of each State is vested in the Governor of that State and held in trust for the use and common benefit of all Nigerians.
This provision is fundamental to understanding the modern Nigerian land tenure system.
The Act did not simply transfer land to the Governor for personal ownership. The Governor holds the land in trust and administers it according to the statutory framework.
The Supreme Court has explained that section 1 affected the previous freehold position while preserving customary rights of use and control recognised under the Act.
2. Urban and Non-Urban Land Are Administered Differently
The Act makes an important distinction between land in urban areas and other land.
Under section 2, land in urban areas is placed under the control and management of the Governor, while other land is, subject to the Act, under the control and management of the appropriate Local Government.
This distinction is important because the Act assigns different powers concerning statutory and customary rights of occupancy.
However, whether a particular parcel falls within an urban area may itself become an issue requiring proof.
3. The Governor Can Grant Statutory Rights of Occupancy
The Governor has statutory powers to grant rights of occupancy.
Under section 5, the Governor may grant statutory rights of occupancy over land in accordance with the Act.
A statutory right of occupancy is therefore not simply the same thing as an informal claim to land.
The legal nature of the interest granted, the conditions attached to it and the relevant statutory provisions must be considered.
4. A Statutory Grant Can Affect Existing Rights
One of the most important provisions for competing claims to land is section 5(2).
The provision states, in substance, that upon the grant of a statutory right of occupancy, existing rights to the use and occupation of the land covered by the grant are extinguished.
The Supreme Court has considered this provision in cases involving competing rights of occupancy. In Dabup v. Kolo, the Court discussed the effect of a later statutory grant on existing rights.
This makes it particularly important to investigate existing interests before purchasing or developing land.
5. Local Governments Have Powers Over Customary Rights of Occupancy
The Land Use Act also recognises customary rights of occupancy.
Under section 6, Local Governments have powers concerning customary rights of occupancy over land not in an urban area, subject to the Act.
This distinction between statutory and customary rights remains important in land litigation.
The Supreme Court has recognised that the Act provides for statutory rights under the Governor and customary rights under the appropriate Local Government framework.
6. A Certificate of Occupancy Is Evidence of a Right of Occupancy
The Act provides for certificates evidencing rights of occupancy.
Under section 9, a certificate may be issued as evidence of a statutory or customary right of occupancy in circumstances provided by the Act.
A Certificate of Occupancy is therefore an important land document.
However, prospective purchasers should not assume that possession of a Certificate of Occupancy automatically resolves every question concerning title.
The root and history of the interest may still be relevant, particularly where competing claims exist.
7. A Certificate of Occupancy Is Not Always Conclusive Proof of Title
A common misconception is that a Certificate of Occupancy automatically establishes an indefeasible title against everyone.
The legal position is more nuanced.
A Certificate of Occupancy may constitute important evidence of a right of occupancy, but its legal effect may depend on the circumstances in which it was issued and the existence of competing prior interests.
The Supreme Court’s land cases demonstrate why title investigation remains important even where a party possesses a Certificate of Occupancy.
The practical lesson is simple:
Do not buy land merely because the seller produces a Certificate of Occupancy.
Investigate the root of title and the history of the land.
8. Governor’s Consent Is Important in the Alienation of Rights of Occupancy
One of the most frequently encountered provisions in Nigerian land transactions is section 22.
The section restricts the alienation of a statutory right of occupancy without the required consent of the Governor.
Depending on the transaction, alienation may include matters such as:
- assignment;
- mortgage;
- transfer of possession; and
- sublease.
The requirement for consent is therefore a major consideration in property transactions.
The Supreme Court has recognised the significance of sections 22 and 26 in transactions involving the alienation of rights of occupancy.
9. Transactions Contrary to the Act May Be Void
Section 26 provides an important consequence for transactions that purport to confer or vest an interest in land contrary to the Act.
Such transactions or instruments may be rendered null and void.
This is why parties should not treat statutory requirements such as consent as mere administrative formalities.
A defect in the statutory requirements may affect the legal validity of the transaction itself.
10. Mortgages of Land Require Particular Care
Land is frequently used as security for loans.
However, a mortgage involving a statutory right of occupancy must be considered in light of the Land Use Act, including the statutory requirements concerning consent.
A lender should therefore verify:
- the borrower’s interest;
- the Certificate of Occupancy or other title documents;
- the authority of the mortgagor;
- required consent;
- registration requirements; and
- existing encumbrances.
A borrower should similarly understand that signing a mortgage document does not eliminate statutory requirements applicable to the land.
11. The Governor Can Revoke a Right of Occupancy
The power of revocation is one of the most significant features of the Land Use Act.
Under section 28, the Governor may revoke a right of occupancy for overriding public interest.
For a statutory right of occupancy, the Act identifies circumstances that may constitute overriding public interest, including requirements for public purposes and certain unlawful dealings with the right.
The Act also deals with revocation involving customary rights of occupancy.
Because revocation affects valuable property interests, compliance with the statutory requirements is critical.
The Nigerian LawCompass database contains a legal principle specifically addressing the requirement for mandatory compliance with section 28 in order for revocation to be valid.
12. Revocation Is Not the Same as Government Simply Taking Land
The statutory power of revocation must not be confused with an unrestricted power to take land.
The Governor’s power is regulated by the Land Use Act.
Where a right of occupancy is revoked, the reason for revocation and the applicable statutory provisions become important.
A person affected by revocation should therefore examine:
- the legal basis for the revocation;
- the notice issued;
- the statutory procedure followed;
- the purpose for which the land is required; and
- the compensation provisions that apply.
13. Compensation May Be Payable After Revocation
Section 29 deals with compensation payable following the revocation of a right of occupancy in specified circumstances.
The compensation framework is not necessarily equivalent to the market value of the land as understood in an ordinary sale.
The Act makes provision for compensation concerning unexhausted improvements, and the calculation depends on the circumstances of the revocation.
The Act also contains special provisions where revocation relates to mining or petroleum activities.
Landowners should therefore understand exactly what statutory compensation is available rather than assuming that every revocation automatically results in payment of the full market value of the land.
14. Compensation Can Be a Disputed Issue
Where parties disagree about compensation, the Act provides mechanisms for addressing disputes.
The compensation framework is therefore not merely a matter of the Government deciding an amount without legal constraints.
The applicable statutory provisions and valuation principles must be considered.
In practice, disputes may concern:
- the identity of the person entitled to compensation;
- the nature of the interest affected;
- the value of improvements;
- the date of valuation;
- the applicable valuation method; and
- whether the statutory conditions for compensation have been satisfied.
15. The Act Recognises Transitional Rights
The Land Use Act contains important transitional provisions for interests in land that existed before its commencement.
Section 34 addresses transitional arrangements concerning land in urban areas.
These provisions are particularly relevant in historical title disputes because the Act came into force on 29 March 1978.
The legal status of land held before that date may therefore require examination under the transitional provisions rather than simply applying the post-1978 framework without analysis.
16. Existing Rights Over Non-Urban Land Also Receive Transitional Protection
Section 36 contains transitional provisions concerning land not in an urban area.
In particular, subsection 36(2) has been considered by the Supreme Court in relation to the continuation of rights over agricultural land.
Nigerian LawCompass records the principle that section 36(2) creates a deemed grant of customary right of occupancy for qualifying occupiers of non-urban agricultural land at the commencement of the Act.
This is an important area of land-law research, particularly in disputes involving customary ownership and historical occupation.
17. Courts Cannot Simply Declare Old-Style Ownership After the Act
The Land Use Act changed the language and legal structure of land rights in Nigeria.
The courts have recognised that, after the commencement of the Act, claims to land may need to be expressed in terms of the relevant right of occupancy.
For example, the Supreme Court has explained the effect of section 40 on declarations concerning land after the commencement of the Act.
This does not mean that the history or root of title becomes irrelevant. Rather, the relief ultimately recognised by the court must conform to the statutory land-tenure framework.
18. Jurisdiction Is an Important Land-Law Issue
Land disputes must be brought before the court with jurisdiction to entertain the particular dispute.
The Land Use Act contains specific provisions dealing with jurisdiction, including sections 39, 41 and 42.
The Nigerian LawCompass database records a Supreme Court principle that these provisions confer jurisdiction over specified Land Use Act disputes on State High Courts and other identified courts, rather than the Federal High Court.
Jurisdiction should therefore be considered before commencing proceedings.
A case filed in the wrong court may be struck out regardless of the strength of the underlying land claim.
19. Unauthorised Use of Land Can Attract Legal Consequences
The Land Use Act does not only regulate ownership and transfer.
Section 43 deals with unauthorised use of land and provides for penalties.
This reinforces the importance of complying with the conditions attached to a right of occupancy and obtaining any approvals required by law.
A landowner should therefore distinguish between having an interest in land and having legal authority to use the land for a particular purpose.
20. Land Transactions Require Proper Due Diligence
Perhaps the most practical lesson from the Land Use Act is that a land transaction should never be approached as merely the signing of an agreement and payment of money.
Before purchasing land, a prospective buyer should consider conducting appropriate due diligence, including:
- confirming the identity and capacity of the seller;
- investigating the root of title;
- examining the Certificate of Occupancy or other title documents;
- conducting appropriate searches at the relevant land registry;
- checking for mortgages, charges or other encumbrances;
- confirming whether the land is affected by acquisition;
- verifying planning and development requirements;
- determining whether consent is required;
- confirming the identity and boundaries of the property; and
- obtaining appropriate professional advice.
The Land Use Act provides the statutory framework, but the actual investigation of a property may also involve State land laws, registration legislation, planning laws, survey requirements, customary law and other applicable regulations.
Buying Land in Nigeria: Five Questions to Ask
Before paying for land, a purchaser should ask:
1. Who owns or holds the interest being transferred?
Do not rely solely on the seller’s assertion.
2. What is the root of title?
A Certificate of Occupancy should not automatically end the investigation.
3. Is there an existing encumbrance?
The land may already be mortgaged, leased, assigned or otherwise affected by another interest.
4. Is the required consent available?
Where the transaction involves an existing right of occupancy, the requirements of the Land Use Act concerning consent should be examined.
5. Is the land affected by government acquisition or another restriction?
A proper search and investigation can help identify potential problems before money changes hands.
Why the Land Use Act Matters to Property Transactions
The Land Use Act affects almost every significant land transaction in Nigeria.
It is relevant when a person wants to:
- acquire land;
- obtain a Certificate of Occupancy;
- sell or assign an interest;
- mortgage property;
- grant a lease;
- develop land;
- transfer a right of occupancy;
- challenge a revocation;
- claim compensation; or
- litigate a dispute concerning title or possession.
For this reason, lawyers and property buyers should research the specific provision applicable to the transaction, rather than relying only on general statements about land ownership.
The complete Land Use Act 1978 is available on Nigerian LawCompass for detailed statutory research.
Frequently Asked Questions About the Land Use Act
Does the Governor own all land in Nigeria?
The Land Use Act vests land comprised in the territory of each State, subject to the Act and specified exceptions, in the Governor to be held in trust for the use and common benefit of Nigerians.
What is a right of occupancy?
A right of occupancy is the statutory or customary interest recognised under the Land Use Act. The Act provides different mechanisms for statutory and customary rights of occupancy.
Is Governor’s consent required when land is sold?
The requirement depends on the nature of the interest and transaction. The Land Use Act contains restrictions on the alienation of statutory rights of occupancy, including the requirement for the Governor’s consent in applicable cases.
Can a Governor revoke a Certificate of Occupancy?
The Governor may revoke a right of occupancy in circumstances authorised by the Land Use Act, particularly where the statutory requirements concerning overriding public interest are satisfied.
Does revocation automatically mean that the owner receives the market value of the land?
Not necessarily. The compensation provisions of the Land Use Act apply according to the circumstances and may focus on unexhausted improvements and other statutory considerations.
Can a Certificate of Occupancy be challenged?
Yes. The existence of a Certificate of Occupancy does not necessarily prevent a court from examining competing claims, the root of title or the circumstances surrounding the grant.
Which court has jurisdiction over a land dispute?
Jurisdiction depends on the nature of the dispute and the applicable law. The Land Use Act contains specific jurisdictional provisions, and the proper court should be determined before proceedings are commenced.
Conclusion
The Land Use Act remains central to the Nigerian land-tenure system.
Its provisions affect the acquisition, occupation, transfer, development, mortgage, revocation and compensation of interests in land.
For landowners and prospective purchasers, the most important practical lesson is to investigate title before committing money to a property transaction.
For lawyers, the Act should be read together with relevant judicial decisions, State land laws, registration laws, planning legislation and other applicable legal requirements.
The Land Use Act 1978 on Nigerian LawCompass provides the starting point for examining the statutory provisions themselves, while the NLC database also provides access to relevant judgments and legal principles interpreting the Act.
Nigerian LawCompass — Intelligent Research. Decisive Law.
Disclaimer: This article is provided strictly for information and educational purposes only. It is not intended to constitute, and should not be relied upon as, legal advice. Land transactions are fact-specific and may involve the Land Use Act, State land and registration laws, planning legislation, customary law, regulations and judicial decisions. Readers should obtain appropriate professional legal advice before purchasing, selling, developing, mortgaging or otherwise dealing with land.