LEGAL PRINCIPLE: CUSTOMARY LAW — Customary Pledge — Rights of Pledgee — Temporary Occupation Only
PRINCIPLE STATEMENT
Under customary pledge, the pledgee goes into possession and has the right to put the land to productive use. However, the pledge is perpetually redeemable, and the pledgee has only a temporary occupation licence and must yield up the pledged land as far as possible in the form he took it on originally.
RATIO DECIDENDI (SOURCE)
Per Ogundare, JSC (quoting Elias, CJN in Okoiko v. Esedalue), in Ufomba & Anor v. Ahuchaogu & Ors (2003) NLC-141999(SC) at pp. 16–17; Paras E–A.
"One invariable rule of customary pledge … is that the pledgee always goes into possession and has the right to put the land to some productive use. … The very nature of a customary pledge, which is perpetually redeemable, is that the pledge has only a temporary occupation licence and that he must yield up the pledged land as far as possible in the form he took it on originally."
EXPLANATION / SCOPE
Customary pledge gives temporary occupation only. The principle applies to customary law. The pledge is redeemable forever. The rule protects the pledgor’s reversionary interest. The pledgee must not permanently alter the land. The principle is well-established.