LAND LAW – Land Use Act – No Prior Revocation Required for Section 5(2) to Operate
Ratio Decidendi
Per Ogundare, J.S.C., quoting Kawu, J.S.C. in Titiloye v. Olupo, in Dabup v. Kolo (1993) NLC-621989(SC) at pp. 28; Paras B--C:
"In my view it is not the law that the customary right of occupancy be enjoyed by such a person must be first revoked before he can be granted a statutory right of occupancy, and this is because upon such a grant all existing rights on the parcel of land are automatically extinguished. This is the provision of S.5(2) of the Act..."
Explanation / Scope
Section 5(2) operates automatically without requiring prior revocation of existing rights. When government grants a statutory right of occupancy, customary rights, prior statutory rights, and all other interests are extinguished by operation of law. No separate revocation proceeding is necessary. This distinguishes Land Use Act procedures from common law systems where prior interests typically must be formally revoked or purchased before new grants. The automatic extinguishment serves administrative efficiency—government needn’t navigate complex webs of existing interests before granting new rights. However, it raises compensation issues: holders of extinguished rights may claim compensation for the taking, but their substantive rights disappear automatically upon the new grant regardless of compensation payment.