Land Use Act in Nigeria – Fully Explained

The Land Use Act is one of Nigeria’s most critical laws for land ownership and acquisition. Whether you’re a landowner or planning to become one, understanding this Act is essential.

Challenges such as land grabbing, fraudulent agents, and navigating multiple professional requirements make legitimate land acquisition complex. Knowing how the Land Use Act affects you can help you avoid unnecessary obstacles.

This article delves into the key aspects of the Land Use Act, including its definition, features, implications, controversies, and challenges. Keep reading to gain a deeper understanding.

What Is the Land Use Act?

The Land Use Act (formerly known as the Land Use Decree) was enacted on March 29, 1978, under the military regime of General Olusegun Obasanjo. It later became part of Nigeria’s constitution before Obasanjo handed over power to the civilian government led by Alhaji Shehu Shagari.

According to Chapter 202 of the Laws of the Federation of Nigeria (1990), the Land Use Act states:

“An Act to vest all land within each State (except land vested in the Federal Government or its agencies) solely in the Governor of the State, who shall hold such land in trust for the people and be responsible for its allocation in urban areas. Non-urban land allocation falls under the authority of Local Governments.”

Features of the Land Use Act

The primary objectives of the Act include:

Restructuring the land tenure system.
Facilitating economic and social transformation.
Preventing land speculation and economic inequality arising from land hoarding.
Ensuring land is accessible and affordable for both government and private developers.

The Act addresses four major issues:

Lack of uniformity in land ownership laws.
Uncontrolled speculation in urban land.
Equal legal access to land for all Nigerians.
Rural land fragmentation due to inheritance traditions and population growth.

Importance of the Land Use Act

The Land Use Act primarily governs land ownership. If you acquire land without a Certificate of Occupancy (C of O), you technically do not own it outright but hold a lease. The government retains the authority to reclaim land without compensation under the Act.

The Act states:

“All the rights formerly vested in the holder concerning excess land shall, upon the commencement of this Act, be extinguished. The excess land shall be taken over by the Governor and administered accordingly.”

Under this law:

State Governors allocate land in urban areas for residential, commercial, and agricultural purposes.
Local Governments manage land allocation in rural areas.
The Act replaced traditional land trusteeship by families and communities with state control, presenting both benefits and drawbacks.

Controversies Surrounding the Land Use Act

The Land Use Act is one of Nigeria’s most debated laws, with many real estate stakeholders criticizing it for stifling housing development. Experts argue that the Act is long overdue for a comprehensive review and have called for its removal from the Constitution to enable easier amendments.

Efforts to amend the Act have faced significant challenges due to constitutional requirements. Past Presidents, including Umaru Musa Yar’Adua and Goodluck Jonathan, attempted amendments but faced bureaucratic roadblocks.

One major criticism is the rise in land costs. Previously, individuals could buy land directly from communities, individuals, or companies and register ownership at the Land Registry. Today, buyers must obtain a Certificate of Occupancy from the government, which complicates and delays the process.

Advantages and Disadvantages of the Land Use Act

While the Act aimed to promote efficient land use, it has both benefits and drawbacks.

Advantages:

Ensures land is allocated to those who can utilize it effectively.
Prevents unauthorized land sales by requiring government approval for all allocations.
Discourages land hoarding and speculation in urban areas.
Reduces boundary disputes through mandatory land surveys.
Simplifies land acquisition for agricultural purposes, allowing up to 500 hectares for crops and 5,000 hectares for grazing.

Disadvantages:

Abuse of Office: State Governors hold excessive power over land allocation, leading to potential corruption and favoritism.
Land Acquisition Delays: Obtaining land for commercial and economic development is slow due to bureaucratic approval processes.
Value Discrepancy: Land with registered titles is significantly more valuable than unregistered land, creating an economic divide.

For any law to be effective, it must be practical and free from major loopholes. Given the challenges outlined by stakeholders in the real estate industry, it is crucial for lawmakers to revisit and reform the Land Use Act.

Looking to acquire well-titled land and properties in Nigeria? Visit GetCrib for secure and omo-onile free transactions.