Discover How The Land Use Act Impacts Land Ownership in Nigeria

In Nigeria, many prospective landowners find themselves overwhelmed by issues such as unclear title ownership, rampant speculation, scam, land grabbing and the threat of land disputes (from omo oniles). All of these can derail even the most earnest plans for property development.

If you’re a landowner or a landowner-to-be, then you need to know about one of the important laws in Nigeria— the Land Use Act.

This is a law that centralizes land ownership under state governors and establishes clear guidelines for rights of occupancy. The Act aims to simplify the process of land acquisition and usage.

Understanding the Land Use Act is essential for anyone who wishes to exploit Nigeria’s real estate and make informed decisions about property ownership.

What is the Land Use Act?

To start with, the land use act was established on 29th March, 1978. It is a law that aims to make the acquisition and administration process of land very easy by vesting all land in the territory of each state in the Governor. However, this does not include lands vested in the federal government or its agencies.

This law, which was formerly known as the Land Use Decree, was enacted by former President Olusegun Obasanjo who integrated the law into the constitution of the Federal Republic of Nigeria during his military regime.

Key Provisions of the Land Use Act

The following are the key provisions of the Land Use Act:

1. Vesting of Land Ownership to the Governor of a state

The cornerstone of the Land Use Act is its provision that all land within a state is vested in the Governor, who holds it in trust for the people. What this means is that individual ownership rights are secondary to state control.

According to Section 1 of the Act, “all land comprised in the territory of each State in the Federation is hereby vested in the Government of that State.” As earlier established, it is aimed to eliminate land speculation and ensure that land is used for the common good.

2. Rights of Occupancy

Under the Act, individuals can obtain a “right of occupancy,” which grants them the permission to use and occupy land.

There are two main types: statutory rights, which are granted by the governor, and customary rights, which are typically granted by local governments for agricultural purposes.

However, these rights come with restrictions. For instance, according to section 22, holders cannot transfer or mortgage their rights without obtaining prior consent from the Governor. This control over occupancy rights has raised concerns about individual freedoms regarding land use.

3. Revocation of Rights

According to this act, the Governor has significant power to revoke rights of occupancy for overriding public interest. This is in accordance with Section 28 of the land use act.

While this provision allows for necessary government projects, it also poses risks for property owners who may lose their land without adequate compensation. The Act stipulates that compensation should be provided upon revocation. But on the contrary, many have criticized that these compensations are not adequate enough.

4. Control Over Urban Land

Furthermore, the Act empowers the Governor to designate urban areas and manage them separately from rural lands. This distinction allows for tailored urban planning but can also lead to conflicts over land use as urban areas expand rapidly due to population growth.

5. Establishment of Advisory Bodies

In order to aid in effective land management, the Act mandates the creation of a Land Use and Allocation Committee in each state of the Federation.

This committee is responsible for advising the Governor on issues related to land management and resettlement.

Impact of the Land Use Act on Land Ownership

The Land Use Act has significantly reshaped the dynamics of property ownership in Nigeria. Some of these impacts are:

Individual rights on lands have become more dependent on government policies and increased government control.
One of the initial goals was to reduce speculative practices that inflated land prices. While some success has been noted, challenges remain as urbanization continues to drive demand for land.
The requirement for government consent for transactions can slow down development projects. This also creates bureaucratic hurdles that deter investment.
The complexities surrounding rights of occupancy often lead to legal disputes over land ownership and usage rights.

Advantages of the Land Use Act

Some key advantages of the Land Use Act are:

1. Prevention of Land Speculation

One of the primary objectives of the Land Use Act is to curb speculative activities related to land acquisition. The Act discourages individuals from holding onto land purely for speculative gains. This regulation helps stabilize land prices and ensures that land is developed and utilized effectively.

2. Secured Property Rights

The Land Use Act provides a legal framework that enhances property rights through the issuance of a Certificate of Occupancy (C of O). This certificate serves as proof of legal ownership and grants individuals and organizations secure rights to occupy and use the land for a specified period of 99 years.

3. Decrease in Boundary Dispute

The Land Use Act has led to a decrease in boundary disputes and a reduction in the number and frequency of court cases related to land ownership. An important requirement for obtaining occupancy rights is surveying the acquired land.

4. Easy Access to Land for Agricultural Purposes

The act also facilitates the straightforward acquisition of land for agricultural purposes. This allows farmers to secure up to 500 hectares for crop production or 5,000 hectares for grazing.

Conclusion

The Land Use Act is legislation aimed at reforming land tenure in Nigeria. While it has made strides toward equitable land distribution and management, it also presents challenges that affect property ownership and investment.

Are you interested in learning more about properties and how to navigate the real estate sector in Nigeria? Stay tuned for more articles.