The Land Use Act of 1978 is widely regarded as the most significant piece of legislation governing land tenure in Nigeria. Its enactment was intended to create a uniform system of land administration, eliminate the fragmentation caused by multiple customary systems, and make land accessible for public and private development. By virtue of section 1 of the Act, all land within the territory of each state is vested in the Governor of that state, to be held in trust and administered for the common benefit of all Nigerians.
Before the Act came into force, landholding in Nigeria was dominated by freehold arrangements under both English common law and customary law. Communities, families, and individuals could hold absolute title to land. The 1978 Act abolished this absolute ownership and replaced it with a statutory framework in which individuals and corporate bodies could only obtain Rights of Occupancy granted by the government.
Brief Historical Background
The Land Use Act was introduced in the context of rapid urbanization, rising land prices, and the need for the government to implement development projects without excessive cost or delay. At the time, vast tracts of land were locked under customary tenure, making acquisition for public works challenging and often expensive due to compensation demands. Some objectives of the Act included:
- Uniformity: To harmonize Nigeria’s diverse and often conflicting land tenure systems.
- Accessibility: To make land available for agricultural, industrial, and residential development.
- Equity: To prevent land speculation and ensure fair distribution.
- Public Control: To give the government authority to manage land in the public interest.
Key Provisions of the Act
1. Governor as Trustee
Under section 1, all land in each state is vested in the Governor, who acts as trustee for the people. In urban areas, the Governor exercises full control over the allocation, regulation, and revocation of land rights. In rural (non-urban) areas, local governments perform similar functions with respect to customary rights of occupancy. The role as a trustee empowers the Governor to grant rights of occupancy, regulate land use, and acquire land for public purposes.
2. Right of Occupancy
The Act recognizes two principal forms of tenure:
- Statutory Right of Occupancy: Granted directly by the Governor under section 5 for a term not exceeding 99 years. These rights are common in urban areas and are evidenced by a Certificate of Occupancy (C of O).
- Customary Right of Occupancy: Granted by local governments under section 6, generally in rural areas and consistent with traditional landholding practices. Although rooted in custom, the right is now formalized under statutory law and may require documentation for security of tenure.
While these rights grant exclusive possession and use of land, they do not convey absolute ownership. Upon expiry or revocation, the land reverts to the government.
3. Governor’s Consent
One of the most impactful provisions is found in section 22, which states that any alienation (sale, transfer, mortgage, lease, or assignment) of a statutory right of occupancy is void ab initio unless the Governor’s prior written consent is obtained. While the consent requirement serves a regulatory function, it has been criticized for introducing bureaucratic bottlenecks, increasing transaction costs, and generally delaying the process or completion of transferring title.
4. Revocation of Rights
Under section 28, the Governor may revoke a right of occupancy for overriding public interest, which includes urban redevelopment, infrastructure construction, or exploitation of mineral resources. The holder is often entitled to compensation from the government.
Impact of the Land Use Act on Property Transactions
The Act transformed the legal and practical landscape of property dealings in Nigeria.
Positive Impacts:
- Standardisation – By replacing the diverse systems of landholding with a unified statutory framework, the Act has brought legal consistency to transactions across Nigeria.
- Public Access – In theory, government control ensures that land can be allocated for projects in the public interest without excessive acquisition costs.
- Regulation – The Governor’s consent requirement allows the government to track land transfers and curb unregulated speculation.
Negative Impacts:
- Delay – Obtaining the Governor’s consent and processing the Certificate of Occupancy can take years, stalling commercial transactions.
- Investment Disincentive – Lengthy processes and uncertainty over revocation powers discourage real estate investment, particularly from foreigners.
- Cost: Fees for obtaining consent, paying ground rent, registering instruments, and perfecting title can be relatively expensive, depending on the state.
- Inadequate compensation: Inadequate compensation for revoked rights generates legal challenges and undermines public trust in real estate.
Conclusion
The Land Use Act of 1978 was a bold attempt to harmonize land tenure in Nigeria, safeguard public interests, and make land accessible for development. While it has achieved standardization and centralized control, its rigid provisions, procedural delays, and sometimes opaque implementation have hindered its effectiveness in promoting real estate growth and security of tenure.
Written by Olusola J. Jegede, Esq.,
Olusola Johnson Jegede, Esq., is a seasoned Nigerian legal practitioner and the Principal Partner at Resolution Law Firm. He specializes in corporate law, intellectual property, dispute resolution, family law and commercial transactions, providing strategic legal solutions to individuals, startups, and established businesses.
With a strong reputation for professionalism and results-driven advocacy, Olusola has advised clients on complex legal issues including trademark protection, regulatory compliance, and business structuring. He is also the author of “Trademark Registration and Law in Nigeria – Explanations and Materials,” reflecting his depth of knowledge and commitment to legal education.
Olusola combines practical legal insight with a client-focused approach, ensuring efficient, innovative, and commercially sound outcomes. He remains dedicated to upholding the highest standards of legal practice while helping clients navigate Nigeria’s evolving legal landscape.
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