Property Law in Nigeria
Introduction
Property law in Nigeria is characterized by the coexistence of statutory land law (principally the Land Use Act 1978), customary land tenure systems, and English property law principles. The Land Use Act is the dominant legal framework governing land ownership and use, having fundamentally transformed Nigerian land law by vesting all land in each state in the Governor and replacing freehold ownership with rights of occupancy.
The Land Use Act 1978
The Land Use Act (Cap L5, LFN 2004) was enacted by the military government of General Olusegun Obasanjo to reform land tenure and facilitate access to land. The Act has been incorporated into the 1999 Constitution and can only be amended by a special procedure.
Vesting of Land
Section 1 of the Land Use Act vests all land in each state in the Governor of that state, to be held in trust for the people. Land in the Federal Capital Territory is vested in the President. This provision abolished freehold ownership and established the right of occupancy as the highest interest in land.
Right of Occupancy
The Act creates two types of rights of occupancy:
Statutory Right of Occupancy: Granted by the Governor for a term of up to 99 years, evidenced by a Certificate of Occupancy (C of O). The holder pays rent and complies with conditions.
Customary Right of Occupancy: Arises under customary law, applicable to land held under native law and custom. Customary rights of occupancy may be converted to statutory rights.
Consent Requirements
Section 22 requires the Governor’s consent for any assignment, mortgage, or lease of a statutory right of occupancy. Section 26 requires consent for transactions involving customary rights of occupancy. Transactions without consent are void.
Types of Interests in Land
Freehold
Freehold interests existing before the Land Use Act continue in limited form, primarily in Lagos and some urban areas, but are effectively frozen and cannot be created for new interests.
Leasehold
Leasehold interests may be created by holders of rights of occupancy, subject to the consent requirements of the Land Use Act.
Customary Land Tenure
Under customary law, land may be owned by families, communities, or individuals. Family land is held by the family head for the benefit of all family members and cannot be alienated without family consent.
Registration of Land
The Land Registration Law of each state provides for the registration of instruments affecting land, including deeds of assignment, mortgages, and leases. The Registration of Titles Act provides for a Torrens system of title registration in some states. Registration provides constructive notice of interests and priority in the event of disputes.
Acquisition and Disposition
Land may be acquired through:
- Grants from the Government: Allocation of rights of occupancy by the Governor
- Purchase: Assignment of a right of occupancy with the Governor’s consent
- Inheritance: Succession to land rights on death
- Gift: Voluntary transfer of land
Compulsory Acquisition
The Land Use Act and the Constitution permit the government to acquire land compulsorily for public purposes. Section 28 of the Land Use Act provides for the revocation of rights of occupancy for public purposes, subject to the payment of compensation. The amount of compensation is limited to the value of improvements on the land, not the value of the land itself.
Conclusion
Property law in Nigeria is dominated by the Land Use Act, which established a uniform system of land tenure based on rights of occupancy rather than freehold ownership. The Act’s consent requirements, compulsory acquisition provisions, and limitation of compensation have been controversial and have generated extensive litigation. Customary land tenure continues to govern significant areas, particularly rural land, creating a complex interplay between statutory and customary property law.