Forty-eight years after its enactment in 1978, the Land Use Act remains one of the most influential laws governing property ownership in Nigeria. Originally designed to streamline land administration and prevent speculation, it continues to shape land pricing, title security, developer challenges, and investor behaviour in 2026.
Historical Context
- Enacted on 29th March 1978 by the military government of General Olusegun Obasanjo
- Vested all land in each state in the Governor
- Replaced the diverse customary and statutory land tenure systems with a unified framework
- Aimed to make land more accessible for development and reduce ethnic and regional conflicts over land
How the Act Still Shapes the Market in 2026
1. Governor’s Consent Requirement
- All transfers, mortgages, and long leases require the Governor’s consent
- This process, even with digital improvements, still causes delays and additional costs
- Creates bottlenecks for developers and buyers
2. Title Security Challenges
- Many properties still operate under customary titles without full conversion
- Multiple sales and family disputes remain common
- Blockchain verification is helping but has not eliminated the problem
- Artificial scarcity in areas with difficult consent processes drives up prices
- Undeveloped land in some zones attracts higher Land Use Charge penalties
- Developers factor consent delays into project pricing
4. Development & Investment Implications
- Longer project timelines due to approval processes
- Higher legal and facilitation costs
- Preference for properties with already perfected titles (premium pricing)
Lasting Criticisms and Reform Discussions
- Centralisation of land power in state governors
- Difficulty in using land as collateral for loans
- Slow pace of development in some areas
- Ongoing calls for comprehensive review or repeal
Final Thoughts
The 1978 Land Use Act remains a double-edged sword in 2026. While it provides a unified national framework, its practical application continues to create friction in the real estate market — from delayed transactions to higher costs and persistent title risks.
Understanding its lasting effects is essential for anyone buying, selling, or investing in Nigerian property today. The smartest players are those who navigate the system efficiently while pushing for meaningful reforms.
What are your thoughts on the Land Use Act after 48 years? Should it be significantly reformed? Share in the comments.
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