Almost every argument about Nigerian property – who owns it, what it is worth, why a title is worth more than the land – traces back to one statute passed in 1978. The Land Use Act changed what ownership means in Nigeria, and it still governs every plot sold today.
This guide explains what the Act does, what rights it actually gives you, how it affects the price of land, and where fraud finds the gaps.
What the Land Use Act 1978 did
Before 1978, land in Nigeria could be held in freehold – owned outright by individuals and families, in perpetuity. The Land Use Act swept that away.
Under the Act, all land in a state is vested in the Governor, held in trust and administered for the use and common benefit of all Nigerians. Nobody holds freehold any more. What every landowner in Nigeria holds is a right of occupancy – a right to occupy and use land, granted by the state, for a defined term.
That single change explains most of the vocabulary buyers encounter: certificates of occupancy, governor’s consent, excision, revocation, ground rent. They are all machinery built around the fact that the state, not the individual, holds the underlying title.
Customary and statutory rights of occupancy
The Act creates two kinds of right.
Customary right of occupancy is held by individuals or communities under customary law, and is administered by local governments. It covers a great deal of family and community land, particularly outside the major cities.
Statutory right of occupancy is granted by the Governor, and evidenced by a Certificate of Occupancy. Statutory grants are typically for a fixed term – most commonly 99 years in Lagos and Abuja – and that term runs down from the date of the grant.
A 99-year C of O issued in 1998 has roughly 71 years left. If you are buying, you are buying the remaining term, not the original one, and it should be priced accordingly.
Why this matters for prices
The Act is the reason Nigerian land prices are so sensitive to documentation. Two identical plots on the same street can differ in value by a factor of five, because:
- one has a Certificate of Occupancy, which a bank will lend against;
- one has only excision and a survey, which a bank generally will not;
- one may sit inside a government acquisition, where no C of O can be granted at all.
Buyers who compare plots on location alone are comparing the wrong things. The title is the asset. The land is the commodity.
Governor’s consent: the step buyers skip
When you buy land covered by a right of occupancy, the transfer needs the Governor’s consent. Until that consent is obtained, the transfer is not effective in law, and the state can still treat the land as belonging to the original holder.
This is the most common and most expensive mistake in Nigerian property. A buyer receives a deed of assignment, pays the balance, moves in – and the state record still shows the seller’s name. Years later, when the land is sold again or the seller’s family disputes it, the buyer discovers they never held a perfected title.
Getting consent is administrative, slow and costly, but it is the difference between owning a right and holding a piece of paper.
Revocation: the state can take land back
The Act allows the Governor to revoke a right of occupancy for overriding public interest – typically for roads, infrastructure or public institutions. Revocation carries compensation for improvements, but not necessarily for the land itself.
In practice this is why buyers check whether a plot sits within a road setback or a planned corridor before paying. Land can be cleanly titled and still earmarked for a highway that has not been announced.
Where the fraud lives
Because the Act separates the right from the physical land, fraud in Nigeria is rarely forgery of a whole document. It is usually a real document attached to the wrong thing.
- A genuine C of O for a different plot. The certificate is real. The land you are being shown is not the land on it.
- Family land sold twice. The head of family sells; a branch of the family disputes; both buyers hold deeds.
- “Covered” land. A plot inside a government acquisition sold with paperwork that implies title. No C of O can ever issue on it.
- Old survey plans reused. A registered plan from a previous subdivision, re-presented for a different parcel.
- The 99-year term quietly expiring. Rare, but a short remaining term materially changes value and is easy to miss.
How to check a title against the Act
- Search the plot at the state lands bureau, not the certificate. Ask whether the land is free, acquired, or encumbered.
- Confirm the term remaining on any C of O you are shown.
- Confirm the plot, block and area on the certificate match the survey plan and the physical land.
- Ask for the gazette if the land is said to be excised. No gazette, no excision.
- Get the Governor’s consent as part of the transaction, not as a promise for later.
- Check for setback and road corridors before you buy, not after.
Frequently asked questions
Does the Land Use Act mean nobody owns land in Nigeria?
It means nobody holds freehold. Individuals and organisations hold rights of occupancy granted by the state, for a term of years, and those rights can be bought, sold, mortgaged and inherited – subject to the Governor’s consent.
What is the difference between a C of O and a right of occupancy?
The right of occupancy is the grant itself. The Certificate of Occupancy is the document evidencing it. You can hold a right without holding the certificate, but proving it is harder.
Why are C of O leases usually 99 years?
That is the term the granting authority chooses for statutory grants in Lagos and the FCT. It is a policy practice rather than a fixed requirement of the Act.
Can land be taken from me under the Act?
Yes. The Governor can revoke a right of occupancy for overriding public interest, with compensation for improvements. This is why checking proposed road corridors and acquisition areas matters before purchase.
Does the Act apply in Abuja?
The FCT has its own administration, and the equivalent powers sit with the FCT Minister. The underlying principle – state-held land, rights of occupancy, consent for transfer – is the same.
Last updated: October 2026. This is general information about Nigerian land law, not legal advice. Confirm the current position with a property lawyer and the relevant state lands bureau before any transaction.
