What Every Nigerian Property Buyer Needs to Know About the Land Use Act

The Land Use Act of 1978 remains one of the most consequential and most misunderstood pieces of legislation in Nigerian property law. It vests all land in each state in the Governor, meaning no one in Nigeria truly owns land in the absolute sense. What you own is a statutory right of occupancy.

For property buyers, this has practical consequences that can derail a transaction entirely if not properly handled.

What You Actually Purchase

When you buy land in Nigeria, you are purchasing the right to occupy that land, either a statutory right of occupancy (granted by the Governor for urban land) or a customary right of occupancy (for rural land). The document confirming this right is the Certificate of Occupancy (C of O).

Without a valid C of O, or at minimum a verifiable root of title traceable to a government grant, your purchase is legally precarious.

The Governor's Consent Requirement

Section 22 of the Land Use Act requires that any alienation (transfer, sale, or mortgage) of a right of occupancy must receive the Governor's consent. This consent is not optional, it is a statutory requirement, and a transaction completed without it is void.

This is one of the most commonly overlooked steps in Nigerian property transactions. Buyers pay purchase prices, move into properties, and discover years later that their title was never perfected because Governor's consent was never sought.

What Proper Due Diligence Looks Like

Before any purchase, your legal counsel should:

1. Search the land registry to confirm the vendor's title and identify any encumbrances or adverse interests

2. Verify the root of title: tracing ownership back to the original government grant

3. Confirm no revocation: the Governor can revoke rights of occupancy for overriding public interest with compensation

4. Review all covenants and conditions attached to the right of occupancy

5. Confirm the survey plan is registered and matches the physical property

Common Mistakes That Create Expensive Problems

Relying on a receipt: A payment receipt does not transfer title. Only a properly executed deed of assignment, accompanied by Governor's consent and registered at the Land Registry, does.

Buying based on family consent alone: Family land transactions are notoriously complex. Unless the family can demonstrate a valid right of occupancy, what they are selling may be a customary right of occupancy that is far more limited in scope.

Skipping registration: Even with Governor's consent, your deed must be registered at the Land Registry to bind third parties. Unregistered instruments are ineffective against a subsequent purchaser for value without notice.

The Cost of Getting It Wrong

Property disputes are among the most bitterly contested in Nigerian courts. They are expensive, protracted, and emotionally draining. A property you spent years saving to buy can be the subject of a decade-long dispute, or, worse, be found to carry a defective title that makes it difficult to sell, mortgage, or develop.

The cost of proper legal advice at the point of purchase is a fraction of the cost of litigation to defend a defective title.

If you are considering a property purchase and would like a thorough title investigation and transaction review, Kunle Sulyman Chambers' property team is available to advise.