The Land Use Act and Certificate of Occupancy in Nigeria, Explained

Almost every property question in Nigeria traces back to one law: the Land Use Act of 1978. It decides who really owns land, what a Certificate of Occupancy means, and why you need the Governor's signature to complete a sale. This explainer walks through the Act and the C of O in plain language, with the section numbers that matter, so buyers know what they are actually getting. Bektu publishes it as a transparency resource for diaspora and foreign buyers navigating Nigerian title.

What is the Land Use Act of 1978?

The Land Use Act of 1978 is the federal law that governs how land is held, used, and transferred in Nigeria. It began as the Land Use Decree No. 6 of 1978 and is now codified as Cap L5 of the Laws of the Federation. It is also entrenched in the Constitution, which means it cannot be changed by an ordinary state law and applies across the whole country.

Why does the Land Use Act mean you do not really own land in Nigeria?

Under the Act, all land in a state is vested in the Governor, who holds it in trust for the people. Individuals and companies do not own land outright in the freehold sense. Instead you hold a right of occupancy, which is a legal right to occupy and use the land for a set term, and your documents prove that right rather than absolute ownership.

What is a statutory right of occupancy?

A statutory right of occupancy is the interest granted by the Governor over land in urban areas under Section 5 of the Act. It is the strongest individual interest available and is the right that a Certificate of Occupancy documents. This is the title most buyers in Lagos and Abuja are dealing with.

What is the difference between a statutory and a customary right of occupancy?

A statutory right of occupancy is granted by the Governor over urban land, while a customary right of occupancy is granted by the Local Government over rural land under Section 6 of the Act. Customary rights are common for land held under community or family arrangements outside city centres. The consent and documentation requirements differ, so it matters which one applies to the land you are buying.

What exactly is a Certificate of Occupancy?

A Certificate of Occupancy is the official document the Governor issues as evidence of a statutory right of occupancy. It identifies the land, the holder, the term, and the permitted use, and it carries a registry file number. The certificate does not create freehold ownership, but it is the clearest proof that the state recognises your right to the land.

How long does a Certificate of Occupancy last?

The Act allows a right of occupancy to be granted for a maximum term of 99 years. At the end of the term the land reverts to the state, though renewal is the normal expectation in practice. Because the clock starts on the issue date, an older C of O has fewer years remaining, which is worth checking before you buy.

What is Governor's Consent under Section 22?

Section 22 of the Act makes it unlawful for a holder to assign, mortgage, transfer, or sublease a statutory right of occupancy without the Governor's consent first obtained. This is why every resale of titled land requires fresh consent on the new Deed of Assignment. The consent is what makes the transfer recognised by the state.

What happens to land transfers done without consent?

A transfer made without the required consent is voidable and cannot be reliably enforced. The Nigerian courts have repeatedly treated unconsented transfers as legally defective, which leaves the buyer exposed if the seller resells or a dispute arises. Holding only an unconsented, unregistered deed is one of the weakest positions a buyer can be in.

Can the government take back your land?

Yes, the Governor can revoke a right of occupancy for overriding public interest under Section 28 of the Act, for example to build a road or public facility. Where this happens, Section 29 provides for compensation, but it is paid for unexhausted improvements such as buildings and crops rather than the open market value of the bare land. This is a real consideration when buying near planned infrastructure.

What is a "global C of O" and why does it matter to buyers?

A global Certificate of Occupancy is a single C of O issued over a large parcel, often held by a developer or an estate, that covers many individual plots. Buying a plot inside a global C of O does not automatically give you your own perfected title. You still need a registered Deed of Assignment and Governor's Consent in your own name to be properly recognised, so do not treat the developer's global C of O as your personal title.

How does the Land Use Act affect diaspora and foreign buyers?

Diaspora Nigerians are citizens and can hold a full statutory right of occupancy for the 99-year term like any resident. Foreign nationals face an extra layer, because state Aliens Land laws limit them to leaseholds with the Governor's prior approval, and the common workaround is to hold land through a Nigerian-registered company. In both cases the same consent and registration steps apply once the interest is acquired.

How do you perfect your title under the Land Use Act?

You perfect title by obtaining Governor's Consent on your Deed of Assignment, paying the assessed stamp duty and registration fees, and registering the deed at the state Lands Registry. Until those steps are complete you hold an equitable interest at best, not a recognised legal title. Perfection is the difference between a piece of paper and a title the state will stand behind.