C of O, Right of Occupancy, Governor's Consent and Gazette: Nigerian Property Titles Explained for Foreign Buyers

C of O, Right of Occupancy, Governor's Consent and Gazette: Nigerian Property Titles Explained for Foreign Buyers

In Nigeria you do not own land outright. You hold the right to use it. The Land Use Act of 1978 vests all land in each state in the governor, who holds it in trust for the people and grants rights of occupancy to individuals and companies. Every title document you will encounter is, at bottom, evidence of a right of occupancy, not absolute ownership. Understanding which document proves what is the single most important skill a foreign buyer can have, because the wrong document, or a missing one, is how most buyers lose money.

Here is what each term means and how they fit together.

Right of Occupancy

The right of occupancy is the underlying legal interest the Land Use Act creates. There are two kinds. A statutory right of occupancy is granted by the governor over land in urban areas. A customary right of occupancy is granted by the local government over land in rural areas. Both give you the right to use, occupy, and possess the land for a defined term. Neither gives you freehold ownership in the way buyers from the UK or US might expect. When people talk about a "Right of Occupancy" or "R of O" as a document, they usually mean the formal grant or allocation paper that precedes a full certificate.

Certificate of Occupancy (C of O)

The Certificate of Occupancy is the document that evidences a statutory right of occupancy. It is issued by the state government for urban land, confers a right of occupancy for a term not exceeding 99 years, and is renewable. It is the strongest individual title most buyers will hold. The key point foreign buyers miss: there can only be one C of O over a parcel, held by the original grantee. When that land is sold, the buyer does not get a new C of O. The buyer steps into the remaining years of the existing title and must obtain Governor's Consent to make the transfer valid.

Governor's Consent

Section 22 of the Land Use Act requires the governor's consent before any holder of a statutory right of occupancy can transfer, assign, mortgage, or sublease that land. Section 26 makes any transaction that violates the Act null and void. In plain terms: if you buy land that already has a C of O and you do not obtain Governor's Consent, the law treats the sale as void, regardless of how much you paid or what receipts you hold.

Governor's Consent must be obtained every single time the property changes hands. If you are the fourth buyer of a plot, the chain of consent should run through all prior transfers. To obtain it you apply to the state land bureau, submit the Deed of Assignment and supporting documents, and pay fees that typically run 3 to 5 percent of the property value. Skipping this step to save money is the most expensive false economy in Nigerian real estate.

Deed of Assignment

A Deed of Assignment is the contract that transfers the seller's interest to you. It does not create a fresh 99-year term. It assigns the remaining years of the existing right of occupancy. To be effective it must be properly executed, stamped under the Stamp Duties Act, and registered at the state land registry under the relevant Land Instruments Registration Law. An unregistered, unstamped deed is weak evidence and can be defeated by a later registered interest. The deed is your property title; the C of O is the land title underneath it. You need both layers to truly own the building and the ground it sits on.

Excision and Gazette

Much of the land sold by communities and families, especially around Lagos, falls under a different track. When the government has acquired large areas, it can release portions back to the original communities through a process called excision. Once excised, the land is published in an official government gazette that records the community name and the boundaries of the released parcel. A gazette is a valid title in its own right, and from a gazetted parcel a holder can then apply for a C of O or Governor's Consent. Unlike a C of O, excision does not expire after 99 years. If a developer is selling community land without showing you the excision and the gazette, the land may still legally belong to the government, and your purchase is worthless.

Survey plan and the registry

Every legitimate parcel has a registered survey plan with precise coordinates. In Lagos this is checked against the state land registry; in Abuja it runs through the Abuja Geographic Information Systems (AGIS). Before buying, your lawyer should cross-check the plot number and coordinates against the registered survey to confirm the land is not under government acquisition, not double-allocated, and not subject to an existing encumbrance. This single search defeats most fraud.

What this means for foreigners specifically

The Land Use Act restricts foreign ownership. Foreigners are generally granted only temporary occupancy rights for approved projects, and most states require the governor's approval before an alien can hold an interest in land. In practice, foreign and diaspora buyers almost always hold property through a company registered in Nigeria with the Corporate Affairs Commission, which is treated as a Nigerian legal person. This structure is standard, legal, and worth setting up properly with a Nigerian solicitor rather than buying in a personal name and discovering the restriction later.

The order of priority for any foreign buyer is simple. Confirm the underlying land title first (C of O or gazette), then confirm the transfer to you (a stamped, registered Deed of Assignment), then obtain Governor's Consent. A property is only as safe as the weakest link in that chain. Before you rely on a developer's word about its titles, verify the company's delivery record and whether its past buyers actually received clean, consented titles. Platforms like Bektu (https://bektu.com) let you check a developer's track record before you commit, which is the cheapest insurance available in this market.

Sources

- Land Use Act, full text, Laws of Nigeria

- Understanding the Land Use Act in Nigeria, Mondaq

- Land Excision or Certificate of Occupancy: A Distinction with a Difference, Aluko & Oyebode

- Types of Land Titles in Nigeria, Resolution Law Firm

- Procedure for Certificate of Occupancy in Nigeria, Mondaq

- Can Foreigners Own Land in Nigeria, Eko Solicitors