Land Use Act 1978 Explained: What It Means for Land Buyers

The Land Use Act 1978 is the Nigerian law that vests all land in each state in the Governor, to hold in trust for the benefit of all Nigerians. Since the Act came into force, nobody owns land outright: people hold rights of occupancy, which can only be transferred with the Governor's consent (or a local government's approval for customary rights) and can be revoked for overriding public interest. For a land buyer, this law explains why a C of O, a deed of assignment and the Governor's consent matter.

What is the Land Use Act 1978?

The Act was made in 1978 to unify land holding across the country. Its long title describes its aim: vesting land in each state in the Governor, who allocates urban land, while local governments deal with land outside urban areas. Land held by the federal government or its agencies is excluded.

The Act is short, but its effect on everyday transactions is enormous. Every sale of land, every mortgage and every sublease of a right of occupancy in Nigeria passes through its rules.

What does the Land Use Act say? The key sections

Section 1: land is vested in the Governor

All land in the territory of each state, except land vested in the federal government or its agencies, is vested in the Governor of that state and held in trust for the use and common benefit of all Nigerians.

Sections 2 and 3: urban and non-urban land

Land in urban areas is under the control and management of the Governor; other land is under the local government where it lies. The Governor designates urban areas by order published in the State Gazette. Each state has a Land Use and Allocation Committee advising the Governor, and each local government has a Land Allocation Advisory Committee.

Section 5: statutory rights of occupancy

The Governor may grant statutory rights of occupancy for any purpose, fix and revise rent, and impose penal rent for breaches. When a statutory right is granted, all existing rights to use and occupy that land are extinguished.

Section 6: customary rights of occupancy

Outside urban areas, local governments may grant customary rights of occupancy for agriculture, residence, grazing and other purposes. A single grant may not exceed 500 hectares for agriculture or 5,000 hectares for grazing without the Governor's consent.

Sections 7 to 10: who can hold a right, and the certificate

• The Governor cannot grant a statutory right, or consent to its assignment or sublease, to a person under 21, except through a guardian or trustee (section 7).
• A right granted by the Governor is for a definite term and may be subject to a special contract (section 8).
• The Governor may issue a certificate of occupancy as evidence of a statutory right (section 9).
• Every certificate carries implied terms, including payment of the rent fixed by the Governor (section 10).

Sections 14 and 15: what the holder can do

The holder has exclusive rights to the land against everyone except the Governor, subject to the Act, to existing rights such as way leaves and pipelines, and to any special contract (section 14). The holder has sole right to the improvements on the land during the term, but may transfer or mortgage them only with the Governor's prior consent (section 15).

Sections 21 to 23: alienation and consent

• A customary right may not be alienated by assignment, mortgage, transfer of possession, sublease or otherwise without the approval of the local government, or the Governor's consent in the case of a court-ordered sale (section 21).
• A statutory right may not be alienated in any of those ways without the Governor's consent first obtained (section 22). The Governor may ask for the signed instrument so that consent can be endorsed on it.
• A sub-underlease also needs the Governor's consent and the holder's approval (section 23).

Section 26: void transactions

Any transaction or instrument that purports to confer an interest in land other than in accordance with the Act is null and void.

Sections 28 to 33: revocation and compensation

The Governor may revoke a right of occupancy for overriding public interest (section 28). For a statutory right, that includes alienation contrary to the Act, land required for public purposes by the state, local or federal government, and land required for mining or oil pipelines. A statutory right can also be revoked for breach of its implied terms or of the conditions in the certificate. Revocation must be signed by an authorised public officer and notified to the holder.

Where land is revoked for public purposes, compensation (section 29) covers the unexhausted improvements, not the market value of bare land: buildings are valued at replacement cost less depreciation, crops at prescribed rates, and the land itself by reference to the rent paid in the year of revocation. Disputes go to the Land Use and Allocation Committee (section 30). For a revoked residential building, the Governor or local government may offer resettlement in other accommodation instead of compensation (section 33). Revocation for mining or oil pipelines is compensated under the Minerals and Mining Act or the Petroleum Act (section 29(2)).

Sections 34 and 36: land held before 1978

Developed urban land held before the Act continues to be held as if under a statutory right, and the holder may apply for a C of O (section 34). Undeveloped urban land was limited, as a rule, to one plot of up to half a hectare, with the excess passing to the Governor. Similar transitional rules apply to non-urban land used for agriculture or developed before the Act (section 36).

Section 47: limits on court review

Courts may not inquire into the vesting of land in the Governor, the Governor's power to grant statutory rights, a local government's power to grant customary rights, or the amount or adequacy of compensation paid under the Act. It does not list revocation itself, and section 39 gives the High Court exclusive original jurisdiction over land held under a statutory right of occupancy.

Section 51(2): the Federal Capital Territory

In the FCT, and for land vested in the federal government, the Governor's powers are exercised by the President or a Minister designated by the President.

What does the Land Use Act mean for a land buyer?

You are buying a right, not the soil itself

When you buy a plot, you acquire the seller's remaining right of occupancy for the unexpired term. Check the term and conditions on the seller's certificate of occupancy or other root of title.

Consent is part of the deal, not a formality

Because of section 22, a sale of a statutory right needs the Governor's consent. Under section 26, an instrument that does not comply with the Act is void, and under section 28, alienation contrary to the Act is a ground for revocation. Section 20 also allows the Governor, instead of revoking the right, to demand an additional penal rent for each day the land is in the possession of anyone other than the holder after a breach of section 22 or 23. In practice, the sale is documented by a deed of assignment, then perfected through consent, stamping and registration at the state land registry.

A power of attorney does not replace the consent process

Some sellers offer an irrevocable power of attorney instead of a deed of assignment. Nigerian courts, following the Supreme Court in *Ude v Nwara*, have held that a power of attorney is a delegation of authority, not a document of title. It does not make you the holder of the land.

Government acquisition can override a private sale

Land required for public purposes can be acquired by revocation, with compensation limited to improvements. Before you pay, have the survey plan charted to confirm the land is not under government acquisition, and run a search at the land registry.

How does a buyer stay safe under the Land Use Act?

• Ask the seller for the root of title: C of O, registered deed with consent, or evidence of a customary right with local government approval.
• Run a search at the state land registry and a court search.
• Have an independent surveyor check the land and chart the survey plan.
• Sign a deed of assignment prepared by a conveyancing lawyer.
• Apply for the Governor's consent, then stamp and register the deed.
• Keep paying ground rent and respect the conditions of the right.

Online fraud follows the same patterns for land as for cars and phones; our guide to avoiding online scams in Nigeria and Kenya lists the warning signs. For plot measurements, see our guide to plot sizes in Nigeria.

Where can I find land for sale in Nigeria?

Browse land and property listings on AfricaSoco and talk to sellers directly on WhatsApp or by phone. AfricaSoco does not check titles, so apply every step above before paying. If you hold a plot with clean papers, post a free property ad and state which title you hold.