WHAT YOU NEED TO KNOW ABOUT THE NIGERIAN LAND USE ACT AND PROPERTY TRANSACTIONS

This article offers a practical guide to understanding the Land Use Act and what it means for everyday Nigerians looking to buy, sell, or invest in real estate. Whether you're dealing with bare land, developed property, or communal land, understanding this law is critical to avoiding setbacks and securing lasting ownership.

In a country as vast and diverse as Nigeria, land holds deep cultural, economic, and emotional value. However, what many aspiring property owners don't realize is that beneath every successful transaction lies a web of legal frameworks that govern ownership, access, and usage. Chief among these is the Land Use Act of 1978, a landmark legislation that continues to shape land administration in Nigeria to this day.

Understanding the Land Use Act: The Basics

The Land Use Act was enacted in 1978 to centralize and standardize land management across Nigeria. Before then, land ownership was largely governed by customary systems, which varied from one region or ethnic group to another. This lack of uniformity often led to disputes and overlapping claims.

With the introduction of the Act, control over all land within a state was vested in the hands of the state governor, who holds the land in trust for the citizens. This means that individuals and entities can't “own” land in the absolute sense but can be granted rights of occupancy—either statutory or customary—depending on the location and nature of the land.

This shift in ownership structure dramatically altered how land is acquired, transferred, and developed, making legal awareness and documentation non-negotiable for any serious investor.

Implications of the Land Use Act for Property Transactions

The Land Use Act affects property transactions in more ways than most people realise. Its requirements influence not just how land is acquired but also the steps needed to maintain valid ownership. Here are key implications every property investor should consider:

1. You Need Government Consent for Most Transactions

Any transfer of land interest—whether by sale, gift, lease, or mortgage—requires the approval of the governor of the state where the land is located. This step, known as Governor's Consent, is not just a formality; it is a legal requirement. Failing to obtain it means the transaction is technically incomplete and could be nullified in court.

2. Title Documentation Must Align With Legal Requirements

In Nigeria, a Certificate of Occupancy (C of O) or a Right of Occupancy (R of O) does not automatically translate to full ownership. These documents must be properly issued, registered, and accompanied by all other supporting documents to hold legal weight. The Act mandates a clear process for documenting transfers, and any shortcuts—however common—can lead to future disputes or invalidation.

3. Customary Land Transactions Must Be Formalized

In many parts of Nigeria, especially rural areas, land is still allocated based on traditional practices. While the Land Use Act recognizes customary rights, it also insists that such transactions be documented and converted into formal occupancy rights. If you've acquired land through a community, family, or traditional ruler, you'll need to process proper documentation with the relevant government authorities to gain full legal protection.

While the Land Use Act was designed to bring order, it has also introduced new risks—particularly for uninformed buyers. Avoiding these pitfalls can save you from legal trouble and financial loss.

Inadequate Documentation

Many property transactions are carried out informally, especially in areas with weak institutional oversight. However, incomplete or improper documentation can render a transaction legally ineffective. Whether it's a missing consent letter, unregistered deed, or absent survey plan, gaps in documentation can invite challenges—even years after purchase.

Buying Without Verifying Occupancy Rights

A seller may present convincing documents and yet lack legal ownership if the land was not properly allocated or transferred in the first place. Some individuals sell land they merely occupy without a legitimate title, while others use fake or expired documents. It's important to verify that the seller holds a legally recognized right of occupancy and that the land in question is not under dispute, acquisition, or encumbrance.

Ignoring Local Land Policies and Restrictions

The Land Use Act allows each state to implement its own policies for land use and development. This means that what is allowed in one state may be restricted in another. Buyers must ensure that the land they're acquiring complies with the zoning and planning regulations applicable in that particular location. A lack of compliance can lead to fines, revoked approvals, or demolition.

What to Do Before You Commit to a Land Transaction

Given the weight of legal responsibility that comes with land acquisition in Nigeria, buyers must be proactive and intentional. Here are key actions to take before finalizing any deal:

• Verify the seller's authority to transfer the land and ensure the documentation is consistent with government records.
• Conduct a legal search at the relevant land registry to confirm the authenticity of the title and ensure there are no disputes, mortgages, or government interests.
• Understand the purpose for which the land is approved and whether it aligns with your intended use.
• Seek legal guidance to help draft and review contracts, ensuring compliance with the provisions of the Land Use Act.
• Ensure the transaction is properly registered and documented to protect your interest.

How PREX Makes It Easier

Understanding the legal landscape is one thing—navigating it is another. That's where prexmarket comes in. Through our digital platform, buyers and sellers can enjoy a simplified, secure, and fully compliant transaction process.

✅ PREX Search

Instant access to verified land records is just a click away. By selecting “Search Title” on any listed property, users can perform a secure title check, obtain seller consent, and receive detailed reports—all in minutes.

PREX Transact

From initiating the sale to signing digital agreements and registering the transaction with the government, PREX Transact handles every step of the property transfer process—transparently, efficiently, and legally.

Conclusion

Understanding the Nigerian Land Use Act is not just about legal compliance—it's about protecting your investment, avoiding unnecessary disputes, and building confidence in your property decisions. Whether you're a first-time buyer or a seasoned investor, navigating land transactions the right way starts with knowledge, due diligence, and the right tools.

Let prexmarket be your guide. Visit www.prexmarket.com to explore verified property listings, run secure searches, and carry out transactions with peace of mind.

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