For real estate investors, land acquisition in Nigeria is one of the most critical and legally sensitive parts of property investment. Whether you are purchasing land for personal development, commercial purposes, or long-term investment, understanding the legal framework that governs property ownership is essential to protect your investment.
Land transactions in Nigeria are primarily governed by the Land Use Act of 1978, along with customary laws that apply in various regions. Together, these laws define ownership rights, acquisition processes, documentation requirements, and dispute resolution procedures.
This article breaks down, in clear and practical terms, how property transactions in Nigeria work, from statutory and customary acquisitions to registration and title perfection, so investors can make compliant, profitable, and legally secure decisions.
Understanding Land Acquisition in Nigeria
The process of acquiring land in Nigeria depends on whether it is statutory land (urban areas) or customary land (rural or community-owned areas). Each has its own set of procedures, authorities, and documentation requirements.
1. Statutory Land Acquisition
Under the Land Use Act, all land within a state is vested in the Governor, who holds it in trust for the people. This means private individuals or companies can only acquire a Statutory Right of Occupancy (SRO) from the Governor.
Key Steps:
- Application for Land Allocation
- Submit an application to the State Ministry of Lands.
- Attach a survey plan, identification documents, and any required fees.
- The Governor’s approval grants you an SRO over the land.
- Issuance of Certificate of Occupancy (C of O)
- The Certificate of Occupancy serves as evidence of legal ownership and the right to occupy land for up to 99 years.
- Governor’s Consent for Transfers
- Under Section 22 of the Land Use Act, you must obtain the Governor’s consent before selling, mortgaging, or transferring land already under a C of O.
- Registration at the Land Registry
- Every transaction must be registered at the State Land Registry to perfect the title and make it legally enforceable against third parties.
2. Customary Land Acquisition
Customary land is typically owned by families, clans, or communities, and transactions are governed by traditional norms rather than statutory law.
Key Steps:
- Negotiation with Family or Community Heads
- Ensure the consent of the family head and principal members before purchase.
- Customary Right of Occupancy (CRO)
- For rural lands, apply to the Local Government for a Customary Right of Occupancy.
- Proper Documentation
- Even if customary transactions are oral, always formalize them with a Deed of Assignment or Purchase Receipt to prevent disputes.
Types of Property Transactions in Nigeria
When it comes to buying land in Nigeria, investors encounter several transaction types — each with distinct legal implications and documentation requirements.
| Transaction Type | Description | Key Documents |
|---|---|---|
| Sale of Land | Outright transfer of ownership from seller to buyer. | Deed of Assignment, C of O, Survey Plan |
| Lease | Grants use of land for a fixed period in exchange for rent. | Lease Agreement (must be registered if over 3 years) |
| Mortgage | Land used as security for a loan. | Deed of Mortgage, Governor’s Consent |
| Gift | Voluntary transfer of land ownership. | Deed of Gift, Registration at Land Registry |
| Inheritance | Transfer of land by succession under statutory or customary law. | Probate or family confirmation (varies by region) |
Essential Legal Requirements for Land Purchase
Before concluding any land purchase or property transaction in Nigeria, investors must ensure compliance with the following legal and administrative steps:
1. Title Documents
Ensure the seller provides valid documents such as:
- Certificate of Occupancy (C of O)
- Deed of Assignment or Sublease
- Registered Survey Plan
- Gazette (for excised land)
2. Governor’s Consent
This is mandatory for all transfers, sales, or mortgages involving land under a Statutory Right of Occupancy.
3. Registration
Register all documents at the State Land Registry to legally perfect your title. Failure to register may render your ownership unenforceable.
4. Compliance with the Land Use Act
Comply with statutory obligations such as:
- Payment of ground rent and stamp duties
- Obtaining necessary approvals and permits
5. Observing Customary Law
For land under customary ownership, ensure all family or community members with an interest consent to the transaction. A single signature from a non-principal member can invalidate a sale.
Common Challenges in Land Acquisition and Property Transactions
Despite the laws in place, investors often face challenges in land transactions. Below are common pitfalls and how to mitigate them:
- Fraudulent Sellers: Conduct a land title search to verify ownership before payment.
- Omo Onile (Land Grabbers): Report harassment to the State Task Force on Land Grabbers, especially in Lagos and Ogun States.
- Unregistered Land: Always register your land to secure legal ownership.
- Government Acquisition: Avoid lands marked for public use or government projects — check the Master Plan or Gazette for verification.
Resolving Land Disputes in Nigeria
Land acquisition in Nigeria could lead to land disputes. They are common and can arise from issues like overlapping ownership claims or fraudulent sales. Here’s how they’re legally addressed:
A. Statutory Remedies
1. Court Action:
File a case at the High Court to establish ownership or enforce your rights. Courts recognize five methods of proving title (from Idundun v. Okumagba, 1976):
- Traditional ownership evidence
- Valid title documents
- Acts of ownership and possession
- Long possession
- Ownership of adjacent land
2. Injunctions:
Seek a court order to stop trespass or interference.
3. Compensation for Compulsory Acquisition:
If the government takes your land, you are entitled to adequate compensation under Section 44(1) of the 1999 Constitution and Section 28 of the Land Use Act.
B. Customary and Administrative Remedies
- Community Mediation: Local elders often mediate disputes under customary law.
- Arbitration: Some parties prefer arbitration for quicker resolution.
- Land Use and Allocation Committee: Handles issues relating to government-acquired lands.
Conclusion
Successfully navigating land acquisition in Nigeria requires thorough due diligence, strict adherence to legal compliance, and expert professional guidance. Whether dealing with statutory or customary land, always verify titles, obtain proper documentation, and register your transactions to secure your investment.
Other Articles On The Blog
- Land Ownership in Nigeria: Customary and Statutory Rights
- Taking A Sublease In Nigeria – Things To Note
Navigating property laws in Nigeria can be complex, but the right legal guidance makes all the difference.
At Scotts Legal, we provide expert support in property acquisition, title investigation, registration, and property management, helping real estate investors make confident, compliant, and secure decisions.
For consultations and inquiries, send us a message – here.
