For real estate investors in Nigeria, Land Disputes and Litigation in Nigeria must not be an afterthought. Whether you’re acquiring land in Lagos, Abuja, or elsewhere, the risks of property disputes in Nigeria are very real: overlapping claims, unclear title documents, and conflicting customary tenure systems. Navigating litigation or other dispute-resolution mechanisms is therefore essential.
This article gives a clear, educational yet authoritative overview of how property acquisition, ownership, and documentation work under Nigerian land law, so you can invest with confidence.
Why Land Disputes Occur in Nigeria
Disputes over land in Nigeria often surface for several recurring reasons, particularly relevant for investors. These include:
- Ownership conflicts: This happens where the same parcel is sold multiple times or title documents are unclear or incomplete.
- Boundary disputes: This involves disagreements about exact parcel lines, particularly where survey or demarcation is weak.
- Trespass: In this case, a third party enters or uses the land without legal authorization.
- Inheritance disputes: This is a situation where beneficiaries claim land under customary tenure, and statutory documents are absent.
- Revocation of rights: In this case, the government may withdraw a right of occupancy under the Land Use Act 1978 (LUA) without due process.
- Customary vs statutory tenure conflicts: This occurs especially in rural areas where customary land ownership still prevails and may clash with statutory systems.
For you as an investor, each of these risks means extra due diligence. Clear title and documented ownership are non-negotiable.
Legal Framework Governing Land Disputes
Understanding the legal structure helps you evaluate risk and operate confidently when investing in Nigerian real estate.
1. The Land Use Act 1978
- Under the Act, “all land” in a state vests in the Governor of that state to hold in trust for the people.
- Section 28 allows a Governor (or, in the Federal Capital Territory, the Minister) to revoke a right of occupancy for overriding public interest or a breach of conditions attached to a grant.
- Section 29 deals with compensation for “unexhausted improvements” where revocation happens under some circumstances.
- Importantly, the procedure must be strictly followed: notice, reason, compensation, where applicable.
2. The Constitution of the Federal Republic of Nigeria (1999, as amended)
- Section 43 guarantees the right of every citizen to acquire and own immovable property anywhere in Nigeria.
- Section 44(1) prohibits compulsory acquisition of property without due process, prompt payment of compensation, and access to a court for redress.
3. Customary Land Tenure
In many rural and peri-urban areas, land is still held according to customary laws. Disputes often arise when statutory documentation is absent. For example, a family may sell customary land without all the necessary family/community consent. Understanding both statutory and customary systems is key for investors.
4. Judicial Precedents
The courts have emphasised that revocation under the Land Use Act must strictly comply with statutory requirements. For instance, a court nullified the revocation of a title in Edo State on the ground that due process under the Land Use Act was not followed.
What Evidence is Required in Land Disputes
When you invest in land, proper documentation is your protection. Courts will look for credible evidence of ownership or rights. Typical evidence includes:
- Title documents: Certificate of Occupancy (C of O), Deed of Assignment, Deed of Lease.
- Survey plans: clearly demarcated parcel boundaries.
- Receipts of payment: proof that the seller or prior owner paid for the land.
- Customary evidence: testimonies from family/community leaders about customary ownership.
- Judicial records: previous court judgments or rulings regarding the land.
As an investor, you should insist on all relevant documentation before purchase. That helps minimise the risk of later litigation.
Jurisdiction: Which Court Handles Land Disputes?
Understanding where to bring or defend a claim is important for dispute resolution.
| Court | Type of dispute |
|---|---|
| State High Courts | Disputes rooted in customary land tenure provided value falls within their jurisdiction. |
| Customary Courts | Handle disputes involving customary land tenure, provided the value of the land falls within their jurisdiction. |
| Federal High Courts | Do not have jurisdiction over land disputes unless the case involves the Federal Government or its agencies. |
For you, if there’s a dispute about title or ownership of commercial land, anticipate litigation in the State High Court of the relevant state.
Dispute Resolution Mechanisms
Land disputes don’t always mean a full court trial. There are multiple mechanisms:
Negotiation & Mediation
Parties can often reach an agreement with the help of legal counsel, community elders, or mediation services. This is often the most cost-effective and least adversarial.
Arbitration
If parties have agreed in advance, arbitration can be an alternative to court. For investors, arbitration clauses in contracts are a useful way to manage risk.
Litigation
The court process remains the ultimate remedy if negotiation fails. The court will determine ownership or rights based on evidence.
Administrative Remedies
For revocations under the Land Use Act, appeals may lie to the Governor or relevant land agency, and ultimately to the court. For example, where a right of occupancy is revoked, the landholder may contest the procedure, grounds, or compensation.
Available Remedies in Land Disputes
When a dispute proceeds to litigation, the court may grant the following remedies:
- Declaration of title: Confirming who legally owns the land.
- Injunctions: Preventing parties from entering or developing the land pending resolution.
- Damages: Compensation for trespass, loss of use, and destruction of property.
- Restitution: Returning the land to the rightful owner.
For example, a court in Edo State awarded a declaration that revocation was invalid and damages because the government entered onto land without due process.
Challenges in Land Dispute Litigation
Investing in land in Nigeria involves facing certain systemic challenges:
- Lengthy court processes: Disputes can take years to resolve.
- Inadequate documentation: Many buyers and sellers lack full title documentation.
- Overlapping claims: Customary tenure versus statutory documents may conflict.
- Corruption or undue influence: Though unlawful, these factors may delay or complicate resolution.
As an investor, you must build in buffer time and cost contingency when land disputes may arise and plan for alternative dispute resolution.
Practical Tips for Avoiding Land Disputes
Here are actionable steps for real estate investors:
- Conduct thorough due diligence: Verify ownership history and title before purchase.
- Hire professionals: Lawyers, surveyors, and estate agents all have a role in making sure documentation is sound.
- Obtain proper title documentation: Secure a C of O or equivalent recognized document.
- Respect customary law: In areas under customary tenure, ensure family or community consent is obtained.
- Check for government compliance: Ensure the land was not subject to revocation or public-interest claims under the Land Use Act.
- Maintain records: Keep evidence of all payments, survey plans, assignments, and official approvals.
These steps help reduce the risk of being caught up in property disputes or land litigation in Nigeria and of having to settle land cases.
Implications for Property Acquisition, Ownership & Documentation
For you, as a real estate investor in Nigeria:
- Ownership is not simply possession; title matters. The Land Use Act vests land in the Governor but grants rights of occupancy to individuals.
- A C of O is a critical document: it evidences a grant and defines terms, including the purpose of the land.
- Documentation must be registered and reference survey plans.
- If you buy land under customary tenure, conversion to statutory title is often advisable to reduce risk.
- Before purchase, check whether the land has been subject to prior revocation attempts or public-interest claims.
- Ensure that the purchase contract, deed of assignment, and registration are properly executed and recorded.
- Be aware that disputes may arise years later. So ensure your title is clean and your due diligence is comprehensive.
Conclusion
The topic of Land Disputes and Litigation in Nigeria is not academic. It has direct implications for your investment strategy and legal risk. Whether you’re acquiring land for development, holding it for capital appreciation, or leasing it out, the right legal framework and documentation make the difference between a profitable foothold and costly litigation.
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- Land Sale Agreement in Nigeria & Essential Clauses
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.
