The Land Use Act 1978 is the law behind every land title in Nigeria. It vests all land in each state in the Governor, to hold in trust for the people, and replaces outright ownership with a right of occupancy. Every C of O, every Governor's Consent and every revocation notice traces back to it. This guide walks through what the Act does, section by section, in plain English. It is a general explanation, not legal advice: for a particular piece of land, use a property lawyer.
Why the Act was made
Before 1978, land in Nigeria was held under several systems at once: customary tenure controlled by families and communities, English-style freehold in Lagos and some other places, and state land in the North. Buying land meant dealing with whichever system applied, and disputes between family members, communities and buyers were common. The Act brought land in every state under one framework, with the Governor as trustee and the state and local governments as the bodies that grant rights over it.
What the Act does, in five points
- Vests land in the Governor (section 1). All land in a state belongs to the Governor in trust for the people of that state. Federal government land is the main exception.
- Splits control between urban and non-urban land (section 2). Land in areas the Governor designates as urban is controlled by the Governor. Other land is controlled by the local government.
- Creates rights of occupancy (sections 5 and 6). The Governor grants statutory rights of occupancy; the local government grants customary rights of occupancy over non-urban land.
- Requires consent for dealings (sections 21 and 22). A holder needs consent to sell, mortgage, transfer or sub-lease their right.
- Sets rules for revocation and compensation (sections 28 and 29). The Governor may revoke a right on specified grounds. Whether compensation is payable depends on the ground of revocation.
Rights of occupancy: what you actually hold
Under the Act nobody holds land outright. What a person or company holds is a right to use and occupy it, subject to the applicable law and grant conditions. Statutory grants have a definite term. There are two kinds.
| Statutory right of occupancy | Customary right of occupancy | |
|---|---|---|
| Granted by | The Governor (section 5) | The local government (section 6) |
| Usual land | Urban land, and any land the Governor grants | Non-urban land, often farmland |
| Evidence | Certificate of Occupancy issued by the state | Customary C of O or local government grant |
| Consent to sell or mortgage | Governor's Consent (section 22) | Local government approval for ordinary dealings; Governor's consent for sales under a court order (section 21) |
Our guide to the right of occupancy in Nigeria compares the two in more detail, and the Certificate of Occupancy guide explains the document that evidences a statutory grant.
Land held before 1978: deemed grants
Sections 34 and 36 preserve specified pre-existing interests as deemed rights of occupancy, subject to conditions. The position depends on whether the land was urban or non-urban and developed or undeveloped. A lawyer should check the holding and chain of title. Family land and old conveyances still matter, but a seller must show how the interest traces back to the family's holding.
Consent: why it sits in the middle of every sale
Section 22 says the holder of a statutory right of occupancy may not assign, mortgage, transfer possession of, or sub-lease it without the Governor's consent. Under section 21, ordinary dealings in customary rights need local government approval. A sale by or under a court order under the Sheriffs and Civil Process Law requires the Governor's consent. A dealing without the required approval can be challenged.
In practice, this is the reason a land purchase does not end when the money is paid. The deed of assignment is signed, then the buyer applies for Governor's Consent, and only then is the deed stamped and registered. Banks lending against property ask for the same consent before they release a mortgage.
Revocation and compensation
Section 28 lets the Governor revoke a right of occupancy on specified grounds. These include overriding public interest, such as public acquisition, mining, oil pipelines and unauthorised dealings. The section also permits revocation for breaches of grant conditions.
Revocation requires notice served on the holder. Compensation depends on the ground of revocation; it is not automatic when grant conditions have been breached. For acquisitions covered by section 29, the assessment includes unexhausted improvements, such as buildings and crops, and rent, if any, paid in the year of revocation. Mining and pipeline cases follow the relevant legislation. Check the Land Use Act text and ask a lawyer which provisions apply. Before buying, also check whether a plot is in a government acquisition area.
What the Act means for a buyer today
- Check the title, not the seller's word. The document that matters is the grant or deed recorded at the state land registry. Our list of land documents in Nigeria explains each one.
- Search for acquisition. Ask the state survey or lands office whether the land is under government acquisition or committed for public use before you pay.
- Budget time for consent. A purchase is complete only when consent is granted and the deed is registered. Plan for that wait, and do not treat payment as the end.
- Read the conditions of the grant. A C of O usually states its term, permitted use and a time within which to develop. Breaking those conditions is one of the grounds for revocation.
For a buyer's view of the same law, read what Nigerians actually own under the Land Use Act.
Why the Act is hard to change
The Land Use Act is written into the Constitution of the Federal Republic of Nigeria. Changing it needs the full procedure for amending the Constitution, not an ordinary act of the National Assembly. Proposals to reform it come up regularly, so confirm the current position with a lawyer when you act.
Frequently asked questions
What is the Land Use Act 1978?
The Land Use Act is the federal law that governs land across Nigeria. It vests all land in each state in the Governor of that state, to hold in trust for the people, and replaces outright ownership with rights of occupancy granted by the Governor (statutory) or by the local government (customary).
Can you own land outright in Nigeria?
Not in the old freehold sense. Under the Land Use Act, what an individual or company holds is a right of occupancy: the right to use and occupy land, subject to the applicable law and grant conditions. Statutory grants have a definite term. In practice a holder can build on, sell, lease and mortgage that right, with the consent the Act requires.
Why do I need Governor's Consent to buy land?
Section 22 of the Act says a holder of a statutory right of occupancy cannot assign, mortgage, transfer or sub-lease it without the Governor's consent. A transfer made without consent is not fully effective, which is why consent is part of perfecting a purchase.
Can the government take my land under the Land Use Act?
Yes, but only on the grounds the Act allows. Section 28 lets the Governor revoke a right of occupancy on specified grounds, including public acquisition and breach of grant conditions. Notice is required. Compensation depends on the ground of revocation: section 29 provides it for specified acquisitions, while mining and pipeline cases follow the relevant legislation. Compensation is not automatic for every revocation.
Can the Land Use Act be changed?
The Act is written into the Constitution of the Federal Republic of Nigeria, so it can only be amended through the procedure for amending the Constitution, not by an ordinary act of the National Assembly. Proposals to amend it have been raised many times; check with a lawyer for the position when you act.
Related guides
Right of occupancy · Certificate of Occupancy · Governor's Consent · Excision of land · Land documents in Nigeria
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