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Critique of Nigerian Land Use Act of 1978

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ISSN 2321 3361 © 2021 IJESC

Research Article Volume 11 Issue No.06

Critique of Nigerian Land Use Act of 1978

Otty Emmanuela Uzoamaka1, Nwosu chiemezie Chisom2, Udobi Alexander Nnamdi3
Department of Estate Management
Nnamdi Azikiwe University, Awka Anambre State, Nigeria

Abstract:
This paper critically examines the Nigerian Land Use Act of 1978 and its impact on economic development. The paper also examine
the inherent problems of Land Use act as well as importance of the act since its inception. The economy of a country also depends on
land for its survivor. To make land in Nigeria available to all and to ensure that land is acquired and put to a proper use for the needed
development, governments during and after colonial period enacted the Land Use Act to govern the use or administration of land in
Nigeria. Land policy affects the economy of a nation either positively or negatively depending on how effectively the policy is
implemented. The Land Use Act was enacted in 1978 with the aim of improving economic development by ensuring effective and
equitable utilization of land and land resources in the country. However, achieving this objective has been hampered by two major
obstacles. The first is the inherent contradictions and defects in the law, and the second is institutional weakness and lack of political
will to implement the Act fairly and equitably. However, the Land Use Act of 1978 (LUA) has failed to achieve some of its
objectives. The failure is ascribed to problems inherent in the Act and poor implementation. To secure economic development and
easy access to land by both government and the citizens, the study recommend the amendment of certain provisions of the Act as well
as government to implement the amended version of the Act in a fair and equitable way.

Keywords: Critique, Land Use Act, 1978, Nigeria.

1.0. INTRODUCTION Nigeria, set up the Land Use Panel in 1977 with certain terms of
reference (Ojigi, 2012). The references were considered and
Land is one of the most controversial assets of nature, a resource adopted by the government which promulgated the Land Use
of primary importance upon which the whole economy of any Act, 1978. Land use Act is usually concerned with the
nation hinges; hence any policy on land affects the economy of legislation that provides the right to use of land in both urban
the nation positively or negatively depending on whether a right and rural areas of Nigeria. The right includes the rights of
or wrong policy is initiated. Land is said to be fragile and scarce. occupation and development, alienation and many privileges
This implies that it is not enough and difficult to acquire and associated with land. Virtually, every nation of the world relies
also human activities can damage or destroy the land resources. on land, all human activities are carried out on land which is the
It is short in supply and needed to be effectively utilized in order basic factor of production. The need to acquire land by man has
to satisfy the aspiration of those who acquired it. Land is the tremendously increased over the years. Prior to the promulgation
basic necessity of life which provides food, shelter, and of land use Act, Land is completely owned by individuals,
Livelihood to man (Oxford Advanced Learner's Dictionary families and communities with the head who hold the land in
2006; and Omeje, 2008).The economic, social and trust for the use of the entire people. But the advancement of
environmental future of our country depends on the wise use of land use Act of 1978 altered the existing land tenure and vested
land. It is construed that no development can be effective all lands in the government. Having observed all these in recent
without land. Thus, land without dimension of tenure is years, it is clearly understood that these goals has not in any way
meaningless concept. For available land to be equitably comes to reality rather the Act has been used to achieve personal
managed among the people and promote maximal use of it by goals and objectives by various past administrators and
prospective resource owners, there is need for a worthy land government of various levels. Another issue is that major
policy to be in place for effective control and management of objectives and purposes of the land use Act of 1978 has been
land in order to witness the desired development in Nigeria.Prior seriously deviated from, the aim of the land use Act was to solve
to 29th March, 1978 when the Land Use Act was enacted, there the diversified land policies in Nigeria and ensuring an easy
were land laws which governed land tenure systems in Nigeria. accessibility of all Nigeria to land but in today's concept, land
These laws were in use in the country and were later found to be has been shared among highest bidders and buyers(Okafor and
substandard because despite their existence, the problems of Nwike 2016).Damilola(2020) stated that the Land Use Act in
land tenure continued in Nigeria. One major problem was the Nigeria is one of the important laws that need to be understand
difficulty in obtaining land by the government in major urban either as a land-owner or land-owner to be. Activities of land
centers for national development because of land speculations, grabbers, scam agents and the number of professionals required
racketeering and high cost of compensation usually demanded are some of the biggest challenges in legitimately and
by the land owners whenever government acquired land to successfully acquiring a land in Nigeria. The Nigerian Land Use
execute its projects (Public land decree, 1976). Against this Act 1978 is the principal legislation that regulates contemporary
background, the Federal Government in a deliberate effort to land tenure in Nigeria. Upon its enactment, the law brought
unify land tenure, streamline and simplify ownership of land in about radical, if not revolutionary, changes in the erstwhile land

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tenure systems in the country (Land Use Act, 1978). The law occupancy were to be granted by the Governor and related
was aimed, among other things, at reducing unequal access to principally to urban areas. In contrast, a customary right of
land and land resources, a situation that had caused a great deal occupancy, according to the Decree, ‘means the right of a person
of hardship to the citizenry. Massive and unfettered access to or community lawfully using or occupying land in accordance
land and land resources by the citizens could stimulate the with customary law and includes a customary right of occupancy
needed economic growth in an economy that depends heavily on granted by Local Government under this Decree.’ Local
agriculture and mineral resources. The Land Use Act was governments were empowered to grant customary rights of
equally targeted at reducing the high cost of land required for occupancy to any person or organization (for mining, oil and
industrial estates and mechanized agriculture. For these reasons, gas), residential and other purposes with the provision that
the law appeared to nationalize land when it placed it in the grants land for agricultural or grazing purposes should not
hands of the government as a custodian, to hold in trust and exceed 500 or 5000 hectares respectively without the consent of
administer for the use and common benefit of all Nigerians. the State Governor (Omotola, 1985). With the minor exception
However, after more than three decades of the operation of the of land subject to Federal or State claims, the Decree also
law, it is apparent that most of the problems it sought to cure empowered the local government to ‘enter upon, use and occupy
have resurfaced and certain provisions of the law have for public purposes any land within the area of its jurisdiction’
themselves worked hardship on the citizens and tended to and to revoke any customary right of occupancy on any such
impede economic development, which the Act initially sought to land (Adegboye, 1987). Under the Land Use Act 1978, all land
stimulate(Nwocha, 2016). This paper examines Land Use Act in Nigeria is vested in the government. Nigeria operates two
and its impact on economic development in the country. systems of land tenure. They are; customary and non-customary
(statutory) system of land tenure. Customary land tenure system
2.0.LITERATURE REVIEW is a system of landholding indigenous to the people, and Local
governments may grant customary rights of occupancy to land in
2.1Land Use Act of 1978 any non-urban area to any person or organization for
The Land use act (formerly called the Land Use Decree) was agricultural, residential, and other purposes, including mining,
promulgated on 29th of March 1978. According to Chapter 202 oil and gas extraction (Land Use Act, 1978). In the statutory
of the Laws of the Federation of Nigeria 1990, the Land Use Act tenure system, individuals and entities can obtain a statutory
is“An Act to Vest all Land compromised in the territory of each right of occupancy for urban and non-urban land (Land Use Act,
State (except land vested in the Federal government or its 1978). Statutory occupancy rights are granted for a definite
agencies) solely in the Governor of the State , who would hold term, which is set forth in the certificate. The Land Use Act,
such Land in trust for the people and would henceforth be promulgated in 1978, was motivated by the need to make land
responsible for allocation of land in all urban areas to accessible to all Nigerians; prevent speculative purchases of
individuals resident in the State and to organisations for communal land; streamline and simplify the management and
residential, agriculture, commercial and other purposes while ownership of land; make land available to governments at all
similar powers will with respect to non-urban areas are levels for development; and provide a system of government
conferred on Local Governments (27th March 1978) administration of rights that would improve tenure security
Commencement.” Prior to the enactment of the Land Use Act in (Ukaejiofo, 2008). To achieve the foregoing objectives of the
1978, there were three main sources of land law: Customary Act, various provisions are made in the law to fast-track a
Law (varied from custom to custom), English received law seamless administration and implementation of the policy of the
(which comprises of the common law, doctrine of equity and Act. However, after 40 years of implementing and administering
statues of general application), and local legislation(Oseni, the Act, one could say that the Act has failed to achieve its set
2011).The Parliament of the then northern Nigeria passed the objectives. It is well-known, for instance, that the Act divests
Land Tenure Law in 1962, which governed all interest affecting citizens’ freehold title to their land. And, of course this is
land. In the then Southern Nigeria, however, customary system antithetical to their economic prosperity as land ceased from
of land tenure governed land interest and land was owned by being an article of commerce upon the commencement of the
communities, families and individuals in freehold (Bolaji, 2011). Act (Nwocha, 2016). Administratively, the Act created a
Land was acquired either by inheritance, first settlement, monstrous fiefdom in the governor of the state and confounded
conveyance, gift, outright purchase or long possession, as such, the roles of the local government and state in land administration
causing conflicts and violence in terms of ownership. The Land in Nigeria.
Use Decree was promulgated on 29 March, 1978 following the
recommendations of a minority report of a panel appointed by 2.2 Objectives of the Land Use Act
the Federal Military Government to advice on future land policy Nwocha, (2016) stated that the Land Use Act aims principally at
(Adegboye, 1987). The land use act distinguishes throughout the effective and sustainable management and control of land in
between urban and non-urban (hereafter ‘rural’) land. In urban Nigeria particularly in a manner that gives government sufficient
areas (to be so designated by the Governor of a state), land was powers over the acquisition, transfer or otherwise assignment of
to come under the control and management of the Governor, land and land resources. There are a number of objectives,
while in rural areas it was to fall under the appropriate local which the Act sought to accomplish, and these may be
government(Udo, 1985). Famoriyo (1972) stated that the Decree encapsulated for the sake of clarity. First, the Act was intended
envisaged that ‘rights of occupancy’, which would appear to to curb land speculation, which accounted for the astronomical
replace all previous forms of title, would form the basis upon rise in land values especially in urban areas. It was believed then
which land was to be held. These rights were of two kinds: that once ownership of land was vested in the government,
statutory and customary (Udo, 1985). Statutory rights of speculators would be forced out of business and government
would then be able to stabilize the value of land. Second, the Act

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was intended to assist the citizenry irrespective of their social most important provision in the Act as it vests the radical title in
status to realize their ambitions or aspirations of owing the place all land in the territory of a State in the Governor of that State. In
where they and their families would live a secure and peaceful effect, the ultimate ownership rights, which hitherto rested on
life. Third, investing ownership of land in government sought to individuals, families or communities, especially in southern
remove the difficulty which government encountered in Nigeria, shifted to the Governor as trustee for the benefit of all
acquiring land for public purposes. Fourth, the Act intended to Nigerians. However, upon the commencement of the Act,
harmonize the tenure systems throughout the country especially certain parcels of land within the territory of a State were
in the southern part of the country which lacked a coordinated excluded from the authority and control of the Governor by the
and formalized tenure arrangement as was the case in the North operation of section 49(1) of the Act. These were parcels of land
under the Land Tenure Law 1962 (Land Tenure Law, 1962). In owned or controlled by the federal government or any agency of
most parts of the South, the situation gave rise to multiple and the federal government. Having vested title, control and
endless litigations, which hampered economic development management of land in the state on the Governor, the Act
especially as it concerned the location of industries, the siting of specified that the interest or title, which an individual citizen can
infrastructural projects such as hospitals, schools, and the have over land, is a right of occupancy. This power of the
operation of mechanized agriculture. These problems, among Governor is consolidated by a community reading of sections
others, were expected to be eliminated or at least drastically 5(1) and (2), 22 and 28 of the Act. Section 5(1) gives the
reduced by the enactment of the Land Use Act. Ega (1985) Governor legal authority to grant statutory rights of occupancy
stated thatthe primary objective of the Act is to facilitate rapid to any person for all purposes. Section 22 makes it unlawful for
economic and social change in the country through efficient land any holder of a statutory right of occupancy granted by the
use. The immediate aims include prevention of land Governor to alienate such right or any part thereof by
concentration in both the rural and urban sectors of our assignment, mortgage, transfer of possession, sub-lease or
economy, control of land transactions, land prices and land otherwise howsoever without the consent of the Governor first
speculation, and the facilitation of access to land for the state as had and obtained. Section 28(1) on the other hand, empowers
well as private individuals and thereby remove a cause of socio- the Governor to revoke a right of occupancy for overriding
economic inequality. The Land Use Act was enacted to satisfy public interest while section 5(2) extinguishes all hitherto
the need for larger areas of land for agriculture and non- existing rights to the use and occupation of land, which is the
agricultural purposes; end racketeering and the unending subject of statutory right of occupancy (Land Use Act, 1978). If
litigations in land transactions due to rising demand for land; the object of attaining economic development and prosperity in
checkmate traditional land ownership that had constituted barrier Nigeria were to be attained by placing the control and
to national development programmes; prevent a situation where management of land in the hands of the government, the Land
on the death of a land occupier, inheritance problems arose in Use Act could well have been a great success but as the
the form of excessive subdivision of holdings; carter for the subsequent analysis reveals, this unfortunately, is not the case.
need for sustained security of rights to land in matters of
duration, compensation and alienation of rights in land and 2.4Problems of Land Use Act
sharpen governments sensitivity to a system in which only the One of the central objectives of the Land Use Act is to make
rich, powerful and influential own land (Anyanwu, Oyefusi and land readily available at an affordable rate to all Nigerians. The
Oaikhenan, 1997). stated objectives of the Land Use Act have not been achieved
because of the problems inherent in the Land Use Act and the
The Land Use Act itself gave an umbrella objective that it problem of implementation. The problems inherent in the Land
desires to achieve when it stated in its preamble that: Use Act are the lack of implementation guidelines, the
i. Whereas it is in the public interest that the rights of all entrenchment of the LUA in the Constitution, the inalienability
Nigerians to the land of Nigeria be asserted and preserved; of land in rural areas, the vesting of all land for the use and
ii. And whereas it is also in the public interest that the rights of collective benefit of Nigerians only, inadequate compensation
all Nigerians to use and enjoy land in Nigeria and the natural provisions, compensation outside the jurisdiction of courts,
fruits thereof in sufficient quantity to enable them to provide for clarity regarding rights to land for grazing purposes, and the age
the sustenance of themselves and their families should be of the Act. The problem of implementation lies in the abuse of
assured, protected and preserved; power by the governor, the inefficient public service and too
iii. Now therefore, the federal military government hereby much bureaucracy, and a lack of political will. Institutional
decrees as follows. weakness is seen as the cause of the astronomical rise in land
value and the increase in land speculation in Nigeria.
2.3 Achieving the Objectives of the Act
The central objective of the Act, is to invest ownership of land in 2.5 Importance of the Land Use Act
the government which then shall apply it equitably for the As a result of importance and usefulness of land to man as well
benefit of all Nigerians and for the country’s economic and as the development of his society, every person generally desires
social development. The principle of State ownership under the to acquire and own a portion of land to achieve the various ends
Act is asserted in section 1, which provides as follows: Subject for which the land is meant. Damilola(2020) opined that Land
to the provisions of this Act, all land comprised in the territory Use Act bothers majorly on ownership rights. If a land is
of each State in the Federation are hereby vested in the acquired by a person without a Certificate of Occupancy, the
Government of that State and such land shall be held in trust and land is not his, what the person has is a lease. He never have a
administered for the use and common benefit of all Nigerians in freehold because the government can seize his land or property
accordance with the provisions of this Act. This section is the without any form of compensation. The power to do this rests

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within the Land Use Act, which reads: “All the rights formerly intent of immediate or future use, but to tie it down in order to
vested in the holder in respect of the excess of the land shall in obtain high prices for a future sale to another person.
the commencement of this Act be extinguished and the excess of iv. Reduction in boundary disputes, the number, and frequency
the land shall be taken over by the Governor and administered as of court cases of land ownership since the survey of acquired
provided in this Act.” Under the Land Use Act, the governor is land is mandatory for occupancy right to be granted.
responsible for allocation of land in all urban areas to v. Allowing for easy acquisition of land for agricultural use as it
individuals’ resident in the state or to organizations for provides farmers with not more than 500 hectares of land for
residential, agricultural, commercial and other purposes while crop production or 5000 hectares of land for grazing.
similar powers with respect to non-urban areas are conferred on
the Local Government. The act altered the existing land laws in Disadvantages of the Land Use Act
the Southern part of the country by removing corporate groups, The Land Use Act, however, is not without pitfalls as there a
families and chiefs from the trusteeship of land and replaced number of challenges associated with the act and many have
them with the state governors. This poses as both an advantage argued for the need to have a Land Adjudication Act (LAA) to
and disadvantage of the Land Use Act. address these issues. The adoption of systematic titling and
registration will help combat the challenge of value gap between
2.6 Controversies over the Land Use Act in Nigeria a land with a registered title and one without it. For example, an
One of the most contentious legislation in Nigeria remains the individual with a registered title to his plot of land is potentially
Land Use Act. Many of the stakeholders in the real estate wealthier and better positioned to take advantage of
industry have described it as monster crippling the housing opportunities than another individual with land in abundance but
development in the country. Experts have opined that the Act is without a registered title.
overdue for a comprehensive review. They have also repeatedly i. Abuse of Office: Another fault of the Land Use Act was in the
called for the Act to be removed from the Constitution to make transfer of title and ownership of land from individuals and
its amendment more realistic and less cumbersome. Arguing that communities to the Governors who hold the land in trust but
there will be no meaningful growth in the real estate sector if many of whom have been known to have abused the power and
land continues to be under the firm grips of the State governors. privileges conferred on them by the Act. Section 22 requires the
Constitutional requirements are the main reason for the failures acquisition of Governor’s consent before a statutory right of
experienced in amending the Land Use Act as moves to amend occupancy can be alienated as this is necessary where there is a
proved abortive. Past Presidents Umaru Musa Yar’ transfer of title from a vendor to a purchaser.
Adua and Good luck Jonathan during their administrations ii. Delay in land acquisition: Acquisition of land by individuals
attempted to amend the Act but their efforts did not yield and corporate bodies for commercial and economic development
expected results as a direct result of inherent bottlenecks purposes have been extremely difficult as a result of the Land
involved in amending the Constitution. Experts have asserted Use Act. The government’s approval amongst other reasons
that land has become so expensive because unlike in the past, from the Land Use Act results in the delay in making land
you could buy a piece of land from either the community, an accessible to an average Nigerian.
individual or from even a company and you go and register that For any law or Act to have a full effect on the populace it must
title at the Land Registry. Once it is registered, it becomes a be free from loopholes and easy to adhere to by the common
bankable document. Today, however, the process has changed. man. That being established, it is highly imperative for the
Now, you go and pay the usual fee and you take the document government and lawmakers alike to critically look into the Land
given to you and the survey plan to the government who will Use Act and address all possible faults pointed out by major
then issue you a Certificate of Occupancy also known as the C stakeholders within the real estate industry(Damilola, 2020).
of O(Damilola, 2020).
3.0.IMPACT OF THE ACT ON ECONOMIC DEVELOPMENT IN
2.7 Advantages and Disadvantages of the Land Use Act NIGERIA
This study seeks to shine the light on the pros and cons of the
land use act in Nigeria while highlighting possible solutions to Nwocha, (2016) stated that in terms of attaining its set
the challenges. The Land use Act promulgated in 1978 and made objectives, the Land Use Act has not been a success and two
an integral part of the constitution of the Federal Republic of principal reasons account for this. The first is the Act’s inherent
Nigeria was aimed at promoting the proper and efficient use of contradictions and defects, the second is institutional weakness,
land. and lack of political will in the country to secure a just, fair and
effective implementation of the Act to bring about economic. On
Advantages of the Land Use Act the first leg, the divesting of citizens’ freehold title to their land
To a large extent, the land use act achieved its aims and is antithetical to their economic prosperity as land ceased from
objectives: being an article of commerce upon the commencement of the
i. Ensuring that any person that requires land for any purpose Act. Against the backdrop that overwhelming majority of
with the ability to make optimum use of it will obtain it. Nigerians have no other source of income and livelihood save
ii. Making it illegal for indigenes to allocate land without prior the one derivable from land by way of subsistence farming or
government’s approval as only the Governor of each state has disposal to earn income for business or family needs, this
the power to allocate urban lands, and the local area councils dispossession has plunged the majority of Nigerians into poverty
have the power to allocate rural lands. rather than prosperity (Nwocha, 2016). Any development
iii. Preventing the practice of land speculators buying up large strategy must ultimately be interwoven with the aspirations of
acres of land, especially in developed urban locations with no the people and society rather than seek to pursue the ambitions
of few people in government (Isong, 1985). This dispossession

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therefore places less income in the hands of the vast majority of economic development through effective, fair and equitable
Nigerians and, for that matter, impacts adversely on utilization of land and land resources could be attained if the law
the per capita income and the Gross Domestic Product (GDP). is holistically amended to overturn certain anachronistic and
This leads to a vicious circle of low savings, low investment and antithetical provisions and replaced with realistic and effective
slower economic progress. On the second leg, national policies that would put the Nigeria on the part of economic
institutional frameworks are weak and the requisite political will progress(Nwocha, 2016). The study recommend as follows;
that could have guaranteed a firm, equitable and just enactment of a land policy that incorporates the customary
implementation of the Act is lacking. The result is that the cost norms of the people. Section 8 of the Act should be amended to
of land continues to rise astronomically and land speculation has make the grant of a statutory or customary right of occupancy
become even more rife than previously. Land has continued to permanent. This would guarantee the security and stability of
be accumulated in the hands of the few private rich people who economic interests and improvements on land, the subject matter
have the wherewithal to acquire them. Concurrently, the harsh of a right of occupancy. As the experience in operating the law
economic climate in the country with rising cost of living has has shown, when a certificate of occupancy is issued for a short
put Nigerians in dire straits such that some who have access to duration of time, it amounts to economic risk to invest on the
land whether by inheritance, previous purchase, or by family or land, which is the subject matter. Furthermore, section 22 of the
communal allotments are more readily predisposed to selling Act should be amended to eliminate the requirement of
them to meet immediate survival needs. Thus, the rich continue obtaining the consent of the Governor before a holder can
to accumulate more and more lands to the detriment of the alienate his right whether by assignment, mortgage, transfer of
dominant poor. The situation has been complicated by the possession, sublease or otherwise. This provision makes it
politicization of almost all public affairs and institutions in the cumbersome for landowners to obtain credit facilities from
country. This has resulted in a situation where sitting Governors financial institutions needed for projects, businesses and other
revoke the certificates of occupancy of political adversaries or ventures. Aside of other negative influences, obtaining the
refuse to grant it to those who do not share their political vision. Governor’s consent can cause prolonged delay in economic
At the same time, in some cases, grants of rights of occupancy transactions. Again, section 28 of the Act should be amended to
have been made to political cronies and associates of the limit the grounds upon which the Governor can exercise his
Governors even against the tenets of the Act. It is no wonder power to revoke a right of occupancy for overriding public
then that, after more than three decades of operating the Land interest. Such grounds specifically should not include alienation
Use Act, few of its set objectives could be said to be by a landowner of his interest in the land. Similarly, section 29
accomplished and the Act has neither generated the anticipated should be amended to make compensation payable not only for
economic prosperity and equality of access to land for Nigerian unexhausted improvements on the land, but also for loss of the
nor the desired economic development that it was hoped to usher land itself as a store of value together with the improvements.
in(Nwocha, 2016). Compensation should also be commensurate with the market
value of the land and the improvements therein. Other ancillary
4.0. CONCLUSION provisions of the law should be amended to give effect to the
above recommendations. When these amendments have been
From time immemorial land has remained the most valuable made, government should muster the requisite political will to
property in the life of man and his development. It is a source of implement the law effectively, fairly and equitably.
wealth to those who acquire it and all the basic needs of human
existence are land dependent. The Land Use Act, at the time of 5.0.REFERENCES
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