The Land Use Act and the Certificate of Occupancy Explained

Few pieces of legislation affect property in Nigeria as profoundly as the Land Use Act of 1978. It reshaped the way land is held and transferred across the country, and its provisions sit behind almost every property transaction. Anyone buying, selling or developing land benefits from understanding how it works.

The core idea of the Act

The Land Use Act vests land in each state in the Governor, who holds it in trust and administers it for the use and common benefit of the people. In practical terms, this means that what individuals and companies typically hold is not absolute ownership in the old sense, but a right of occupancy granted under the Act.

The Certificate of Occupancy

The Certificate of Occupancy (C of O) is the document that evidences a statutory right of occupancy granted by the Governor. It is one of the most important documents in Nigerian land transactions, and confirming that a genuine, valid C of O exists is a central part of any property due diligence.

Governor's consent on transfers

One of the Act's most significant practical effects is the requirement for the Governor's consent to transactions such as an assignment, mortgage or sublease of a right of occupancy. A transfer carried out without the necessary consent can face serious challenges to its validity. This is why properly documenting a transaction — and obtaining consent where required — matters so much.

In Nigerian property practice, the paperwork is not a formality. Consent and registration are what make a transaction secure.

What this means for buyers and developers

• Verify the title document and confirm the right of occupancy is genuine;
• Understand whether the Governor's consent is required for your transaction;
• Ensure the transaction is properly documented and registered;
• Take advice where the title history is complex or unclear.

The Land Use Act can seem technical, but its practical message is straightforward: in Nigeria, secure property dealings depend on understanding the nature of the right you hold and following the correct legal process. Because interpretation and practice continue to develop, parties should confirm the current requirements for their specific transaction.