Land Tenure System in Nigeria: Types, Laws, & Implications

Owning land in Nigeria can feel like a lot. From complex traditions to modern laws, the journey is anything but straightforward. If you’re navigating this terrain, here’s a breakdown of what to expect.

What Is Land Tenure System?

Land tenure refers to the system of ownership, use, and transfer of land. 

In Nigeria, only 3% of land is officially documented. The other 97% relies on informal agreements and traditions, creating significant hurdles for buyers and investors.

As a real estate person myself, I’ve faced this firsthand. During one deal, the land’s “ownership documents” were handwritten on aging paper. It took weeks to untangle the claims and secure the property.

Types of Land Tenure System

1. Communal Tenure

Land is owned collectively by families or communities. Decisions require group consensus, which can lead to disputes.

2. Freehold Tenure

This offers full ownership without restrictions. However, it’s rare due to Nigeria’s Land Use Act of 1978.

3. Leasehold Tenure

Renting land for a specific period, this works well for temporary projects.

4. State Ownership

The government owns all land. You need a Certificate of Occupancy (C of O) to gain recognized ownership—a lengthy and tedious process.

5. Customary Land Tenure System

The customary system is more of traditional laws and practices, where land rights are handled by tribal customs. This system is common in most rural areas in Nigeria. Land is being allocated by family heads or village chiefs in most cases.

6. Tenancy Land Tenure

In this land tenure system, individuals rent land for either agricultural or residential purposes from a landlord for a fixed period of time. This system is quite affordable and flexible.

---

The Land Use Act

Enacted in 1978, the Land Use Act changed the game by transferring ownership of all land to the state government. 

Its goal was to ensure equitable access and prevent land hoarding, but it also introduced challenges like bureaucratic red tape which means excessive and/or unnecessary government regulations and bureaucracy that results in delay or inaction. 

Under the Act, landowners must obtain a C of O to secure legal recognition. 

The process can be cumbersome, with delays and hidden fees. I’ve seen cases where a single application took years to process, frustrating investors and stalling projects.

Key Points of the Act:

1. Land is owned by the government and held in trust for the people.
2. Land transactions require government approval.
3. Governors allocate land through C of O certificates.

While the Act aimed to streamline land ownership, it has also created bottlenecks and increased reliance on informal systems.

---

Advantages of the Land Tenure System

1. Promotes Communal Unity: In communal tenure, families work together to manage resources.
2. Encourages Agricultural Development: Leaseholds and freehold tenures allow farmers to secure land for cultivation.
3. Flexibility: Customary tenures adapt to local traditions and practices, making them widely accepted.

---

Disadvantages of the Land Tenure System

1. Land Disputes: Undocumented ownership leads to frequent conflicts.
2. Fragmentation: Small, scattered plots reduce agricultural productivity.
3. Limited Access to Credit: Without legal documents, landowners can’t use property as collateral.
4. Slow Bureaucracy: Obtaining formal documentation, like a C of O, is time-consuming and costly.

Negative Implications of Land Tenure

1. Compensation Issues: Sometimes, the high authority’s power to revoke land rights can be misused and abused as seen is some parts of Nigeria, and compensation for land acquisition is inadequate or sometimes delayed.
2. Corruption In Land Allocation: The excessive powers governors wield in land allocations are prone to abuse, which often can lead to corruption and favoritism.
3. High Cost of Land Documentation: The cost of acquiring certificate of occupancy and other property documents is prohibitive for most Nigerians, which leads to informal land transactions.
4. Conflicts with Customary Laws: The coexistence of customary and statutory laws gives room for conflicts, most especially in rural areas where mode of land transaction is done traditionally.
5. Tenancy Insecurity: Leaseholds under the land use act limit long-term land ownership, reducing incentives for sustainable land investment.

---

How to Avoid Land Drama

1. Ask Questions: Don’t just trust the seller. Ask about the land’s history, neighbors, and disputes.
2. Hire a Lawyer: A good lawyer will save you money and stress.
3. Start Early: If you need a C of O, begin the process immediately.

---

Why It Matters

Land is more than dirt and grass—it’s an opportunity. 

Whether it’s for farming, building, or business, owning a land can be the key to financial freedom. But with so much undocumented land, too many Nigerians are left out of the game.

---

Final Thoughts

Land tenure in Nigeria is like playing chess—every move requires strategy.

 The Land Use Act was meant to simplify ownership, but its challenges often complicate the process. 

Still, understanding the system’s rules, benefits, and drawbacks can help you navigate the terrain with confidence.

From my experience, every piece of land comes with its own story. If you’re willing to put in the work, the rewards can be worth the effort.

Land isn’t just a piece of property—it’s the foundation of opportunities and a legacy for the future.