INVESTING IN REAL ESTATE IN NIGERIA LAND ACQUISITION PROCEDURES – THE LAGOS EXAMPLE

1.1. This write up shall attempt to address the current practices in the RealEstate sector of Nigeria and provide an insight into various aspects of interest for would be investors in the sector and shall be using as a focal point, Nigeria’s commercial capital – Lagos State. It should be noted however that save for minor differences the same practices apply in most other states of the Nigerian Federation.
2. LEGAL FRAMEWORK OF LAND ACQUISITION
2.1. The basic legal framework for the acquisition of land in Nigeria is the Land Use Act, Laws of the Federation of Nigeria 1990. This Act vests all land comprised in the territory of each state (except land vested in the Federal Government or its Agencies) solely in the Governor of the state, as trustee of the people.
2.2. The state is responsible for allocation of land in urban areas to individual’s resident in the state and to organizations for Residential, Agricultural, Commercial and other purpose. Similar powers with respect to non- urban areas are conferred on Local Governments.
2.3. By virtue of this Act, ownership vests in the Governor while only a statutory or customary right to occupy land is given to a person for a maximum of 99years. The control and management of land is administered through the Land Use and Allocation Committee acting as
an advisory committee in transactions affecting land.
2.4. It is therefore a requirement of law to obtain the consent of the Governor for any assignment of title to land in accordance with the Act. Section 22 which provides as follows:
“It shall not be lawful for the holder of a Statutory Right of Occupancy granted by the Governor to alienate his right of occupancy or any part thereof by Assignment, Mortgage, Transfer of possession, Sublease or otherwise howsoever without the consent of the Governor first had and
obtained.”[Boldness & Italics mine]