UNIT 6

THE LAND USE ACT

The Land Use Act of 1978 is a fundamental legislation governing land ownership and management in Nigeria. This Act was enacted to streamline and simplify land administration, which had previously been governed by various customary and statutory laws, creating a complex and often conflicting legal landscape.

OBJECTIVES OF THE LAND USE ACT

1. Unified land administration: this is where the Act aims to unify land tenure systems under a common legal framework.
2. Equitable access: this is where the act seeks to ensure equitable access to land for all Nigerians.
3. Simplification of land transactions: this is where the Act simplifies the process of land acquisition and transactions.
4. Government control: this is where the act enhances government control over land use to ensure that land is used in the public interest.

KEY PROVISIONS OF THE LAND USE ACT

1. Vesting of land in the governor: According to Section 1 of the Act, all land in each state of the Federation is vested in the Governor, who holds it in trust for the people. This centralizes land management and makes the Governor the principal authority on land matters.
2. Certificate of occupancy (C of O): this is where the Act introduces the Certificate of Occupancy as a legal instrument granting the holder the right to occupy and use land. There are two types which includes:
   
   1. Statutory right of occupancy: which is issued by the Governor.
   2. Customary right of occupancy: which is isued by Local Governments for rural land.
3. Governor's consent: See section 22 which stipulates that any transfer of land or any interest in land requires the Governor’s consent. This provision aims to prevent fraudulent land transactions and ensure proper documentation.
4. Revocation of rights: this is where the Governor has the power to revoke rights of occupancy for reasons such as public interest, breach of terms, or non-payment of rent (See section 28).

ALIENATION OF CERTIFICATE OF OCCUPANCY

Alienation refers to the transfer of land ownership rights from one party to another. Under the Land Use Act, such transfers must comply with specific legal requirements to be valid. See the case of Savannah Bank Ltd v Ajilo (1989) 1 NWLR (Pt 97) 305 where the Supreme Court held that failure to obtain the Governor's consent for a mortgage transaction rendered it null and void and the case of Awojugbagbe Light Industries Ltd v Chinukwe (1995) 4 NWLR (Pt 390) 379 where the court reiterated the necessity of obtaining the Governor's consent for any alienation of land under the Land Use Act.

REQUIREMENTS FOR ALIENATION OF CERTIFICATE OF OCCUPANCY

1. Governor’s consent: As per Section 22, any sale, assignment, mortgage, transfer, or sublease of a land with a Certificate of Occupancy must receive the Governor’s consent. Failure to obtain this consent renders the transaction null and void.
2. Application process: this is where the process involves submitting an application to the Governor, including details of the transaction, parties involved, and the land in question.
3. Due diligence: this is where the Governor’s office conducts due diligence to ensure there are no encumbrances or disputes regarding the land.

REVOCATION OF CERTIFICATE OF OCCUPANCY

The Governor has the authority to revoke a Certificate of Occupancy under certain conditions as specified in Section 28 of the Land Use Act. The Governor must issue a notice of revocation to the holder of the C of O, stating the reasons for the revocation and the holder must be given an opportunity to be heard before the revocation is finalized. See the case of Osho v Foreign Finance Corporation (1991) 4 NWLR (Pt 184) 157 where the court emphasized the requirement of a fair hearing before the revocation of a C of O and the case of Nigerian Engineering Works Ltd v Denap Ltd (2001) 18 NWLR (Pt 746) 726 where the Supreme Court held that proper procedures must be followed for revocation to be valid.

GROUNDS FOR REVOCATION OF CERTIFICATE OF OCCUPANCY

1. Public interest: this is where the Governor can revoke a C of O for overriding public interest, such as infrastructure development, urban planning, or environmental protection.
2. Breach of terms: this is where non-compliance with the terms and conditions specified in the C of O can lead to revocation.
3. Non-payment of rent: this is where failure to pay the required rent can result in revocation.

COMPENSATION

When a Certificate of Occupancy is revoked, the holder is entitled to compensation for the value of the unexhausted improvements on the land. Compensation is based on the value of the unexhausted improvements on the land, such as buildings, crops, and other developments and the market value of the improvements is assessed to determine the amount of compensation. See the case of Chief Commissioner v Chief Akwekwe Nwafor (1957) SCNLR 180 where the court held that compensation must be paid for unexhausted improvements when land is compulsorily acquired and the case of Goldmark Nigeria Ltd v Ibafon Co. Ltd (2012) 10 NWLR (Pt 1308) 291 where the Supreme Court emphasized the need for fair compensation in cases of revocation.

PROCEDURE FOR CLAIMING COMPENSATION

1. Submission of claim: this is where the landholder must submit a claim for compensation, detailing the improvements and their estimated value.
2. Valuation: this is where a valuation officer assesses the improvements and determines the compensation payable.
3. Payment: this is where the government pays the assessed compensation to the landholder.

CONCLUSION

The Land Use Act has profoundly impacted land administration in Nigeria, centralizing control in the hands of the government while aiming to promote equitable access and efficient land use. The requirements for alienation, the process for revocation of Certificates of Occupancy, and the entitlement to compensation are crucial aspects that ensure fairness and transparency in land transactions. Understanding these provisions is essential for anyone involved in land dealings in Nigeria.