UNIT 1

OVERVIEW OF PROPERTY LAW PRACTICE IN NIGERIA

Property law in Nigeria deals with the regulation, ownership, transfer, and use of land and buildings. It is primarily governed by a mix of customary law, statutory law, and case law. The practice of property law includes areas such as land transactions, leases, mortgages, and conveyancing, all of which must be understood within the Nigerian legal framework. Sources of property law in Nigeria includes the following:

1. Statutory Law: The key statutes that regulate property law in Nigeria includes the following:
   
   1. Land use act 1978: The most significant statute governing land ownership and transactions in Nigeria. It vests all land in each state in the governor, who holds it in trust for the people.
   2. Conveyancing act 1881: Though an old english statute, it still applies in many parts of Nigeria, particularly regarding property conveyancing.
   3. Registration of titles act: This statute applies to states like Lagos, where title registration is mandatory for certain land transactions.
   4. Customary law: Customary laws play a significant role, especially in rural areas where land ownership is primarily communal or family-based. These laws vary among different ethnic groups.
2. Judicial precedents (case law): Nigerian courts have developed a robust body of case law interpreting various aspects of property law. The courts' decisions help clarify ambiguities in statutes and provide direction on property disputes.

CATEGORIES OF PROPERTY

1. Real property (immovable property): This refers to land and anything attached to it, such as buildings. The law generally treats immovable property with more formality due to its long-term value and significance.
2. Personal property (movable property): This category includes movable assets, such as vehicles and furniture, which are governed by different legal rules compared to real property.

LAND OWNERSHIP IN NIGERIA

Under the land use act 1978, all land in Nigeria is vested in the governor of each state, who holds it in trust for the benefit of the people. Individuals do not own land outright but are granted a right of occupancy. See the case of Abioye v Yakubu (1991) 5 NWLR (Pt. 190) 130 where the court affirmed that under the land use act, no individual owns land absolutely; they only hold rights of occupancy and the case of Nkwocha v Governor of Anambra State (1984) 6 SC 362 where the supreme court clarified that the land use act revolutionized land ownership in Nigeria, extinguishing freehold titles and replacing them with rights of occupancy. There are two types of occupancy which includes the following:

1. Statutory right of occupancy: this is granted by the governor, typically for a maximum of 99 years.
2. Customary right of occupancy: this is granted by local government authorities, particularly in rural areas.

CONVEYANCING AND LAND TRANSFER

Conveyancing refers to the legal process of transferring land from one party to another. This process requires compliance with the provisions of the Conveyancing act and state-specific land laws. See the case of Akingbade v Elemosho (1964) 1 All NLR 102 where the court held that for a valid conveyance of land, the legal title must be effectively transferred through proper documentation and the case of Savannah Bank v Ajilo (1989) 1 NWLR (Pt. 97) 305 where the supreme court emphasized the importance of securing the governor's consent under section 22 of the land use act before transferring any interest in land. Key steps in conveyancing includes the following:

1. Investigation of title: The purchaser must confirm that the seller has a valid title to the land.
2. Drafting and execution of documents: Once the title is verified, legal documents such as a deed of assignment are drafted and executed.
3. Registration of title: Some states, like Lagos, require registration of property transactions with the land registry under the registration of titles act.

MORTGAGES

A mortgage in property law is the transfer of an interest in land as security for the repayment of a loan. In Nigeria, mortgages can either be legal or equitable.

1. Legal mortgage: A legal mortgage transfers the legal title of the property to create a legal mortgage, the consent of the Governor is usually required under the land use act. See the case of Adedeji v National Bank (1989) 1 NWLR (Pt. 96) 212 where the supreme court ruled that failure to obtain the governor's consent for a legal mortgage renders the transaction void.
2. Equitable mortgage: An equitable mortgage occurs when the borrower provides only the title deeds to the lender without formally transferring the legal title. See the case of Union Bank v Ozigi (1994) 3 NWLR (Pt. 333) 385 where the court distinguished between legal and equitable mortgages and clarified that an equitable mortgage can be enforced by the court if the borrower defaults on repayment.

LEASES AND TENANCY

A lease is a contractual arrangement in which one party which is the landlord grants the other party which is the tenant the right to use land for a specific period, in exchange for rent. Under Nigerian law, leases may be for a fixed term or periodic, and they are generally governed by the rent control and recovery of residential premises law in many states. See the case of Oyenuga v Provisional Council, University of Ife (1965) NMLR 9 where the court affirmed the right of a lessee to quiet enjoyment of the leased premises and the case of Mobil Oil v Johnson (1961) 1 All NLR 93 where the supreme court held that a tenant's right to occupy premises depends on compliance with the terms of the lease agreement, and breach of these terms can lead to eviction.

COMPULSORY ACQUISITION AND COMPENSATION

The government has the power to compulsorily acquire land for public purposes under the land use act and other state laws. However, the law mandates that the affected landowners or occupants be compensated. See section 29 of the land use act which provides for compensation where land is compulsorily acquired, and the amount of compensation depends on the value of the unexhausted improvements on the land. See the case of Bello v Diocesan Synod of Lagos (1973) 3 SC 151 where the court held that failure to follow due process in compulsory acquisition of land renders the acquisition invalid and the case of Akinola v Governor of Lagos State (1998) 2 NWLR (Pt. 536) 150 where the court confirmed the right of landowners to fair and adequate compensation when their land is compulsorily acquired by the government.

CONCLUSION

Property law practice in Nigeria is complex, requiring an understanding of statutory provisions, customary laws, and judicial precedents. The land use act is a central statute, but the involvement of case law helps clarify rights and obligations in land transactions, leases, mortgages, and compulsory acquisition. A good property lawyer in Nigeria must ensure compliance with statutory requirements and pay attention to the nuances of both customary and statutory laws to protect clients' interests effectively.