The Land Use Act of 1978 in Nigeria, Explained

The Land Use Act of 1978 is the single most important land law in Nigeria. In one sentence: it took ownership of all land in each state out of private hands and vested it in the Governor, to be held in trust for the use and common benefit of all Nigerians. What you "own" today is therefore not the land itself but a right to occupy and use it — a shift that explains why a Governor’s Consent is needed to sell, why a Certificate of Occupancy matters, and why land deals in Nigeria work the way they do.

Originally promulgated as the Land Use Decree on 29 March 1978 and later retained as an Act, it was designed to simplify a chaotic patchwork of tenure, curb speculation, and make land easier to access. Decades on, it remains in force nationwide — and one of the most debated statutes in the country.

What the Act actually does

Under Section 1, all land in each state is vested in the Governor, to be “held in trust and administered for the use and common benefit of all Nigerians.” The state becomes the ultimate landholder; individuals, families and companies hold derivative rights under the Act rather than absolute freehold — a leasehold-style system replacing the old idea of owning a plot outright.

The right of occupancy system

The Act creates two main rights: a statutory right of occupancy, granted by the Governor (Section 5) over urban land and most often formalised by a C of O; and a customary right of occupancy, granted by the Local Government (Section 6) over non-urban land. A right of occupancy is usually granted for a defined term (commonly up to 99 years), carries conditions such as ground rent and approved use, and is a right to use and occupy — not ownership of the land itself.

How it affects buying and selling land

This is where the Act touches buyers and sellers most directly. Because the Governor holds the underlying title, a holder cannot freely transfer a statutory right of occupancy. Section 22 prohibits a holder from alienating it — transferring, mortgaging or subletting the right — “without the consent of the Governor first had and obtained.” This is the famous Governor’s Consent.

The consequence of skipping it is serious. Section 26 provides that any transaction or instrument dealing with land other than in accordance with the Act is null and void. A sale deed may be a valid contract between the parties, but the transfer of the legal interest is not perfected — and can be challenged — until consent is obtained. So confirm what the seller actually holds, budget the cost and time of consent, verify the land at the state Lands Registry before paying, and use a lawyer to check the title.

Link to the Certificate of Occupancy (C of O)

The Act and the Certificate of Occupancy are two sides of the same coin. The right of occupancy is the interest the Act creates; the C of O is the official document evidencing a statutory right of occupancy granted by the Governor. A genuine C of O does not exempt you from the rest of the Act — when you sell, you still generally need Governor’s Consent to pass the interest on. See our C of O guide below.

Criticisms and the reform debate

Few Nigerian laws are debated as heavily. Common criticisms:

• Bottlenecks and cost — the Governor’s Consent requirement is widely seen as slow, bureaucratic and expensive.
• Concentration of power — vesting land in Governors gives the executive wide discretion over allocation and revocation.
• Dead capital — cumbersome title perfection pushes many deals into the informal market and makes land harder to use as collateral.
• Compensation concerns — the basis for compensating holders whose rights are revoked is contested.

Reform has proved difficult for a structural reason: the Land Use Act is entrenched in the Constitution (listed in Section 315 of the 1999 Constitution), so it cannot be amended by ordinary legislation — change requires the heavier constitutional-amendment procedure. Proposals have included removing it from the Constitution and digitising the consent process, but as things stand the Act remains fully in force.

Frequently asked questions

Does the Act mean I don’t really own my land?
You own a right of occupancy — a legally recognised right to occupy and use the land, typically for a long term — rather than absolute freehold. In practice a holder with a perfected right and valid C of O enjoys secure, transferable rights, subject to the Act.

Do I always need the Governor’s Consent to sell?
To properly transfer a statutory right of occupancy, Section 22 requires it, and a deal done without it risks being void under Section 26. Take legal advice for your transaction.

Does the Act apply in every state?
Yes — it is a federal law applying throughout Nigeria, which is why the right-of-occupancy and consent framework appears wherever you buy.

Keep exploring

• What Is a Certificate of Occupancy (C of O) in Nigeria?
• Quit Notice Under the Lagos State Tenancy Law
• Land Banking in Nigeria: How It Works
• Find Trusted Real Estate Companies in Abuja for Properties & Land | Apartments.ng
• Buy Affordable Hectares of Land in Lagos, Abuja, and Beyond | Apartments.ng
• Eneka Port Harcourt: Affordable Houses, Flats, and Land for Sale | Apartments.ng

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General information, not legal advice. Consent procedures vary by state and change over time — consult a qualified Nigerian property lawyer before transacting.