What is the Statutory Right of Occupancy in Nigeria?
Introduction
Land is one of the most valuable assets in Nigeria. Ownership and legal access to land are central to personal wealth, business growth, real estate development, and national planning. However, due to the unique history and legal structure of Nigeria’s land laws, what people often refer to as “land ownership” is technically a right of occupancy, not absolute ownership.
The Statutory Right of Occupancy (SRO) is one of the core concepts introduced by the Land Use Act of 1978, which fundamentally altered the nature of land tenure and administration in Nigeria. This article explains what the Statutory Right of Occupancy is, how it works, who grants it, how it differs from other land interests, and how to obtain it. A practical case study is also included to illustrate how it operates in real life.
Understanding the Land Use Act of 1978
Before the Land Use Act, land tenure in Nigeria was a mix of customary laws and formal land ownership through freehold or leasehold titles. This caused inequality in access, litigation, and abuse of land distribution.
The Land Use Act of 1978 centralized land ownership in the hands of the Governor of each State and made landholding a right of occupancy rather than absolute ownership. Section 1 of the Act states that all land in a State is vested in the Governor to be held in trust for the benefit of Nigerians.
Under this framework, individuals or entities can only occupy land with the Governor’s permission in the form of a Statutory Right of Occupancy or a Customary Right of Occupancy (for rural lands).
What is a Statutory Right of Occupancy?
A Statutory Right of Occupancy (SRO) is a legal right granted by the Governor of a State in Nigeria to a person or corporate entity to occupy and use a parcel of land for a specified purpose, subject to the terms and conditions set by the Governor.
This right may be:
Expressly granted through a formal Certificate of Occupancy (C of O); or
Deemed granted, in cases where a person was already in lawful occupation before the commencement of the Land Use Act.
Section 5(1)(a) of the Land Use Act provides that the Governor may grant a statutory right of occupancy to any person for all purposes.
Key Features of a Statutory Right of Occupancy
It Is a Legal Right to Use, Not Ownership
The SRO grants possession and use of land, not freehold ownership. It is conditional and revocable, though such revocation must be for public interest and must follow due process.
It Is Granted by the Governor
Only the Governor of a State can issue a Statutory Right of Occupancy. For lands in the Federal Capital Territory, the Minister of the FCT exercises this authority.
It Can Be Subject to Conditions
The right is subject to terms such as:
Use of land for a specific purpose (residential, industrial, agricultural)
Payment of ground rent
Compliance with zoning and development laws
It Requires Proper Documentation
Once granted, the right is evidenced by a Certificate of Occupancy (C of O) issued by the Governor. This document is the most recognized proof of legal title in Nigeria.
Types of Statutory Right of Occupancy
There are two categories of Statutory Rights of Occupancy under Nigerian law:
1. Express Grant
This occurs when a person applies to the Governor and is granted a right to use land. This grant is usually followed by the issuance of a Certificate of Occupancy, which contains the terms of the right (e.g., purpose, size, rent, term).
2. Deemed Grant
A person who was in lawful occupation of land before the enactment of the Land Use Act (March 29, 1978) may be deemed to have been granted a statutory right of occupancy. Although such person may not have a formal Certificate of Occupancy, their right is recognized in law.
Who Can Apply for a Statutory Right of Occupancy?
Anyone—individual or corporate body—can apply, provided they meet the legal and regulatory requirements. This includes:
Nigerian citizens
Registered companies and business entities
Government agencies
Foreigners (subject to the Nigerian Investment Promotion Commission Act and other limitations)
Foreigners, however, must obtain consent and comply with laws restricting foreign ownership of land.
Purpose of Statutory Right of Occupancy
The Governor may grant a Statutory Right of Occupancy for:
Residential development
Commercial or industrial purposes
Agricultural activities
Mining or extractive purposes
Public utilities
Institutional or government use
Each grant is typically limited to a term of 99 years, renewable upon expiration, and subject to fulfillment of the conditions.
How to Obtain a Statutory Right of Occupancy
To obtain a Statutory Right of Occupancy, one must go through the following steps:
1. Submit Application to the Ministry of Lands
The applicant must fill and submit an application form to the relevant State’s Ministry of Lands and Housing, along with:
Evidence of identity
Passport photographs
Description and size of land
Purpose of the grant (residential, industrial, etc.)
Survey plan or sketch
2. Site Inspection and Evaluation
The Ministry sends inspectors or surveyors to verify the land’s existence, size, and compatibility with the stated use. The land must not be within government-acquired zones or committed areas.
3. Approval and Issuance of Offer Letter
If approved, an Offer Letter is issued. This includes payment instructions for ground rent, administrative fees, survey charges, and other statutory dues.
4. Submission of Payment Receipts
Upon payment, the applicant submits evidence of payment to the Ministry.
5. Issuance of Certificate of Occupancy
After verifying all compliance, the Certificate of Occupancy (C of O) is prepared, signed by the Governor, and issued to the applicant. This document is the legal evidence of the Statutory Right of Occupancy.
Legal Implications of Holding a Statutory Right of Occupancy
A holder of a Statutory Right of Occupancy has:
Legal possession of land
A right to develop the land subject to planning approval
A right to assign, lease, or mortgage the land (with Governor’s consent)
A right to compensation in case of compulsory acquisition
However, the land remains subject to:
Payment of annual ground rent
Adherence to land use conditions
Risk of revocation by the Governor for overriding public interest
Governor’s Consent Requirement
Under Section 22 of the Land Use Act, no holder of a Statutory Right of Occupancy may alienate or transfer their interest without first obtaining the Governor’s Consent. Any sale, lease, mortgage, or assignment without consent is voidable and not enforceable in court.
This provision ensures that the State retains control and oversight of land transactions.
Revocation of Statutory Right of Occupancy
The Governor may revoke a Statutory Right of Occupancy for reasons such as:
Overriding public interest (e.g., road construction, public housing)
Breach of terms (e.g., non-payment of rent, failure to develop)
National security or environmental protection
If revoked for public purpose, the holder is entitled to compensation for improvements, not the land itself. However, if the revocation is due to breach, no compensation is payable.
Difference Between Statutory and Customary Right of Occupancy
While a Statutory Right of Occupancy is granted by the Governor and applies mainly to urban areas, a Customary Right of Occupancy is granted by the Local Government and applies to rural lands.
The Statutory Right of Occupancy is more widely accepted in formal transactions and is often required for obtaining loans, land development permits, and court recognition.
Practical Challenges in Obtaining SRO in Nigeria
Delay in Processing: The bureaucratic process may take several months or years.
Corruption and Informal Payments: Applicants may face unofficial demands.
Double Allocation or Land Disputes: Poor recordkeeping has led to multiple allocations of the same land.
Cost of Documentation: The cumulative cost of obtaining a C of O can be high.
Lack of Clarity in Deemed Rights: Deemed holders without documentation face challenges in enforcing their rights.
Case Study: Musa Ahmed v. Ministry of Lands, Kaduna State
Background
Musa Ahmed applied for a parcel of land in Barnawa, Kaduna State, in 2009. He was issued a Letter of Allocation and subsequently fulfilled all payment requirements. However, he did not follow up on the issuance of the Certificate of Occupancy. In 2015, the government reallocated the same land to a housing developer, claiming Musa never perfected his title.
Legal Action
Musa sued the Ministry of Lands, arguing that his right of occupancy was vested by his earlier allocation and payments.
Court’s Decision
The High Court ruled that although Musa had been granted an offer, he did not complete the statutory steps to obtain a Statutory Right of Occupancy. The court held that a right only exists upon issuance and registration of the Certificate of Occupancy or formal recognition of the deemed grant.
Lesson
Mere allocation or letter of offer is not sufficient. The legal right is created only upon issuance of the SRO or C of O. Land users must perfect their titles to protect their rights.
Protecting Your Statutory Right of Occupancy
To ensure your SRO is valid and protected:
Perfect your title by collecting and registering your C of O
Always pay ground rent and keep receipts
Obtain Governor’s Consent before any land transfer
Avoid developing land without approvals
Secure your land from encroachers and trespassers
Keep all documents, survey plans, and correspondences safely
Consult a property lawyer to handle transactions
Frequently Asked Questions (FAQs)
Q1: Is a Certificate of Occupancy the same as a Statutory Right of Occupancy?
Yes. The Certificate of Occupancy is the document that evidences the grant of a Statutory Right of Occupancy.
Q2: Can a Statutory Right of Occupancy be revoked?
Yes, by the Governor, but only for valid public purposes or breach of terms.
Q3: Do I need Governor’s consent to sell my land?
Yes. Any alienation of land under a Statutory Right of Occupancy requires prior consent.
Q4: What is the duration of the SRO?
Typically 99 years, subject to renewal.
Q5: Is a “deemed grant” as good as an express grant?
Legally yes, but it’s harder to prove without documentation. Holders should apply to regularize it.
Conclusion
The Statutory Right of Occupancy is the cornerstone of land tenure in Nigeria’s legal system. It enables individuals and businesses to use land lawfully while maintaining the Governor’s authority to regulate and monitor land use in the public interest.
For any land investor, developer, or citizen, understanding and securing the Statutory Right of Occupancy is essential to avoid disputes, protect investments, and ensure compliance with the law. As Nigeria continues to urbanize and land values increase, formalizing land rights will remain a top priority for landowners and governments alike.
Need Help Securing or Perfecting Your Right to Land in Nigeria?
Understanding the Statutory Right of Occupancy is essential for any landowner, developer, investor, or prospective buyer in Nigeria. But obtaining and perfecting this right requires proper legal documentation, expert handling, and full compliance with state land laws.
At Chaman Law Firm, we specialize in:
Processing and securing Certificates of Occupancy (C of O)
Obtaining Governor’s Consent for land sales, leases, and transfers
Conducting thorough land searches and due diligence
Resolving land title disputes and revocation threats
Perfecting land titles and handling property transactions legally and professionally
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✉ Email: chamanlawfirm@gmail.com
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Let our legal team help you secure your Statutory Right of Occupancy the right way — from start to finish.
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