Understanding the Land Use Act and Its Role in Land Allocation for Public-Private Partnership Projects
Introduction
Land is central to all economic activities, particularly in a developing country like Nigeria where urban expansion, infrastructure, and industrial development are at the heart of national growth. A major legal instrument that regulates land administration in Nigeria is the Land Use Act of 1978. This legislation governs how land is acquired, held, and transferred across the country.
In recent years, Public-Private Partnership (PPP) projects have become key to addressing Nigeria’s infrastructural and socio-economic challenges. From roads and bridges to housing and agricultural estates, these partnerships often require land for execution—land that is regulated by the Land Use Act.
This article provides a comprehensive legal and practical understanding of the Land Use Act, and how it facilitates or hinders land allocation for Public-Private Partnership projects in Nigeria. It includes a detailed review of legal provisions, administrative processes, practical implications, and a case study demonstrating how these provisions work in real scenarios.
Overview of the Land Use Act, 1978
The Land Use Act is the foundational law governing land ownership and administration in Nigeria. It was promulgated as a Decree (now an Act) in 1978 and incorporated into the 1999 Constitution as a protected legislation.
The primary purpose of the Act was to:
Eliminate the duality of land tenure systems (statutory and customary)
Vest all land in the State Governors, to be held in trust for the people
Ensure equal access to land for all Nigerians
Promote orderly and controlled development through government regulation
Under the Act, land ownership is replaced by a right of occupancy—either statutory (granted by the Governor) or customary (granted by local governments). The Act makes the Governor the custodian of all lands in the state (except those vested in the Federal Government or its agencies).
Key Provisions of the Land Use Act Relevant to Land Allocation
Section 1: Vesting of Land in the Governor
All lands in each state (excluding Federal Government lands) are vested in the Governor, to hold in trust and administer for the benefit of all Nigerians.
Section 5: Grant of Statutory Right of Occupancy
The Governor may grant a Statutory Right of Occupancy to any person or institution for all purposes, including residential, agricultural, industrial, or commercial purposes.
Section 28: Power of Revocation
The Governor may revoke rights of occupancy for overriding public interest, including use for public projects or public-private partnerships.
Section 22: Consent to Alienation
Holders of land rights cannot assign, mortgage, lease, or transfer their interest without the Governor’s prior consent.
These provisions collectively empower the Governor to allocate land for PPP projects but also introduce a rigid bureaucratic system that can delay private investment if not well-managed.
What is a Public-Private Partnership (PPP)?
A Public-Private Partnership is a contractual arrangement between a public authority and a private entity, for the delivery of public infrastructure or services. The private party provides financing, expertise, or execution, while the public body provides regulatory support, enabling environment, or resources—often land.
Examples of PPP projects that require land allocation include:
Affordable housing developments
Industrial estates
Agricultural processing zones
Road and transportation terminals
Healthcare infrastructure
Waste management plants
Without legal access to land, none of these can be implemented.
How the Land Use Act Facilitates Land Allocation for PPP Projects
1. Centralization of Land Authority
The Act places clear authority in the hands of the State Governors, making it easier for government agencies to allocate land for PPP use without relying on fragmented local ownership systems.
2. Public Purpose Justification for Revocation
Section 28 enables the Governor to revoke existing land rights (with compensation) to make land available for public interest, including PPP projects. This simplifies land aggregation for large-scale infrastructure.
3. Regulatory Oversight
The requirement of Governor’s Consent ensures that PPP land use aligns with master plans, zoning regulations, and public interest, thereby minimizing illegal or unplanned development.
4. Legal Security of Title
Through the issuance of Certificate of Occupancy (C of O), the land allocated to PPP projects becomes legally recognized, increasing investor confidence and enhancing bankability.
5. Flexibility in Use Classification
The Act allows the Governor to specify the use category (e.g., industrial, residential, agricultural), making it easier to match land to project purpose.
Challenges of the Land Use Act in PPP Land Allocation
While the Act provides a legal framework for land access, it also presents several challenges:
1. Bureaucratic Bottlenecks
The process of applying for and receiving land through statutory right of occupancy is slow, involving multiple layers of approval, inspections, and documentation.
2. Governor’s Consent Delays
PPP operators must obtain consent to transfer or mortgage land. The Governor’s Consent process can take several months, delaying financing and execution.
3. Compensation for Revoked Land
When the government revokes land for PPP use, compensation is required. Disputes over valuation or payment can stall the project.
4. Legal Uncertainty
Because the Act overrides customary land rights, conflicts often arise between community stakeholders and government-allotted PPP beneficiaries, leading to litigation or resistance.
5. Lack of Harmonized Land Databases
Many states do not have centralized digital land records, making verification of land status difficult. This increases the risk of multiple claims or encumbrances on the same land.
Case Study: The Lagos State Affordable Housing PPP Project (Lekki Scheme II)
Background
In 2016, the Lagos State Government entered into a Public-Private Partnership with private developers to construct over 10,000 housing units in Lekki Phase II. The project required a large expanse of land, which was to be provided by the government while the developers handled construction, financing, and sales.
Land Use Act Application
The Governor, using powers under Section 5, granted Statutory Rights of Occupancy to the developers for project execution.
Under Section 28, the government acquired surrounding undeveloped lands for access roads and drainage systems, compensating displaced families.
Developers were required to obtain Governor’s Consent to mortgage portions of the land for bank financing.
The land was designated for residential use, and the zoning was included in the C of O documents.
Challenges
Delay in obtaining Governor’s Consent for land subdivision and sales slowed off-plan purchase processes.
Some local communities claimed they were not properly compensated for ancestral land.
Administrative lapses in land record updates caused initial confusion over title documents.
Outcome
Despite the hurdles, the project progressed, with over 3,000 housing units delivered as of 2023. The land tenure under the Land Use Act was vital for project legitimacy, investor confidence, and enforcement of obligations between parties.
Steps for Securing Land for PPP Projects under the Land Use Act
To effectively secure land for a PPP project, stakeholders must:
1. Engage the Government Early
Work closely with the State Ministry of Lands, Investment Promotion Agencies, and PPP units to initiate land identification and allocation.
2. Submit a Detailed Project Proposal
Provide a project concept showing:
Socio-economic benefits
Land size and location required
Technical and financial capacity of the private partner
Compliance with urban planning goals
3. Conduct Legal and Environmental Due Diligence
Perform search at the Land Registry
Ensure Environmental Impact Assessment (EIA)
Conduct Community Consultations
4. Obtain Statutory Right of Occupancy and C of O
Apply for a Statutory Right of Occupancy, followed by a Certificate of Occupancy, to legalize land possession.
5. Apply for Governor’s Consent
Before transferring or leasing the land or obtaining loans, apply for the Governor’s Consent as required under Section 22.
Best Practices for PPP Land Management Under the Land Use Act
Digitization of land records to improve verification speed
Transparent land acquisition policies that respect community rights
Compensation frameworks that are timely and fair
Clear timelines for Governor’s Consent processing
Use of land banking to earmark plots for PPP projects in advance
Reform Recommendations
To enhance the role of the Land Use Act in PPP project success:
Amend the Act to decentralize powers, allowing commissioners or agencies to issue certain approvals
Introduce statutory timelines for consent and C of O issuance
Promote Public Land Registries for easy access to land status
Encourage public-private dialogue platforms to resolve land conflicts
Frequently Asked Questions (FAQs)
Q1: Can a private investor acquire land directly for a PPP project?
Not without government involvement. Since land is vested in the Governor, formal allocation must be through the proper administrative channels.
Q2: Is compensation payable for revocation of land for PPP purposes?
Yes. Compensation for improvements (not land itself) is mandatory under Section 29 of the Land Use Act.
Q3: How long does it take to obtain a C of O for a PPP project?
It varies by state but can range from 3 months to 1 year, depending on the efficiency of the land registry.
Q4: What is the role of the Land Use Allocation Committee?
It advises the Governor on allocation of urban lands, especially large tracts required for public projects or partnerships.
Q5: Can PPP projects use community land?
Yes, but it must first be legally acquired or revoked and reallocated under the Land Use Act. Community engagement is essential to avoid disputes.
Conclusion
The Land Use Act is both a facilitator and gatekeeper for land-based development in Nigeria. For Public-Private Partnership projects to thrive, they must navigate the legal terrain of land allocation using the mechanisms provided by this foundational law.
While the Act offers centralized authority, clear tenure, and enforceable documentation, it also poses significant procedural and bureaucratic hurdles that must be anticipated and managed by investors, developers, and public authorities alike.
To fully unlock the potential of PPPs in Nigeria, land access must be transparent, timely, and legally secure anchored firmly on reforms, technology, and public trust.
Planning a PPP Project? Secure Your Land the Legal Way.
Whether you’re partnering with the government on infrastructure, housing, agriculture, or industrial development, land allocation is the foundation of your success. The Land Use Act is central to securing, using, and protecting land for Public-Private Partnership (PPP) projects in Nigeria.
At Chaman Law Firm, we provide strategic legal support for:
PPP land acquisition and allocation under the Land Use Act
Certificate of Occupancy (C of O) and Governor’s Consent processing
Land due diligence, verification, and title perfection
Compensation advisory for land revocation
Drafting and reviewing PPP agreements and land use contracts
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✉ Email: chamanlawfirm@gmail.com
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Don’t let land delays derail your project. Let us help you navigate the law, secure your land, and protect your investment.
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