Land Acquisition Issues for Construction in Nigeria
Introduction
Land Acquisition In Nigeria;
Land acquisition is one of the most foundational yet complicated aspects of construction development in Nigeria. Before a shovel hits the ground or a brick is laid, the very legitimacy of land ownership and the legal framework behind the acquisition process can either propel or stall a project indefinitely. Across Nigeria, construction firms, real estate developers, government institutions, and private investors constantly battle with the multifaceted hurdles associated with acquiring land. The issues range from conflicting titles and fraudulent sales to government acquisition without compensation and the overwhelming complexities involved in verifying customary land ownership.
The Nigerian construction industry is a burgeoning one. Urbanization, a growing population, and increased foreign investment are fueling demand for housing, infrastructure, and commercial buildings. However, the growth potential is often frustrated by land acquisition difficulties. These difficulties stem from several factors including a fragmented legal system, historical land tenure inconsistencies, non-uniform land documentation processes across states, and encroachment on lands under customary tenure. Many developers have entered into seemingly legitimate land transactions, only to discover later that the land is subject to competing claims or that the transaction was invalid ab initio due to failure to comply with statutory provisions under the Land Use Act.
The Land Use Act of 1978 remains the primary legislation governing land ownership and acquisition in Nigeria. It vests all land in each state in the governor, who holds it in trust for the people and has the authority to grant statutory and customary rights of occupancy. While this law was intended to harmonize land use and prevent the chaos of conflicting ownership, in practice it has created bureaucratic bottlenecks, widened the gap between customary practices and statutory obligations, and led to excessive delays in processing certificates of occupancy and development approvals. These delays are especially prevalent in Lagos, Abuja, and other rapidly growing urban centers, where land values have skyrocketed, and interest in land investment is extremely high.
Customary land tenure continues to dominate rural and peri-urban landholdings. These systems are based on unwritten traditional norms and often involve family or community control of land. Acquiring such land for construction poses its own unique set of challenges. Firstly, there is often no formal documentation to prove ownership, and the boundaries are usually not delineated through survey plans. Secondly, multiple individuals may claim decision-making authority within a family or community, leading to disputes over consent. Thirdly, once development begins, other relatives or third parties may emerge to contest the transaction, alleging that they were not consulted or that the land was fraudulently sold.
One of the most significant risks for developers in Nigeria is the possibility of litigation arising after the commencement of construction due to a defective land title. It is not uncommon for an entire construction project to be halted by court orders, leading to loss of capital, time, and reputation. Some developers even resort to bribery and political influence to “manage” these risks, thereby perpetuating a vicious cycle of illegality and systemic inefficiency. Furthermore, the problem is compounded by land grabbers, also known as “omo-onile,” who extort money from developers under the guise of being original landowners or descendants of such owners. Their activities range from imposing illegal levies to outright violence and vandalism on construction sites.
Another angle to the land acquisition problem is the lack of transparency and accessibility in Nigeria’s land registries. The manual nature of most land records makes it incredibly difficult to conduct accurate and comprehensive title searches. In many instances, titles are duplicated, and two or more people possess Certificates of Occupancy over the same parcel of land due to corruption or administrative negligence. This institutional decay puts genuine investors at constant risk and discourages many from entering into the Nigerian construction industry, despite the massive potential for return on investment.
Government acquisition for public purposes also contributes to the land acquisition dilemma. The Constitution empowers governments to acquire land compulsorily for overriding public interests such as road construction, housing estates, and public utilities. However, in many cases, compensation is delayed or inadequately calculated, leading to disputes and resistance from affected landowners. Worse still, some acquired lands are later allocated to private developers, raising questions about the genuine public interest in the acquisition and the transparency of such allocations.
In the face of these challenges, some reform efforts have emerged. Digitization of land records, introduction of Geographic Information Systems (GIS), and reforms to the Land Use Act are all positive steps in the right direction. However, implementation has been patchy and slow, especially outside major cities. There is a pressing need for institutional strengthening, clearer statutory frameworks, public awareness, and alignment between customary and statutory land tenure systems if the land acquisition process is to support the continued growth of the Nigerian construction industry.
Legal Framework Governing Land Acquisition in Nigeria
The legal regime for land acquisition in Nigeria is largely guided by the Land Use Act of 1978, which centralized land ownership under the control of state governors. According to Section 1 of the Act, all land in each state of the Federation is vested in the governor of that state, who holds it in trust for the people. This means that no individual or corporate body can legally own land outright; instead, they can acquire statutory or customary rights of occupancy.
While this law was introduced to ensure equitable distribution of land and curb the excesses of powerful landowners, its implementation has often led to confusion, inefficiency, and misuse of power. Obtaining a Certificate of Occupancy (C of O), for instance, is a time-consuming process mired in bureaucracy and often susceptible to corruption. This delays development and discourages investment in the real estate and construction sectors.
Compounding this is the duality in landholding systems. In many parts of Nigeria—especially rural or semi-urban areas—customary land tenure still operates outside of statutory control. Families, clans, and communities hold land based on ancestral rights. These customary rights are rarely documented, and this creates problems during acquisition for construction purposes, especially when family members disagree or when external parties contest the validity of the transaction.
Common Challenges in Land Acquisition for Construction
1. Lack of Clear Title
One of the most persistent problems in land acquisition for construction projects is the lack of clear and verifiable titles. Many land parcels in Nigeria are held without proper documentation. In some cases, multiple parties claim ownership of the same plot using different documents, such as a deed of assignment, certificate of occupancy, or customary title. This results in protracted legal battles and can jeopardize construction projects that have already commenced.
2. Multiple Sales and Land Fraud
Due to inadequate regulation and poor documentation, land is often sold multiple times to different buyers. Unscrupulous individuals take advantage of the opaque land registry system to execute fraudulent sales. Sometimes, survey plans are manipulated or duplicated, and unsuspecting buyers end up purchasing land that has been previously sold or earmarked for public use. This is particularly common in high-value areas such as Lagos, Abuja, and Port Harcourt.
3. Disputes Arising from Customary Tenure
Customary land acquisition involves negotiating with family heads or community leaders, but disagreements often arise afterward, especially if not all stakeholders were consulted. Disputes from such transactions are frequent and difficult to resolve, as they are governed more by tradition than by law, and documentary proof is often nonexistent. This poses a serious risk to developers, as court injunctions can bring construction to a sudden halt.
4. Bureaucratic Delays and Inefficiency
Even when land is acquired through legal channels, getting the necessary development permits, survey approvals, and land use consents can take months or even years. The red tape in government offices—from the Ministry of Lands to the Surveyor General’s office—hinders progress and often forces developers to seek “shortcuts” through illegal or informal means, which in turn exposes them to more legal and financial risk.
5. Violence and Omo-Onile Threats
The phenomenon of “omo-onile” (land-owning youth or families) is a major obstacle in many parts of southwestern Nigeria. These individuals often show up at construction sites demanding levies, fees, or even extortion money before work can commence. They use threats, violence, or outright sabotage to enforce their claims. In extreme cases, workers are attacked and equipment is destroyed. These challenges have added a layer of security costs and legal complications to land acquisition processes.
Case Law Examples Highlighting Land Acquisition Problems
Nigerian courts have adjudicated numerous disputes related to land acquisition, setting precedents that illuminate the complexities involved.
In Ogunleye v. Oni (1990) 2 NWLR (Pt. 135) 745, the Supreme Court reaffirmed the principle that a person in possession of land under customary tenure has a valid and enforceable interest, even if not formally documented. This ruling highlighted the enduring relevance of customary law in land ownership and the need for formal acquisition processes to recognize such interests.
In Romfa Integrated Services Ltd v. Shekarau (2020) LPELR-51024(CA), the court invalidated a land sale due to lack of governor’s consent under Section 22 of the Land Use Act. The seller had transferred land without obtaining prior approval from the governor, rendering the transaction void and unenforceable. This case underscored the strict application of statutory provisions and the necessity of full compliance with all legal requirements in land transfers.
Another relevant case is Ijebu-Ode Local Government v. Adedeji Balogun & Co. (1991) 1 NWLR (Pt.166) 136, where the court ruled that the government must pay adequate compensation when land is compulsorily acquired. The court held that compensation must be fair, and where payment is delayed unreasonably, interest may accrue. This case emphasizes the rights of landowners and the responsibilities of government in compulsory acquisitions.
Impacts on the Nigerian Construction Industry
Land acquisition challenges have a direct and adverse impact on construction timelines, project costs, and investor confidence. Construction companies often face delays when land disputes arise, leading to increased overheads, cost overruns, and abandoned projects. This has broader economic consequences, as it hampers job creation, reduces housing supply, and discourages foreign direct investment in the construction sector.
In many cases, the cost of resolving land disputes exceeds the initial land acquisition cost. Developers must hire lawyers, pay court fees, or even settle out of court, not to mention the loss of time and goodwill. These factors have made construction a high-risk sector in Nigeria, with many investors opting to diversify their portfolio into less problematic areas such as fintech or telecommunications.
Furthermore, the informality of land transactions, particularly those involving customary land, contributes to a significant portion of Nigeria’s real estate being excluded from the financial system. Without formal title documents, such lands cannot be used as collateral for loans or attract institutional investment. This limits access to capital for developers and impedes economic growth.
Policy and Reform Recommendations
1. Digitization of Land Records
Digitizing land registries and integrating them into a centralized national land database would greatly enhance transparency and reduce the risk of multiple ownership claims. The implementation of Geographic Information Systems (GIS), as done in Kaduna and Lagos, should be scaled nationwide. This will allow for real-time verification of land ownership and streamline the acquisition process.
2. Harmonization of Customary and Statutory Land Systems
There is a pressing need to harmonize Nigeria’s dual land tenure systems. Customary rights should be formally recognized and integrated into statutory law, particularly through the issuance of Customary Certificates of Occupancy. This will provide legal backing to millions of landowners and reduce conflicts during acquisition for development.
3. Fast-Track Land Dispute Resolution
The judiciary must prioritize land cases, perhaps through the establishment of specialized land courts or tribunals. The use of Alternative Dispute Resolution (ADR) should also be encouraged, as litigation is often slow and expensive. A fast, reliable resolution system will reduce project delays and build investor confidence.
4. Crackdown on Omo-Onile and Land Thuggery
Security agencies should be mandated to take a strong stance against the omo-onile menace. States like Lagos have introduced anti-land grabbing laws, but enforcement remains weak. Government must prosecute offenders and protect construction sites from intimidation and violence.
5. Public Awareness and Legal Guidance
Developers and land buyers should be educated on the importance of conducting proper due diligence before acquiring land. Lawyers, surveyors, and estate agents should also adhere strictly to professional standards. Legal practitioners must emphasize governor’s consent, C of O, title searches, and registered deeds to avoid future disputes.
Government Role and Stakeholder Collaboration
Land acquisition for construction is not an issue the private sector can solve alone. The government plays a crucial role in creating an enabling environment through legislation, policy implementation, and institutional reform. Ministries of Lands, Urban Planning, and Survey must collaborate with professional bodies, traditional institutions, and private developers to streamline procedures and eliminate bottlenecks.
In states where reforms have been successfully implemented—such as Lagos, Kaduna, and Edo—there has been a noticeable improvement in construction timelines, land transparency, and investor confidence. Scaling such reforms to the national level would improve Nigeria’s standing in the World Bank’s Ease of Doing Business Index, particularly in the area of “registering property.”
Conclusion
The resolution of land acquisition issues is not just a legal or administrative imperative but a critical enabler of Nigeria’s socio-economic development. Construction projects, whether public or private, rely on a stable and predictable land tenure system to thrive. Unfortunately, the myriad of issues plaguing land acquisition in Nigeria—ranging from legal inconsistencies, administrative inefficiencies, customary tenure complexities, and widespread corruption—continue to present formidable barriers. Without bold reforms and decisive enforcement of regulations, the industry will remain encumbered by disputes, project delays, and significant financial losses.
One of the root causes of these challenges is the disconnect between statutory law and customary land practices. While the Land Use Act was enacted to provide a unified framework, it has failed to bridge the wide gap between traditional ownership norms and formal legal processes. The lack of integration means that thousands of transactions occur daily without proper documentation, resulting in significant legal vulnerabilities for developers. These vulnerabilities are then exploited by fraudulent actors or reignited by disenfranchised family members who feel left out of customary decision-making structures.
To move forward, Nigeria must prioritize the modernization of its land registry systems. Transitioning from manual to digital record-keeping, including online title searches and land mapping, can reduce incidents of fraud, improve transparency, and cut down the time taken for due diligence. The use of blockchain in land registry management, already piloted in some countries, can offer Nigeria a secure and tamper-proof way to manage land records, thus protecting the interests of genuine investors and landowners alike.
Government must also invest in widespread public education campaigns to inform citizens about the importance of proper documentation and due process in land transactions. Many land disputes arise simply because parties are unaware of their legal obligations or do not understand the implications of informal agreements. Community sensitization, especially in rural areas where customary land systems dominate, can go a long way in minimizing conflicts and promoting legal compliance.
In parallel, institutional accountability must be enforced. Land registries, survey offices, and development control agencies should be subject to independent oversight and held accountable for delays, inaccuracies, and corrupt practices. Strengthening these institutions with trained personnel, better funding, and technological tools can significantly reduce bureaucratic inertia and improve service delivery across the board. Also, the role of legal practitioners in assisting clients through the land acquisition process must be emphasized. Lawyers should ensure thorough due diligence is conducted and that all agreements are properly documented and registered to protect their clients from future legal complications.
The judiciary must also play its part by dispensing land-related cases swiftly and justly. Many land disputes linger in courts for years, with frequent adjournments and interlocutory applications delaying justice. Special land tribunals or dedicated judges trained in property law may be needed to speed up the resolution of these matters. Alternative dispute resolution mechanisms such as arbitration and mediation should be encouraged to minimize litigation, especially where parties are amenable to settlement.
Furthermore, the activities of land touts and violent enforcers of “omo-onile” levies must be criminalized and eradicated through consistent law enforcement. Construction sites should be protected zones, and developers must be assured of their safety and the security of their investments. State governments, in particular, must collaborate with law enforcement agencies to crack down on these illegal groups and reclaim public confidence in the legal land acquisition process.
Ultimately, Nigeria’s potential in the construction sector can only be fully realized if the foundational issue of land acquisition is decisively addressed. Reforms must be far-reaching, touching everything from legislation and policy to culture and institutional practice. A modernized, transparent, and inclusive land tenure system will not only unlock the value of land as a productive asset but will also catalyze housing delivery, infrastructure development, job creation, and economic growth.
In conclusion, addressing land acquisition issues in Nigeria requires a multi-dimensional and multi-sectoral approach. The government, private sector, legal professionals, traditional institutions, and civil society must collaborate to build a system that is fair, transparent, and efficient. If these steps are taken with the urgency and commitment they deserve, the Nigerian construction industry will be better positioned to thrive, attract investment, and contribute meaningfully to national development.