In Nigeria, land is more than just dirt and territory; it is history, identity, and potentially, the nation’s most powerful economic engine. Yet, this vast asset remains shackled by a legal and administrative system that stifles its potential. The root of this paradox lies in a single piece of legislation: the Land Use Act of 1978.
Conceived with the noble aim of streamlining a complex web of customary land tenure, the Act has, over decades, become a primary barrier to economic development. It vests all land within a state in the Governor, who holds it in trust for the people. In practice, this has concentrated immense discretionary power in the hands of the state, creating a system ripe for bottlenecks, political manipulation, and fraud.
The Paper Trail of Ownership: A Labyrinth of Documents
Under this system, evidence of ownership is not a straightforward claim. It is a arduous journey through a maze of documents:
· The Certificate of Occupancy (C of O), issued by the Governor, is the primary evidence of land ownership.
· Any subsequent sale or transfer requires Governor’s Consent, a mandatory and often protracted process that can render transactions invalid if skipped.
· Supplementary documents like the Deed of Assignment and the Registered Survey Plan complete the picture, but the entire process is fraught with delays and uncertainty.
This bureaucratic labyrinth does little to secure property rights. Instead, it creates a fertile ground for the very instability it was meant to prevent.
The Economic Cost: A Landscape of “Dead Capital”
The consequences of this flawed system are devastatingly economic. The renowned Peruvian economist Hernando de Soto’s concept of “dead capital” is perfectly illustrated here. In Nigeria, it is estimated that hundreds of billions of dollars worth of land and property cannot be easily used as collateral for loans. Why? Because banks are hesitant to accept assets whose titles are clouded by legal uncertainty and the risk of revocation.
This directly cripples financial development. The farmer who cannot use his land to secure a loan for better seedlings, or the entrepreneur who cannot leverage her property to start a business, are victims of this system. The asset of land, instead of being a springboard for growth, becomes a stagnant, non-productive holding.
The Justice Deficit and Political Instability
The administrative challenges are compounded by a justice system suffering from a crisis of confidence. Land disputes clog Nigerian courts, constituting a significant portion of all litigation. Delays and perceptions of incompetence or corruption mean that even when rights are infringed upon, redress is neither swift nor certain. This lack of reliable adjudication is a critical delimiter of economic growth, scaring away both domestic and foreign investment.
Politicians have exacerbated this instability. The system of Certificates of Occupancy, intended to provide security, has too often been weaponized. The threat of arbitrary land revocation for “overriding public interest” can be a tool for settling political scores or rewarding cronies, further eroding public trust in the entire framework.
The Path to Reform: Simplification and De-politicization
The solution lies in the fundamental restructuring if we have the courage to:
1. Remove Scope for Fraud and Discretionary Powers: The first step is to drastically reduce the arbitrary powers of the state. The process for obtaining Governor’s Consent and C of Os must be transparent, time-bound, and rule-based, not discretion-based. Digital land registries and GIS mapping can eliminate duplicate titles and reduce fraudulent sales.
2. Simplify the Legal Framework: Nigeria should look to models like the English Law of Property Act, which provides a clear, predictable, and efficient framework for land transactions. The Land Use Act itself requires a comprehensive review to remove sections that are a “clog in the wheel of progress,” as often described by Nigerian professionals. The goal should be to make land title registration as straightforward as registering a vehicle.
3. Strengthen Institutions: Rebuilding confidence requires capable and trustworthy institutions. This means investing in land registries, training personnel, and ensuring that the courts can adjudicate land disputes fairly and efficiently.
Unlocking the economic potential of Nigeria’s land is not just a technical exercise; it is a governance imperative. By dismantling the cumbersome architecture of the current land administration system, we can transform dead capital into live wealth, empowering millions of Nigerians and finally allowing our most fundamental asset to become the bedrock of sustainable economic development.
Centre for Nigeria Progress 