Understanding the Land Use Act 1978 and Its Impact on Delta State Property Owners

Enacted as a Federal Decree in 1978 and later entrenched in the 1979 Constitution, the Land Use Act fundamentally restructured land ownership in Nigeria. Under this law, all land within each state is vested in the Governor of that state, who holds it in trust for the people. This effectively abolished freehold ownership — no individual or institution can claim absolute ownership of land in Nigeria under the Act.

For residents of Delta State, this means that what every landholder actually possesses is a 'right of occupancy' — either a statutory right of occupancy granted by the Governor through a Certificate of Occupancy (C of O), or a customary right of occupancy recognized for agricultural or semi-urban land in rural areas. Any transfer of such right requires the Governor's consent to be legally valid.

The requirement for Governor's consent on transactions is one of the most practically significant provisions of the Act for Delta State property owners. When you buy land with a registered C of O and want the title transferred into your name, you must apply to the Delta State Ministry of Lands and Survey for Governor's Consent. Without this consent, the transaction has no legal force against third parties or the government.

Critics of the Land Use Act argue that it has stifled the use of land as collateral for financing, since banks are reluctant to accept land titles that require government consent to transfer. Successive administrations have repeatedly debated its repeal or reform, but it remains in force as of today. Delta State property owners should factor this legal reality into all their property planning decisions.