Lagos, Nigeria, is the economic nerve of the country with ample job opportunities and investments. The population in Lagos is well over 14 million which means there is high demand for accommodation at affordable rates. In order to boost investment in the country, the Federal Government passed the Nigerian Investment Promotion Bill into law. It provided for the establishment of the Nigerian Investment Promotion Commission (NIPC) which is charged with the encouragement, promotion and co-ordination of investment in the Nigerian economy.[1] The NIPC in collaboration with the Federal Inland Revenue Service published the first edition of the Compendium of Investment Incentives in 2017 in Nigeria. It is a compilation of fiscal incentives in Nigerian tax laws and sector-wide fiscal concessions duly approved by the Federal Government and supported by legal instruments.[2] This article sets out below the essential features of corporate investment, property ownership and the registration of titles in Lagos state.
Amongst the numerous reliefs detailed in the compendium are: The guarantee to investors against nationalization and expropriation. The Act states that where an acquisition is made in national interest or for public purpose, the investor shall be entitled to payment of fair and adequate compensation without undue delay. This guarantee adds an extra layer of assurance when it comes to investing in land and property. It is in light of this appeal that the following is a consideration of property ownership with specific attention to Lagos State.
In efforts to diversify and bring the economy out of recession, the Federal Government has focused primarily on agriculture and infrastructure spending. Lagos state, in particular, has been experiencing rapid development as seen in areas like Ikorodu and Epe in order to reduce the congestion that is inherent in the core of Lagos. As such, holders of land in these rapidly developing areas are seeing a sustained substantial increase in the valuation of their assets as civilization spreads outwards from the center of Lagos.
The Land Use Act, which was promulgated on the 29th of March 1978, vested all Land compromised in the territory of each state solely in the Governor of the State who would hold such land in trust and administer for the use and common benefit of all Nigerians.[3] As a result, there was a change to the already established methods of property ownership under the Property and Conveyancing laws, Conveyancing Act, Registration of Titles law and such others governing the practice. In particular, Land in Lagos would fall under one of the following: Acquisition, Gazette, Certificate of Occupancy and Governor’s consent.
As all land is vested in the Governor of the state, its use and allocation are decided by the Government. As a result, land can be classified into COMMITTED and GENERAL ACQUISITION.[4] Committed acquisition is the status of land which the Government has expressed an interest in using for a purpose while General acquisition refers to land that the Government has yet to express an interest in using, these lands may become committed or free. Through the process of Excision, land under general acquisition may become free, it is however not a guaranteed process as the Government may refuse the make the land free. The Survey Plan is important in this respect because it shows ownership of the property. It can be used to ascertained whether the land falls into a government acquired or committed area.
Upon a land under General acquisition becoming free through the process of EXCISION, the land will be detailed in the Gazette which is the Government’s official record book. The Gazette becomes the title to the land for the owners of the land. This land can then be sold off to individuals and a certificate of occupancy or Governor’s consent can then be obtained for the purchased land.
The CERTIFICATE OF OCCUPANCY is the certificate the Government issues to people who have been granted a statutory right of occupancy over land upon application as legitimate proof of ownership.[5] It shows a lease from the Government for a maximum of 99 years granted to the lessor. Only the first settlers on a land are entitled to be granted a certificate of occupancy while subsequent purchasers from the holders of the Certificate of Occupancy would have to obtain Governor’s consent.
GOVERNOR’S CONSENT has its basis in Section 22 of the Land Use Act 1978 which voids the alienation or transfer of any interest in land without first obtaining Governor’s consent. Therefore, all subsequent buyers must obtain Governor’s consent for there to be a lawful transfer of the interest of land to them.
Before the promulgation of the Land Use Act of 1978, the Registration of Titles Act that was in effect made it so that the Government issued LAND CERTIFICATES as a title document signifying ownership for registered freehold or leasehold land in Nigeria. Under the Act, the Governor has the power to apply the law to any part of the state and such parts where called registration districts. The objective of the Registration of Titles Act 1935 was that purchasers of a registered land merely inspects the register to see whether the vendor really has ownership to sell and what the most significant encumbrances affecting the property are.[6] The land certificate is the document issued to the proprietor upon completion of registration formalities and is only a mere proof of the contents of the register, it is not in itself a veritable document of title. It only reflects what is contained in the register as at the date it was last compared with the register.[7]
After preparation of the instrument used to transfer interest, the next process is to perfect the interest. The first step in perfection of title is to pay stamp duties which is calculated ad valorem on the consideration on the deed of assignment. The instrument must also be duly stamped before the expiration of thirty days after it is first executed.[8] Any document that is required to be stamped will not be accepted for registration without stamping.
The next step in perfection is to obtain Governor’s consent. As section 22 of the Land Use Act stipulates, it shall be unlawful for the holder of a statutory right of occupancy to alienate his interest without the consent of the Governor first has and obtained[9] otherwise the rights under the contract would remain inchoate.[10] This also applies to alienation under the Registration of Titles law land certificates.
The final step in perfection is registration. The Land Registration law 2015 of lagos state harmonized the system of registration of titles and the systems of registration of land instruments and transactions in Lagos State and brought the entire Lagos State under one uniform system. The law expressly repeals all the laws existing on the subject, including the Registration of Titles Law, Land Instruments Registration Law and replaced them with one uniform system of registration. The Law combines all the systems into a single document and puts forth uniform procedures, processes and systems applicable to all parts of the state.
Under the Land Registration Law of Lagos state 2015, all registrable instruments must be registered within 60 days of after the grant of Governor’s consent.[11] It is necessary to register the title documents with the Government because this will prevent fraud in the sense that information which ought to be known to the transferee cannot be suppressed or hidden by the transferor. It also secures the title in that the property cannot be resold. A check by any bona fide purchaser for value at the land’s registry would reveal to whom the title belongs and any encumbrances on the land.
Bunmi Lawani Chambers specializes in corporate investment, property ownership and registration of titles in the whole of Nigeria. With many years of experience securing investments and assisting clients with processing and managing properties, the firm has developed a solid foundation in investment and property affairs and can provide clients with the knowledge and safety that is required in dealing successfully in
[1] Nigerian Investment Promotion Commission Act 1995, S.4
[2]http://www.mondaq.com/Nigeria/x/756928/Investment+Strategy/Investment+Incentives+in+Nigeria?type=popular
[3] Land Use Act 1978, Section 1
[4] https://landforsaleinlagos.com/understanding-land-titles-in-nigeria-is-it-safe-to-buy-or-not/
[5] Land Use Act 1978, Section 5
[6] Osamolu, S., Oduwole, O. and Oba, C. (2008). Real property law and conveyancing practice in Nigeria. Abuja: LawLords Publications, p.281.
[7] Osamolu, S., Oduwole, O. and Oba, C. (2008). Real property law and conveyancing practice in Nigeria. Abuja: LawLords Publications, p.293
[8] Stamp Duties Act, section 22 (2) (a)
[9] Land Use Act, section 22
[10] Solanke v. Abed (1962) 1 All NLR 230
[11] Land Registration Law of Lagos State 2015, Section 26 (1)