Buying land in Nigeria involves more than seeing a plot and paying for it. Documents matter. A Certificate of Occupancy (“C of O”) and a Right of Occupancy (“R of O”) both play big roles — but they are not the same. With many years of experience in real estate investment, I’ve seen misunderstandings over these costs that can waste people’s time, money, and even lead to legal cases.
In this article, I’ll explain exactly what each is, how they differ, why the difference matters, and what to watch for.
What is a Certificate of Occupancy (C of O)
- Issued under the Land Use Act of 1978, by State Governments (or in the Federal Capital Territory by the Minister) in Nigeria.
- Grants long‐term leasehold over land, often 99 years.
- Gives the holder strong rights: to use the land, develop it, transfer ownership (sell), and mortgage it.
- Full legal recognition by government, which means better protection under law in case of disputes.
What is a Right of Occupancy (R of O)
- Also under the Land Use Act. It gives a statutory or customary right to occupy and use land. But doesn’t always equate to full ownership in the same sense.
- Issued by the local government or relevant state/local authority. In some cases, customary authorities may be involved (especially in rural areas) for customary R of O.
- Usually shorter in duration, sometimes renewable, depending on the type (statutory or customary).
- The rights under R of O may carry more restrictions (development, transfer, etc.) compared to C of O.
Key Differences Between C of O and R of O
| Feature | Certificate of Occupancy (C of O) | Right of Occupancy (R of O) |
|---|---|---|
| Issuing Authority | State government or FCT Minister. | Local government or customary/local authorities. |
| Duration / Tenure | Typically 99 years. Longer, more stable. | Varies. Can be shorter or less certain depending on terms. |
| Transferability & Use as Collateral | Easily transferred, used in mortgages, sold. | More hurdles. A transfer or mortgage requires extra approvals. |
| Legal Strength & Protection | High protection against revocation, strong proof in court. | Weaker protection in some cases; more risk of revocation or dispute. |
| Value in the Market | Higher. Buyers & banks prefer C of O because of clarity and security. | Lower value comparatively, unless upgraded or legally strong. |
Legal Context & Importance
- The Land Use Act gives the legal basis for both C of O and R of O. It vests land in the Governor of each state, with the power to grant rights, issue certificates, and require consent for transfers.
- In some court cases, failure to get the Governor’s Consent when required makes transactions null and void. A major risk for people relying only on R of O or trying to transfer land with R of O without proper procedures.
- Real estate investment value in cities like Abuja reflects these differences: C of O lands fetch higher price per square metre compared to R of O lands in similar locations. Buyers pay for certainty. (While exact numerical data varies by area, many agents confirm 20-40% premium for C of O in certain urban areas.)
How to Convert R of O to C of O
- First, ensure the land qualifies (location, zoning, etc.).
- Prepare required documents: survey plan, proof of payment/allocation, ownership records, technical approvals.
- Apply to state land registry (or relevant authority) for the conversion. That may include paying fees, obtaining clearance.
- Secure Governor’s Consent (or FCT Minister’s, where applicable). Without that consent, conversion may not be valid.
- Once approved, you obtain C of O, with upgraded rights (transfer, mortgage, legal backing).
Practical Examples
- A farmer in a rural area holds R of O. He wants to lease out part of the land. The R of O may restrict such leasing without local government approval. If he converts to C of O, leasing procedures are clearer and enforceable.
- A homeowner in Lagos buys a plot with R of O but plans to use it as collateral for a mortgage. The bank demands C of O because that title gives better legal assurance. Without conversion, the loan request may be denied or terms unfavourable.
- In Abuja, two similar plots—one with C of O, one with R of O. The C of O plot is priced 30% higher because buyer is confident in title security and ease of resale.
Risks & What to Watch Out For
- Fake or forged C of O / R of O documents. Always do a land registry search.
- Misunderstanding local requirements for conversion or consents.
- Disputes over boundaries and survey plans. R of O holders sometimes less protected.
- Revocation risk: Government reserves power to revoke occupancy rights under certain conditions. C of O grants stronger protection, but not always absolute.
Conclusion
Understanding the difference between C of O and R of O protects your investment. C of O gives stronger rights, market value, legal backing. R of O gives useful rights but with more limitations. If you go for R of O, know the terms and plan for conversion if needed.
If you own land or plan to buy, review your title. Get professional advice. Verify documents with the state registry. Aim for the title that matches your long-term goals.
Call to Action
If you’re considering buying land or currently hold R of O, I can help you assess your title and plan conversion to C of O. Contact a qualified property lawyer or register with the state land registry today to confirm your rights.
FAQs
Does a Certificate of Occupancy expire?
Yes. C of O is usually for 99 years. At end of that term, renewal or renegotiation may be needed, depending on state laws.
Can you build on land with only R of O?
Yes. But development approval, permits, transfer, or loans may be harder or restricted. Upgrading to C of O gives more leverage.
Is R of O cheaper than C of O?
Yes. Acquiring or converting to C of O usually costs more in fees, surveys, governmental approvals. But value returns often exceed these costs.
What happens if you sell land with R of O without converting?
The buyer assumes risk. The title may not be accepted by banks or regulatory authorities. You might need to provide disclosures.
How long does conversion from R of O to C of O take?
It depends on state, completeness of documentation, government efficiency. It could be a few months to over a year. Delays often from missing approvals or survey issues.
