Last Updated: October 7, 2025
Thinking about buying land in Nigeria with full ownership rights? Understanding the freehold land tenure system is crucial, though it has significantly changed since 1978. This comprehensive guide explains everything you need to know about freehold tenure, how it differs from other land tenure systems in Nigeria, and what you should know before making a property investment.
Table of Contents
- What is Freehold Land Tenure System?
- History: The Impact of the Land Use Act 1978
- Freehold vs. Leasehold: Understanding the Difference
- How Freehold Worked Before 1978
- Current Status of Freehold in Nigeria
- Advantages of Freehold Tenure
- Disadvantages and Limitations
- Certificate of Occupancy: Nigeria’s Alternative
- Practical Steps for Property Buyers
- Frequently Asked Questions
What is Freehold Land Tenure System?
Freehold land tenure is a system where an individual or entity owns land outright and permanently, with full rights to use, develop, sell, lease, or transfer the property without restrictions. Unlike leasehold tenure where you rent land for a specific period, freehold gives you complete ownership forever.
Key Characteristics of Freehold Tenure:
Permanent Ownership: The land belongs to you indefinitely, not for a limited term. You can pass it down through generations via the inheritance tenure system.
Full Control: You have unrestricted rights to use the land as you see fit (subject to local zoning laws and regulations).
Transferability: You can sell, gift, or transfer the land without seeking government approval.
Collateral Use: The land can be used as security for loans and mortgages from financial institutions.
No Rent Payments: Unlike leasehold, you don’t pay annual ground rent to a landlord or government.
Important Note: True freehold tenure as described above no longer exists in Nigeria following the enactment of the Land Use Act of 1978. However, understanding this concept is essential for grasping Nigeria’s current land ownership structure.
History: The Impact of the Land Use Act 1978
Before 1978: Freehold in Colonial and Post-Colonial Nigeria
Before March 29, 1978, Nigeria had a dual land tenure system inherited from the British colonial administration:
In Southern Nigeria:
- Land was owned by families and communities (villages, towns)
- Individuals could acquire freehold titles, especially in urban areas like Lagos
- Traditional rulers and family heads controlled land allocation
- The communal land tenure system was predominant in rural areas
In Northern Nigeria:
- Most land was held under customary tenure
- The Land Tenure Law of Northern Nigeria governed ownership
- Individual freehold ownership was rare
- Government had more control over land administration
The Land Use Act Revolution
On March 29, 1978, the Federal Military Government enacted the Land Use Act (Decree No. 6 of 1978), which fundamentally transformed land ownership in Nigeria. This Act was incorporated into the Nigerian Constitution and remains in force today.
What the Land Use Act Did:
- Abolished All Freehold Titles: Existing freehold systems across Nigeria were terminated
- Vested Land in State Governors: All land within each state was vested in the Governor, held in trust for citizens
- Created a Nationwide Leasehold System: Replaced freehold with leasehold tenure, typically for 99 years
- Introduced Certificates of Occupancy: Established C of O as the primary title document
- Required Governor’s Consent: Made land transfers subject to government approval
Why Was the Land Use Act Enacted?
The Act aimed to:
- Standardize land administration across Nigeria
- Prevent land speculation and hoarding
- Ensure equitable access to land for all Nigerians
- Facilitate government acquisition of land for public projects
- Simplify land ownership documentation
- Reduce ethnic and communal land conflicts
According to Africa Check, less than 3% of Nigeria’s land is formally registered, with the remaining 97% relying on informal agreements and traditions.
Freehold vs. Leasehold: Understanding the Difference
Even though true freehold no longer exists in Nigeria, understanding the distinction helps clarify what property rights you actually have:
| Feature | Freehold (Pre-1978) | Leasehold (Current System) |
|---|---|---|
| Ownership Duration | Permanent/Indefinite | Fixed term (typically 99 years) |
| Title Holder | Individual/Entity | State Governor (in trust) |
| Renewal | Not applicable | Required at term expiration |
| Transfer Requirements | Minimal restrictions | Governor’s consent required |
| Ground Rent | None | May be applicable |
| Collateral Use | Fully acceptable | Acceptable with C of O |
| Inheritance | Automatic to heirs | Subject to legal process |
| Revocation | Nearly impossible | Possible for misuse/non-development |
How Freehold Tenure Worked Before 1978
Understanding the old freehold system provides context for Nigeria’s current land tenure challenges.
Acquisition Process (Pre-1978):
Purchase from Individual/Community:
- Buyer negotiated directly with landowner or community leaders
- Payment was made based on agreed price
- Traditional ceremonies often accompanied land transfers
- Witnesses documented the transaction
Title Documentation:
- Deed of Conveyance was the primary document
- Registered at the Deeds Registry
- Survey plans defined boundaries
- No government consent required for most transactions
Current Status of Freehold in Nigeria
The Reality: No True Freehold Exists
Under the current legal framework in Nigeria:
All land is owned by the government (State Governors for urban land, Local Governments for rural land)
Citizens can only acquire “Rights of Occupancy” – essentially long-term leases, not outright ownership
Maximum tenure is 99 years for most grants, though renewable
The Certificate of Occupancy (C of O) is the highest form of land title document available
Certificate of Occupancy: Nigeria’s Alternative to Freehold
Since freehold no longer exists, the Certificate of Occupancy (C of O) is the closest equivalent and the highest form of land title in Nigeria.
How to Obtain a Certificate of Occupancy
Step 1: Land Acquisition – Purchase land or receive allocation from government
Step 2: Survey – Engage a licensed surveyor (Cost: ₦50,000 – ₦200,000)
Step 3: Application – Submit to State Land Bureau (Fee: ₦5,000 – ₦20,000)
Step 4: Verification & Inspection – Government verifies ownership history
Step 5: Fee Payment
- Lagos: ₦100,000 – ₦300,000
- Abuja (FCT): ₦3,500,000 (flat rate)
- Other states: ₦100,000 – ₦500,000
Step 6: Publication – 30-90 day objection period (Fee: ₦10,000 – ₦50,000)
Step 7: Issuance – C of O prepared and signed by Governor
Timeline: 6 months to 2 years | Total Cost: ₦300,000 – ₦4,500,000
Practical Steps for Property Buyers
Before Buying Land:
1. Verify Land Status
- Check if land has existing C of O
- Search Land Registry records
- Verify seller’s ownership documents
- Confirm no government acquisition pending
2. Conduct Due Diligence
- Engage a property lawyer
- Verify survey plan authenticity
- Check for encumbrances or disputes
- Confirm land use designation
Red Flags to Watch For:
⚠️ No documentation – Seller can’t provide any ownership proof
⚠️ Family land without proper documentation – High risk of disputes
⚠️ Government acquisition area – Land may be earmarked for projects
⚠️ Multiple sellers claiming ownership – Clear sign of trouble
⚠️ Suspiciously cheap land in prime areas – Too good to be true
Frequently Asked Questions
1. Does freehold land tenure still exist in Nigeria?
No. The Land Use Act of 1978 abolished all freehold tenure systems in Nigeria. All land is now vested in State Governors (for urban areas) or Local Governments (for rural areas), who hold it in trust for citizens. The maximum tenure you can obtain is a 99-year leasehold through a Certificate of Occupancy.
2. What replaced freehold tenure in Nigeria?
Freehold was replaced by a nationwide leasehold system under the Land Use Act. Citizens can obtain Rights of Occupancy (evidenced by Certificates of Occupancy) for up to 99 years, renewable upon expiration.
3. How much does it cost to get a Certificate of Occupancy?
Costs vary significantly by state:
- Lagos: ₦100,000 – ₦300,000 for residential land
- Abuja: ₦3,500,000 (flat rate for all land sizes)
- Other states: ₦100,000 – ₦500,000
4. Can foreigners own land in Nigeria?
Foreigners cannot directly own land under Nigerian law. However, they can incorporate a Nigerian company (which can then own land), obtain rights of occupancy through that company, or lease land for periods under one year without special approval. For more details, see DLA Piper’s guide.
5. Can the government take my land even with a C of O?
Yes, but only in specific circumstances: overriding public interest (roads, schools, infrastructure) with compensation, failure to develop within specified timeframe, misuse contrary to approved purpose, or violation of land use regulations.
Conclusion
While the freehold land tenure system no longer exists in Nigeria following the Land Use Act of 1978, understanding its history is essential for navigating the country’s current land ownership landscape. Today’s leasehold system, centered on Certificates of Occupancy, aims to balance equitable access to land with individual property rights.
For a comprehensive understanding of all land ownership options in Nigeria, read our complete guide on Land Tenure Systems in Nigeria.
Additional Resources
Government Agencies:
Legal Resources:
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Last updated: October 7, 2025 | Word Count: 4,850 words
