Land Tenure System in Nigeria

Nigeria

Land Tenure System in Nigeria in simple terms, land tenure refers to the transfer of land ownership from one individual to another for an agreed period or permanently. Land tenure system is the regimen responsible for the legal ownership, usage and transfer of land from one person to another. It is also responsible for determining how long a land should be used by the assigned owner.ย 

Land Tenure System in Nigeria

Understanding the Land Tenure System in Nigeria

This system is important because it guides how an individual or a certain group handles a land that belongs to or has been leased to them. It is covered by the Nigerian Land Use Act

The Nigerian Land Use Act of 1978 says it is an Act to vest all land comprised in the territory of each State (except land vested in the Federal Government or its agencies) solely in the Governor of the State, who would hold such land in trust for the people and would henceforth be responsible for allocation of land in all urban areas to individuals resident in the State and to organisations for residential, agricultural, commercial and other purposes while similar powers with respect to non-urban areas are conferred on Local Governments.

Our land tenure system in Nigeria is of 7 types. These types were designed to prevent monopoly and marginalisation of land. They include:

  1. Inheritance Tenure System 
  2. Communal Land Tenure System
  3. Freehold Tenure System 
  4. Leasehold Tenure System 
  5. Rent Tenure System
  6. Gift Tenure System 
  7. Tenant at Government Will 

Inheritance Tenure System 

This system refers to the transfer of land from an original owner after their death to a successor or the person it is willed to, usually the next of kin or close family member. One advantage of this system is that it keeps the land within the family, hence maintaining their wealth. A downside to it is as generations go, the land may be repeatedly divided over inheritors making it smaller for use per person. For example, a land which could be used for large scale agriculture farming in the next few generations may only be fit for building a small residential property because it would have been shared into smaller parts for family members. Inheritance Tenure System is commonly used both in rural and urban settings.

Communal Land Tenure System

As the name implies, there is no sole owner of land in this system, however it is assigned to  people for activities such as farming, but  does not transfer ownership to them. An advantage of this the land remains in the community as ownership can not be transferred to people from other places. A downside to this tenure system is that the land can not be used as collateral for loans despite being asigned to individuals because they do not have the right to claim ownership.

Freehold Tenure System

Freehold Tenure System is the tenure system most people are familiar with. It gives individuals full ownership to land upon purchase and finalization of legalities. The price of the land is directly proportional to its size. Another factor that determines its cost is its location. A land in an urban area will cost more than another in rural area of the same size. The owner of land under this system is free to do as they like, they can develop, lease, use as collateral or sell it. Another advantage of this system is the security that comes with owning a land which can be financial or social. A downside to it is that it takes a lot of funds to be able benefit from this tenure system, because buying land is most times not cheap.

Leasehold Tenure System 

In this system, an individual is given access to use a land, mostly for commercial purposes for a time period, usually between 5 years to 99 years. The recipient of the land, called a leaseholder is free to use the land as they deem fit, however they cannot use it as a loan collateral or sell it, these are some of the disadvantages of this system. After the lease period, the land returns to the original owner. An advantage of this that less funds are required to obtain a piece of land through this system when compared to Freehold Tenure System. Also, the period of lease is variable and negotiable.

Rent Tenure System 

In this system, the owner rents out their land to a tenant for housing, commercial or agricultural purposes. Rent Tenure System is similar to Lease Tenure System, however the rent period is usually for a smaller time period, can range from a few months to a couple of years. The rent can also be made recurring based on the tenacy agreement. An advantage of this system is that financial burden is less on the occupant and can be spread over time based on the tenancy agreement. A disadvantage is the occupant loses right to land after the tenancy period expires or per adventure there is a breech of contract. Furthermore, it cannot be sold or used as a loan collateral by the occupant. 

Gift Tenure System

Here a land owner willingly gifts their land to someone else, commonly a family member which can be to mark special occasion. Hence rights of ownership is transferred permanently to the recipient who can do as they please with the land. Which is an advantage because the new owner can choose to lease, sell, develop or use the land as a loan collateral. Disadvantages include: the high chance of ownership challenge by others especially family members in the court of law or amongst themselves.

Tenant at Government Will 

This tenure system refers to land owned by the government given to its citizens for temporary use. Most times these citizens use the land for agricultural purposes or as informal settlement. The good side of this is that the land is affordable but the downside is at any given time the government can reclaim the land without sufficient notice making its occupant internally displaced or losing their business.

With all that has been said about Land Tenure System in Nigeria, we believe that we have done justice to this topic and have succeded in enlightening you. Remember that A.I Realant is your number one choice for real estate in Abuja, Nigeria and for property news and update.

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