According to a report by the Nigerian Land Use and Allocation Committee (LUAC), over 5,000 C of Os were revoked by the government in 2019 and with that number increasing year on year.
Sometimes without proper compensation or due process being carried out before the revocation of the C of O, leading to disputes and conflicts between landowners and the government.
Research has revealed several reasons for this negative phenomena which include; lack of land use knowledge by land owners and real estate investors leading to a breach of the conditions of the C of O and the abuse of power by government officials.
The frequency of this has become a cause for concern among landowners and real estate investors in the Nigerian Real Estate Sector as the revocation of C of O can have significant negative impacts on landowners, including the loss of their investment, the disruption of their livelihoods, and the violation of their property rights.
Raising the QUESTION – How Can Land Owners Protect Their Assets?
In today’s article you will get a proper answer to this QUESTION as you’ll get to know:
-What Really Is A C of O?
-The Law Governing Land Use In Nigeria
-Reasons For The Revocation Of C of O
-Procedures That Must Be Followed For The Revocation Of C of O
-How To Avoid Getting Your C of O Revoked
-My Conclusion
So strap in, get your popcorn and let’s get into this intriguing and eye opening edition of REMNs monthly series – Nigerian Real Estate: X Files.
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Let’s proceed…
What Really Is A C of O?
A Certificate of Occupancy (C of O) in Nigeria is a legal document issued by state governments to demonstrate proof of ownership or right to use a piece of land in a specific area. It is one of the most important documents a landowner can possess, as it serves as a legal title to the land, and is used to establish ownership or right to use the land.
A C of O contains details such as the name of the owner or holder of the right of occupancy, the location and size of the land, the purpose for which the land is to be used, the duration of the right of occupancy, and any special conditions attached to the land.
The issuance of a C of O is governed by the Land Use Act of 1978, which vests ownership of all land in the state and local governments. Section 9 of the LUA empowers the Governor to grant certificates of occupancy which confers ownership and right to use the land for a given period. Under the Act, a person seeking to obtain a C of O must apply to the Governor through the State Ministry of Lands and Survey, and fulfill certain conditions which include; payment of fees and taxes, and compliance with relevant laws and regulations.
Once issued, the C of O serves as proof of ownership or right to use the land, and can be used as collateral for loans, and as evidence in court in the event of disputes over ownership or use of the land.
The Law Governing Land Use In Nigeria
The Land Use Act of 1978 is the primary law that governs land ownership and use in Nigeria. It sets out the conditions under which the government can revoke a Certificate of Occupancy (C of O) and the procedures that must be followed.
Under the Land Use Act, the government can revoke a C of O if the land is required for overriding public interest, such as for the construction of a public road or the provision of public utilities. However, before revoking a C of O, the government must give the landowner notice.
Furthermore, the Act requires that compensation be paid to the landowner for any improvements made on the land. The amount of compensation is usually determined by an independent assessor appointed by the government.
The Land Use Act also specifies that a C of O can be revoked if the land has been used for a purpose other than the one specified in the C of O, or if the landowner has breached any of the conditions of the C of O.
However, the Act also provides for legal challenges to the revocation of a C of O. Landowners who believe that their C of O has been revoked unfairly or without due process can challenge the revocation in court.
The Land Use Act of 1978 also sets out the conditions under which a C of O can be revoked in Nigeria, including the requirement for notice and compensation, and the opportunity for legal challenge.
Reasons For The Revocation Of C of O
The revocation of a Certificate of Occupancy (C of O) in Nigeria can occur under certain circumstances, as specified by the Land Use Act of 1978. Section 28 of the Land Use Act empowers the Governor to revoke a right of occupancy earlier granted.
The Act provides that the Governor of a state can revoke a C of O for the following reasons:
Public Interest: Section 28 (1) of the Land Use Act 1978 states that a C of O can be revoked if the land is required for public purposes. Section 51 LUA outlines what constitutes public purpose, purposes such as the construction of public buildings, roads, or other infrastructure.
Breach of the Conditions of the C of O: Section 28 (5) of the Land Use Act 1978 states that a C of O can be revoked if the holder of the C of O fails to comply with any of the conditions attached to the C of O. Section 8, 9(3), 10 LUA expressly states these terms. For instance, if the land is to be used for agricultural purposes, but the holder of the C of O converts it to a residential or commercial property, the C of O can be revoked.
Misrepresentation: The C of O can be revoked if it was obtained by fraud, misrepresentation, or other unlawful means.
Procedures That Must Be Followed For The Revocation Of C of O
The procedures for the revocation of a Certificate of Occupancy (C of O) in Nigeria are governed by the Land Use Act of 1978. Unless land is revoked in accordance with the provision of the Land Use Act such revocation is invalid.
The procedures that must be followed include:
Notice of Revocation: Section 28 (6) of the Land Use Act 1978 provides that the government must give notice to the landowner before revoking the C of O. While Section 44 of the Land Use Act 1978 outlines how the notice should be effectively served on the holder of the C of O.
Payment of Compensation: Section 29 of the Land Use Act requires the government to pay compensation to the landowner for the land and any improvements made on the land. The amount of compensation is usually determined by an independent assessor appointed by the government. The land owner also has an option to accept resettlement to another location.
Appeal: If the landowner is not satisfied with the revocation or the compensation offered, they can challenge the decision in court. The Land Use Act provides for a legal challenge to the revocation of a C of O.
It is important to note that the revocation of a C of O must be done in accordance with the provisions of the Land Use Act and the due process of law. The holder of the C of O must be given adequate notice, and fair compensation for any loss incurred as a result of the revocation.
This statement is also reaffirmed by The Supreme Court in the case of Omuju V. AG Anambra State, 2009, 10 NWLR, PT 148 @ 182 where it held that the revocation of the right of occupancy can be valid, if notice of same has been served on the owner or party concerned.
How To Avoid Getting Your C of O Revoked
The revocation of a Certificate of Occupancy (C of O) in Nigeria comes with significant negative impacts on the landowner, including the loss of their investment, the disruption of their livelihoods, and the violation of their property rights. Here are some steps that landowners can take to minimize the risk of having their C of O revoked:
Compliance with Terms Of The C of O: Landowners should ensure that they comply with the conditions of their C of O, such as using the land for the purpose specified in the C of O and paying any required fees and taxes. This can help to avoid breaching the terms of the C of O and triggering a revocation.
Regularize Title Documents: Landowners should ensure that their title documents are up-to-date and properly registered. This can help to avoid disputes over ownership and potential claims by the government for failure to register the land properly.
Obtain Legal Advice: Landowners should seek legal advice from qualified professionals to ensure that their land transactions and dealings comply with the relevant laws and regulations. This can help to avoid unintentional breaches of the law and potential revocation of the C of O.
Follow Due Process: Landowners should ensure that they follow due process in their dealings with the government, such as obtaining necessary permits and approvals before undertaking any construction or development activities. This can help to avoid running afoul of the law and triggering a revocation of the C of O.
My Conclusion
The revocation of a Certificate of Occupancy (C of O) in Nigeria is a complex issue that involves the intersection of legal, economic, and social factors. While the Land Use Act of 1978 provides for the revocation of a C of O under certain circumstances, such as for the public interest or breach of the conditions of the C of O, the Act also sets out procedures to be followed, including notice to the landowner, payment of compensation, and the right to appeal.
However, despite these safeguards, there have been cases of abuse of power by government officials, leading to the arbitrary revocation of C of Os, and the displacement of vulnerable communities. This has resulted in a loss of confidence in the land tenure system, and a lack of investment in the agricultural and housing sectors, which are critical to the economy and the well-being of Nigerians.
To address this issue, there is a need for a comprehensive review of the Land Use Act to ensure that it is in line with current realities, and that it provides adequate protection for the rights of landowners, while promoting sustainable land use and development. There is also a need for greater transparency and accountability in the administration of the land tenure system, including the use of technology to ensure the efficient and effective management of land records.
In conclusion, the issue of the revocation of C of Os in Nigeria is a multifaceted one that requires a holistic and collaborative approach involving all stakeholders, including government, civil society, and the private sector. Only through such efforts can the rights of landowners be protected, and the potential of the land sector harnessed for the benefit of all Nigerians.
Moses Oyong is a luxury real estate advisor with a passion for arts and culture, music, fashion, and all things luxurious. With a keen eye for beauty and attention to detail. I strive to help my clients find their dream homes that reflect their unique sense of style and taste whilst providing them with the right information to ease the stress of the decision-making process.
