What certificate of occupancy means
A Certificate of Occupancy is the state saying, in writing, that you may occupy this land for a set number of years.
It exists because of the Land Use Act of 1978, which vested all land in each state in the Governor, held in trust for the people. The practical consequence is that Nigerians do not own land outright the way people imagine. What you hold is a right of occupancy, and the C of O is the certificate evidencing it, usually for a term of 99 years.
So when somebody tells you they own land in Lagos, what they mean, correctly stated, is that they hold a right of occupancy granted by the Governor.
How it is used
The C of O is the document buyers ask for first, banks ask for before lending against property, and developers need before serious construction finance.
It is also the reference point for everything that comes after. When land with a C of O is later sold, the transfer is done by deed of assignment, and because the title is statutory, Governor's consent is required for that transfer to be valid.
Key features
- Issued by the state Governor under the Land Use Act
- Grants a right of occupancy, normally for 99 years, rather than freehold ownership
- Carries conditions, including the use the land is approved for and payment of ground rent
- Required by most banks as security before lending against land
- Transfers of land held under a C of O generally need Governor's consent
How this works in Nigeria
There are two routes to a C of O. A statutory right of occupancy is granted directly by the Governor. A deemed grant arises where somebody was already in lawful occupation when the Land Use Act came into force, and their existing interest was converted by operation of law.
Buyers should also understand what a C of O does not settle. Land that was never excised from government acquisition can carry a C of O in name while remaining exposed, which is why excision and gazette searches matter alongside the certificate itself.
C of O vs deed of assignment vs governor's consent
These three get muddled in almost every conversation about Nigerian land.
The C of O is the root title, the state's grant to the holder. The deed of assignment is the instrument used when that holder later transfers the land to a buyer. Governor's consent is the approval that transfer needs to be valid.
So a complete chain looks like this: the Governor grants a C of O, the holder sells by deed of assignment, the Governor consents to that transfer, and the deed is stamped and registered. A buyer holding only the deed, with no consent and no registration, has an incomplete title however much they paid.
Limits and risks
A C of O is not a guarantee that the land is clean. It can be revoked for overriding public interest, subject to compensation. It carries obligations, including ground rent and the approved use, and breaching those conditions creates exposure.
Forged certificates are also a genuine and widespread problem. A certificate that looks perfect means nothing until it has been verified against the records at the state lands registry, and that search is the cheapest money you will spend on any land purchase.
Worth knowing
Never accept a photocopied C of O as proof of anything. Conduct a search at the state lands registry to confirm the certificate exists, matches the land, and is in the seller's name.