What right of occupancy means
A right of occupancy is permission from the state to occupy land for a period.
The Land Use Act vested all land in each state in the Governor, held in trust. What individuals hold from that point is a right of occupancy, typically for a term such as 99 years, evidenced for statutory grants by a Certificate of Occupancy.
So the everyday phrase my land is legally imprecise. What you own is a right to occupy, and that right can be transferred, mortgaged and inherited, but it sits on top of a title that belongs to the state.
How it is used
It is the foundation of every Nigerian land transaction. Because what you hold is a term of years, selling it is an assignment of the unexpired residue rather than a conveyance of freehold, which is why the standard instrument is a deed of assignment.
It is also why Governor's consent is required. The state granted the right, so the state approves when it is passed on.
Key features
- Granted or deemed granted under the Land Use Act 1978
- Statutory rights are granted by the Governor, customary rights arise under customary tenure
- Usually held for a term of years, commonly 99
- Carries obligations, including ground rent and approved use
- Can be revoked for overriding public interest, with compensation in defined circumstances
How this works in Nigeria
There are two ways people come to hold one. A direct grant by the Governor, evidenced by a Certificate of Occupancy. Or a deemed grant, where somebody was already in lawful occupation when the Act came into force in 1978 and their existing interest was converted by operation of law.
Buyers should always establish which they are dealing with, because the documentary trail and the risks differ. A deemed grant with no certificate is not automatically weaker, but it needs to be evidenced properly rather than asserted.
Statutory vs customary right of occupancy
A statutory right of occupancy is granted by the state Governor and is associated with urban land. It is usually evidenced by a Certificate of Occupancy, and transfers need Governor's consent.
A customary right of occupancy arises under customary land tenure and is associated with rural land and local government areas. Families and communities hold land this way.
The distinction drives the whole diligence exercise. With statutory title you are checking the certificate, consent and registration. With customary and family land you are checking excision, the gazette, and whether the head of family and principal members consented to the sale.
Limits and risks
A right of occupancy is not permanent and not absolute. It runs for a term, carries conditions including ground rent, and can be revoked for overriding public interest.
Breaching the conditions, including using land for a purpose other than the one approved, creates exposure that buyers frequently inherit without realising, because nobody checked what the certificate actually permitted.
Worth knowing
Check how many years remain on the term and whether ground rent has been paid. Both are inherited by a buyer, and neither is obvious from looking at the land.
Questions people ask
What is a right of occupancy?
The interest a person holds in Nigerian land under the Land Use Act. It is a right to occupy land for a term, usually 99 years, rather than outright ownership, because all land in a state is vested in the Governor.
Is a right of occupancy the same as a Certificate of Occupancy?
No. The right of occupancy is the interest itself. The Certificate of Occupancy is the document evidencing a statutory grant of that right. You can hold a right without holding a certificate, particularly under a deemed grant.
What is a deemed grant?
Where a person was already in lawful occupation of land when the Land Use Act came into force in 1978, their existing interest was converted into a right of occupancy by operation of law, without a fresh grant from the Governor.
Can a right of occupancy be revoked?
Yes, for overriding public interest, with compensation payable in defined circumstances. It can also be affected by breach of the conditions attached to it, such as unpaid ground rent or unapproved use.
What happens when the 99 year term ends?
The term expires, and in practice the more immediate concerns for most holders are revocation risk and compliance with conditions. Buyers should nonetheless check how much of the term remains, because it is a diminishing asset.
Documents that use this
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