Land Use Act Difficult to Amend, Say Operators
The Chairman of the Ministerial Land Reform Task Team, Dr. Ugochukwu Chime, has described the Land Use Act as challenging to amend.
Speaking at the second edition of the International Conference and Fair on Land and Development in Lagos, themed “Sustainable Land Management for Inclusive Development in African Cities,” Dr. Chime highlighted the complexities surrounding the act.
He stated, “Various attempts to amend the 1978 Land Use Act have failed due to widespread concerns about its potential impact on diverse interests. Amending the Act will be extremely difficult because it is often viewed as a tool for land grabbing. Therefore, improving operational efficiency at the 38 land administration entities and enhancing the legal framework for swift resolution of land-related disputes are crucial steps that must be taken.”
“The necessary alignment of land administration, financial services, and legal frameworks demands extensive private sector involvement, as it serves as the driving force behind economic development.”
“Government reforms aimed at using land reform for taxation and increasing internally generated revenue (IGR) without integrating the efficiency of private sector businesses—which account for over 85% of the country’s productive activities—are short-sighted and must be halted.”
Similarly, the Executive Secretary of the Association of Housing Corporations of Nigeria, Toye Eniola, stated that amending the Land Use Act would be challenging due to the provision that vests all land powers in the governor.
He explained, “It is difficult to amend because, under the Land Use Decree, all land is under the authority of the Governor. To amend this, you would need to go to the National Assembly, and all the state Houses of Assembly must also give their support. Securing the approval of all these parties and getting them to agree is a significant challenge.”
He stated, “The main reason is that governors control the National Assembly, and any amendments must benefit the sitting government. No administration is willing to relinquish land powers, as land has become a major source of revenue for many governments.”
Meanwhile, the Director of the Centre for Housing and Sustainable Development, Prof. Timothy Nubi, noted that despite rapid urbanization and expanding economies, regions like Africa and Asia still hold significantly lower real estate value compared to other parts of the world.
He explained, “This disparity highlights the vast untapped potential in Africa’s property markets, which is currently stifled by systemic challenges. Unfortunately, due to inadequate data, the distribution of real estate value within Africa, particularly in Nigeria, remains poorly documented.”
Prof. Nubi added, “A large portion of Africa’s real estate wealth is locked in ‘dead capital,’ a term popularized by economist Hernando De Soto to describe untitled and unproductive assets. In Nigeria, unresolved land ownership issues and the inefficient administration of the 1978 Land Use Act have sustained this problem. Weak land tenure systems have hindered capital formation and economic growth, leading to significant wastage.”
Stay tuned on our website to stay updated on real estate news, gain insights on real estate tips, and enjoy real estate stories where realtors share their experiences. You can also make money by sharing your own story. Don’t forget to drop your comments and join the conversation!
