Home Community Insights Restrictions On Rights To Land, Special Contracts & Certificates Of Occupancy Under Nigerian Law

Restrictions On Rights To Land, Special Contracts & Certificates Of Occupancy Under Nigerian Law

Restrictions On Rights To Land, Special Contracts & Certificates Of Occupancy Under Nigerian Law

This article will be focused on the topics of:-

– The legal basis for a restriction of rights to ownership of land.

– Special Contracts Under Nigerian Land Law

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– Certificates Of Occupancy Under The Land Use Act

– Licenses to excavate land for building materials

What is the legal basis for a restriction on the right to own land under Nigerian law?

– It is unlawful by virtue of the Land Use Act for a state governor to grant a statutory right of occupancy ot consent to the assignment or subletting of a statutory right of occupancy to a person under 21 years of age provided that :- 

a). Where a guardian or trustee of a person under 21 years has been duly appointed for such purpose, the governor may grant or consent to the assignment or subletting of a statutory right of occupancy to such a guardian or trustee on behalf of the underaged person.

b). A person under 21 years who receives a statutory right of occupancy upon the death of the holder, shall have the same liabilities and obligations under and in respect of his right of occupancy as if he were of full age, notwithstanding the fact that no guardian or trustee has been appointed for him.

What is the provision of the Land Use Act regarding special contracts?

A statutory right of occupancy granted under the relevant provisions of the act shall be for a definite term and may be granted subject to the terms of any contract which may be made by the government and the holder not being inconsistent with the provisions of this act. 

What are the conditions and implied provisions of law regarding certificates of occupancy?

– The governor is to issue a certificate under his hand in evidence of such right of occupancy when:-

a). Granting a statutory right of occupancy to any person.

b). When any person is in occupation of land under a customary right of occupancy and applies in the prescribed manner.

c). When any person is entitled to a statutory right of occupancy.

– Such a certificate shall be called a certificate of occupancy and there shall be paid therefore, by the person in whose name it is issued,such fee as may be prescribed if any.

– The Certificate can be cancelled where the person to whom it is issued, without lawful excuse, refuses or neglects to accept or pay for the certificate. 

– The holder binds himself to pay to the governor the amount found to be payable in respect of any inexhausted improvements existing on the land at the date of his entering into occupation.

– The holder binds himself to pay to the governor the rent fixed by the governor and any rent which may be agreed or fixed on revision in accordance with the Land Use Act.

What is the extent of a state governor’s powers to grant licenses to take building materials?

– It shall be lawful for the governor to grant a license to any person to enter upon any land which is not the subject of a statutory occupancy right or mining lease or right under the Minerals & Mining Act or any other enactment, and remove or extract therefrom any stone, gravel, clay, sand or other similar substance not being a mineral under the Minerals & Mining Act that may be required.

– No license in this regard shall be granted in respect of an area exceeding 400 hectares.

– Such a license cannot be transferred without the consent of the applicable state governor.

What is the regulatory requirement for occupancy rights holders regarding beacons?

– The occupier of a statutory right of occupancy shall at all times maintain all beacons or landmarks by which the boundaries of the land comprised in the statutory right of occupancy are defined and when in default the governor will via a written notice, require the occupier to do so.

The Exclusive Rights Of Statutory Occupiers/Owners Of Land & Regulatory Rental Rights Concerning Land Under Nigerian Law

This article will be focused on the exclusive rights of holders of occupancy grants and rents on occupancy rights under Nigerian law.

What are the exclusive rights of occupiers under Nigerian law?

– Subject to the other provisions of the Land Use Act & any laws relating to way leaves, to prospecting for minerals or mineral oils or to mining or to oil pipelines & subject to the Terms and Conditions of any contract made under the act, the occupier shall have exclusive rights to the land the subject of the statutory right of occupancy against all persons other than the governor.

What is the provision of the Land Use Act regarding the right to improvements?

– During the term of a statutory right of occupancy the holder :-

a). Shall have the sole right to absolute possession of all the improvements in the land.

b). May, subject to the governor’s consent, transfer, assign or mortgage any improvements on the land, which have been effected pursuant to the terms and conditions of the Certificate of Occupancy relating to the land.

What is the provision of the law regarding rents?

– In determining the amount of the original rent to be fixed for any particular land and the amount of the revised rent to be fixed on any subsequent revisions, the governor :-

a). Shall take into consideration the rent previously fixed in respect of any other land in the immediate neighborhood and shall have regard to all the circumstances of the case.

b). Shall not take into consideration any value due to capital expended upon the land by the same or previous occupier during his term or terms of occupancy, or any increase in the value of the land the rental of which is under consideration due to the employment of such capital.

What is the extent of a governor’s power to grant rights of occupancy free of rent or at reduced rent?

-The governor may grant a statutory right of occupancy free of rent or at a reduced rent in any case in which he is satisfied that it would be in the public interest to do so.

Is the acceptance of rent a valid waiver of a forfeiture under Nigerian law?

– No it isn’t. Subject to the relevant provisions of the Land Use Act, the acceptance by or on behalf of the governor of any rent shall not operate as a waiver by the government of any forfeiture accruing by reason of the breach of any covenant or condition, express or implied, in a Certificate of Occupancy. 

What is the provision of the law regarding penal rents?

When in any certificate of occupancy the holder has covenanted to develop or effect improvements on the land being the subject of the certificate and has breached such a covenant, the governor may :-

– Revise the penal rent to be paid upon the expiration of 12 months from the breach & such rent will be reviewed every 12 months from the continuance of the breach.

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