THE ULTIMATE GUIDE TO LAND TITLES IN NIGERIA: FROM C OF O TO OMO-ONILE.

A Homeowner's Guide to Land Title and Ownership in Nigeria.

Navigating the world of real estate in Nigeria can feel like a complex journey, especially when it comes to understanding land titles and ownership. For any prospective buyer, this is the most critical aspect of the transaction. A mistake here isn't just costly; it can lead to years of legal battles and potential loss of your investment. This guide breaks down the essential concepts you need to know to secure your property and invest with confidence.

The Land Use Act Explained: Who Really Owns the Land?

At the heart of property ownership in Nigeria is the Land Use Act of 1978. This legislation fundamentally changed land tenure by vesting ownership of all land within a state in the State Governor.

So, what does this mean for you as a buyer? It means that you don't own the land outright in perpetuity. Instead, the government grants you a "right of occupancy" for a specific period, typically 99 years for residential properties. Think of it as a long-term lease from the state.

This is where the Certificate of Occupancy (C of O) comes in. A C of O is the official document issued by the government that proves you have been granted the statutory right of occupancy over a piece of land. It's the primary evidence of your interest in that land.

However, a C of O is not the absolute final word on ownership. Here’s why:

1. It Can Be Issued in Error: A C of O can be issued on a parcel of land that was already subject to a prior interest. In such cases, a court can nullify the later C of O.

2. Revocation is Possible: The government can revoke a right of occupancy for "overriding public interest," such as the need to build a road or public facility. While compensation is supposed to be paid, this highlights that the government's title is supreme.

Understanding this framework is the first step to appreciating why further steps are needed to secure your title.

Perfecting Your Title: Why a Deed of Assignment is Not Enough.

When you buy land from an existing owner (not directly from the state), the primary document you'll receive is a Deed of Assignment. This legal document "assigns" the seller's remaining right of occupancy (e.g., the 85 years left on a 99-year term) to you. Many buyers mistakenly believe that once they have a Deed of Assignment, the property is theirs. This is a dangerous assumption.

To make your title legally sound and secure, you must "perfect" it. This involves three crucial steps:

1. Obtaining Governor's Consent: The Land Use Act requires the Governor's consent for any transfer of land interest. Without it, the transaction is legally incomplete. You must apply to the state's land registry, and this process involves submitting your documents and paying the required fees (like consent fees, capital gains tax, etc.). This is the state officially ratifying the transfer from the seller to you.

2. Stamping the Deed: After consent is granted, your Deed of Assignment must be "stamped" by the Federal Inland Revenue Service (FIRS) or the State’s Internal Revenue Service. This is done by paying stamp duties. An unstamped deed cannot be presented as evidence in court if a dispute arises. Stamping makes your document legally admissible.

3. Registering the Title: The final step is to register the stamped deed at the State's Land Registry. The registry will record the transaction in its official ledger (now often digitised) and file a copy of your document. This process, often called "registration," puts the whole world on notice that you are the new owner. It protects you from fraudulent sellers attempting to sell the same land to multiple people, as a proper search would reveal your registered interest.

Without these three steps, your Deed of Assignment holds very little legal weight against a subsequent buyer who has perfected their title.

Navigating the "Omo-Onile" Maze.

Buying land from traditional families, often referred to as Omo-Onile, is common but carries unique risks. These families were the customary owners before the Land Use Act, and the government often releases portions of land back to them through a process called excision. Here’s how to navigate this maze safely:

1. Deal with the Right People: A sale is only valid if conducted by the principal members and the accredited head of the family. Avoid dealing with just one individual or a junior family member, as other factions of the family could later challenge the sale. It's best to have your lawyer verify the family's legitimate representatives.

2. Verify the Land's Status: Not all family land is free to be sold. You must engage a surveyor to chart the coordinates of the land and check its status at the Surveyor General's office. This confirms two things:

- Is it under government acquisition? If the land is "committed" (i.e., designated for a specific public purpose like a hospital or school), you will lose it without compensation.

- Has it been excised? If the land was acquired by the government but has been officially released back to the family, it will have an "excision" block number and be listed in the government's official gazette. This is the safest type of family land to buy.

3. Document Everything: Ensure all payments are made through traceable means (like bank transfers) to the accredited family representatives, and have every agreement documented in writing.

4. Due Diligence is Non-Negotiable: The Power of a Search. Before a single naira is exchanged, a thorough legal search is the most important step you can take. It’s a preliminary investigation to verify the seller's claims.

Land Registry Search.

This is conducted at the State's Land Registry where the property is located. A lawyer helps you apply for a search report, which will reveal:

1. The Current Owner: Who is the registered owner of the property? Does it match the seller's identity?

2. The Property's History: A summary of previous transactions on the property.

3. Any Encumbrances: Is there a mortgage on the property? Is there a court judgment or lien against it?

4. Survey Plan: Does the registered survey plan match the physical land you were shown?

Corporate Affairs Commission (CAC) Search.

If the seller is a company, an additional search at the CAC is essential. This search confirms:

1. That the company is legally registered and in good standing.

2. The identity of the directors and their power to sell company assets.

3. Whether the property has been used as collateral for a loan or is subject to a debenture or charge, which would give a lender rights over it.

Conclusion

Securing your land title in Nigeria is a process that demands diligence, patience, and professional guidance. Simply paying for a property and collecting a deed is not enough. By understanding the Land Use Act, perfecting your title through the Governor's consent and registration, navigating family land with caution, and conducting thorough searches, you can protect your investment and enjoy true peace of mind as a property owner. Always remember: the best money you can spend in a real estate transaction is on competent legal advice.