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[REIC 2019-04] This Serious Problem is Killing Nigeria’s Real Estate Growth – LanreKarim.com

[REIC 2019-04] This Serious Problem is Killing Nigeria’s Real Estate Growth –  LanreKarim.com

Monday 8th July 2019

Different land management systems/laws have existed across the various geographical regions in Nigeria, from the pre-colonial and post colonial eras.

Some of those laws include:

  1. The Registration of Titles law
  2. Property and Conveyancy Law (1884)
  3. Land Use Act (1978) etc.

They have each played major roles in addressing land matters.

But their relevance has generally been short-lived, thereby necessitating reviews.

It’s a well known fact that lands belong to the ancestors of the rural dwellers from the time of the earliest settlers.

However, the Land Use Act of 1978, which was promulgated by the military regime of General Olusegun Obasanjo, vested all lands of the federation, in the custody of the Governors of each state, while rural lands came under the direct administration of the Local Governments.

The Act also provided for the appointment of a Land Use Allocation Committee, to work in synergy with the State Governors, and the Land Allocation Advisory Committee to work with the Local Governments respectively.

Now, personally – as a real estate professional working in the industry – I believe the Land Use Act is still not working properly to address the management of land systems in Nigeria.

For instance, in Nigerian society today, the undeniable menace of the so-called customary land owners (aka Omo Onile) as it relates to their – often illegal and disruptive – involvement in land allocation matters remains endemic, especially in the Lagos/South West region of the country. 

This unruly group insists that a prospective land purchaser MUST pass through them, by making payments they prescribe – or otherwise face unexpected consequences (e.g. threats of violence that they do not hesitate to carry out).

There is no denying the fact that, the Land Use Act abolished the free hold system, to establish a lease hold system (that implies land ownership is ONLY for a period of 99 years) from 1978.

However, if the Act is to fully address the identified anomaly, then the transaction process should strictly involve ONLY the Federal, State, or Local Governments as well as the purchaser.

In other words, the purchaser should no longer need to have ANY dealings with the so called customary land owners!

Sadly, the current state of affairs is far from the ideal referred to above.

Indeed, things have now deteriorated so badly, that, a particular king in an LCDA {Local Government Development Area) that I’m familiar with, actually had the audacity to write a letter to all residents in his locality, asking them to repurchase their landed properties, with the sum of N1M, or face the wrath of the thugs from his palace. These are properties that were purchased when his father was king!

The alarmed land owners on receiving the threatening letter demanding that they make a duplicate payment for land already purchased, notified the officials of the government.

But, all their efforts have so far proved abortive, as there was no response from the bureau.

As you can imagine, this kind of situation, in which relevant authorities fail to take timely action to correct anomalies of this kind, often embolden the law breakers to persist in their illegal activities, while infringing on the rights of legitimate owners.

I look forward to the day when an effective statute shall be enacted and our real estate management system remodeled in a manner similar to what obtains in developed societies.

Over there, for instance, the council is responsible for the affairs of affordable, decent, and comfortable realties for its citizens.

If we go about it the right way, we can have a similar arrangement working properly here in Nigeria, that protects the rights of all stakeholders – and the real estate industry would flourish as a result to the benefit of all!

Below, is an excerpt from the Land Use Act 1978,enunciating the roles and responsibilities of principal officers:

29th March 1978

Part 1

General

  1. Subject to the provisions of this Act, all land comprised in the territory of each State in the Federation are hereby vested in the Governor of that State and such land shall be held in trust and administered for the use and common benefit of all Nigerians in accordance with the provisions of this Act.
  2. (1) as from the commencement of this Act –

(a)       All land in urban areas shall be under the control and management of the Governor of each State. And

(b)       All other land shall, subject to this Act, be under the control and management of the Local Government, within the area of jurisdiction of which the land is situated.

(2)        There shall be established in each State a body to be known as “the Land Use and Allocation Committee” which shall have responsibility for:-

(a)       Advising the Governor on any matter connected with the management of land to which paragraph (a) of subsection (1) above relates;

(b)       Advising the Governor on any matter connected with the resettlement of persons affected by the revocation of rights of occupancy on the ground of overriding public interest under this Act; and

(c)        Determining disputes as to the amount of compensation payable under this Act for improvements on land.

SEE MORE OF THESE FROM THE LAND USE ACT.

29th March 1978

Part I

General

5)        There shall also be established for each Local Government a body to be known as “the Land Allocation Advisory Committee” which shall consist of such persons as may be determined by the Governor acting after consultation with the Local Government and shall have responsibility for advising the Local Government on any matter connected with the management of land to which paragraph (b) of subsection (1) above relates.

SEE MORE OF THESE FROM THE LAND USE ACT document: http://www.nigeria-law.org/Land%20Use%20Act.htm [Land Use Act, Chapter 202, Laws of the Federation of Nigeria 1990]

PS: If you need help learning more about what you need to know to succeed in Real Estate Investment, read more articles like this at www.lanrekarim.com. To get more help, contact me via [email protected] to book a telephone appointment.

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ABOUT LANRE KARIM

Lanre Karim – Nigeria’s Real Estate Investment Advocate (REIA) – is the author of the Real Estate Investment Chronicles (REIC) : a thought-leading online publication that features tried and tested Real Estate Investment strategies– and solutions – for everyday persons.

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Over a decade of hard won experience backed by extensive client testimonies and sales based referrals by satisfied clients, make Lanre Karim’s LREO (Larry Real Estate Organization) a preferred provider – in partnership with Pwanhomes Ltd – of cheap, affordable and dry landed properties, at Ibeju-Lekki, Eleko, and Ahoyaya area of Lagos, Nigeria.

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This post first appeared on Real Estate, please read the originial post: here

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[REIC 2019-04] This Serious Problem is Killing Nigeria’s Real Estate Growth – LanreKarim.com

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