NOW IS THE TIME FOR LAND REFORM
There is need for a comprehensive review of the Land Use Act
Promulgated on 29 March 1978 by the military administration of General Olusegun Obasanjo to modify the land tenure system in the country, what is now called the Land Use Act, Chapter 202, Laws of the Federation of Nigeria 1990, was a bold reform. Yet after 48 years, it is urgently in need of a comprehensive review because it has failed to achieve its objectives. Land prices have become prohibitive while the average Nigerian struggles to afford land, undermining economic mobility. Smallholder farmers cannot expand, and the system now benefits a narrow elite, with state governors turning land into a revenue tool at the expense of the public.
In addition, we now have an opaque and inefficient land market characterised by rent-seeking, bureaucratic bottleneck and corruption. Yet, according to PricewaterhouseCoopers (PwC), about $900 billion can flow into the economy if we get our land reforms right. The PwC report claims that the real estate market alone holds between $230 billion and $750 billion of value that is locked up. This is a compelling enough case for change.
To reform the sector, experts advocate that focus should be on seven key areas. One, the Act should be removed from the Constitution to allow flexible amendments without requiring a super majority of states. Two, the governor’s role as land trustee should be subjected to robust accountability, so that public interest is protected. Three, the legal requirement should shift from the governors’ consent to simple notification to the Land Registry. Like transactions in other asset classes, land transactions should only be registered and reported, as it is done in many jurisdictions. Four, there should be a restraint on the governor’s powers, to ensure they serve as a check, not a bottleneck. Under the current legal regime, the powers donated to the governors are enormous, and there is no accountability for performance.
Five, there may be a need to repeal Sections 34 and 36 of the law on transitional provisions on land. The objective of these provisions was to manage the transition into this law, and almost 50 years later, they are still in place. In addition, the sections on compulsory acquisition need to be updated to ensure market values determine compensation rates. Six, there is an urgent need to establish a seamless, open, and transparent land registration system. With the benefits of technology, any Nigerian should be able to access land information at any time.
Seven, there is a need to ensure the involvement of critical stakeholders in this review process. Lawyers, estate agents, city planners, and land surveyors should be part of the process. The late Professors Jelili Omotola and Akin Mabogunje, and others have played critical roles in the past. Any reform efforts will also benefit from the seminal work by Yomi Fawehinmi, ‘The Essential Guide to Land Acquisition in Nigeria’. Besides, the Presidential Technical Committee on Land Reforms established by the late President Umaru Musa Yar’Adua, and led by Prof. Peter Adeniyi, has already done extensive work, including drafting the bill sent to the National Assembly.
Land reforms require careful thought, clear objectives, creation of appropriate instruments, and development of effective administrative mechanisms. All these to drive inclusion, transparency, and efficient customer service. While sustained land reforms cannot be based on knee-jerk reactions, the task of unlocking the wealth in our land resources can also not be delayed. Nigeria needs the reform to improve land administration, create an equitable system that promotes affordability, strengthen land titling and property registration procedures, and reduce corruption in the Land Market.
Therefore, President Bola Tinubu has a duty to advocate for a land system that serves all Nigerians, not just a few. And now is the time to act.
