Dr Ugochukwu Chime and experts discuss challenges in amending Nigeria’s Land Use Act, citing concerns over governance and economic impacts.
At the 2nd edition of the International Conference and Fair on Land and Development in Lagos, the Chairman of the Ministerial Land Reform Task Team, Dr Ugochukwu Chime, highlighted the difficulties of amending Nigeria’s 1978 Land Use Act (LUA).
He explained that various attempts to amend the Act had failed due to fears about its potential impact on various interests and the widespread perception of the law as a tool for land grabbing.
According to Dr Chime, revising the LUA will prove to be a “tall order” due to the socio-political implications associated with land ownership in Nigeria.
He stressed that improving operational processes within the 38 land administration entities and enhancing the legal infrastructure for quicker resolution of land disputes must be prioritised before considering any amendments.
Dr Chime also pointed out the necessity of aligning land administration with the country’s financial services and legal systems, stressing the involvement of the private sector in driving these reforms.
He warned against government attempts to use land reforms primarily as a means to increase taxation and generate income, urging a more comprehensive approach that considers the efficiency of private sector businesses, which control over 85% of Nigeria’s productive activities.
In support of these concerns, Toye Eniola, Executive Secretary of the Association of Housing Corporation of Nigeria, reiterated that amending the Land Use Act is challenging due to the provision that grants governors full control over land.
Eniola explained that any amendment would require the approval of both the National Assembly and the state Houses of Assembly, a complex process hindered by the influence governors hold over the legislature.
Eniola further noted that the control of land has become a significant source of income for many state governments, and thus, no government would be willing to relinquish these powers.
Meanwhile, Prof Timothy Nubi, Director of the Centre for Housing and Sustainable Development, provided insights into the broader issue of land and property value in Africa.
Despite rapid urbanisation and economic growth in regions like Africa and Asia, he noted that these areas still have much lower real estate values compared to their potential.
He attributed this to systemic challenges, including inadequate data on property markets and the continued existence of “dead capital” – untitled or unproductive assets, as described by economist Hernando De Soto.
Prof Nubi pointed out that in Nigeria, weak land tenure systems and unresolved land ownership issues, particularly those under the Land Use Act, have hindered capital formation and economic growth, leading to significant wastage of potential wealth.
The discussions at the conference underscore the complex relationship between land ownership, governance, and economic development in Nigeria, suggesting that comprehensive reforms are needed to unlock the full potential of the country’s land and property markets.
