The Chairman of the Ministerial Land Reform Task Team, Dr. Ugochukwu Chime, has described the amendment of Nigeria’s Land Use Act (LUA) of 1978 as a challenging task due to socio-political perceptions and its impact on various interests.
Speaking at the 2nd International Conference and Fair on Land and Development in Lagos, themed “Sustainable Land Management for Inclusive Development in African Cities,” Dr. Chime noted that multiple attempts to amend the LUA have failed.
“Amendment of the Land Use Act is a tall order due to fears about its perceived use as a tool for land grabbing. Instead, operational issues at the 38 land administration entities and the legal infrastructure for resolving land disputes should be improved,” he stated.
He emphasized the importance of aligning land administration with financial sector services and legal frameworks, calling for greater private sector involvement. “The private sector, which drives over 85 percent of the economy, must play a significant role in these reforms,” Chime added.
Dr. Chime also criticized government reforms aimed at leveraging land as a taxation tool without addressing inefficiencies in private sector businesses, labeling such policies as “hyper-myopic.”
AHCN Executive Secretary Highlights Legislative Hurdles
Toye Eniola, Executive Secretary of the Association of Housing Corporations of Nigeria (AHCN), echoed similar sentiments. He highlighted the difficulty of amending the Land Use Act due to its provision vesting land ownership and control with state governors.
“For any amendment, approval must come from the National Assembly and all state Houses of Assembly. This poses a significant challenge as governors influence these legislative bodies and are reluctant to relinquish control of land, which is a major revenue source,” Eniola explained.
Real Estate Challenges Highlighted
Prof. Timothy Nubi, Director of the Centre for Housing and Sustainable Development, shed light on systemic issues within Africa’s real estate sector. He pointed out that despite rapid urbanization, Africa and Asia hold significantly lower real estate value compared to other regions.
“This disparity reflects untapped potential hindered by challenges such as weak land tenure systems and unresolved land ownership issues. In Nigeria, much of the real estate wealth is locked in ‘dead capital’—untitled and unproductive assets,” Prof. Nubi said.
He further noted that inefficiencies in administering the LUA and inadequate documentation have stalled economic growth and capital formation in Nigeria, calling for urgent reforms to unlock the potential of the country’s property markets.
The conference concluded with experts advocating for strategic collaborations to address land administration challenges and promote sustainable land management practices.