ESM 124

(GROUP 3)
 Madaki Keren Amina – 190901032
 Joseph Adebisi Sylveria – 190901034
 Adewuyi-Hussein Maimunah Omotoke – 190901035
 Aderewa Samuel Timilehin- 190901036
 Dawodu Stephen Oluwarotimi – 190901037
 Olatunji Olamilekan Muizz – 190901038
 Oluwa Ray David – 190901039
 Mustapha Balikis Titilola – 190901040
 Solanke Hameedah Ayomide – 190901041
 Nwokedike Jennifer Adaora – 190901042
 Okpa Joseph – 190901043
 Oyeniyi Abeeb Ayomide – 190901044
 Adeniran Oreoluwa Oluwasegun – 190901045
 Suleiman Bolaji Oluwaseyi – 190901046
 Bakare Halimat Oluwabusola – 190901047
Q. Discuss the implications of land tenure system on the
economic development of Nigeria.
Nigeria’s economic can be said to have developed over the years since the pre-colonial
era. This is definitely the case due to various factors, one of which is the land tenure systems
that have been adopted over the years. Land is a vital aspect of man’s existence where land
tenure refers to holding of land. Land tenure deals with the relationship, legally or customarily
among individuals or groups that defines the means through which access is granted to rights to
use, control and transfer land. These set of rules may be established by state or by custom and
rights may accrue to individuals, families, communities or organisations, "the status of
individuals or groups in relationship to property. This can either be freehold, leasehold,
conditional, collective, or communal"; "a systemisation of the rules which function by specifying
what different classes of persons may or may not, must or must not do, with reference to the
occupancy, use, abuse, or disposition of land, defining the privileges and obligations, rights and
duties of persons in relation to each other, with reference to land"; as "the mirror of human
relationship with land, indicating the nature, manner, and extent of landholding, including the
control, use , and management of land". The various land tenure systems over the years can be
categorised into pre-colonial, during colonial and post colonial or post independence. Each of
these systems have had various implications on the economic development of Nigeria.
The predominant land tenure system in precolonial Nigeria was the customary land
tenure system where land was owned by villages, towns, communities and families. The legal
estate or authority existed at the community or family level. Thus, the leadership of community
and families had absolute interests, while constituents had derivate interests. Land was
considered only as a right of occupancy which was mainly the case in Non-Islamic societies
where “no man, not even the king, had monopoly or private ownership of land”. Customary
land tenure systems in Nigeria are related to family and inheritance systems, and are based on
the concept of group ownership of absolute rights in land, with individuals acquiring
usufructuary rights. Customary land rights establish the basis for access to land resources and
the opportunity to use land for productive purposes (Famoriyo, 1980). Famoriyo (1973) notes
that under the customary rules of tenure, three principles were observed: first, each individual
member of a landholding family was entitled to a portion of land – enough to feed himself and
the members of his family; second, no member of the community could dispossess another of
his or her stake in family land; and third, no one could alienate family members’ interests in
family land without the knowledge and consent of those members. In a way, customary laws of
land tenure have in the past given the farmer a feeling of reasonable permanence on the land
he cultivates. It is a source of wealth and is greatly valued as an indispensable factor of
production.
The effects of the land tenure system in precolonial Nigeria had various implications on
the economic development of Nigeria. These implications were both positive and negative. The
doctrine of non-alienation of land in this system hinders the economic development of Nigeria
as it prevents all form of sales, lease, mortgage and transfer of land that would have otherwise
facilitated economic transaction and promote economic development in Nigeria. Also,
customary land tenure system does not promote efficiency in use of land, as land resources
were underutilized in the system. It also limits the portion of land acquirable by an individual
which could have been used for economic purpose and would have hastened the economic
development of Nigeria. Another economic implication of land tenure system under the pre-
colonial era was that the system called for production in small scale and this reduced the
productivity of farmers unlike the large-scale production that would have given rise to
production which will facilitate economic growth. It is said that economic growth is a condition
that necessitates economic development. Hence, the effects of producing in small scale majorly
over large scale had an impact on Nigeria’s economic development. The customary land tenure
system which dominated the pre-colonial era was also considered to be an impediment to
agricultural development. Agriculture as the mainstay of Nigeria economy contributed about
70% of its GDP (Gross Domestic Product), so any activity that can slow down development of to
agriculture will have the same effect on the economic development of Nigeria. The system
inhibits mobility of factors of production, land as one of the most important factors of
production cannot be acquired in any region as individual can only use the land belonging to his
family, community or state in his region.
Despite the large negative implication this system holds, it promotes equality in the use
of land as it grants equal rights to everyone in the use of land. The system promotes even
distribution of wealth among the people of Nigeria, as every individual as equal access to any
portion of land belonging to his family, community or state. In the communal land tenure
system, joint decisions are taken on which land to cultivate, which crops are to be grown, the
number of seasons during which the land is to be cultivated and the length of the fallow period.
This helped the communities economically and led to an organised decision making.
The Land tenure systems during the colonial rule, were created to benefit mostly the
British imperialists. The British came to Nigeria with the motives to trade, then as their strength
and influence began to spread all over the country, they took over Nigeria and controlled it. The
colonial governors and the British merchants who came to Nigeria for economic purposes
required land to achieve their political and economic objectives and establish their merchandise
respectively. Prior to the colonial rule, land was communally owned, that is, land was owned by
a group of people; particularly by a family or a society. To dissolve the system and acquire the
ownership of land, the British imperialists introduced land laws and regulation systems such as:
• Treaty of Cession 1861
• Land Proclamation Ordinance 1916
• Niger Lands transfer Act 1916
• Public Land Acquisition Act 1917
• Native Land Acquisition Act 1917
• State Land Acquisition Act 1918
• Town and Country Planning 1946
The Treaty of Cession was the principal of all land tenure systems during the colonial
rule. This treaty was an agreement made between the colonial governors and the traditional
chiefs the transfer the ownership of land stated in the treaty to the crowds. The land tenure
system during the colonial rule led to the development of its infrastructure in Nigeria by the
imperialist. The colonial governors acquired land for public purposes, they introduced a better
transportation system by building roads and building ports, particularly to enhance foreign
trade. The Country and Planning Ordinance was created to make provision for the re-planning,
improvements and development of different parts of the country. The imperialists enforcing
their own land use rights reduced the customary rights and enjoyments of the use of land by
the masses, it also reduced the power of chiefs over land under the native law and customs as
all land rights were transferred to the British. The land tenure system of the colonial era paved
way for imperialists to exploit natural resources from Nigeria for their own economic benefits.
The system was also confusing especially the treaty session of 1861, as it requires one to
acquire some degree of sets in title of land by converting customary tenure to English tenure by
legal practitioners. It was not only confusing, it was also problematic as it created a myriad of
cases. This land tenure system brought about development to Nigeria’s transportation sector,
possession and control of land were with colonial government which makes land available for
public purpose such as construction of railway, road and seaport which expanded economic
activities and heightened inter-community transaction. Under this system the immobility of
factors of production was greatly reduce as land can be used by an individual in any region once
statutory of occupancy has been granted to the individual. The mobility of factors of production
contributed significantly to the development of Nigeria. Also, it allows individual ownership of
land. This land tenure system introduced privatization and commercialization to Nigeria's
economy and this brought about efficiency in the use of land hence contributing to the
economic development of Nigeria. This land tenure system also promoted large scale farming
as it makes available expanse land to individual willing to obtain for economic purpose, this
increased the productivity in the country hence impacting the economic development of
Nigeria.
It is also significant to note that with the advent of the colonial land tenure system it
made possible for an individual to own private land and deal with such land liberally and
subsequently, land began to be sold leased or mortgaged to individuals or group which
hastened housing development in Nigeria. However, this system brought about inequality in
the use and possession of land under the land holding system. This land tenure system was
used as a medium by the British colonial government to exploit Nigeria’s economy.
 In the post-colonial era, the land ownership structure had two key legislations and they
are: Land tenure law of Northern Nigeria of 1962: It says that the state governor is responsible
for and in control of land matters and also the allocation of land for the good of the natives of
Northern Nigeria. This land tenure law was repealed, and the Land use decree of 1978 was
implemented.
Land Use Act of 1978; It states that all lands belong to the government, and are held by the
state governor in trust of the public. This era is majorly characterised by the aftermath of the
land use act of 1978. The land tenure system since independence in 1960 has had many
implications on the economic development of Nigeria, effects of which are visibly seen in
present day Nigeria.
The land tenure system after the colonial era freed land from stranglehold of the community
member, land speculators and heirs who are not interested in the productive use of land and
making it available for productive farmers. It ensures that whosoever requires land for
economic purpose with the ability to make optimum use of it will obtain it. Due to issuance of
certificate of occupancy to all landholders, it may resolve the problem of duplicity of ownership
and dubious transactions on land and a reduction in boundary disputes and frequency of court
cases of land ownership. It’s also illegal for indigenes to allocate land without prior
government’s approval. All of these ensure a good level of security for those who are willing to
acquire land for investments.
The Land Decree also enabled a commercial producer acquire the maximum amount of 500
hectares for agriculture, 500 hectares for grazing and 400 hectares for mining, rent free. This
would encourage large scale farming and investments in the agricultural sector and more
investments in the mining sector.
The land use act also empowers the state governor to revoke rights of occupancy of individuals
for public purposes, projects or infrastructure. This enables government to provide certain
social amenities and infrastructures like good roads, etc. This would further improve the
standard of living of people hence, indicating the development of Nigeria’s economy. This
system has also negatively impacted the economy of Nigeria
In this system, there is the problem of high cost of registration. The cost of property registration
in Nigeria (20% of property value) is the highest when compared with those of other countries
in the region. High cost of registering properties and getting certificate of occupancy would
discourage people from acquiring land and properties for business purpose and other personal
purpose.
By virtue of Section 1 of the Act, individuals cannot own freehold interest in land in Nigeria.
Individuals can only be granted a right of occupancy for a maximum holding period of 99 years,
subject to payment of ground rent to the government as fixed by the Governor. Though it is
conventional in Nigeria to grant a certificate of occupancy for 99 years, but there’s nothing in
the act that prevents the governor from granting a certificate for a lesser period. It has
therefore amounted to economic risk to embark on massive improvements on land due to the
uncertainty of the act. This also has made private land ownership in the country insecure. It has
also affected the efficiency of the property markets. Due to lack of holding freehold interest in
lands, it restricts the citizens’ right to occupy land, buy, let or sell their land without obtaining
the consent and approval of their Governors as provided in Sections 21 and 22 of Nigeria’s Land
Use Act and anyone who does otherwise would lose his or her certificate of occupancy. Thus,
this creates a problem of security of title and it is anti-people and oppressive and cannot
enhance sustainable development in any egalitarian society. Undoubtedly, the Act has also
hindered the effective functioning and operation of the property markets in the country.
Excessive Bureaucracy has also been a con of this system. Bureaucracy is the steps or orderly
manner in which things are done. In this context, we are referring to excessive bureaucracy in
obtaining Governor’s consent and approval for land transactions and certificate of occupancy.
This excessive bureaucracy has made land registration in the country very prohibitive and has
also hindered the acquisition of land by the public. The right of eminent domain is also a
negative impact this system has had on the development of Nigeria’s economy. This means that
the government can revoke an individual’s certificate of occupancy for public use. This provision
drains off any choices or freedom that a land owner may possibly have over his property.
Although section 29(1) of the act makes provision for compensation on the event of revocation
of certificate of occupancy by the governor and this compensation are only available to those
who have improvements on land. There are so many problems with the requirement of the law
because those who did not make any improvements on land or have exhausted the
improvement on the land are not entitled to compensation robbing individuals off their source
of income and also letting all the money, they’ve invested on the acquisition of land go down
the drain. Also, those who are entitled to compensation are not adequately compensated.
The land Decree also enable a commercial producer acquire the maximum amount of 500
hectares for agriculture, 500 hectares for grazing and 400 hectares for mining. This further limit
and discourages large investments on Agriculture and also limits investments in the Mining
industry.
Lastly, divesting of citizens freehold title to their land would further affect the development of
the country negatively because majority of Nigerians most especially in the rural areas have no
other source of livelihood. Most Nigerians derive their income from subsistence farming and
the revocation of freehold title on land places less income in the hands of majority of Nigerians
and this affects the per capita income and Gross domestic (GDP) of the Nation followed by low
savings, low investments and slower economic progress.
Generally, the land tenure systems in Nigeria since the precolonial era have had both
positive and negative implications on the economic development of Nigeria. As stated in the
first paragraph, there are many factors that have impacted the economic development of
Nigeria over the years, one of which is the land tenure system that has been in operation from
the pre colonial era till date.