Title Perfection in Nigeria: Why Your Property Is Not Truly Yours Until This Is Done

Real Estate & Property Law Practice Group

Introduction

There is a quiet legal crisis running through Nigeria’s property market. It sits in the gap between what people believe they own and what the law actually recognises. Millions of Nigerians have paid full purchase price for land, taken physical possession, and lived on or developed the property for years without ever completing the legal process that converts their contractual claim into a recognised legal title. That process is title perfection. And until it is done, the property does not, in the precise language of Nigerian law, truly belong to them.

This article explains what title perfection means under Nigerian law, what it requires, why it matters, and what happens to buyers who skip or defer it.

I. The Foundation: The Land Use Act 1978 and Why No One Truly ‘Owns’ Land in Nigeria

The Land Use Act 1978 is the constitutional bedrock of Nigerian property law. Section 1 vests all land in each state of the Federation in the Governor of that state, to be held in trust for the benefit of all Nigerians.[1] The consequence of this provision is radical: no individual or corporate entity in Nigeria holds land in absolute freehold ownership. What every property holder actually holds is a right of occupancy either a statutory right of occupancy granted by the Governor (applicable to land in urban areas), or a customary right of occupancy granted by local government authority (applicable to land in non-urban areas).

Because the state is the underlying owner of all land, any transfer of a right of occupancy from one person to another requires the state’s approval. That approval called Governor’s Consent is the cornerstone of title perfection in Nigeria. Without it, no land transaction is complete in law, regardless of how much money changed hands, how long the buyer has been in possession, or how elaborate the paperwork appears.

II. The Requirement of Governor’s Consent: Section 22 of the Land Use Act

Section 22(1) of the Land Use Act is unambiguous: it is not lawful for the holder of a statutory right of occupancy to alienate that right by assignment, mortgage, transfer of possession, sublease, or otherwise howsoever, without the consent of the Governor first had and obtained.[2] Section 26 supplies the consequence: any purported transaction made in contravention of this requirement is null and void.

The Supreme Court of Nigeria gave full and binding effect to this provision in the landmark case of Savannah Bank of Nigeria Ltd v Ajilo (1989) 1 NWLR (Pt 97) 305.[3] In that case, the Supreme Court held that a mortgage executed without prior Governor’s Consent was void ab initio and created no legal rights in the mortgagee. This decision has been consistently applied in subsequent property litigation. It means that a buyer who acquires land without ensuring that Governor’s Consent has been obtained acquires nothing that the law will protect.

The categories of alienation requiring consent are deliberately broad.[4] Selling triggers it. Mortgaging triggers it. Subleasing for a term exceeding one year triggers it. Even a transfer on inheritance triggers it under Nigerian jurisprudence. The Act draws no distinction based on the value of the transaction, the relationship between the parties, or the length of prior occupation.

A Deed of Assignment that has been signed, sealed, and paid for, but for which Governor’s Consent has not been obtained, is a void instrument under Nigerian law. The buyer has a contractual claim. They do not have a title.

III. The Three Steps That Perfect a Title

Title perfection in Nigeria involves three sequential steps, each of which must be completed in the correct order. Skipping or reversing the sequence causes the process to fail.

Step 1: Application for Governor’s Consent

The application for Governor’s Consent is submitted to the relevant Ministry of Lands and Housing (or equivalent state land authority) in the state where the property is located. In Lagos State, it is submitted on Form 1C to the Lagos State Ministry of Physical Planning and Urban Development or the Lands Bureau, depending on the category of the property.[5] The application package typically includes: the executed Deed of Assignment; the original Certificate of Occupancy; survey plans; tax clearance certificates for both parties; evidence of payment of all applicable state levies; and the applicant’s identification documents.

The lands authority will conduct a charting exercise (locating the property on the state’s land map), assess the fair market value of the property, and issue a demand notice specifying the consent fee and other applicable charges. Once those fees are paid, the Governor (or a delegated official) endorses the instrument and the application proceeds to registration.

Step 2: Stamping at the Stamp Duties Office

After the execution of the Deed of Assignment and before or concurrently with the Governor’s Consent process, the Deed must be stamped at the Stamp Duties Office. Stamping must be completed within 30 days of execution to avoid penalties.[6] A Deed of Assignment that is not duly stamped is inadmissible in evidence in any court or arbitral proceedings and will not be accepted for registration at the Lands Registry. The stamp duty is assessed as a percentage of the fair market value of the property.

Step 3: Registration at the State Lands Registry

The final and most legally significant step is registration of the consented and stamped Deed of Assignment at the State Lands Registry. Registration is what converts the buyer’s interest from a merely equitable interest (a contractual right to the property) into a legal title — enforceable against the whole world, including subsequent purchasers, creditors, and the state itself.[7] Upon registration, the instrument receives an official registration number. From that moment, the buyer holds a perfected legal title.

IV. The Chain of Title and Its Importance

Every property transaction in Nigeria adds a link to the property’s chain of title. The root of the chain is typically the original Certificate of Occupancy (C of O), issued when the land was first formally allocated. Every subsequent transfer adds a consented and registered Deed of Assignment. A buyer purchasing property that has changed hands multiple times should receive the original C of O plus a Deed of Assignment (with Governor’s Consent endorsed) for every subsequent transaction in the chain.[8]

Gaps in the chain — unregistered transactions, missing consent endorsements, or deeds that were never stamped — create title defects that weaken the current owner’s position. Before any property transaction is completed, a thorough title search at the State Lands Registry is essential to verify the chain, identify any encumbrances, and confirm that the vendor actually holds the title they purport to sell.

V. The Practical Consequences of an Unperfected Title

The consequences of failing to perfect title are not theoretical. They are documented in Nigerian courtrooms and experienced daily by property owners who discover, often at the worst possible moment, that the land they paid for is not legally theirs.

No bank or financial institution will accept unperfected property as security for a loan. A buyer who intends to use their property as collateral for any future credit facility must first perfect the title.
The property is vulnerable to a double sale. An unscrupulous vendor who still holds the C of O can, in principle, sell the same property to a subsequent purchaser who registers their interest. That subsequent purchaser, if they take without notice of the prior transaction, may prevail in court.
Title cannot be transferred to successors or heirs with legal certainty. A property owner who dies without a perfected title passes on legal uncertainty, not an asset.
In litigation, courts favour the party with a perfected registered title over a party holding an unregistered equitable interest, even if the equitable interest is older.

The cost of title perfection in Nigeria typically runs between 3% and 5% of the assessed fair market value of the property in government charges alone exclusive of professional legal fees.[9] This is a significant but bounded cost. The cost of not perfecting loss of an entire property to a competing title, inability to access credit, or decades of litigation — is unbounded.[10]

VI. A Note on Customary Rights of Occupancy and State-Specific Variations

Section 21 of the Land Use Act governs customary rights of occupancy, which require the consent of the appropriate local government authority rather than the Governor in most cases.[11] The practical requirements for perfecting title to customary land differ from those applicable to statutory rights of occupancy, and vary further between states. Buyers transacting in Ibadan and the broader Oyo State market, for example, must engage solicitors familiar with the specific requirements of the Oyo State Lands Registry and the local government authority processes applicable to any customary land in the transaction.[12]

Conclusion: Perfection Is Not Optional

The message of Nigerian property law on this point is consistent and has not wavered since the Land Use Act was enacted in 1978: a transaction in land is not complete until Governor’s Consent is obtained, the Deed is stamped, and title is registered. The Deed of Assignment in the drawer, however carefully drafted, is a record of a contract. Governor’s Consent and registration are what make that contract mean something in law.

At Enebeli & Partners Legal, our Real Estate & Property Law practice team advises buyers, sellers, developers, and investors on every aspect of Nigerian land transaction, from title searches and due diligence through consent applications, stamping, and registration across Lagos and Ibadan. We do not treat title perfection as a post-deal formality. We treat it as an integral and non-negotiable part of the transaction itself.

If you have purchased property in Nigeria and have not yet completed the perfection process, do not wait for a dispute or a bank rejection to discover the gap. Contact us now and let us secure what you have paid for.

About Enebeli & Partners Legal

Enebeli & Partners Legal is a full-service Nigerian law firm operating across Lagos and Abuja, with a practice spanning Corporate Commercial, Banking & Finance, Capital Markets, Real Estate, FinTech & Digital Assets, Data Protection, Dispute Resolution, Labour & Employment, and Regulatory Compliance. The firm advises businesses, investors, and institutions at every stage of the commercial lifecycle from incorporation and capital raising through to dispute resolution and restructuring.

To instruct the firm or to request a consultation, contact us at info@goenebeli.com or call +234 802 255 7029.

[1]Land Use Act 1978 (Cap L5, LFN 2004), s. 1: all land comprised in the territory of each state in the Federation is vested in the Governor of that state, to be held in trust and administered for the use and common benefit of all Nigerians. This foundational provision means that no individual or entity in Nigeria holds land in absolute freehold ownership. What is held is a right of occupancy, which is a statutory licence to use and occupy state land, granted either by the Governor (statutory right of occupancy) or by a local government authority (customary right of occupancy).

[2]Land Use Act 1978, s. 22(1): it shall not be lawful for the holder of a statutory right of occupancy granted by the Governor to alienate his right of occupancy or any part thereof by assignment, mortgage, transfer of possession, sublease or otherwise howsoever without the consent of the Governor first had and obtained. Section 26 of the Act provides the consequence: any transaction purporting to be made in contravention of these provisions shall be null and void. This is the central authority on the requirement of Governor’s Consent in Nigerian property law.

[3]Savannah Bank of Nigeria Ltd v Ajilo (1989) 1 NWLR (Pt 97) 305 (Supreme Court): one of the most significant Nigerian property law decisions. The Supreme Court held that an assignment of land without prior Governor’s Consent is void ab initio and creates no legal rights in the assignee or mortgagee. The consequence for buyers who take property without ensuring consent has been obtained is that they acquire no legal title, regardless of the amount paid or the length of their possession.

[4]Land Use Act 1978, s. 22(1): the categories of alienation that require Governor’s Consent are deliberately broad: assignment, mortgage, transfer of possession, sublease, or otherwise howsoever. See: Legaldoc.ng, ‘Governor’s Consent Under the Land Use Act: When Is It Really Required?’ (February 2026). The Act draws no distinction based on the value of the transaction, the relationship between the parties, or the duration of prior occupation. Inheritance transactions (title passing from a deceased owner to heirs) are also subject to the consent requirement under the jurisprudence of the Land Use Act.

[5]In Lagos State, the documents required for a Governor’s Consent application include: completed Form 1C (obtainable at the Lands Registry); covering letter from the applicant’s solicitor; certified true copy of the root title (C of O); evidence of tax clearance for both parties for three years; evidence of payment of development levy, ground rent, and land use charge; four copies of the executed Deed of Assignment with survey plans; evidence of payment of applicable state government fees; and the applicant’s identification documents. Requirements vary by state. See: Resolution Law Firm, ‘Perfection of Title of Land in Lagos Nigeria’ (March 2026).

[6]The stamping obligation in Nigeria was historically governed by the Stamp Duties Act (Cap S8 LFN 2004). With the enactment of the Nigeria Tax Act 2025, stamp duty provisions have been consolidated into the new tax framework. Stamping must be completed within 30 days of execution of the Deed of Assignment. The rate is typically assessed as a percentage of the fair market value of the property as determined by the relevant state authority. Failure to stamp renders the document inadmissible in evidence in any court or arbitral proceedings, and attracts penalties for late stamping. See: RSISINTERNATIONAL, ‘Land Title Perfection and Legal Issues and Challenges of Land Registration in Nigeria’.

[7]The three essential steps in title perfection are: (1) Governor’s Consent (Land Use Act 1978, s. 22); (2) Stamping at the Stamp Duties office (now under the Nigeria Tax Act 2025); and (3) Registration at the State Lands Registry. Registration is the final step that converts the buyer’s interest from a merely equitable interest into a legal title enforceable against the whole world, including subsequent purchasers. Without registration, a later purchaser who registers their interest without notice of the prior unregistered transaction may take priority. See: OAL Law, ‘Perfection of Title: What It Means and Why It Is Important’ (July 2025).

[8]The ‘chain of title’ concept in Nigerian property law requires that every transaction involving a property be documented, consented, and registered. The root of title is typically the original Certificate of Occupancy. Each subsequent assignment adds a consented and registered Deed of Assignment to the chain. A complete chain running from the C of O to the most recent transaction is what establishes clear, marketable title. Gaps in the chain — unregistered assignments, or transactions without consent — create defects that weaken the current owner’s title and may be exploited by adverse claimants.

[9]The cost of title perfection in Nigeria typically ranges between 3% and 5% of the assessed fair market value of the property in government charges alone (consent fees, registration fees, and stamp duty), exclusive of professional legal fees. For a property assessed at N50 million, total perfection costs may exceed N2.5 million. The consequence of failing to perfect — loss of the entire property to a competing title or an inability to use the property as security for a loan — almost always exceeds this cost. See: WithinNigeria, ‘Governor’s Consent Nigeria: What It Is and How to Get It in 2026’ (July 2026).

[10]The practical consequences of an unperfected title include: (a) the buyer holds only an equitable interest, not a legal title; (b) no Nigerian bank or financial institution will accept the property as security for a loan without a perfected title; (c) the property is vulnerable to a double sale by the original vendor to a subsequent purchaser who registers their interest and takes priority; (d) the property cannot be transferred to heirs or successors with legal certainty; and (e) in litigation, a court will favour a party with a perfected registered title over a party with an unregistered equitable interest, even where the registered title is more recent. See: OAL Law (n 7); Legaldoc.ng (n 5).

[11]Section 21 of the Land Use Act 1978 governs customary rights of occupancy: it provides that a customary right of occupancy may not be alienated without the consent of the appropriate local government authority in cases where the property is not to be sold by order of a court, or without the Governor’s consent in cases involving a court sale. The requirements for customary rights of occupancy differ in detail from those applicable to statutory rights of occupancy governed by s. 22. Buyers must identify which category of occupancy right is held at the outset of any transaction.

[12]The perfection process varies in timeline and cost by state. Lagos State has a relatively established system but is frequently criticised for delays. Other states, including Oyo State (relevant to Ibadan-based transactions), have their own land registries and consent processes governed by state-level land registration laws. Buyers in Ibadan and the wider Oyo State should engage solicitors familiar with the Oyo State Lands Registry’s specific procedural requirements.