In Nigeria’s rapidly evolving energy, natural resources, and infrastructure landscapes, the Land Use Act of 1978 remains a cornerstone of land governance. This legislation, which vests all land in state governors for administration, plays a pivotal role in facilitating large-scale projects while presenting unique legal challenges. As Nigeria pushes toward sustainable development goals, understanding the Act’s implications is crucial for stakeholders in oil and gas, mining, renewable energy, and infrastructure sectors. At Penlit & Greyson Legal Practice, a leading law firm in Nigeria specializing in energy law, natural resources, and infrastructure advisory, we help clients navigate these complexities to ensure compliant and efficient project execution.
Overview of the Land Use Act in Nigeria
Enacted in 1978, the Land Use Act centralized land ownership by vesting all land in urban and rural areas under state governors, who hold it in trust for the people. This replaced customary land tenure systems, aiming to promote equitable access, reduce speculation, and support national development objectives like urban planning and infrastructure growth. Key provisions include the issuance of Certificates of Occupancy (C of O) for land use rights, restrictions on land alienation without consent, and compensation limited to improvements on land rather than the land itself.
The Act’s integration into the 1999 Constitution (as amended) makes amendments challenging, requiring constitutional processes. As of 2025, no major reforms have been implemented, though ongoing calls for revisions address bureaucratic hurdles and alignment with modern economic needs.
The Land Use Act’s Role in Infrastructure Development
The Act empowers governors to allocate land for public purposes, including infrastructure projects like roads, pipelines, power plants, and railways. This centralization facilitates coordinated development, reducing fragmentation and enabling large-scale initiatives essential for Nigeria’s infrastructure deficit. For instance, it supports urban planning by designating zones for industrial or energy-related developments, promoting orderly growth and environmental sustainability.
However, the requirement for gubernatorial consent can delay projects, increasing costs and timelines. In 2025, with Nigeria’s focus on infrastructure under initiatives like the National Integrated Infrastructure Master Plan, the Act’s provisions are critical for balancing development with land rights.
Legal Implications for Energy and Natural Resources Sectors
In the energy and natural resources sectors, the Land Use Act intersects with laws like the Petroleum Industry Act and Nigerian Minerals and Mining Act, influencing land acquisition for exploration, extraction, and transmission. Governors’ authority over surface rights often conflicts with federal mineral rights, leading to disputes in oil-rich regions.
Compensation Challenges: The Act limits compensation to unexhausted improvements, excluding bare land value, which can lead to community unrest and litigation in resource extraction projects. This has implications for renewable energy developments, such as solar farms, where land access is key.
Environmental and Sustainability Issues: The Act promotes sustainable land use but lacks robust enforcement, affecting projects in ecologically sensitive areas. Judicial interpretations have expanded protections, but delays persist.
In 2025, with global shifts toward green energy, the Act’s framework supports infrastructure like gas pipelines but requires reforms for efficiency.
Challenges and Calls for Reform
Critics highlight bureaucratic inefficiencies, tenure insecurity, and economic barriers under the Act. It has constrained housing and agricultural development, with similar effects on energy projects. Recommendations include legislative amendments to modernize provisions and align with best practices.
How Penlit & Greyson Can Assist
At Penlit & Greyson Legal Practice, we provide expert guidance on navigating the Land Use Act for energy, natural resources, and infrastructure clients. Our services include land acquisition advisory, compensation negotiations, dispute resolution, and compliance audits. Contact us to discuss how we can support your projects—visit our energy law services page for more.
Conclusion
The Land Use Act’s legal implications profoundly shape Nigeria’s energy, natural resources, and infrastructure sectors, offering a framework for development while posing challenges that demand strategic navigation. As Nigeria advances in 2025, proactive legal strategies are essential. Reach out to Penlit & Greyson Legal Practice for tailored solutions to secure your investments.
