FEDERAL POLYTECHNIC ILARO

DEPARTMENT OF ESTATE MANAGEMENT AND VALUATION

SUMMITED BY
NAME. MATRIC NO
Sanni Toheeb Adisa H/EMV/20/0306

SUMMITED TO
ESV.T.G. OLUWOLE

COURSE CODE
EST 314

COURSE TITLE
LAND ECONOMICS

JUNE, 2021
EFFECT OF LAND USE ACT ON LAND VALUE, LAND TITLE AND DEVELOPMENT
In terms of attaining its set objectives, the Land Use Act has not been a success and two principal
reasons account for this. The first is the Act’s inherent contradictions and defects, the second is
institutional weakness, and lack of political will in the country to secure a just, fair and effective
implementation of the Act to bring about economic. On the first leg, the divesting of citizens’ freehold
title to their land is antithetical to their economic prosperity as land ceased from being an article of
commerce upon the commencement of the Act. Against the backdrop that overwhelming majority of
Nigerians have no other source of income and livelihood save the one derivable from land by way of
subsistence farming or disposal to earn income for business or family needs, this dispossession has
plunged the majority of Nigerians into poverty rather than prosperity. Isong, argues that any
development strategy must ultimately be interwoven with the aspirations of the people and society
rather than seek to pursue the ambitions of few people in government. (Isong, 1985, pp. 3-13) This
dispossession therefore places less income in the hands of the vast majority of Nigerians and, for that
matter, impacts adversely on the per capita income and the Gross Domestic Product (GDP). This leads to
a vicious circle of low savings, low investment and slower economic progress.

Section 22 of the Act is particularly devastating as it prohibits any person to whom the Governor has
granted a statutory right of occupancy from assigning, mortgaging, transferring, subleasing or
howsoever adversely dealing with the land against the terms of grant without having first had and
obtained the consent of the Governor.13 Obtaining the consent of the Governor is fraught with
administrative bottlenecks, financial burden, delays and even in some cases politicization. The severest
consequence of the requirement for Governor’s consent before alienation manifests in the area of
mortgages. A mortgage is a security for the payment of a debt or the discharge of some other obligation
for which it is given. Worldwide mortgages are an effective way of raising capital from financial
institutions needed for investment that induces growth in the various sectors of the economy. To
obfuscate this significant tool by preconditioning it to the Governor’s consent in the light of the
foregoing analysis is to weaken it. Worst of all, the Governor may withhold or refuse his consent and if it
happens, the landowner would have been shut out from credit facilities that would otherwise
regenerate his investment portfolio. In Associated Discount House Ltd. v. Minister of Federal Capital
Territory and Anor14 the Supreme Court of Nigeria held that:

It has been argued and rightly too that it is the holder of a statutory right of occupancy granted by the
Governor that should apply for consent to mortgage the property. This does not detract from the fact
that the power to grant or refuse consent to the mortgage rests with the Governor.

The predicament of the landowner is further compounded by section 28 of the Land Use Act that
empowers the Governor to revoke for overriding public interest any right of occupancy he had earlier
granted. Overriding public interest includes when the Government requires the land for public purposes,
projects or infrastructure. Sadly, the circumstances under which the Governor can exercise his power of
revocation include where the occupier or holder of a right of occupancy assigns, mortgages, transfers
possession, subleases or otherwise deals adversely with his right of occupancy or part thereof contrary
to the provisions of the Act. This provision drains off any choices or freedom that a landowner may
possibly have over his property except the one dictated by the mountains of bureaucracy, which he
unavoidably has to deal with. Although, section 29(1) of the Act provides for the payment of
compensation on the event of revocation by the Governor of a right of occupancy, such payment is to be
made only for the value at the date of revocation of their unexhausted improvements. There are many
problems with this requirement of the law. Those who validly obtained a certificate or right of
occupancy over land that was subsequently revoked are not entitled to compensation if they did not
make any improvements on their land or if they have exhausted such improvements, whatever they are.
The question is what happens to the substance of the land itself as a store of value? A rural subsistence
farmer or urban poor who depends on his land for sustenance losses out completely because there are
no unexhausted improvements on the land. Moreover, compensation is not payable in the event of a
revocation by the Governor where the holder of a right of occupancy has assigned, mortgaged,
transferred possession, subleased or otherwise adversely dealt with a right of occupancy or any part
thereof without the prior consent or approval of the Governor. In the same category are those who have
breached any of the terms contained in the certificate of occupancy granted by the Governor.15 Apart
from the fact that compensation where applicable is largely and grossly inadequate, this atmosphere
generated by the Act has done more to impoverish Nigerians than otherwise.

Although section 15 of the Act provides that during the term of a statutory right of occupancy, the
holder shall have the sole right to and absolute possession of all the improvements on the land, such
right and possession only relates to improvements that the holder still cannot transfer, assign or
mortgage without the prior consent of the Governor or would lose if in breach of terms and conditions
in the certificate of occupancy. This clearly creates a problem of security of title because though it is
conventional in Nigeria to grant a certificate of occupancy for a period of ninety-nine years, there is
nothing in the Act that prevents the Governor from granting a certificate of a

EFFECT OF SUSTAINABLE DEVELOPMENT ON SUSTAINABLE HUMAN

SETTLEMENT
1. Increase in Economic Growth: The sustainable development aims at increasing the economic
growth through meeting basic needs i.e. raising the standard of living.
2. Sustainable Improvements: The sustainable development aims at creating sustainable
improvements in the quality of life of all people.
3. Maintenance of Environment Resources: The sustainable development aims at maintenance of
natural and environmental resources along with economic development.
4. Guarantee of a better future: With the current situation of the delicate environment, the fact
that actions are taken to reduce the effect of the warming of the land or other events such as
the melting of the poles or changes in such an abnormal climate, guarantees that the Next
generations of people can have an adequate life in the future.
This also means ensuring that the planet’s natural resources are not exhausted and there is
enough to be renewed or, if not, that they last for a good number of years, as in the case of oil
or gas. natural.
5. Lower Environmental Impact: The main pillar on which all this is sustained and where ideas take
shape to develop the economy without compromising nature. As it involves reducing the
 emissions of gases that create phenomena such as acid rain or global warming, it directly causes
the search for alternative, clean and equally effective forms of energy.
In the same way, as a large part of human activities are responsible for the deterioration of the
environment, adopting this ideology entails doing something to reduce pollution, which can
bring positive results such as better air quality, more green areas, the preservation of
biodiversity of the planet, the subsistence of more species, etc.
6. Unemployment in some areas: Changes to preserve and care for ecosystems and biodiversity
can cause several industries to reduce their activities or, in the last case, stop them altogether.
This can bring unemployment for many people who have dedicated their whole lives to work in
a single sector, such as the coal industry.
Although in sustainability a better quality of life is contemplated in the future, it does not take
into account the collateral effects for the population in the present.

FACTORS AFFECTING ECONOMIC SUPPLY OF LAND

Economic Supply of Land: is the availability of portion of the physical supply which man uses, interest in
the resources available for use, factors of demand and price. Thus, it results in scarcity of the resource,
abundance of the physical resource, accessibility, use/capacity. Below are factors affecting the economic
supply of Land;

• Natural limits on the land supply-: varies in terms of natural characteristics, general use
capacities,

The variations usually stem from differences in

i) Sunlight temperature

ii) Precipitation and access to water supplies

iii) Topography ad drainage

iv) Soil conditions and

v) Physical location with respect to market and transportation facilities.

• The impact of economic factors-: the usage of land resources determines its economic
importance, compete with others for their use or control, put a price or value on them or
assume the costs associated with their development.

• The impact of institutional factors-: This involves cultural aspect such as custom, government,
law, public opinion etc. and tenure practices the law of the land and other directives for
individuals to have control, exploit, and use land resources to expand and enlarge the
opportunities available to others.
 LAND REFORM
Land reform generally involves changing of laws, regulation or custom regarding land ownership.

REFORMS INTRODUCED TO LAND TENURE SYSTEM BY THE LAND USE ACT

• The governor in the exercise of his power of management over the land in the state is
empowered to grant statutory right of occupancy to any person for all purposes.30 Upon the
grant of the right of occupancy under this section all prior existing right over the land stands
extinguished
• The local government is also empowered to grant customary right of occupancy with
respect to lands in non urban areas
• Owners of developed land prior to the promulgation of the Act were converted to a deemed
grantee of a statutory/customary right of occupancy issued by the governor of the local
government.
• That a deemed grantee under the Act who had a freehold land prior to the promulgation of the
Act can be likened to a fee simple holder under the Act, is further reinforced by the provision of
the Act particularly section 36(2) which permitted the occupier or holder of such land not in
urban area been used for agricultural purposes prior to the Act, to continue to use the same,
whether subject to customary right or otherwise howsoever41 for agricultural purpose as if a
customary right of occupancy had been granted to the occupier by the appropriate local
government authority.

REASONS FOR EXISTENCE OF PROPERTY VALUE IN THE PROPETY MARKET

• It gives the worth and ownership that arise from owning the property
• For insurance purposes
• For property tax and
• For financial planning

ECONOMIC RENT
Economic rent is an amount of money earned that exceeds that which is economically or socially
necessary. This can occur, for example, when a buyer working to attain a good or service that is
considered exclusive makes an offer prior to hearing what a seller considers an acceptable price.
VON THUNEN'S RENT THEORY
Von thunen’s rent theory explicitly focuses upon the production sector of an economy namely, land
rents generated by agriculture and industry. Though Von thunen’s conclusions are consistent with the
household or consumption sector of the urban environment- land rent declines and land use changes
from intensive to extensive utilization as distance from the center of the city increases- the reasoning
and Methodist are not.

LAND USE CAPACITY

Land Use capability may be defined as the ability of the land surface to support natural plant growth/
wildlife habitat or artificial crop growth/ human habitat. Thus, it indicates the type of land use [viz.,
human habitation, agriculture, pastures, forests, wildlife habitat, etc.] that is suitable over a particular
type of land. Different lands have different capabilities depending on the land characteristics like slope,
soil type, soil depth and erosion conditions.

WHY LAND USE CAPACITY IS IMPORTANT TO AN ESTATE SURVEYOR

An Estate Surveyor has to know the capacity of a land before he advices a client to take such land. The
capacity of the land enables and helps the estate surveyor to know what use the land can be used for.
This simply means that the capacity of the land enables the estate surveyor to know if such land is
suitable for what it is needed for. In simple words, the capacity of the land tells if the land is suitable for
residential, commerical, industrial, agricultural or special use etc.