Nigerians who own land under a Certificate of Occupancy may not hold an indefinite interest in the property, as the document typically grants a right of occupancy for a specified period, commonly associated with a 99-year tenure.
The arrangement means that buying land with an existing Certificate of Occupancy does not automatically give the new owner another 99 years. Instead, the buyer takes over the remaining period attached to the existing title.
For instance, where part of the original tenure has already elapsed before a property is sold, the subsequent owner inherits the outstanding years. The date on which the right of occupancy was originally granted therefore becomes an important detail for prospective buyers examining a property’s title.
Brandspur Brand News reports that this distinction is significant in Nigeria’s property market, where a Certificate of Occupancy is widely regarded as one of the key documents used to establish an interest in land.
The framework stems from the Land Use Act of 1978, which vests land within each state in the governor to be held in trust and administered for the use and common benefit of Nigerians. Rather than conventional freehold ownership, individuals and businesses may be granted rights of occupancy over land.
A Certificate of Occupancy serves as documentary evidence of such a right and contains conditions governing the holder’s interest in the property.
This also means prospective buyers should look beyond simply asking whether a property has a C of O. Establishing the original grant date, remaining tenure and validity of subsequent transfers can provide a clearer picture of what is actually being purchased.
The expiration of the stated tenure does not necessarily mean that a property physically reverts overnight or that an occupant immediately loses the land. Renewal and continued occupation are subject to the applicable legal and administrative framework.
For Nigerians purchasing older properties, particularly those covered by longstanding titles, checking the number of years remaining on the right of occupancy should therefore form part of the due-diligence process before payment is made.
