OVERVIEW OF THE LAND ACQUISITION PROCESS IN NIGERIA

The land acquisition process involves several steps and legal considerations that vary depending on the jurisdiction and purpose of the acquisition. This guide will outline the general process for acquiring land, focusing on both private purchases and government acquisitions.

1. Understanding Land Acquisition

Land acquisition refers to the process of obtaining land for various purposes, such as residential, commercial, industrial, or public use. The process can be voluntary (purchasing from a landowner) or involuntary (using government powers, such as lands required for overriding public interest).

2. Purpose of Land Acquisition

Before initiating the acquisition process, it is crucial to define the purpose of the acquisition. Common purposes include:

• Residential Development: Acquiring land for housing projects.
• Commercial Development: Acquiring land for retail, office, or industrial spaces.
• Public Infrastructure: Government acquisition for roads, schools, parks, and utilities.
• Conservation: Purchasing land for environmental protection and preservation.

3. Preliminary Steps

a. Feasibility Study

Conduct a feasibility study to assess the viability of the project. This includes:

• Legal Analysis: Understanding legal ownership or title of the land.
• Market Analysis: Understanding demand for the proposed development.
• Site Analysis: Evaluating the land's physical attributes, physical planning, and environmental considerations.

b. Land Use Regulations

Research local land use regulations that dictate how land can be utilized. These regulations can affect the type of development permissible on the land. It is essential to ensure that the intended use aligns with government regulations.

4. Identifying Land

a. Research and Selection

Identify potential parcels of land through various means:

• Real Estate Listings: Use online platforms and real estate agencies.
• Networking: Connect with local real estate professionals and community members.

5. Approaching the Landowner

If the land is privately owned, the next step is to approach the landowner. This involves:

a. Negotiation

Engage in negotiations with the landowner to discuss the terms of the sale. Key points include:

• Price: Agree on a purchase price based on the appraisal.
• Terms: Discuss payment terms, contingencies, and any special conditions.

b. Letter of Intent (LOI)

Prepare a Letter of Intent outlining the proposed terms of the acquisition. While not legally binding, an LOI serves as a formal expression of interest. Based on the LOI, the owner can reply with an offer letter.

6. Due Diligence

Conduct due diligence before finalizing the acquisition. This includes:

a. Title Search

Perform a title search to verify the ownership of the land and check for any liens, encumbrances, or claims against the property. This ensures that the seller has the legal right to sell the property. You will be required to engage a property lawyer for this purpose. A thorough land search will include a search at the land registry and charting at the Surveyor General Office

b. Environmental Assessments

Depending on the intended use, conduct environmental assessments to identify any potential contamination or environmental issues.

7. Closing the Deal

Once due diligence is completed and all conditions are satisfied, the final steps involve:

a. Drafting the Purchase Agreement

Work with a property lawyer to draft a purchase agreement or contract of sale that outlines the terms and conditions of the sale, including:

• Consideration (Purchase Price)
• Deposit Amount
• Closing Date
• Contingencies

b. Closing Process

Schedule a closing meeting where all parties sign the necessary documents, transfer funds, and officially transfer ownership. Key documents to sign include:

• Deed: For Transfer of ownership from the seller to the buyer.
• Bill of Sale: Documents the transaction for personal property (if applicable).

8. Government Acquisition for Overriding Public Interest

In cases where land is acquired for public use, the government may acquire such land for an overriding public interest.

This process involves:

a. Identification of Public Need

The government must demonstrate a public need for the land, such as building infrastructure or public facilities.

b. Valuation and Offer

The government will carry out a valuation to determine fair market value and make an offer to the landowner. The offer is typically based on the valuation, but the land's unique characteristics can also be considered. It is important to note that the government only offers compensation if the land in question is being acquired afresh for the first time. If the land has been previously acquired by the government in the past and some people encroached on it, the government will not compensate the encroachers for the second time.

c. Negotiation

If the landowner refuses the offer, the process may continue, and the government may mandatorily acquire the land following the standard procedure, as the state government is statutorily empowered to acquire any land for an overriding public interest.

Conclusion

The land acquisition process is multifaceted and requires careful planning, legal considerations, and negotiations. Whether acquiring land for private or commercial development, understanding the steps involved can lead to successful outcomes. Proper due diligence, legal compliance, and community engagement are essential components that can influence the overall success of land acquisition in Nigeria. While a landowner has an option of selling his land set to be acquired to a private person or not, he does not have such flexibility when the government requires such an acquisition, as a state government is entitled to acquire any land in Nigeria for an overriding public interest. What a landowner is entitled to upon government acquisition is compensation, not a right of objection.

By Property Law Team at Resolution Law Firm

Email: info@resolutionlawng.com

Tel/WhatsApp: +2348099223322