Effect of Non-Payment of Ground Rent in Nigeria.

Effect of Non-Payment of Ground Rent in Nigeria. Daily Law Tips (Tip 782) by Onyekachi Umah, Esq., LL.M, ACIArb(UK)

Introduction: 

Nigeria is a country where there are no land owners but land holders, because all lands belong to government. Contrary to public opinion, it must be emphasized, that all lands in Nigeria belong to government, including lands in villages, communities and inherited/ancestral lands. All lands in Nigeria are vested on the governors of states in Nigeria and the Governors hold the lands in trust for the benefit of all Nigerians. Nigeria has 36 States with 36 Governors. However, Federal Government lands are vested on Federal Government of Nigeria. Hence, no human being, individual, group, community or company in the world owns any land in Nigeria. 

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State Governors rent out lands to people in Nigeria and issue certificates of occupancy (popularly known as C of O) as proof of such grants. In turn people in Nigeria hold and use their lands in accordance with the terms and conditions stipulated by government. Also, the land holders pay rent (Ground Rent) to government every year, for the lands granted/rented to them by government. It is correct to say that Nigerians and foreigners in Nigeria, are mere tenants/lessees on the lands they occupy, while State Governors and the President of Nigeria are the true Landlords. Most times, a Certificate of Occupancy is for a period of 99 years, after which the land returns back to government. So, it is wrong to legally say that any person apart from government, owns a land in Nigeria or is a land owner in Nigeria. 

This is the simple justification for the powers of government to collect back any land from any person (human being, individual, group, community or company) and pay compensation for any improvement made on the land and then use the land for any public use. Yes, government can compulsory acquire any land from any person in any part of Nigeria, after all, all lands belong to government. Also, government does not pay compensation for any land that it takes over, after all, all lands belong to government. Rather, government pays compensation for any development/improvement made on a land; like buildings, cash crops and any immovable structure. Such compensations are often paid by government, where the occupier of the land is lawfully occupying the land and not a mere trespasser with no good title documents. Links to my earlier works on the compulsory acquisition of lands and payment of compensation by government are in the below, footnote.

Ground Rent and Powers of Government: 

GROUND RENT is a tax charged and collected by a State Government on a land (both developed or undeveloped) that was granted by the state government. It is to be paid by a land holder within a given period. Ground Rent calculations by a state government is not affected by improvements, developments and structures built on land. 

In any tenancy/lease agreement, the tenant/ lessee must hold and use the rented land in accordance with the terms and conditions of the tenancy/lease. Likewise, in holding any land in Nigeria, any land holder must occupy and use the land in accordance with the terms and conditions stipulated by government. Most certificates of occupancy contain some terms and conditions for the land. Among the common conditions that government stipulates for lands in Nigeria, include; timely payment of ground rent, timely payment of penal rent (if any) and the duty to obtain the Governor’s consent before any sale, mortgage, transfer of possession, sub-lease or gift of the land. 

Since rules without punishment is waste, breaching the terms and conditions of a land in Nigeria, comes with serious punishments. Simply by section 28 of the Land Use Act (the federal land law), a State Governor can revoke a Certificate of Occupancy where the holder of land refuses to pay Ground Rent or any other rent ordered by government in respect of land. The revocation is to be communicated to the defaulting holder of land, following the communication, the interest of the defaulting holder of land terminates. So, failure to pay ground rent or any other rent demanded by government may cause government to revoke and terminate the land titles of the defaulting person. https://sabilaw.org/how-to-receive-free-daily-law-tips/ 

 The powers of State Governors over lands in their state are enormous. Under section 5 of the Land Use Act, a State Governor has powers to waive all or part of the terms and conditions of any land in his state. A State Governor can waive any condition, (including the payment of ground rent or any rent), where he believes there are special circumstances, that have made compliance to the conditions to be impossible or to cause great hardship. A State Governor also has the powers to extend the time for any land holder to perform any condition attached to a land and in a manner as the Governor may wish. 

Conclusion: 

State Governors have a lot of powers (or all the powers on earth) over lands in their respective states, except for lands occupied or desired by the Federal Government. Failure to pay ground rent or to comply with any of the conditions for a land, can cause government to revoke the title over the land. Where a land holder has violated any of the terms and conditions of his land, it is advisable to seek for waivers or extension of time from the concerned state government. A State Governor (or his designated appointee, like the Commissioner for Land) have powers to grant and to revoke lands in their state. 

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Where there are cogent and compelling reasons that forced a land holder to violate the terms and condition of his land, such a person aside seeking for waiver or extension from government, can also approach a court of law. It is a High Court in a state that can entertain and handle cases of land dispute and land related matters. This is important especially in cases where state governments are illogical and set to witch-hunt. 

 My authorities, are:

1. Sections 1, 2, 3, 43, 44, 45, 318 and 319 of the Constitution of Federal Republic of Nigeria, 1999.
2. Sections 1, 5, 8, 9, 10, 11, 12, 16, 17, 21, 22, 23, 26, 28, 29, 33, 38, 39, 42, 43, 44, 47,  51, 52,  of the Land Use Act, 1978
3. The Judgement of the Supreme Court (nature, procedure, condition and duty of court and government to government acquisition of land) in the case of PROVOST LAGOS STATE COLLEGE OF EDUCATION & ORS v. EDUN & ORS (2004) LPELR-2929(SC)
4. The Judgment of the Supreme Court (government’s right to acquire and the payment of compensation on compulsorily acquired land) in the case of ELF PETROLEUM v. UMAH & ORS (2018) LPELR-43600(SC)
5. The Judgement of the Court of Appeal (on the Powers of the Governor in relation to land as provided under the Land Use Act) in the case of ANJUMA FENU & ORS v. ALHAJI MOHAAMED BELLO & ORS (2019) LPELR-47693(CA)
6. The Judgement of the Court of Appeal (on the powers of State Governors over lands in urban and rural areas) in the case of MR. UCHENNA REGINALD EZEKWERE v. NZE JAMES CHUKWUEMEKA OKIKE (2018) LPELR-45012(CA)
7. (The judgement of the Court of Appeal  (on requirements for the cancellation and revocation of certificate of occupancy by a Governor) in the case of ALHAJI UMARU DANKURA ADAMU & ANOR v. ALHAJI BASHIR ILU & ORS (2017) LPELR-43194(CA).
8. Ibrahim Ramalan, “Ground Rent: Borno govt seals defaulting commercial banks” (DailyNigerian, 18 February 2021) <https://dailynigerian.com/ground-rent-borno-govt-seals/> accessed 25 April 2021
9. Onyekachi Umah, “What is Ground Rent, Who Should Pay and Who Should Collect It” (LearnNigerianLaws.com, 26 June 2018) <https://sabilaw.org/what-is-ground-rent-who-should-pay-and-who-should-collect-it/>  accessed 24 April 2021
10. Onyekachi Umah, “Legality Of Government’s Compulsory Acquisition Of Land And Payment Of Compensation” (LearnNigerianLaws.com, 10 March 2016) <https://sabilaw.org/legality-of-government-s-compulsory-acquisition-of-land-and-payment-of-compensation/ > accessed 9 November 2020
11. Onyekachi Umah, Safest Means of Purchasing Urban Lands” (LearnNigerianLaws.com, 12 March 2016) <https://sabilaw.org/safest-means-of-purchasing-urban-land/> accessed 24 April 2021 
12. Onyekachi Umah, Safest Means of Purchasing Rural Lands” (LearnNigerianLaws.com, 11 March 2016) <https://sabilaw.org/safest-means-of-purchasing-rural-land/> accessed 24 April 2021
13. Onyekachi Umah, “Why Government Does Not Pay Land Compensation” (LearnNigerianLaws.com, 10 November 2020) <https://sabilaw.org/why-government-does-not-pay-land-compensation/> accessed 23 April 2021
14. Onyekachi Umah, “When Properties Can Be Demolished Without Compensation In Any Part of Nigeria.” (LearnNigerianLaws.com, 16 May 2019) <https://sabilaw.org/when-properties-can-be-demolished-without-compensation-in-any-part-of-nigeria-daily-law-tips-tip-332-by-onyekachi-umah-esq-llm-aciarb-uk/ > accessed 9 November 2020.
15. Onyekachi Umah, “Does The New Law Allow Payment Of Compensation, When Land Is Taken For Custodial Centers (Prisons) In Nigeria.” (LearnNigerianLaws.com, 20 January 2020) <https://sabilaw.org/does-the-new-law-allow-payment-of-compensation-when-land-is-taken-for-custodial-centers-prisons-in-nigeria-daily-law-tips-tip-486-by-onyekachi-umah-esq-llm-aciarbuk/ > accessed 9 November 2020
16. Onyekachi Umah, “Government Cannot Pay Compensation For An Empty Land After A Compulsory Acquistion” (LearnNigerianLaws.com, 18 August 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-166-government-cannot-pay-compensation-for-an-empty-land-after-a-compulsory-acquistion/ > accessed 9 November 2020. 
17. Onyekachi Umah, “Misuse Of “Power Of Attorney” In Land Transactions” (LearnNigerianLaws.com, 10 March 2016) <https://sabilaw.org/misuse-of-power-of-attorney-in-land-transactions/> accessed 23 April 2021
18. Onyekachi Umah, “Estate Surveyors and Valuers Cannot Prepare Tenancy/Land Documents” (LearnNigerianLaws.com, 30 November 2020) <https://sabilaw.org/estate-surveyors-and-valuers-cannot-prepare-tenancy-land-documents/> accessed 17 March 2021
19. Onyekachi Umah, “It Is An Offence For Non-Lawyer To Prepare Any Document/Agreement Relating To Rent, Buildings, Land Or Mineral Resources” (LearnNigerianLaws.com, 12 September 2019 <https://sabilaw.org/it-is-an-offence-for-none-lawyer-to-prepare-any-document-agreement-relating-to-rent-buildings-land-or-mineral-resources/> accessed 17 March 2021
20. Onyekachi Umah, “List Of Agreements And Transactions That Are Invalid If Handled By A Non Lawyer In Nigeria” (LearnNigerianLaws.com, 3 October 2019) <https://sabilaw.org/list-of-agreements-and-transactions-that-are-invalid-if-handled-by-a-non-lawyer-in-nigeria/> accessed 17 March 2021
21. Onyekachi Umah, “Legal Practitioners Cannot Sell Land In Nigeria.” (LearnNigerianLaws.com, 31 August 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-174-legal-practitioners-cannot-sell-land-in-nigeria/ > accessed 17 March 2021.
22. Onyekachi Umah, “What Will Courts Do Where There Are Conflicting Evidence In Land Cases?” (LearnNigerianLaws.com, 28 July 2020) <https://sabilaw.org/what-will-courts-do-where-there-are-conflicting-evidence-in-land-cases-daily-law-tips-tip-619-by-onyekachi-umah-esq-ll-m-aciarbuk/> accessed 23 April 2021
23. Onyekachi Umah, “Can A Family Head Sell Family Land As His Private Property Under Yoruba Customary Law?” (LearnNigerianLaws.com, 16 July 2020) <https://sabilaw.org/can-a-family-head-sell-family-land-as-his-private-property-under-yoruba-customary-law/>  accessed 23 April 2021
24. Onyekachi Umah, “Requirement for a Valid Sale of  Customary (Village) Land” (LearnNigerianLaws.com, 2 July 2020) <https://sabilaw.org/requirements-for-a-valid-sale-of-customary-village-land-daily-law-tips-tip-600-by-onyekachi-umah-esq-ll-m-aciarbuk/> accessed 23 April 2021
25. Onyekachi Umah, “Husband And Wife Cannot Buy/Own A Land Together In Nigeria” (LearnNigerianLaws.com, 18 May 2020) <https://sabilaw.org/husband-and-wife-cannot-buy-own-a-land-together-in-nigeria-daily-law-tips-tip-571-by-onyekachi-umah-esq-llm-aciarbuk/> accessed 23 April 2021
26. Onyekachi Umah, “Lands In Nigeria That Have No Minimum Age Limit For Ownership” (LearnNigerianLaws.com, 7 February 2020) <https://sabilaw.org/lands-in-nigeria-that-have-no-minimum-age-limit-for-ownership-daily-law-tips-tip-500-by-onyekachi-umah-esq-llm-aciarbuk/> accessed 23 April 2021
27. Onyekachi Umah, “How To Lawfully Purchase Land For A Minor (Child) In Nigeria” (LearnNigerianLaws.com, 5 February 2020) <https://sabilaw.org/how-to-lawfully-purchase-land-for-a-minor-in-nigeria-daily-law-tips-tip-498-by-onyekachi-umah-esq-llm-aciarbuk/> accessed 23 April 2021
28. Onyekachi Umah, “Minimum Age For Land Owners In Nigeria Is Not 18 Years” (LearnNigerianLaws.com, 1 February 2020) <https://sabilaw.org/minimum-age-for-land-owners-in-nigeria-is-not-18-years-daily-law-tips-tip-495-by-onyekachi-umah-esq-llm-aciarbuk/> accessed 23 April 2021 
29. Onyekachi Umah, “Does The New Law Allow Payment Of Compensation, When Land Is Taken For Custodial Centers (Prisons) In Nigeria” (LearnNigerianLaws.com, 20 January 2020) <https://sabilaw.org/does-the-new-law-allow-payment-of-compensation-when-land-is-taken-for-custodial-centers-prisons-in-nigeria-daily-law-tips-tip-486-by-onyekachi-umah-esq-llm-aciarbuk/> accessed 23 April 2021
30. Onyekachi Umah, “Which Court Can Hear Cases Of Land Disputes In Villages And Rural Communities In Nigeria” (LearnNigerianLaws.com, 12 December 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-247-which-court-can-hear-cases-of-land-disputes-in-villages-and-rural-communities-in-nigeria/> accessed 23 April 2021
31. Onyekachi Umah, “Is It Legal For Government Or Any Group To Charge You For Drilling Borehole On Your Land” (LearnNigerianLaws.com, 29 November 2018) <https://sabilaw.org/is-it-legal-for-government-or-any-group-to-charge-you-for-drilling-borehole-on-your-land/> accessed 24 April 2021
32. Onyekachi Umah, “Government Cannot Pay Compensation For An Empty Land After A Compulsory Acquisition” (LearnNigerianLaws.com, 18 August 2018) <https://sabilaw.org/government-cannot-pay-compensation-for-an-empty-land-after-a-compulsory-acquistion/> 
33. Onyekachi Umah, “You Cannot Own Land In Nigeria” (LearnNigerianLaws.com, 14 August 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-162-you-cannot-own-land-in-nigeria/> accessed 24 April 2021
34. Onyekachi Umah, “Land Transactions in Nigeria Are Invalid Without Written Consent of State Governors” (LearnNigerianLaws.com, 14 June 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-122-land-transactions-in-nigeria-are-invalid-without-written-consent-of-state-governors/> accessed 24 April 2021
35. Onyekachi Umah, “Customary Lands (Lands in Villages) Need No Written Agreements As Proof of Ownership” (LearnNigerianLaws.com, 1 June 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-113-customary-lands-lands-in-villages-need-no-written-agreements-as-proof-of-ownership/> accessed 24 April 2021
36. Onyekachi Umah, “Safest Means of Jointly Acquiring Lands and Landed Property in Nigeria as a Couple” (LearnNigerianLaws.com, 29 May 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-111-safest-means-of-jointly-acquiring-lands-and-landed-property-in-nigeria-as-a-couple/> accessed 24 April 2021
37. Onyekachi Umah, “When Properties Can Be Demolished Without Compensation In Any Part Of Nigeria” (LearnNigerianLaws.com, 16 May 2019) <https://sabilaw.org/when-properties-can-be-demolished-without-compensation-in-any-part-of-nigeria-daily-law-tips-tip-332-by-onyekachi-umah-esq-llm-aciarb-uk/> accessed 24 April 2021
38. Onyekachi Umah, “State Governments Cannot Collect Tenement Rates In Nigeria” (LearnNigerianLaws.com, 6 March 2019) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-282-state-governments-cannot-collect-tenement-rates-in-nigeria/> accessed 24 April 2021
39. Onyekachi Umah, “‘Mr. & Mrs. Xyz’ Cannot buy Landed Property in Nigeria” (LearnNigerianLaws.com, 8 May 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-96-mr-mrs-xyz-cannot-buy-landed-property-in-nigeria/> accessed 24 April 2021
40. Onyekachi Umah, “Court for Adequacy of Land Compensation in Nigeria” (LearnNigerianLaws.com, 19 March 2018) <https://sabilaw.org/court-for-adequacy-of-land-compensation-in-nigeria/> 24 April 2021
41. Onyekachi Umah, “Does Government Compensate for Land or for Developments?” (LearnNigerianLaws.com, 19 March 2018) <https://sabilaw.org/does-government-compensate-for-land-or-for-developments/> accessed 24 March 2021
42. Onyekachi Umah, “Can Government Takeover Lands Without Notice?” (LearnNigerianLaws.com, 19 March 2018) <https://sabilaw.org/can-government-takeover-lands-without-notice/> accessed 24 April 2021
43. Onyekachi Umah, “Power Of Attorney Can Not Transfer Ownership/Title Of A Property” (LearnNigerianLaws.com, 19 July 2018) <https://sabilaw.org/daily-law-tips-by-onyekachi-umah-esq-tip-145-power-of-attorney-can-not-transfer-ownership-title-of-a-property/> accessed 24 April 2021
44. Onyekachi Umah, “Courts for Land Cases In Nigeria” (LearnNigerianLaws.com, 8 February 2018) <https://sabilaw.org/courts-for-land-cases-in-nigeria/> accessed 24 April 2021
45. Onyekachi Umah, “Effect of Power of Attorney Not Executed Before a Notary Public” (LearnNigerianLaws.com, 23 March 2021) <https://sabilaw.org/effect-of-power-of-attorney-not-executed-before-a-notary-public/> accessed 24 April 2021
46. Onyekachi Umah, “How to Recover Property of the Dead in Nigeria” (LearnNigerianLaws.com, 10 March 2016) <https://sabilaw.org/how-to-recover-property-of-the-dead-in-nigeria/> accessed 24 April 2021
47. Pic credit: Universal Reporters.ng

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