The legal problems concerning the administration of land vested in the Federal Government of Nigeria are discussed in this article, specifically regarding the payment of ground rent and perfection of land titles. It considers the relevant laws, including the Land Use Act, the Lands (Title Vesting, Etc.) Act 1975, and the Lagos State Land Use Charge Law, while addressing the jurisdictional tension between federal and state authorities over the control and regulation of such lands.

The Land Use Act and State Powers Over Land

The Land Use Act 1978, which is the legislation guiding land administration in Nigeria, vested all lands within a state’s territory in the governor of that state, in line with Section 1 of the Act. It, therefore, gave the state governors the right to administer and manage the lands within their jurisdictions, subject to the provisions of the Act. Consequently, states have established land registries and enacted laws governing land administration, including the collection of ground rent. For instance, Lagos State enacted the Land Use Charge Law, which harmonizes ground rent, tenement rates, and neighborhood improvement levies into a single tax payable on real properties within the state.

Federal Lands and Jurisdictional Limits

Lands vested in the Federal Government are exempted from the control of state governors. Ownership and management of some lands are vested in the Federal Government through the Lands (Title Vesting, Etc.) Act 1975, with the Federal Ministry of Lands or such other authority as may be prescribed by the Federal Government being allowed to control such lands. This exclusion is further reinforced by the preamble to the Land Use Act and Sections 49(1) and 51(2), which limit powers of state governors over federally owned lands within their respective territories.

Notwithstanding these express provisions, Lagos State has been extending its Land Use Charge and title perfection requirements, including the issuance of Governor’s Consent and Certificate of Occupancy, to lands vested in the Federal Government. This practice raises critical legal questions about the constitutionality of such actions.

The Imposition of Ground Rent on Federal Lands

Ground rent, otherwise called Land Use Charge, is the taxation by the state governments across both developed and undeveloped lands. Lagos State Land Use Charge Law, 2020, confers on the Governor powers to impose such tax on all lands in the State. However, the applicability of the said law to the federally owned lands remains controversial.

The Land Use Act specifically exempts federally owned lands from the purview of the states, and this exemption will render any state legislation which charges on such lands to be void. Where there is a conflict between federal and state laws, the federal laws prevail under Section 1(3) of the 1999 Constitution of Nigeria. This is already settled in the plethora of cases including Nwandiaro v. SPDC (1990) and Attorney General of Lagos State v. Eko Hotels (2006).

Besides, Section 1 of the Land Use Act vesting lands in state governors is subject to the Act’s other provisions. In Tsokwa Oil Marketing Co. (Nig.) Ltd v. Bank of the North Ltd (2002), it was held that the phrase “subject to” subordinates a provision to other sections of the same legislation. Thus, the exclusion of federal lands under Sections 49(1) and 51(2) prevails over Section 1.

Perfection of Title: Consent and Registration

Title perfection implies that a land transaction requires consent and must be registered at an assigned registry. Lands vested in the Federal Government require the Federal Lands Registry, as provided under the Lands (Title Vesting, Etc.) Act 1975 and the Federal Lands Registry (Miscellaneous Provisions) Act. For Lagos State, this is handled by the Federal Land Registry in Ikoyi.

The imposition of title perfection requirements by the Lagos State Government on federally owned lands, including registration in the State Lands Registry and the obtaining of Governor’s Consent, is an overreach. This is double registration, as there is already a different legal framework for federally owned lands.

Judicial Views on Federal and State Powers

The courts have given some clarity on the issue of the division of powers between federal and state governments on land administration. In Attorney General of Lagos State v. Attorney General of the Federation & 35 Ors (2003), the Supreme Court held that while both federal and state legislatures have concurrent powers to regulate urban and regional planning, the Federal Government retains control over planning, regulation, and taxation of lands vested in it. Therefore, state governments cannot levy taxes or charges on lands owned by the federal government, as this would be double taxation and beyond their constitutional powers.

Compliance and the Need for Legal Intervention

Notwithstanding these legal principles, a good number of owners and occupiers of federally owned lands in Lagos State still comply with the imposition of Land Use Charges and title perfection requirements by the Lagos State government. The Federal Government has largely acquiesced in these practices, allowing Lagos State to collect revenue from lands vested in the Federal Government.

This could be due to ignorance of the rights or lack of willingness to confront the state in court. No meaningful litigation has been done to challenge the imposition of charges and double registration by the Lagos State Government on lands owned by the federal government.

The imposition of the Land Use Charges and requirements for the perfection of title by the Lagos State Government on lands vested in the Federal Government is unlawful, as well as a breach of constitutional and statutory provisions. The Federal Government needs to assert its rights in respect to such lands actively, while such stakeholders should challenge through available legal means cases of overreach by states. Resolving this will ensure compliance with the rule of law, eradicating double taxation upon lands solely owned by the Federal Government.

This article provides a general overview of the subject. Please contact us directly for any specific legal assistance.