A common misconception amongst landowners and real estate practitioners is that land excision and certificate of occupancy are the same. These two (2) concepts are similar because they both relate to title to land and landed properties. However, there are material differences between them. The understanding of these differences is crucial in navigating land transactions and ensuring security of land tenure within the complexities of the Nigerian real estate market.
Excision of land or property is a legal process by which the Governor of a state relinquishes ownership in a land or property after an initial acquisition of the land or property by the Governor of the State. Simply, it is an official declaration by the government restoring rights in the land or property to its previous owners. The restoration, however, is not a continuation of the extinguished right but the creation of a new right in the land.
Excision, being an official declaration of the government, is typically evidenced by a gazette. A gazette is an official document through which the government publish or announce important decisions or official acts.
Certificate of occupancy is a document evidencing the holder’s right of occupancy over land or property. Under Nigerian law, a right of occupancy is a right to use, occupy and possess a land. A certificate of occupancy is issued by the State Government (for land in urban areas) or Local Government (for land in rural areas). The mere issuance of a certificate of occupancy, however, does not confer title to land, there must be an underlying valid title to the land.
Please note that a certificate of occupancy may be issued in respect of land that has been (i) excised, (ii) allocated by the government to an individual, government or corporate entity, (iii) acquired through private transactions such as assignments. Certificate of occupancy may also be issued in respect of land or property covered by customary right of occupancy – land occupied by a person or community in accordance with customary law.
The process and requirements of obtaining a certificate of occupancy over property or land in Nigeria is dependent on the location of the land and varies amongst States.
