In Nigeria, the acquisition of land or real property represents a major investment, often involving significant financial outlay and emotional commitment. However, the mere payment for land or taking physical possession does not automatically confer legal title. Rather, it creates only an equitable interest, which may be defeated by a third party who later acquires legal title in good faith.
To convert this equitable interest into a secure, enforceable, and transferable legal title, the purchaser must undertake a legal process known as perfection of title. Unfortunately, many property owners either overlook or delay this critical step, thereby exposing themselves to legal uncertainty, financial risk, and potential litigation.
THE LEGAL FRAMEWORK
In Nigeria, the ownership and transfer of land are governed primarily by the Land Use Act of 1978, which vests all land in each state (except federal lands) in the Governor, to be held in trust for the benefit of the people. Under this framework, any transfer of interest in land, whether by sale, lease, mortgage, or assignment, requires the prior consent of the Governor in accordance with Section 22 of the Act.
To secure full legal ownership, a buyer must undertake a process known as perfection of title, which ensures that the interest acquired is not merely equitable but becomes a valid and enforceable legal title. This process typically involves obtaining the Governor's consent, paying stamp duties on the relevant documents as required by the Stamp Duties Act, 2004, and registering the title instrument with the appropriate State Lands Registry under the applicable Land Instruments Registration Law.
Procedure for Perfecting Title to Land
Perfecting title to land in Nigeria is a mandatory legal process that involves three sequential steps, each of which must be completed to transform an interest in land into a valid, enforceable, and registrable legal title. The first step is obtaining the Governor's consent, as required under Section 22 of the Land Use Act. This consent must be sought at the State Lands Registry of the state where the property is located and is a prerequisite for any valid transfer of interest in land. To process the application, the parties are typically required to submit the executed Deed of Assignment or other title instrument, an approved survey plan, the vendor's title documents, tax clearance certificates of both parties, means of identification or corporate registration documents, a completed application form, and evidence of payment of applicable consent fees. Once granted, the Governor's consent is formally endorsed on the Deed, confirming lawful approval of the transaction.
Following the endorsement, the second step is the payment of stamp duties, which must be made to the appropriate tax authority. For transactions involving corporate entities, the duty is payable to the Federal Inland Revenue Service (FIRS), while individuals pay to the State Internal Revenue Service (SIRS). The Stamp Duties Act requires that the relevant instrument be stamped within 30 days of execution. Failure to comply renders the document inadmissible in court and ineligible for registration. The duty payable is typically calculated as a percentage of the consideration stated in the instrument, usually around 1.5%.
The final step in the perfection process is registration at the State Lands Registry. This involves submitting the duly stamped and endorsed Deed, proof of payment of registration fees, identification or company documents, passport photographs and contact details of the parties. Upon registration, the instrument is assigned an official registration number. This step confers legal ownership, gives public notice of the transaction, and protects the purchaser's interest against third-party claims. Importantly, a registered title is recognised as a legal estate, enforceable in court and acceptable as collateral by financial institutions.
Completion of all three steps, Governor's consent, stamping, and registration, is what perfects the title under Nigerian law. Without perfection, the interest remains merely equitable and is vulnerable to legal uncertainty and competing claims.
CONSEQUENCES OF FAILING TO PERFECT TITLE
A purchaser who fails to perfect title holds only an equitable interest, which offers limited protection and cannot stand against a registered legal title, particularly in disputes involving bona fide third parties. Under laws such as Section 20 of the Land Instruments Registration Law (as applicable in states like Lagos), unregistered instruments are inadmissible in court and cannot be relied upon to prove ownership.
Unperfected titles also lack commercial value. Banks and financial institutions generally require perfected documents before accepting property as collateral. Without perfection, a property's utility as a financial asset is significantly diminished, potentially blocking access to funding and business opportunities.
Ultimately, a buyer who pays for land and takes possession without perfecting the title risks losing everything. If ownership is challenged, they cannot rely on an unregistered Deed of Assignment or any other unperfected instrument to assert their rights. Regardless of how long they've occupied the property or the extent of their investment, legal ownership remains with the party whose interest is properly registered.
In litigation, courts are more likely to uphold the rights of a party with a perfected title, especially where registration was done lawfully and without notice of any prior equitable claim. The law favours diligence, not assumptions, making perfection of title essential for legal security.
IMPLICATIONS OF NON-PERFECTION OF TITLE
The requirement for perfection of title in Nigeria is not merely procedural; it has serious practical implications. Failure to perfect a title can result in the complete loss of property, even after years of peaceful occupation or apparent ownership. In one instance, a family lost their claim to land they had occupied for years because the original purchaser, their late patriarch, never perfected the title. Despite evidence that a transaction had occurred, they had no formal documents, and a rival claimant with a registered title prevailed.
In another case, a buyer who acquired and occupied a residential property from a developer was later evicted by court order after a financial institution enforced a debenture against the land. Because the buyer never perfected title, their interest was not recorded in the land registry, and the creditor had no obligation to recognise their claim. In both scenarios, the absence of perfection rendered the occupants legally powerless. Perfection of title is therefore essential to secure legal ownership and protect against third-party claims.
Ensuring Effective Title Perfection Through Due Diligence and Legal Representation
To avoid these pitfalls, every property buyer must begin with a thorough legal search at the relevant Lands Registry. This helps to verify ownership, confirm whether the land is encumbered, and identify any restrictions or disputes. Following a successful search, negotiation, and payment, the buyer must proceed to obtain the Governor's Consent, pay stamp duties, and register the Deed of Assignment or other title instrument without delay.
Every transaction should be accompanied by a full suite of documentation, including receipts, survey plans, executed contracts, and consent letters. These are not mere formalities; they are legal lifelines. Furthermore, engaging a property lawyer is not optional. The terrain of land law in Nigeria is complex, and only a qualified legal professional can ensure full compliance and protection throughout the transaction.
Conclusion
Perfection of title is not a bureaucratic ritual; it is a legal obligation. Only a perfected title grants enforceable ownership, marketability, and protection under Nigerian law. Payment and possession without perfection are inadequate.
Property buyers must be diligent, cautious, and legally guided from start to finish. The risks of failing to perfect title, loss of property, inability to enforce rights, and exclusion from credit markets are simply too great to ignore.
For true ownership in both law and fact, perfection is not optional; it is essential.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
