THE EFFECT OF THE LAND USE ACT ON PROPERTY DEVELOPMENT IN NIGERIA: A CASE STUDY OF ENUGU URBAN
ABSTRACT
Real estate development and use of land are prompted primarily by the products and satisfaction that could be derived therefrom. It is a common knowledge that the Land Use Act has since its inception, provided answer to the socio-economic problem of making land readily available for desired objectives especially in the area of landed property development which is retarded in Enugu. This study which adopted the survey research approach, analysed the effects of the Land Use Act of 1978 on property development as measured in terms of ease of accessibility, ease of acquisition and security of title with a view to formulating a workable proposal for an improvement on the existing land policy which will improve the rate of property development. Data were sourced through primary and secondary sources, which included questionnaires, interviews, and review of published and unpublished scholarly work. These data x-rayed the opinion of various land operators on the effects of the Land Use Act on Property Development in Enugu Urban. A sample size of 368 was selected from the study population of 4,650 made up of 250 staff of Redan, 400 Registered Estate Surveyors and 4,000 Landlords. Three hundred and fifty (350) or 95% of the 368 questionnaires randomly administered on the samples were retrieved. The data generated were analysed in tables to answer the research questions formulated using frequencies and percentages. Three hypotheses which tested the three major effects of Land Use Act namely; lack of ease of accessibility to land, difficulty in land acquisition and lack of security of title to land were tested using the Non parametric Binomial test of proportions and Chi-square technique. The results of the test in which the X2 table value at 0.05 level of significance, 2df and 3df confirmed the reality of insecurity of title to land, inaccessibility and difficulty in land acquisition by the rejection of the Null Hypothesis. The study finally recommended that the Land Use Act be retained but with amendments of some sections, in order to accelerate the speed with which land is made available at reduced fees.
         TABLE OF CONTENTS                
Chapter One: Introduction    -                            
1.1    Background of the study                            
1.2    Statement of the problems                            
1.3    Aim of the study                                
1.4    The objectives of the study                            
1.5    Research question                                
1.6    Research hypothesis                                
1.7    Significance of the study                            
1.8    The scope of the study                            
1.9    Limitation of the study                            
Chapter Two: Literature Review                            
2.1    Land Tenure system in Nigeria before the Act                
2.1.1    Northern States    -    -    -    -                
2.1.2    Western States        -    -    -    -                
2.1.3    Eastern States        -    -    -    -                
2.2    The Land Use Act of 1978    -    -    -                
2.2.1    Powers of the Governor and the Local Government under the Act        
 2.2.2    Rights and privileges of holders    -    -    -            
2.2.3    Method of acquiring land under the Act    -    -            
2.2.4    Revocation of rights of occupancy and compensation            
2.2.5    Implementation of the Act    -    -    -    -            
2.2.6    Effects of the Land Use Act on property development            
Chapter Three: Research Methodology    -    -    -            
3.1    Re-statement of problem    -    -    -    -            
3.2    Study area settings        -    -    -    -            
3.2.1    Historical origin and growth of Enugu    -    -            
3.2.2    Geographical Local/Communication        -    -            
3.2.3    Physical Features    -    -    -    -    -            
3.2.4    Climate and Vegetation    -    -    -    -            
3.2.5    Neighbourhoods and occupation    -    -    -            
3.2.6    Services    -    -    -    -    -    -            
3.2.7    Population    -    -    -    -    -    -            
3.3    Research design and methodology    -    -    -            
3.4    Population of Study    -    -    -    -    -            
3.5    Sample Size/Sample Techniques    -    -    -            
3.6    Data Collection    -    -    -    -    -            
3.6.1    Data Sources    -    -    -    -    -    -            
3.7    Research Instruments -    -    -    -    -            
3.7.1    Administration of Instrument -    -    -    -            
3.7.2    Validity and Reliability of the Instruments    -    -            
3.8.0    Methods of Data Analysis    -    -    -    -            
Chapter Four: Presentation and Analysis of Data    -    -            
4.1    Analysis of Returns    -    -    -    -    -            
4.2    Analysis of Personal Data    -    -    -    -            
4.3    Analysis of (Data) Responses        -    -    -            
4.3.1    Awareness of the Land Use Act and its objectives    -            
4.4    Problems generated by the Land Use Act to property development -    
 4.5    Socio-economic problems generated by the Land Use Act
to property development   -    -    -    -    -    
4.6    Effect of Land Use Act to land acquisition, ease of accessibility,

    and security of title to land for property development in Enugu        
4.7    Test of hypotheses    -    -    -    -    -    -        
4.8    Further test of hypotheses    -    -    -    -    -        
4.9    Improvement of property development in Enugu    -    -        

4.10    Approaches for remedying the problems of Land Use Act

    on property development    -    -    -                
Chapter Five: Discussions and Implications, Findings, Conclusion and Recommendation
5.1    Discussions and Implications -                        
5.2    Summary of Findings -    -                        
5.3    Conclusions    -    -    -                        
5.4    Recommendations    -    -                        
    References    -    -    -                        
    Appendix    -    -    -                        
 



CHAPTER ONE


1.0    INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Land is a natural resource which is physically fixed. It is the most fundamental

basic resource around which our social structure revolves. Every activity requires the use of land and this makes land the most valuable asset of man.

There is an intimate relationship between man and land. Man has maintained a close contact with land which provides him with virtually all he needs for his sustenance. The survival of man depends on the availability of land and his ability to acquire and exploit it to satisfy his seemingly endless needs. This ability to acquire land is sometimes limited or hindered by social, legal, environmental and technological constraint both in the public and the private sectors of the economy.

For the fact that individuals, governments and organizations need land, there has been great demand for the acquisition, use and development of land and it has not been easy to meet this demand.

In the same vein, Real Estate Development and use of land are prompted primarily by the products and satisfaction that could be derived therefrom. The problem of real estate development in Nigeria started during the Colonial period and was inherited by the Post Colonial Nigerian Government. Inspite of the efforts of both the colonial and the post colonial governments to solve the problem of Real Estate Development in the country, they remained unresolved till date.

Government all through the ages has recognized that land is an indispensable resource in a nation’s economic and social development. Over the years, different communities have made enactments respecting how land should be owned, developed and managed. In other words the use to which land should be put, the nature and extent of development to be carried out thereon and indeed all decisions affecting land are dictated by the land laws of the country.

Property Development on the other hand is one of man’s most crucial needs, in that it represents man’s most tangible asset both to the private and the public investors. However before any development is carried out on a parcel of land, property rights must first be exercisable over that piece of land. These property rights are defined by the existing land laws of the village, community or nation.

It must, therefore, be understood that the land law of any country is always intrinsically interwoven with the economic cum socio-political development of the community. In order words, the land cannot be divorced from the general history and development of any society.

Above all, the continued increase in the population of Nigeria, the desire for individual self-sustenance, increased economic activities and the inherent encumbrances in the customary land law obviously demanded a land reform policy that would refine if not abolish entirely these problematic aspects of the customary land tenure.

The Land Use Act of 1978 happened to be one of the legislations enacted in response to the yearnings and aspirations of most of the Nigerian people. This was greeted with ovation in Nigeria by the unthinking masses with high expectations that it will uplift Nigeria into one of the World’s Powers in Development. How much the Land Use Decree (Now Act) has gone in boosting development of the nation is yet to be seen. It is upon this background that this study seeks to find out the extent to which the Act has impacted on property development.


1.2    STATEMENT OF THE PROBLEM:

The Land Use Decree (Now Act) of 1978 was promulgated purportedly to enable Nigerians have quality access to land and to be able to enjoy not only the land itself but the natural fruits thereon. The fact however is that there is no certainty as to the extent to which the Act has affected property development in Enugu Urban.

The Act aimed at assisting in the acquisition of land by individuals for development of properties of all categories which will help in boosting the economy of the country. It seems however that the government’s promulgation of the Land Use Act has impacted negatively on the development of properties in the country as exemplified by the situation in Enugu the study area. This has resulted in the acute shortage of housing for various purposes, state of inertia in the property market, high rents in housing accommodation and several other social tensions.
 The debut of Land Use Act destroyed security of title to land and the ease of acquisition. A landowner needs security for his use and enjoyment of the land and may also require to protect whatever dealing the desires to have on that land. It has become clear that the processes of accessing land presently characterized by procedural delays and red tapeism.


1.3 AIM OF THE STUDY:

The aim of the study is to examine the effects of the Land Use Act of 1978 on property development in Enugu Urban in terms of ease of accessibility, ease of acquisition and security of title.


1.4    THE OBJECTIVES OF THE STUDY:

To achieve the aim of the study, the following objectives were pursued: -

i.    To determine the extent to which the objectives of the Land Use Act has been achieved;

ii.    To identify the various socio-economic problems generated by the Land Use Act on property development;

iii.    To determine the effect of the Land Use Act on land accessibility, acquisition and security of title on property development; and

iv.    To recommend better area of study on the Act with respect to property development as a means of providing effective strategy for increasing property stock.


1.5    RESEARCH QUESTIONS:

To achieve the aim and objectives of the study the following questions and

hypotheses were raised:

1.    Has the objective of the Land Use Act in making land readily and easily accessible for Nigerian been achieved?

2.    What are the problems prompted by the Land Use Act to property development in Enugu?

3.    Has property development in Enugu witnessed any socio-economic problems?
 
4.    Has the Land Use Act enhanced land acquisition, ease of accessibility and security of title for property development or has it retarded them.

5.    How can the development of properties be encouraged in Enugu?

6.    What is the best approach to tackle the controversial problems generated by the Land Use Act with respect to property development?


1.6    RESEARCH HYPOTHESIS:

HYPOTHESIS 1:

Null Hypothesis (Ho) – The Land Use Act did not create any problem to the ease of accessibility to land for property development in Enugu.

Alternative Hypothesis (H1) – The Land Use Act has created problems to the ease of accessibility to land for property development in Enugu.


HYPOTHESIS 2:

Null Hypothesis (Ho) – The Land Use Act has not imposed any difficulty in land acquisition for property development in Enugu.

Alternative Hypothesis (H1) – The Land Use Act has imposed some difficulties on land acquisition for property development in Enugu.


HYPOTHESIS 3:

Null Hypothesis (Ho) – The Land Use Act has promoted security of title to land for property development in Enugu.

Alternative Hypothesis (H1) – The Land Use Act has not promoted security of title to land for property development in Enugu.


1.7    THE SIGNIFICANCE OF THE STUDY:

The significance of the study lies to a great extent in setting a stage for a more

urgent and more comprehensive appraisal of the effects of Land Use Act on private property development in Nigeria particularly in Enugu Urban. In addition to this the study will also go a long way in educating the government on whether to review the Land Use Act or not in order to accelerate the development of properties in the country.
 
This work will also be of importance to all those who may carry out further

studies on Land Use Act among whom are:

a.    Research students for whom it will open an avenue for further research work.

b.    Land administrators and policy makers to whom it will give a general view of the problems and thereby pave way of reviewing the Land Use Act in order to facilitate development in the country.

c.    Property Developers, for whom it will raise great hope for better future access to land which will promote the development of more property stock.

d.    The indigenes of Enugu State who may now find it easier to participate in land matters for more effective property and overall development of the state.


1.8    THE SCOPE OF THE STUDY:

This research work is limited to Enugu since it will not be possible to cover all the

towns in the country in a study of this nature due to time and financial constraints.

In examining the effect of the Land Use Act on property development, attention was therefore focused on Enugu Urban. This has the singular but important advantage of ensuring a more detailed investigation especially when the time limit for accomplishing the work is considered. In doing this however, recourse was had to the general problems of property development, and Pre Land Use Legislation in Nigeria. This will act as a prelude to a proper understanding and appreciation of the effect of the Land Use Act on property development in the study area.

1.9    THE LIMITATIONS OF THE STUDY:

Data collection proved the most difficult aspect of this research work not only as a

result of the uncooperative attitude of many respondents sampled but because of repeated journeys made to administer the instruments due to absence in the house of the samples when visited.

Recourse to secondary data was also affected to an extent by non-availability of appropriate study materials. The greatest problem was however posed by finance.