Mortgages Under the Rights of Occupancy System in Nigeria
The Land Use Act, 1978 (hereinafter referred to, where the context admits, as “the Act”) introduced a uniform State ownership of land otherwise known as the Rights of Occupancy System in Nigeria. Section 1 of the Act vests all land within the territory of each State in the Federation in the Governor of the State to hold upon trust for the use and common benefit of all Nigerians. Section 5 empowers the Governor in respect of land whether or not in an urban area to grant a Statutory Right of Occupancy to any person for all purposes, while Section 6 empowers the Local Government, where appropriate, in respect of land in a non-urban area to grant a Customary Right of Occupancy to any person. By Sections 34 and 36 former owners of land become deemed holders of rights of occupancy into which their former ownership rights have been transformed by operation of law.The Act continues to attract comments from learned writers as to its effect on various aspects of property law. However, it would appear that not many writers have focused particularly on the effect of the Act on the law of mortgages. This is not to say that the subject is not important, nor that the Act has not significantly affected the law and practice of mortgages. The object of this article is to fill this vacuum.