Legal Land Acquisition for Agribusiness: A Nigeria 2025 Handbook

Entering the agribusiness sector in Nigeria means owning or leasing quality farmland and doing it by the book.

Under Nigeria’s Land Use Act (1978), all land is technically held “in trust” by the state governor. This means you cannot simply buy freehold; instead, you obtain long-term rights (usually 99-year leases, often referred to as Certificates of Occupancy, popularly known as {C of O} from the government.

In practice, whenever you buy or lease land, you’ll need the governor’s approval (“Governor’s Consent”) and a registered title. The good news: current reforms (the “Renewed Hope” agenda) of President Bola Ahmad Tinubu’s administration are pushing to digitize land titles and modernize this system, but until then, you must follow today’s rules.

Understand Nigeria’s Land Law

State Ownership:
By law, all urban land is controlled by the state government (governors) and rural land by local governments. In effect, any farm site comes with a lease (C of O) granted by the state, not outright ownership.

Governor’s Consent:
Every sale or transfer of land (even a lease) must be approved by the state governor. Without this consent, a land deal is technically void. Expect to apply to the State Land Bureau, submit documents, and pay a fee (often 3–5% of the land’s value) for consent.

Certificate of Occupancy:
This is the official document you need. A C of O is usually for 99 years and proves you have legal rights to use the land. Always insist on seeing a valid C of O (or official lease) covering your farmland.

Land Use Act Review:
Note that top officials have flagged the Land Use Act as outdated. A task force is working on reforms (even planning a National Land Commission and digital registry). Stay tuned, as this may simplify things in the coming years, but for now, use the existing framework.

Step-by-Step: How to Acquire Land Legally

1. Find land, verify the owner:

Work through local channels: traditional leaders, community heads, or state agricultural offices can often point you to available farmland. Once you have a seller or land grant, check who truly owns the title. Nigerian land records are patchy: get as much documentation as you can from the seller (deeds, family records, etc.) and trace the chain of title.

2. Due diligence – Land Registry search:

Before paying, perform a title search at the State Land Registry and other offices. This involves checking that the land is free of disputes, mortgages, or court cases. A lawyer or land surveyor can search:

State Land Registry (required to see current registered owner)

Court records/Probate (if the land belonged to a deceased person)

CAC records (if a company owns the land).

These steps confirm you’re dealing with the rightful owner. Also, hire a surveyor to map the exact plot and verify it matches the deed descriptions.

3. Formalize the sale or lease. Once the land is cleared:

Sign a Contract of Sale or Lease (Deed of Assignment) with the seller. Use a lawyer or notary. The contract should state the terms, price (or lease terms), and transfer of rights.

Pay any agreed deposit. Get a receipt for every payment.
Exchange signed contracts and make sure the seller hands over all title documents (original deeds, survey plan, receipts).

4. Obtain Governor’s Consent.

After the contract is signed, apply to the State Lands Bureau for consent. This is mandatory for any transfer. You’ll submit: the sale agreement, your identity documents, proof of payment, and copies of the existing title (like the original C of O or government allocation letter). Pay the consent fee (a percentage of the land’s value). The process can take months, so start early.

5. Payment and Conveyance

Once consent is granted and all approvals are in place, you finalize the deal. You pay the remaining purchase price (or set up your lease payments) and have the seller execute the final Conveyance Deed. This legally passes the land interest to you or your company.

6. Register the title.

Finally, take the Conveyance Deed and Governor’s Consent to the State Land Registry for registration. This makes your (or your company’s) name official on the title. At this point, you will also pay any registration fees. After registration, you should receive a new C of O or lease endorsed in your name.

By following these steps, due diligence, written contracts, consent, payment, and registration, you secure clear legal rights to farmland.

Structure Your Agribusiness (CAC, etc.)

Many savvy entrepreneurs set up a Nigerian business entity (e.g., limited liability company) through the Corporate Affairs Commission (CAC) before buying land. A Nigerian-registered company can hold land title (and even get it on a freehold basis) without the limits that individuals face. This is especially important for foreign investors: non-citizens cannot directly own agricultural land, so they must lease through a Nigerian firm. In short:

Register with CAC: Choose a company name and outline your agribusiness purpose. CAC will issue a certificate of incorporation.

Use company name on documents: When you apply for Governor’s Consent and register the land, do so under the company name. This also helps if you later seek loans or grants for your farm.

Even if you’re a Nigerian citizen, running the farm as a registered company or LLC adds credibility and legal protection. It also allows multiple investors to own shares.

Beware of Common Pitfalls

Untitled land risk: Most land in Nigeria is still held informally – only about 10% is fully titled. Untitled (oral) agreements are common but risky. Without a formal C of O or lease, owners can be evicted or face disputes. Always insist on securing a legal title as outlined above.

Fake or duplicate titles: Nigeria has many cases of forged deeds and double sales. Counter this by carefully vetting documents and confirming with official records. A thorough Land Registry search will reveal if someone else already has a claim.

Community and environmental checks: For rural farms, meet community leaders and environmental agencies if needed. Ensure that your intended farming use (especially for large acreage) complies with local land-use zoning or any ongoing government schemes.

Government Support and New Opportunities

The Federal Ministry of Agriculture (now FMAFS) and state agriculture ministries offer programs that can help new farmers. For example, look into state-led farm settlement schemes or agricultural land banks (some states lease government-owned estates to farmers). The government has also pledged to digitize land records and expand formal titling to boost agriculture. In practice, this means more transparency and possibly faster approvals in the next few years.

Keep an eye on announcements by the Federal Ministry of Agriculture and Food Security or your State Ministry of Agriculture. They often publicize grants, credit facilities, or training (e.g., the National Agriculture Land Development Authority occasionally allocates land for farming projects). As the Land Use Act reforms unfold, new opportunities (and easier processes) should emerge. In the same vein, always stay tuned to our website as we won’t fail to bring new updates that are beneficial to our audience.

Ready to launch your farm enterprise? Start by consulting local land officials or a trusted attorney. Outline your business plan, register your company with the CAC, and begin the due diligence on potential sites. Follow each legal step, from Land Registry search to Governor’s Consent, and you’ll build a solid foundation for your agribusiness. In an era when Nigeria is fixing land laws and digitizing titles, locking in a legitimate land title now will pay dividends as you grow. Good luck, and happy farming!
Related post: https://ilorinbizchronicle.com/beyond-cac-why-nigerian-startups-fail-to-protect-their-ip/