Mustafa Chike – Obi has questioned delays in obtaining Certificates of Occupancy (C of O) and completing land-title transfers in Lagos expressing concerns about property ownership, transaction costs and access to bank financing, and the current state of Nigeria’s Land Use Act.
These concerns were raised during a recent episode of Policy Without Politics, hosted by Dr Ken Onyali Ikpe and Mustafa Chike Obi, where the presenters argued that Nigeria’s land administration system needs an overhaul to enable property owners to unlock the economic value of their assets.
They said prolonged title-processing procedures and the requirements for government consent can make it difficult for homeowners, developers and businesses to use property as collateral, complete transactions or secure long-term financing.
Lagos’ Cumbersome C of O Process
A Certificate of Occupancy is an important land-title document that evidences a statutory right of occupancy granted by the government. Under the Land Use Act of 1978, land in each state is vested in the governor to hold in trust for the benefit of Nigerians, subject to the law’s provisions.
Obtaining a C of O in Lagos can involve multiple stages of documentation, survey verification, property inspection, title checks, assessment of applicable charges and government approval before registration and issuance.
Applications may pass through several authorities, including the relevant land administration offices, the Office of the Surveyor-General, the Lands Bureau and the governor’s office.
A 2012 Lagos State service charter report outlined a 24-working-day sequence for specified stages of private C of O processing. However, published accounts have described cases in which applicants wait considerably longer.
In an April 2026 article, Meridian Heritage Properties reported that processing could take between one and two years in some circumstances. This is an indicative account rather than a verified average for all applications in Lagos.
The Lagos State Government has introduced digital services through its Lands Multipurpose Desk portal to facilitate selected land regularisation and documentation processes. The platform allows applicants to submit documents, pay applicable fees and track applications for eligible services.
However, digitising applications does not necessarily eliminate delays arising from title disputes, incomplete records, verification requirements or approval procedures.
The challenge also extends to properties that already have a C of O. Under Section 22 of the Land Use Act, the governor’s consent is generally required for the assignment, mortgage, transfer or other disposition of a statutory right of occupancy, subject to applicable legal provisions.
Consequently, a buyer acquiring a property with an existing title may still need to complete the relevant documentation, obtain consent and register the transaction before the transfer is fully perfected.
These requirements can increase the time and cost involved in buying, selling or using property to secure financing.
How Title Delays Affect Homeowners and Businesses
The economic consequences of difficult land documentation were central to the Policy Without Politics discussion.
They argued that property owners who cannot establish and perfect their titles may struggle to use their assets to obtain loans.
A house or parcel of land may have substantial market value, but that does not automatically make it acceptable collateral. Banks must verify ownership, assess the title and determine whether the property can provide reliable security for a loan.
Where documentation is incomplete or a transaction has not been properly perfected, lenders may reject the property as collateral, request additional guarantees or take longer to approve financing.
For small business owners, this can restrict access to funds needed to purchase equipment, increase inventory, expand operations or finance new projects.
Property developers can also face delays in construction and financing when title issues remain unresolved, while prospective investors may be reluctant to commit capital to projects with uncertain ownership records.
Homeowners may encounter similar difficulties when applying for mortgages or refinancing existing property.
The presenters argued that these obstacles prevent property wealth from being deployed more effectively in Nigeria’s economy, limiting the role of real estate as a source of investment capital.
Nigeria’s Broader Housing Finance Challenge
Land documentation problems intersect with Nigeria’s broader housing affordability and mortgage-financing challenges.
During the discussion, the hosts cited a housing deficit that they said had increased from about 14 million units in 2010 to 28 million in 2026.
They also put Nigeria’s mortgage-to-GDP ratio below 0.5%, contrasting it with higher levels in South Africa and advanced economies.
Nevertheless, the policy concern is clear: expanding mortgage financing requires reliable property records, enforceable collateral rights and transaction procedures that are sufficiently predictable for lenders and borrowers.
Where title documentation is expensive or difficult to complete, property owners may be unable to access financing even when they possess valuable assets.
They argued that a more efficient land administration system could help improve access to credit and support the development of Nigeria’s formal mortgage market.
Call for Land Use Act Review
The co-hosts called for a review of the Land Use Act and the administrative procedures governing land transactions, arguing that the system should reflect Nigeria’s present economic needs.
They advocated a more predictable title-processing framework, supported by digital applications, transparent fees, clear service standards and accountability for administrative delays.
Although Lagos already operates online land-service infrastructure, the broader challenge is ensuring that digitisation leads to faster decisions, more reliable records and a consistent process for resolving applications.
Reforms could include clearly published documentation requirements, defined processing timelines, accessible mechanisms for correcting errors and procedures for resolving competing claims.
Stronger safeguards against fraudulent applications and wrongful registration would also be necessary to ensure that faster processing does not compromise the integrity of land records.
The objective, according to the arguments advanced during the discussion, is to reduce unnecessary administrative obstacles while preserving the legal checks required to establish legitimate ownership.
Proposed Mortgage Guarantee Agency
Beyond land-title reform, Mustafa Chike Obi proposed establishing a government-backed agency to guarantee qualifying mortgage loans and encourage financial institutions to provide more housing finance.
Under the model he described, prospective homeowners would contribute an initial equity payment of around 20% to 30% of a property’s value, while a financial institution would provide the balance.
The proposed agency would guarantee the lender’s exposure and, in the event of a borrower’s default, compensate the lender while pursuing recovery of the property and the guaranteed amount.
Chike – Obi argued that such an arrangement could reduce lenders’ concerns about collateral recovery and encourage more banks to provide mortgage financing.
He also suggested that a properly structured system could allow eligible property owners to borrow against the value of properties they already own, potentially using the funds for business expansion, education and other investments.
However, implementing the proposal would require clear eligibility criteria, adequate capitalisation, appropriate guarantee fees, reliable property valuations and effective legal procedures for recovering collateral.
It would also need safeguards against excessive lending and the transfer of unmanageable losses to taxpayers.
Land Use Act Under Scrutiny
Enacted in 1978, the Land Use Act reorganised land administration in Nigeria by vesting land in each state in the governor, to be held in trust and administered for the benefit of Nigerians.
The law provides for statutory and customary rights of occupancy and establishes government oversight over important land transactions.
Its framework is intended to support orderly land administration and development. However, critics argue that administrative delays and the cost of obtaining approvals can undermine the economic value of property ownership.
Any major reform would however need to consider the legal and constitutional implications of changing a framework that has governed land administration for decades.
What Faster C of O Processing Could Mean for Lagos
Lagos is one of Nigeria’s most commercially important property markets, with significant demand for residential housing, commercial buildings, industrial sites and development land.
A faster and more predictable title-registration system could reduce uncertainty for property buyers, developers and lenders, while making it easier for owners to establish acceptable collateral and complete transactions.
For businesses, improved access to property-backed financing could create additional options for raising capital to fund expansion and investment.
For the state government, transparent procedures and reliable digital records could improve administrative efficiency, strengthen compliance and make legitimate land-related charges easier to track.
Ultimately, the economic benefits of reform would depend not only on faster C of O issuance but also on reliable title verification, effective registration, predictable consent procedures and the ability of lenders to enforce valid security interests.
