Certificate of Occupancy (C of O) is one of the Nigerian land title documents — aside other documents like the survey plan and deed of assignment. A C of O is something you have to get when you are purchasing land or property in Nigeria. As a government-issued document, the Certificate of Occupancy signifies ownership of land. All of the above will be elaborated in this article.
What is a Certificate of Occupancy?
A Certificate of Occupancy is a land title document issued by the government to landowners, as a legal proof of land ownership in Nigeria. Any property or land without a C of O can be seized at any moment without compensation.
Land Use Act 1978 — standardized land administration across Nigeria by vesting all urban land in a state, in the governor of the state (rural land is vested in the local governments in which they are situated). The land use act vested the power to grant “statutory rights of occupancy” in the state governors at their discretion. This act also introduced the use of land (residential, commercial, mixed use etc.).
With this came the elimination of all the freehold systems that were in place, in preference for a lease hold system. The leases are generally issued for a maximum of 99 years – after which a renewal application must be submitted.
The common attributes of a C of O are:
Certificate of Occupancy no.
File no.
Plot no.
Location (district details and cadastral zone)
Plot size
Survey plan or graphic (shape of the plot)
Date of issue
Lease term
Initial annual ground rent fees
Land use purpose
Terms and conditions
Difference between Right of Occupancy and Certificate of Occupancy
Right of Occupancy (R of O) is only an offer to a claimed plot of land, but a Certificate of Occupancy (C of O) is the certified or official right of ownership over the piece of land.
The R of O is a lesser title compared to the C of O — because in the latter’s case the title cannot be revoked without compensation. The C of O is the preferable title, therefore, with compensation given for any compulsory acquisition by the government. That also explains why lands with C of O attract more market value than others without.
For these reasons, it is recommended that holders of Right of Occupancy settle the title to their land — to Certificate of Occupancy at the earliest.
When do you need a Certificate of Occupancy?
There are a number of reasons for needing a Certificate of Occupancy like:
Property development
In order to get approval for building in the case of new constructions, a Certificate of Occupancy is one of the documents of title that is needed.
Converting a property
When you want to change the use of a property, a C of O is usually required. An example is a commercial warehouse being turned into residential apartments.
A change of ownership
Regardless of the type of property — as long as there is a change of ownership, a new certificate of occupancy may be required sometimes.
Having said that, there are some cities such as Abuja which do not readily give out new certificates. Rather, raising and registering something such as a power of attorney — in the new buyer’s name of the land or property, also does the trick.
Where to get a Certificate of Occupancy?
You can get a Certificate of Occupancy from the appropriate state government — that is, the ministry in charge of land matters. This ministry is known as Abuja Geographic Information Systems (AGIS) in Abuja.
How do you get a Certificate of Occupancy?
Apart from processing existing Certificates of Occupancy, land administration offices also process new government land applications — which also end up in the issuance of new Certificates of Occupancy. New government land applications have a number of administrative fees attached to them, which have to be paid, before one is issued a C of O.
The second way of obtaining a Certificate of Occupancy is the purchase of legitimate property/land from another individual who owns such (in the secondary market). You can then proceed to change the ownership title at the land registry.
How much does it cost to obtain a C of O?
The cost of getting a C of O varies from state to state — the cost is typically linked to actual Fair Market Value (FMV) of the land in question. Thus, getting a Certificate of Occupancy in Lagos or Abuja, is significantly more — compared to other states.
In Abuja, Certificate of Occupancy fee is payable per square meter of land and it is determined by which phase of the city the land is situated i.e. phase 1, 2, 3 etc.
Benefits of a Certificate of Occupancy
Quickly establishes you as the specific owner of a parcel of land — preventing situations of multiple persons claiming ownership of a single property
Bars the government from appropriating or revoking your land rights without compensation
Certificates of Occupancy can be used as collateral for financial institutions’ loans such as banks (mortgage, retail and commercial.)
Increases the value of your land, particularly in Abuja, where the process of obtaining a C of O can be both time-consuming and expensive
Other important title documents besides a Certificate of Occupancy
Though an important title document — the Certificate of Occupancy is not the only land document you should be aware of. A Certificate of Occupancy will only show ownership of land. In order to verify property transactions — other documents such as the deeds of assignment/conveyance, deed of transfer, deed of gift, vesting orders and assents must be examined. This is especially the case for developed or built properties — that might have passed from one owner to another several times.
Essentially, don’t only look at the C of O, but also take note of the property’s ownership and how the vendor acquired the property. It is advisable to hire an experienced lawyer before going ahead with any land or property transactions.
Final thoughts
For any building structure be it a bungalow, mansion, office, hospital or skyscraper etc. the Certificate of Occupancy — is what proves that you legally have an interest on the land upon which a property is built on.
However, there are also other land title documents which you need to crosscheck (where applicable) like the deed of assignment — when dealing with land or property transactions in Nigeria.