EXAMINING THE ROLE OF THE LAND USE ACT IN PROMOTING FOREIGN INVESTMENT IN NIGERIA

Abstract

The success of a good investment regime is predicated on efficient institutions, adequate capital and most importantly protection of property rights. Access to secure land rights is therefore a key factor in a sound foreign investment decision. In view of the risks inherent in investments or businesses, the final criteria or determinant for a sound investment climate depends primarily on the political and legal stability of the region or country and the attractiveness of the rights which the law confers. To this end this paper examined the key provisions of the Nigerian Land Use Act of 1978 impacting on the foreign investment potentials of the country particularly in the area of flexibility of acquisition of land, quantum of rights granted and enjoyed our land expropriation of land rights and compensation thereof. It was found that the entitlement to acquire land by a foreign investor in Nigeria is hazy or not clearly defined by the Land Use Act and/or fraught with undue hindrances. It was equally found that much as the legal regime for expropriation of property rights under the 1999 constitution (as amended) appears to be sufficient as far as foreign investment considerations are concerned, and are in conformity with global trends, the legal regime for revocation of rights of occupancy under the Land Use Act seems to be highly oppressive and not foreign investment friendly. This paper therefore recommended that the Land Use Act should be amended to clearly provide for the right of foreigners to acquire and own land in Nigeria, to confer a more secure land rights not only to citizens but also to foreigners alike, to provide guarantees against undue and arbitrary expropriation of land rights and fair and adequate compensation in the event of lawful expropriation.