ANALYSIS OF LAND USE CONTROL AND ADMINISTRATION ON REAL ESTATE DEVELOPMENT

ABSTRACT

Land use control and administration play a crucial role in shaping patterns of urban growth, ensuring sustainable development, and influencing real estate investment decisions. This study examined the framework, challenges, and implications of land use control and administration on real estate development in Nigeria, with a view to suggesting strategies for improvement. The research adopted a descriptive survey design, utilizing structured questionnaires administered to stakeholders in the real estate sector, including land administrators, property developers, urban planners, and legal practitioners. Data were analyzed using descriptive statistics to highlight trends, challenges, and impacts. The findings revealed that while Nigeria has an established framework for land use control—anchored primarily on the Land Use Act of 1978, planning regulations, zoning ordinances, and building codes—the system suffers from weak enforcement, corruption, tenure insecurity, bureaucratic inefficiencies, and inadequate cadastral systems. These challenges undermine transparency, discourage investment, and lead to land disputes and unplanned urban expansion. It was further established that effective land administration positively influences real estate development by improving investor confidence, enhancing property values, and promoting orderly city growth. Conversely, ineffective control mechanisms hinder housing delivery and encourage informal land markets. The study concludes that land use control and administration are critical determinants of sustainable real estate growth in Nigeria. It recommends reforms of the Land Use Act, digitization of land administration systems, capacity building for land management institutions, and enhanced stakeholder participation in planning. By implementing these measures, Nigeria can foster an efficient land governance system that supports sustainable urban development and stimulates growth in the real estate sector.

 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Land is one of the most vital natural resources and a central factor of production, particularly in the real estate sector. The control, administration, and management of land directly influence how effectively it can be utilized for residential, commercial, agricultural, and industrial purposes (Omirin, 2003). Real estate development thrives where there is a clear framework for land allocation, ownership, and use, but where land control and administration are weak, development is often hampered.

Land use control refers to the regulation and management of how land is used, whether through zoning laws, planning regulations, or building codes. In most countries, land use control aims to ensure that land development aligns with urban planning goals, sustainability objectives, and economic development strategies (Aluko, 2012). In Nigeria, land use is primarily governed by the Land Use Act of 1978, which vests land ownership in state governors and grants individuals rights of occupancy. While the Act sought to harmonize land ownership and access, it has generated significant debates over its efficiency in supporting real estate growth (Omirin & Nubi, 2007).

The administration of land involves processes such as land registration, titling, valuation, and allocation. Efficient land administration systems provide security of tenure, reduce land disputes, and encourage investment in real estate development (Enemark, 2005). Conversely, inefficient land administration results in overlapping claims, tenure insecurity, and limited access to credit facilities since banks often require clear land titles as collateral (Olawande, 2014).

Real estate development plays a critical role in urbanization, economic growth, and social welfare. It provides housing, infrastructure, and commercial facilities that support national development. However, in many developing nations, particularly Nigeria, challenges such as bureaucratic bottlenecks, corruption, and lack of transparency in land administration have limited the sector’s growth (Nuhu, 2008).

Urbanization further underscores the importance of land use control. As cities expand rapidly, effective land use planning ensures orderly development, reduces slums, and enhances sustainable land utilization. Weak land use control leads to urban sprawl, poor infrastructure provision, and environmental degradation (UN-Habitat, 2010). This situation creates significant constraints for real estate developers, who often face delays in securing permits, land disputes, and inconsistent enforcement of planning laws.

Globally, developed countries like the United States and the United Kingdom have established strong land use control and administration mechanisms that promote real estate investment and sustainable urban growth. Lessons from these contexts suggest that clarity of land rights, efficient planning systems, and stakeholder participation are crucial for successful real estate development (Payne, 2001).

In the Nigerian context, the Land Use Act and various state planning laws were enacted to promote equity, efficiency, and development. However, the disconnect between policy and implementation has created uncertainty in land tenure systems and real estate growth. For instance, obtaining a Certificate of Occupancy (C of O) or development permit often takes several years, discouraging investment (Omirin & Nubi, 2007).

The intersection of land use control, administration, and real estate development thus raises critical questions. How effective are Nigeria’s land use policies in stimulating real estate growth? To what extent does the existing administrative framework support or hinder development? These questions make it necessary to analyze the dynamics of land use control and administration in shaping the trajectory of real estate development in Nigeria.

Therefore, this study seeks to analyze land use control and administration in relation to real estate development, with emphasis on identifying challenges, assessing effectiveness, and recommending reforms that could stimulate growth and sustainability in the sector.

1.2 Statement of the Problem

Land is a finite resource, and its effective management is critical for real estate development. In Nigeria, however, land use control and administration face serious challenges that have limited their impact on real estate growth. The process of acquiring land for development is often complicated by bureaucratic bottlenecks, multiple ownership claims, and lack of transparent records (Nuhu, 2008). These inefficiencies discourage private investment and slow down housing delivery.

Another critical problem is the weak enforcement of planning regulations and zoning laws. Despite the existence of policies and laws, informal settlements and unauthorized developments continue to emerge, undermining urban planning efforts. This inconsistency between policy and practice creates uncertainties for real estate investors and contributes to haphazard urban growth (Olawande, 2014).

Furthermore, corruption in land administration offices has become a significant impediment. Developers often face demands for unofficial payments before accessing land documents, thereby increasing the cost of development. These systemic inefficiencies make real estate projects financially risky and less attractive to both local and foreign investors (Aluko, 2012).

If these issues remain unaddressed, Nigeria’s real estate sector will continue to underperform despite the country’s rising urban population and housing demand. This creates a gap that this study intends to fill by analyzing how land use control and administration affect real estate development and what reforms are necessary to improve efficiency.

1.3 Objectives of the Study

The main objective of this study is to analyze the impact of land use control and administration on real estate development. The specific objectives are to:

1.      Examine the framework of land use control and administration in Nigeria.

2.      Assess the challenges associated with land use control and administration in real estate development.

3.      Determine the extent to which land use control and administration influence real estate growth and investment.

4.      Recommend strategies for improving land use control and administration to enhance real estate development.

1.4 Research Questions

1.      What is the framework of land use control and administration in Nigeria?

2.      What are the major challenges facing land use control and administration in real estate development?

3.      How does land use control and administration influence real estate growth and investment?

4.      What strategies can be implemented to improve land use control and administration for effective real estate development?

 

1.5 Significance of the Study

This study is significant because it contributes to a deeper understanding of the relationship between land management systems and real estate growth. By highlighting the challenges and opportunities within Nigeria’s land administration, it provides valuable insights for policymakers, practitioners, and investors.

For policymakers, the findings will assist in designing reforms that address inefficiencies in the Land Use Act and state planning laws. This could lead to clearer land rights, reduced disputes, and more effective urban development policies (Enemark, 2005).

For real estate developers and investors, the study will shed light on how land use control and administration affect project feasibility, costs, and timelines. Understanding these dynamics will help stakeholders make informed decisions and minimize risks associated with development (Omirin, 2003).

Academically, the research contributes to the body of knowledge on land management and real estate development in Nigeria. It bridges the gap between theory and practice by analyzing how policy frameworks influence actual real estate outcomes.

Finally, for the general public and communities, the study emphasizes the importance of efficient land use control in providing affordable housing, reducing informal settlements, and ensuring sustainable urban growth (UN-Habitat, 2010). By linking land administration reforms with social welfare, it highlights the broader benefits of real estate development for society.

1.6 Scope and Limitations of the Study

This study focuses on analyzing land use control and administration in relation to real estate development in Nigeria, with specific emphasis on the challenges, effectiveness, and implications for sustainable urban growth.

Limitations:

Time: The study is constrained by the limited timeframe available for data collection and analysis, which may restrict the depth of investigation.

Resources: Financial and logistical limitations affected the extent of field surveys and coverage of multiple states, thereby narrowing the scope of empirical evidence.

Respondents’ Attitudes: Some respondents may withhold information or provide biased responses due to sensitivity surrounding land issues, thereby affecting data reliability.

1.7 Operational Definition of Terms

Land Use Control: The regulation of land development through planning instruments such as zoning laws, building codes, and development permits.

Land Administration: The processes of land registration, allocation, titling, valuation, and dispute resolution that govern land ownership and usage.

Real Estate Development: The process of acquiring, improving, and managing land or buildings for residential, commercial, or industrial purposes.

Land Tenure: The legal or customary rights individuals or groups hold over land, determining ownership and usage rights.

Sustainable Urban Development: Development that meets present urban needs without compromising future generations’ ability to meet theirs, achieved through efficient land use and planning.