| It is generally acknowledged that property rights | | | | |
| have become one of the greatest impediments | | | | The implication of these difficult procedures put in |
| to development in many developing nations. | | | | place for registering property in Nigeria’s |
| Nigeria is no exception and it is therefore | | | | mega cities has been the fact that landed |
| gladdening that a key part of President | | | | property is not easily convertible into liquid assets |
| Yar’Adua’s seven point reform agenda is | | | | like cash thereby reducing its mobility and utility as |
| land reforms. The most recent report released by | | | | an asset. The Nigerian Land use act promulgated |
| the World Bank puts Nigeria “as one of the | | | | in 1978 vests the ownership of all properties in |
| most difficult places in the world to register a | | | | the government. The implication is that the |
| property.” This classification is by no means | | | | “Governor’s consent” has become |
| flattering. | | | | highly prized in legitimizing the ownership of a |
| | | | | landed property in Nigeria. |
| The World Bank Doing Business Report 2008 list | | | | |
| practical examples. It states that in Lagos | | | | Individuals and corporate bodies are forced to |
| entrepreneurs must go through 14 procedures, | | | | spend thousands in a bid to perfect their titles to |
| spend 82 days, and pay 22 percent of property | | | | properties acquired. A title is only perfected when |
| value to register—though this is certainly an | | | | the elusive Governor’s consent is secured. |
| improvement over the 19 procedures, 9 months, | | | | Lack of transparency in the procedures of getting |
| and 27 percent of property value required before | | | | a governors consent, several layers of |
| reforms introduced in 2005.” | | | | bureaucratic obstacles have all increased the cost |
| | | | | of getting this elusive consent fueling corruption as |
| The report notes that “these demands | | | | touts and middlemen take advantage of the |
| make Lagos the most difficult place to register | | | | opaque system to enrich themselves. |
| property among all major Sub-Saharan cities, and | | | | |
| the 6th worst in the world.” I must | | | | It is even alleged that some governors have also |
| acknowledge the Lagos State government has | | | | used it as political tool as the titles of political |
| been implementing a series of reforms recently | | | | opponents and critics can be unilaterally revoked |
| but there is no doubt that they still have a long | | | | as punishment or as a means of cajoling them for |
| way to go to make Lagos Internationally | | | | their support. Also it is not uncommon for |
| competitive. | | | | governors and their cohorts to use their powers |
| | | | | to revoke titles to allocate choice properties to |
| Take New Zealand which the report rates as the | | | | themselves and their cronies. |
| world’s leader on this indicator—property | | | | |
| can be registered online in 2 days at a cost of 0.1 | | | | Thus the land use act has become a big |
| percent of property value. Even in neighbouring | | | | impediment for Nigerians seeking to use their |
| Ghana, the report notes that registering property | | | | properties to acquire vital capital from financial |
| requires just 5 procedures, 34 days, and 1.3 | | | | institutions. Millions of Nigerians sit on lands that |
| percent of property value, and in Botswana 4 | | | | they cannot convert to capital because of the |
| procedures, 30 days, and 5 percent of property | | | | land use act. |
| value. | | | | |
| | | | | Though the present Nigerian government has |
| It is not all bad news on Land registration in | | | | pledged to reform the land use act, but like all the |
| Nigeria however. The report acknowledges that | | | | seven areas the President pledged to tackle |
| land title registration is easiest in Abuja where it | | | | during his presidential campaign, it has not been |
| takes an average 9 procedures, 60 days and | | | | tackled. All indications point to the fact that it will |
| costs an average 9.2 percent of property value. | | | | not be reformed before the President |
| In Nigeria, it takes a minimum average of 12 | | | | Yar’Adua’s first term tenure comes to |
| procedures to register a property according to | | | | an end in 2011. This will really be sad as like power |
| the World Bank report which is nearly twice the | | | | sector which has collapsed under the present |
| Sub-Saharan average of 7. | | | | government, another critical ingredient that will |
| | | | | unleash the well publicized potentials of the |
| It is interesting to note that even the states with | | | | average Nigerian will be the reform of the Land |
| the fewest procedures—Abuja and Bauchi, with | | | | Use Act. This will happen when transfer of title |
| 10 each—are far worse than international best | | | | (ownership) in a property becomes as simple as |
| practices while the 14 procedures required in | | | | the transfers of title in stocks. We may then |
| Lagos and 19 in Ogun state are the world’s | | | | have a property exchange, like the stock |
| highest, compare this to Norway and Sweden, | | | | exchange, where landed properties can be traded |
| where property transfers require just 1 | | | | just like any other valuable asset. I hope the |
| procedure, and some other African countries such | | | | Nigerian government understands. |
| as Botswana (4 procedures) and Cameroon (5). | | | | |