Who pays ground rent and why
Under the Land Use Act, a statutory right of occupancy is granted on terms that include paying rent to the state. This is ground rent: it is paid for the land, not for any building, and it is owed by the title holder, not a tenant.
Key points:
- The rate is set by the governor in the grant and may be revised from time to time (sections 5, 16 and 17 of the Act).
- Non-payment is a breach of the grant's conditions and can lead to revocation.
- Ground rent is separate from house rent paid by tenants. If you rent a flat, your landlord, not you, owes the ground rent on the land.
Abuja (FCT). The FCTA bills ground rent through AGIS. The FCTA revoked thousands of titles in March 2025 for long-unpaid ground rent. Buyers of Abuja land should always ask for evidence that ground rent is paid up to date.
Lagos. Lagos combined ground rent, tenement rates and the neighbourhood improvement charge into a single annual property tax, the Land Use Charge, so Lagos owners pay one bill rather than separate ground rent.
Differences by state
- Abuja (FCT): separate annual ground rent billed through AGIS; arrears lead to revocation.
- Lagos: absorbed into the Land Use Charge.
- Other states: billed by the state Ministry of Lands; rates and enforcement vary.
What to check
- Receipts or an AGIS statement showing ground rent is paid up to date before you buy.
- Whether arrears will pass to you as the new holder; the contract should make the seller clear them.
- In Lagos, the Land Use Charge position instead.
Red flags
- An Abuja seller who cannot show ground rent receipts.
- A plot appearing on an FCTA revocation list.
- A tenant being asked to pay the landlord's ground rent.
Ground rent vs Land Use Charge (Lagos)
| Aspect | Ground rent | Land Use Charge (Lagos) |
|---|---|---|
| Who charges it | The state, for the land | Lagos State, for land and buildings |
| What it covers | Rent on the right of occupancy | Ground rent, tenement rate and neighbourhood charge combined |
| Basis | Rate set in the grant | Assessed property value |
| Risk of not paying | Revocation | Penalties and enforcement |
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Questions
What is ground rent in Nigeria?
It is the yearly rent a holder of a statutory right of occupancy pays to the state for the land itself.
How do I pay ground rent in Abuja?
Ground rent is billed and paid through AGIS. Check your statement there and keep the receipts.
Do tenants pay ground rent?
No. It is owed by the title holder, usually the landlord, not by people renting the property.
Can my land be revoked for not paying ground rent?
Yes. Unpaid ground rent is a breach of the grant, and the FCTA has revoked many titles for long arrears.
Related terms
Sources
- 1. Land Use Act 1978 (Cap L5 LFN 2004) Federal Republic of Nigeria (via PLAC Laws of Nigeria) · checked 13 October 2026
- 2. Wike revokes 4,794 land titles in Abuja over ground rent 21st Century Chronicle · checked 13 October 2026
- 3. FCT minister revokes PDP national secretariat land over unpaid ground rent Ripples Nigeria · checked 13 October 2026
- 4. New Lagos Land Use Charge Law BusinessDay · checked 13 October 2026
Cite this definition
"Ground rent", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/ground-rent
You may reuse this definition under CC BY 4.0 with credit to Nigeria Property Centre and a link to this page.
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