Right of Occupancy (R of O)

Since the Land Use Act, nobody in Nigeria owns land outright in the old freehold sense. Instead, a person or company holds a right of occupancy: a right to occupy, use and develop land for a set term, on conditions such as paying rent to the state and developing the land.

There are two types:

• Statutory right of occupancy: granted by the governor (or, in Abuja, the FCT Minister). It covers land in urban areas and is evidenced by a Certificate of Occupancy. Transfers need the governor's consent.
• Customary right of occupancy: granted by a local government for non-urban land, or held under customary law by families and communities. Transfers usually need local government approval.

A right of occupancy is a real property interest. You can sell it, lease it, mortgage it or leave it in a will, but only within the rules of the Act. The state can revoke it for overriding public interest or for breach of its conditions.

R of O in Abuja. In everyday Abuja usage, "R of O" often means the offer letter or grant that comes before the C of O. FCT holders who were granted a right but did not pay the bills for their C of O have had their grants withdrawn, so an R of O on its own is an early-stage paper, not a finished title.

• Abuja (FCT): "R of O" usually means the statutory grant letter from the FCT Minister, which is followed by C of O bills. Check the grant at AGIS.
• Lagos: the phrase is used mostly in legal documents; buyers more often talk about the C of O itself.
• Northern and rural areas: customary rights granted by local governments are more common, sometimes with a "customary C of O".