C of O vs. The Coastal Highway: Does a Change in Government Endanger Your Land?

The concrete paving of the Lagos-Calabar Coastal Highway is currently pushing toward the 47-kilometer mark. While commuters view this as a significant milestone for infrastructure, for landholders in the vicinity, it is a season of profound anxiety. A central question persists: If a property owner followed every legal protocol and obtained a Certificate of Occupancy (C of O), why are their fences being pulled down?

The Legal Landscape: Can the Government Seize Land?

A common worry suggests that the state can take possession of land at its whim, particularly during transitions between political parties (e.g., from PDP to APC). To understand this, we look at the Land Use Act of 1978.

Under Nigerian law, all land is held in trust by the state government. Authorities possess the legal power to revoke a C of O for overriding public interest. The construction of a multi-state highway is a primary example of such a necessity.

Why Policy Shifts Matter

Often, the risk does not stem from partisan friction, but from shifts in engineering requirements. If a new administration decides a project requires a 10-lane road instead of a 4-lane road, the Right of Way (RoW) expands. Structures previously situated outside the boundary may suddenly find themselves within the path of the bulldozers.

Scenario 1: C of O + Outside new RoW, Legal Standing: Protected, Outcome: No impact.

Scenario 2 : C of O + Inside new RoW, Legal Standing: Revoked for Public Interest, Outcome: Entitled to compensation for "unexhausted improvements" (the building/crops), but often not the land itself.

Scenario 3: No Title + Inside RoW, Legal Standing: Illegal Encroachment, Outcome: Demolition without compensation.

When the Path Shifts: The Impact of Alignment Risk

The challenges faced by certain developers in the Okun-Ajah corridor of the Lagos-Calabar Coastal Highway serve as a sobering example of "Alignment Risk." In this instance, investors were diligent; they verified the 2006 official route of the proposed highway and built outside those borders. However, during the current construction phase, the Federal Government diverted the path to protect vital subsea telecommunications cables.

Technically, the road was moved to safeguard national internet connectivity. Financially, this shift resulted in staggering losses for private investors. This highlights a fundamental truth of the industry: while a C of O grants the right to occupy land, that right is ultimately subject to the governments authority to reclaim it for public utility.

Why Legal Titles May Fall Short

The fear that an investment is tied to the survival of a specific political party is often a misunderstanding of Policy Risk.

Jurisdictional Authority: The Federal Government enforces a 250-meter setback for international highways. Even if a State Government issued a C of O within that zone, Federal law regarding the Right of Way takes precedence.

The Compensation Shortfall: The N15 billion distributed by the government so far covers "unexhausted improvements"—the cost of bricks and mortar. It does not reflect the projected market value of prime coastal real estate. For a sophisticated investor, a government payout often represents a substantial financial blow.

How to Protect Your Capital (and Maximize Profit);

In a market this changing, "due diligence" continually evolves. . To minimize danger, investors should look beyond the mere existence of a C of O.

Cross-Government Charting: When acquiring high-stakes real estate like coastal property, do not rely solely on state-level records. Conduct Federal Charting to verify if coordinates fall within a "Federal Government Committed Acquisition." Ensure the maps of the Federal Ministry of Works and the National Inland Waterways Authority (NIWA) match the state's records.

Strategic Buffers: The highest risk is concentrated on the "Frontline" (the first 250–500 meters from the water). To achieve growth with more security, consider properties 1km to 2km inland. These areas benefit from the highway's value boost while remaining safely outside potential expansion zones.

Established Infill: For those with a lower appetite for risk, focus on "Infill" plots in areas where the road is already paved and boundaries are physically set. While the entry price is higher, the "Certainty Premium" protects against total loss.

Conclusion

Real estate remains a dependable route to wealth, provided one understands the regulatory environment. The losses seen in recent coastal developments were not a matter of bad luck, but a conflict between state titles and federal infrastructure needs. Profitable investing in Nigeria requires looking beneath the surface and understanding the technical complexities of land layout.

Mary Edet,
Private Real Estate Advisor,
Edet Real Estate.