PLEDGE OF LAND IN NIGERIA: A CALL FOR LEGAL REFORMS

Abstract

In many developing countries, including those in Sub-Saharan Africa, the use of land as an economic asset to attract and generate capital for development remains underutilized. This study examines the legal devices available in Nigeria for using land as security to access loans, with particular emphasis on the pledge of land. It provides an overview of the concept of land pledge as a form of security for obtaining small- and medium-term credit and identifies the key challenges associated with its use in the context of sustainable land use and planning. Adopting a doctrinal research methodology, the study draws on both primary and secondary legal sources. The findings reveal that both customary and common law conceptions of land regard it holistically, encompassing the physical land and all fixtures permanently attached to it. However, the legal framework governing land-based securities faces numerous challenges, particularly regarding the customary pledge system, which requires significant reform to align with the provisions of the Land Use Act of 1978. Moreover, the Land Use Act itself is fraught with structural deficiencies that hinder its effectiveness in promoting land as a viable security for commercial development. The study concludes by recommending comprehensive legal reforms to the laws governing mortgage, pledge, and charge in Nigeria to enhance the accessibility and utility of land as collateral for financial lending.