President Seeks Fourteen Amendments

http://www.ngrguardiannews.com/news/article01//indexn2_html?pdate=080309&ptitle=President%20Seeks%20Fourteen%20Amendments
From Alifa Daniel, Abuja Asst Political Editor

In his first proposal for an Amendment to the 1999 Constitution, President Umaru Musa Yar'Adua has sought 14 amendments to the Land Use Act in a bill he sent to the National Assembly which he says can be cited as Land Use Act (Amendment) Act 2009 or the Constitution (First Amendment) Act, 2009.

The revolutionary bill which will seek to put ownership of land in the hands of those with customary right of ownership, and also enable farmers to use land as collateral for loans for commercial farming to boost the agricultural sector as well as the economy.

According to Yar'Adua in the Executive Bill he sent to the lawmakers the bill seeks to amend the Land Use Act by restricting the requirement of Governor's consent to assignment only.

Special Adviser to the President (Media and Publicity), Mr. Olusegun Adeniyi, had announced two weeks ago the presentation of the bill to the National Assembly, and said the amendments being proposed by the Presidency relate to sections Five, Seven, 15, 21, 22, 23 and 28 of the existing Act.

But a copy of the bill available to The Guardian shows a total of 14 amendments in the six sections Adeniyi listed.

They are as follows:

*"Amendment of Section 5. Subsection (1) (f) of Section 5 of the Act is amended by deleting all words immediately after "sales" in the third line.

(the original Act reads in Section 5 subsection (1)f: "to impose a penal rent for a breach of any condition, express or implied, which precludes the holder of a statutory right of occupancy from alienating the right of or any part thereof by sale, mortgage, transfer or possession, sub-lease or request or otherwise howsoever without the prior consent of the Governor;)

* Amendment of Section 7. Section 7 of the Act is amended by- (a) deleting the words "or subletting" immediately after the word "assignment" in the second line.

(b) deleting the words "or subletting" immediately after the word "assignment" in the third line of paragraph (a) of the proviso.

(the original reads: "7. It shall not be lawful for the Governor to grant a statutory right of occupancy or consent to the assignment or subletting of a statutory right of occupancy to a person under the age of twenty-one years; Provided that -

(a) Where a guardian or trustee for a person under the age of 21 has been duly appointed for such purpose the Governor may grant or consent to the assignment or subletting of a statutory right of occupancy to such guardian or trustee on behalf of such person under age;)

*Amendment of Section 15. Section 15 of the Act is amended by deleting the words "or mortgage" immediately after the word "assign" in the first line.

(Section 15 reads: "During the term of a statutory right of occupancy the holder -

(a) shall have the sole right to and absolute possession of all the improvements of the land;

(b) may, subject to the prior consent of the Governor, transferor, assign or mortgage any improvements on the land which have been effected pursuant to the terms and conditions of the certificate of occupancy relating to the land.")

*Amendment of Section 21. Section 21 of the Act is amended by:-

(a) deleting all the words immediately after "assignment" in the second line and making it subsection (1);

(b) creating a subsection (2) in the following words- "(2) the right of a holder of a customary right of occupancy to alienate such right by mortgage is hereby recognized"

(Section 21 of the Act reads:"It shall not be lawful for any customary right of occupancy or any part thereof to be alienated by assignment, mortgage, transfer of possession, sublease or otherwise howsoever -

(a) Without the consent of the Governor in cases where the property is to be sold by or under the order of any court under the provisions of the applicable Sheriffs and Civil Process Law; or

(b) in other cases without the approval of the appropriate Local Government.")

*Amendment of Section 22. Section 22 of the Act is amended by-

(a) deleting from subsection (1) the words "mortgage, transfer of possession, sublease or otherwise howsoever" immediately after the word "assignment" inn the second line

(b) deleting the proviso to subsection (1)

(c) deleting from subsection (2) the words "mortgage or sublease" immediately after the word "assignment" in the first line.

(d) creating new subsection 3 in the following words "(3) The consent of the Governor shall not be required for the creation of a mortgage or sublease under this section"

(Section 22 reads: "It shall not be lawful for the holder of a statutory right of occupancy granted by the Governor to alienate his right of occupancy or any part thereof by assignment, mortgage, transfer of possession, sublease or otherwise howsoever without the consent of the Governor first had and obtained:

(1) Provided that the consent of the Governor-

(a) shall not be required to the creation of a legal mortgage over a statutory right of occupancy in favour of a person in whose favour an equitable mortgage over the right of occupancy has already been created with the consent of the Governor:

(b) shall not be required to the reconveyance or release by a mortgage to a holder or occupier of a statutory right of occupancy which that holder or occupier has mortgaged and that mortgage with the consent of the Governor:

(c) to the renewal of a sub-lease shall not be presumed by reason only of his having consented to the grant of a sub-lease containing an option to renew the same.

(2) The Governor when giving his consent to an assignment mortgage or sub-lease may require the holder of a statutory right of occupancy to submit an instrument executed in evidence of the assignment, mortgage or sub-lease and the holder shall when so required deliver the said instrument to the Governor in order that the consent given by the Governor under subsection (1) may be signified by endorsement thereon.")

*Amendment of Section 23. Section 23 of the Act is amended by-

(a) substituting the Section with the following new section: "23 A sub-lessee of the statutory right of occupancy may, with approval of the holder of the statutory right of occupancy, demise by way of sub-underlease to another person the land comprised in the sub-lease held by him or any other portion of the land;

(b) deleting the provisions of subsection (2)

(Section 23 reads: "23. (1) A sub-lease of a statutory right of occupancy may with the prior consent of the Governor and with the approval of the holder of the statutory right of occupancy, demise by way of sub-underlease to another person the land comprised in the sub-lease held by him or any portion of the land.

(2) The provisions of subsection (2) shall apply mutatis mutandis to any transaction effected under subsection (1) of this section as if it were a sub-lease granted under section 22.)

*Amendment of Section 28. (a) Subsection (2) of Section 28 is amended by substituting paragraph (a) with the following new paragraph: "(a) the alienation of the occupier by assignment or sublease contrary to the provisions of this Act or any regulations made there under"

(b) Subsection (3) of Section 28 is amended by substituting paragraph (d) with the following new paragraph: "(d) the alienation by the occupier by sale, assignment or sub-lease without the requisite consent or approval"

(In the Act subsections one to three read: "28. (1) It shall be lawful for the Governor to revoke a right of occupancy for overriding public interest.

(2) Overriding public interest in the case of a statutory right of occupancy means--.

(a) the alienation by the occupier by assignment, mortgage, transfer of possession, sublease, or otherwise of any right of occupancy or part thereof contrary to the provisions of this Act or of any regulations made thereunder;

(b) the requirement of the land by the Government of the State or by a Local Government in the State, in either case for public purposes within the State, or the requirement of the land by the Government of the Federation for public purposes of the Federation;

(c) the requirement of the land for mining purposes or oil pipelines or for any purpose connected therewith.

(3) Overriding public interest in the case of a customary right of occupancy means -

(a) the requirement of the land by the Government of the State or by a Local Government in the State in either case for public purpose within the State, or the requirement of the land by the government of the Federation for public purposes of the Federation.

(b) the requirement of the land for mining purposes or oil pipelines or for any purpose connected therewith;

(c) the requirement of the land for the extraction of building materials;

(d) the alienation by the occupier by sale, assignment, mortgage, transfer of possession, sublease, bequest or otherwise of the right of occupancy without the requisite consent or approval.")

9. This Act may be cited as the Land Use Act (Amendment) Act 2009 or the Constitution (First Amendment) Act, 2009.

The main thrust of the amendment, Adeniyi said two weeks ago, "is to restrict the requirement for governor's consent in land transactions to assignments only. The amendments will render such consent unnecessary for mortgages, subleases and other land transfers in order to make transactions in land less cumbersome and facilitate economic growth.

"The presentation of the bill to the National Assembly marks the commencement of the implementation of the Yar'Adua Administration's strategic agenda to overcome some of the major legal and logistical constraints to capital accumulation in Nigeria.

"Its passage will make land a much more easily convertible asset that can be used with less hindrance to raise capital for ventures in other areas of the economy. It will also facilitate increased investment in agriculture and strengthen the mortgage industry."

According to Adeniyi, because the Land Use Act is embedded in the 1999 Constitution, it demands that any amendments to it must necessarily go through the same process as stipulated for amendments to the Constitution itself.

Therefore, he said, "President Yar'Adua will actively seek the support of the National Council of State and the Governors' Forum to ensure that the proposed amendments are also endorsed by the stipulated number of State Houses of Assembly."

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President Seeks Fourteen Amendments