The major effect of the Land Use Act is the Nationalization of all lands in Nigeria. The Act has completely divested individuals, families, communities and villages of absolute and outright ownership of land in the country. 

This point is driven home more clearly in Nkwocha vs. Governor of Anambra state where KOYODE ESO JSC observed that “the tenor of the Act as a single piece of legislation is the nationalization of all lands in the country by vesting of its ownership in the state leaving the private individual with an interest in land which is a mere right of occupancy”. What is now left to the individual is a mere right of occupancy”. 

The Governor under S.2 (1) (a) of the Act has the power of control and management of all lands in the Urban areas, while those in non – urban areas are under the control and management of local government. In Mrs. Gankon vs. Ugochukwu Chemical Industries, the Supreme Court, held that the control and management of Land in Nigeria are by virtue of the provisions of S.2 (1) of the Land Use Act:  (a) with respect to land in urban areas vested in the Governor of each state; while (b) other land including land in rural areas are vested in the local government where the land is situate. 

Also in Ofodile vs. Commissioner for Police Anambra State, the court of appeal stated that S.1 of the Land Use Act vest all the land within the territory of a state in the Governor of the state while S.2 of that Act appointed the control and management of the land on the basis of the designation of the land into urban and non – urban areas of the state. The Governor is vested with the Administration of the land in urban areas while the local government of the area where the land is situate is vested with the administration of land in non – urban areas of the state.  
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