Olaleye-Ote & Anor v. Babalola (2012) LPELR-9275(SC), where it was stated that, “The Land Use Act vested jurisdiction in proceedings relating to Customary Right of Occupancy granted by a Local Government on: ‘An Area Court or Customary Court or other Court of equivalent jurisdiction in a State without classification. The State Law imposed classification with jurisdiction of each grade of Court based on the value or annual rental value of the land, this modifying the jurisdiction conferred by the Federal Law.’ In my humble view, the Federal Legislature effectively covered the field in relation to the jurisdiction of the relevant Courts over proceedings in matters of customary right of occupancy granted by a Local Government. The State Law conferring jurisdiction according to Grade and value of the land in litigation is in conflict with S.41 of the Land Use Act, a Federal legislation.”
INTERPRETATION OF S.22 LAND USE ACT
Firstly, the position of section 22 of the Act, is undoubtedly, that a holder of a right of occupancy, may enter into an agreement or contract, with a view to alienating his said right of occupancy. In entering into such an agreement or contract, he does not need the consent of the Governor. He merely operates within the first leg/stage of a “transfer on sale of an estate in land” which leg/stage ends with the formation of a binding contract for a sale constituting an estate contract at best. However, when he comes to embark on the next leg/stage of alienating or transferring his right of occupancy which is done or effected, by a conveyance or deed, which culminates in the vesting of the said right in the particular “purchaser”, he must obtain the consent of the Governor in order to make the transaction valid. If he fails to do so, then the transaction, is null and void under Section 22 of the Act.
– Ogbuagu, JSC. Brossette v. Ilemobola (2007)