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Looking at the Savannah Bank vs Ajilo Legal Battle

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By Benita Ayo

  • The Facts of the Case

A deed of Mortgage was executed between Savannah Bank and Ajilo and upon default, Savannah Bank sought to sell the property involved in the mortgage by advertising the auction sale. When Ajilo became aware of the purported sale, he went to the High Court of Lagos to sue for declaration that the Deed of Mortgage was void and also that the Auction Notice was also void.

The major grounds upon which the action was brought were that, by section 22 of the Land Use Act, 1978, the consent of the Governor of Lagos State ought to be first sought and obtained and as no consent was sought and obtained, both the Deed of Mortgage and the Auction Notice were void.

The trial Court held that failure to obtain the required consent of the Governor under S. 22 of the Act has rendered the Deed of Mortgage null and void and the mortgage transaction is illegal.

Upon an appeal at the Court of Appeal by Savannah Bank, the Court held that every right holder whether under S. 34 or S. 36 of the Land Use Act requires the consent of the Governor before he can transfer, mortgage or otherwise dispose of his interest in the Right of Occupancy. The Appeal was thus dismissed.

On further Appeal at the Supreme Court, the above position was affirmed with the Appeal dismissed.

  • COMMENTS

      2.2 PRINCIPLE

The general principle of law in respect of alienation of interest in property was actually derived from the provisions of Section 22 Land Use Act, 1978 which provides that;

“It shall not be lawful for a holder of 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”.

The above provision was later on interpreted in the case of Savannah Bank v. Ajilo which became the locus classicus for the legal principle that “Where a holder desires to alienate his interest in a Certificate of Occupancy, he must first obtain the Governor’s consent to make such transfer valid according to S. 22 of the Land Use Act….”

  • APPLICATION OF THE PRINCIPLE ON VARIOUS CASES

The principal statute regulating land tenure system in Nigeria being the Land Use Act conferred the ownership of Land in the Federation on the Governor of each State.

The implication of this is that Freehold title to land becomes abolished with the State Government holding all Land in the State in trust for the citizens. Thus, anyone seeking to acquire interest in any landed property or seeking to alienate same by way of Assignment, Lease or Mortgage must do so after seeking and obtaining the consent of the State Governor. See S. 22 Land Use Act.

The principle has been applied by the courts in a plethora of cases some of which will be briefly discussed below.

  • IMPLICATION FOR NON-COMPLIANCE

Failure to seek and obtain the requisite consent renders such transaction      invalid. This was the butt of the matter in the instant case of Savannah Bank v. Ajilo which facts of the case as well as the final judicial pronouncements were stated above.

As stated earlier on, the Courts have applied the principle in the Ajilo’s case in some cases such as HARUNA v. YARO (2016) LPELR-41554 (CA) where the Court held that;

“On the issue of Governor’s consent, it is correct that the combined effect of Sections 22 and 26 of the Land Use Act is to render null and void any alienation or transfer of a Right of Occupancy or interest or right there under without the consent of the Governor first had and obtained”.

In yet another case of SIMM COMPUTER RESOURCES LTD & ANOR v. FIRST INLAND BANK (2016) LPELR-40493 (CA) the Court decided that,

“The alienation of a right in a Certificate of Occupancy under the Land Use Act is clearly covered by Section 22 of the Act. it provides as follows:

“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 without the consent of the Governor first had and obtained.”

Another relevant provision is Section 26 of the Land Use Act which says:

“Any transaction or any instrument which purports to confer on or rest in any person any interest or right over land other than in accordance with the provision of this Act shall be null and void.”

These provisions are clear and straight forward and therefore ought to be given their literal interpretation or meaning. The Section has received judicial attention in a plethora of cases and the locus classicus is the case of SAVANNAH BANK OF NIGERIA LTD v. AMMEL. O. AJILO (1989) 1 NWLR (pt. 97) 254 wherein the Court held that where a holder desires to alienate his interest in a Certificate of Occupancy, he must first obtain the Governor’s consent to make such transfer valid according to Section 22 of the Land Use Act. …………. The Supreme Court in the case of I.T.I. v. ADEREMI (1999) 6 SCNJ 1 held that there are two stages to alienation of interest in Land and they are;

  1. The holder may enter into a contract of sale of his right, at that stage he does not need the Governor’s consent.
  2. The second stage is that of alienating the right that is the stage when he assigns his right by a deed of assignment, to now vest the legal estate in the purchaser, and he needs the Governor’s consent to make the transaction valid.”
  • EXCEPTIONS OR CURRENT LEGAL POSITION IN VIEW OF SAVANNAH BANK v. AJILO

It is viewed from a different standpoint that the legal stance in Savannah Bank v. Ajilo rather promotes sharp practices such as a party benefitting from his own wrong.

This was exactly the situation in Savannah Bank v. Ajilo where the Defendant in this case sought to prevent the Plaintiff from selling off the mortgaged property in an auction sale by invoking the provisions of Section 22 Land Use Act, 1978.

While still conceding the fact that where a person in alienating his interest in property must seek the consent of the State Governor in order for such alienation to be valid, the failure to obtain the said consent before executing the Deed of Conveyance does not in itself invalidate the transaction. It only makes the transaction inchoate or incomplete.

See for instance the case of HARUNA v. BANK OF AGRICULTURE LTD & ORS (2016) LPELR-40467 (CA) where the Court concluded that,

“The Courts have held that there is nothing in the Land Use Act preventing the execution of an instrument before the consent of the Governor is obtained. It simply means that the agreement entered into is inchoate (Incomplete) until the Governor’s consent is sought and obtained.”

Also in YARO v. AREWA CONSTRUCTION LTD & ORS (2007) LPELR-3516 (SC), it was held that;

“The 3rd Respondent has raised the question of Section 22 of Land Use Act, concisely, the section requires that Governor’s consent to the mortgage deal has to be first had and obtained otherwise the contract is void. I think with respect that the 3rd Respondent’s objection is lame in that as decided in Awojugbagbe v. Chinukwe & Anor (Supra), it is after the mortgage has been executed that obtaining of the Governor’s consent falls due. It is normally after the parties have agreed that the Deed of Assignment is prepared and sent for Governor’s consent. The instant mortgage therefore has not fallen foul of Section 22 of the Land Use Decree.”

In practice, whenever interest in property is transferred from the owner to a buyer, the relevant Deed of Conveyance is prepared and executed between the parties prior to obtaining the consent of the State Governor. The courts have held that this procedure does not invalidate the transaction but rather, no interest has yet passed to the buyer.

See the case of AWOJUGBAGBE LIGHT INDUSTRIES LTD v. CHINUKWE & ANOR (1995) LPLER-650 (SC) for instance where the Supreme Court held that;

“A close study of Section 22(2) of the Land Use Act clearly confirms that it does recognise cases where some form of written agreement or instrument executed in evidence of the relevant transaction is submitted to the Governor in order that the necessary consent under Section 22(1) may be signified by endorsement thereon. This being so, I do not conceive that it can be argued with any degree of seriousness that there is anything unlawful in the entering into or execution of Exhibit E before the Governor’s consent was obtained as this procedure is expressly covered by Section 22 (2) of the Land Use Act. The legal consequence that arises in such a situation is that no interest in land passes under the agreement until the necessary consent is obtained. Such an agreement so executed becomes inchoate until the consent of the governor is obtained after which it can be said to be complete and fully effective. I am therefore of the firm view that Section 22 (1) of the Land Use Act prohibits the alienation of a Right of Occupancy without the consent of the governor first had and obtained but does not prohibit agreement to alienate or in respect of terms and conditions for the purpose of effecting such alienation if and when the Governor gives his consent to the transaction in issue.”

CONCLUSION

Finally, it has been discussed that a party seeking to alienate his interest in property whether in part or in whole as is the cases with Assignment, Leases or Mortgage, must first seek and obtain the consent of the State Governor. This does not however mean that he cannot execute a document evidencing the transaction as could be gleaned from the aforementioned authorities. See HARUNA v. BANK OF AGRICULTURE LTD & ORS (SUPRA).

However, what this implies is that notwithstanding the execution of a document of conveyance, the transfer is incomplete until the requisite consent is sought and had and this is usually in practice done by endorsement in the column for it within the document of conveyance.

Finally, the implication of a party’s failure to seek and obtain the Governor’s consent in property transactions according to the aforementioned case of HARUNA (SUPRA) is that the transaction is incomplete rather than null and void as was the case in Savannah Bank v. Ajilo. It is only where the transaction has been perfected (Consent sought and obtained) will the transaction be complete.

Benita Ayo is a legal practitioner based in Lagos and be contacted on WhatsApp: 08063775768 or email: [email protected].

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Guide to Employee Training That Reinforces Workplace Safety Standards

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Workplace Safety Standards

Workplace safety is not sustained by policies alone. It is built through consistent training that shapes daily behaviour, decision-making, and accountability across every level of an organisation. When employees understand not only what safety rules exist but why they matter, they are far more likely to follow them and intervene when risks arise. Effective safety-focused training protects workers, strengthens operations, and reduces costly incidents that disrupt productivity and morale.

As industries evolve and workplaces become more complex, employee training must go beyond basic orientation sessions. Reinforcing safety standards requires an ongoing, structured approach that adapts to new risks, changing regulations, and real-world job demands. A thoughtful training strategy helps create a culture where safety is a shared responsibility rather than a checklist item.

Establishing a Foundation of Safety Awareness

The first purpose of workplace safety training is awareness. Employees cannot avoid hazards they do not understand. Comprehensive training introduces common workplace risks, clarifies acceptable behaviour, and sets expectations for personal responsibility. This foundational knowledge empowers employees to recognise unsafe conditions before incidents occur.

Safety awareness training should be tailored to the specific environment in which employees work. Office settings require education on ergonomics, electrical safety, and emergency evacuation procedures, while industrial workplaces demand detailed instruction on machinery risks, protective equipment, and material handling. When training reflects actual job conditions, employees are more engaged and better equipped to apply what they learn.

Clear communication is essential during this stage. Using plain language and real examples helps employees connect training concepts to daily tasks. When safety awareness becomes part of how employees think and talk about their work, it begins to shape behaviour consistently across the organisation.

Integrating Safety Training into Daily Operations

Safety training is most effective when it is integrated into everyday work rather than treated as a one-time event. Ongoing reinforcement ensures that safety standards remain top of mind as tasks, equipment, and responsibilities change. Regular training sessions create opportunities to refresh knowledge, address new risks, and correct unsafe habits before they lead to injury.

Incorporating short safety discussions into team meetings helps normalise these conversations. Supervisors play a critical role by modelling safe behaviour and reinforcing expectations during routine interactions. When employees see safety emphasised alongside productivity goals, it reinforces the message that both are equally important.

Hands-on training also strengthens retention. Demonstrations, practice scenarios, and real-time feedback allow employees to apply safety principles in controlled settings. This experiential approach builds confidence and reduces hesitation when employees encounter hazards in real situations.

Aligning Training with Regulatory Requirements

Workplace safety training must align with applicable regulations and industry standards to ensure legal compliance and worker protection. Laws and regulations change frequently, making it essential for organisations to keep training materials updated. Failure to do so can expose employees to unnecessary risk and organisations to legal consequences.

Training programs should clearly explain relevant safety regulations and how they apply to specific roles. Employees are more likely to comply when rules are presented as practical safeguards rather than abstract mandates. Documenting training completion and maintaining accurate records also demonstrates organisational commitment to compliance.

Many organisations rely on support from compliance training companies to navigate complex regulatory landscapes and design programs that meet both legal and operational needs. These partnerships can help ensure training remains accurate, consistent, and aligned with evolving requirements without overwhelming internal resources.

Encouraging Participation and Accountability

Effective safety training depends on active participation rather than passive attendance. Employees should be encouraged to ask questions, share concerns, and contribute insights based on their experiences. When workers feel heard, they become more invested in maintaining a safe environment.

Creating accountability is equally important. Training should clarify individual responsibilities and outline the consequences of ignoring safety standards. Employees need to understand that safety is not optional or secondary to performance goals. Reinforcement from leadership ensures that unsafe behaviour is addressed consistently and constructively.

Peer accountability also strengthens safety culture. When training emphasises teamwork and shared responsibility, employees are more likely to watch out for one another and intervene when they see risky behaviour. This collective approach reduces reliance on supervision alone and builds resilience across the workforce.

Adapting Training for Long-Term Effectiveness

Workplace safety training must evolve alongside organisational growth and workforce changes. New hires, role transitions, and technological updates introduce risks that require refreshed instruction. Periodic assessments help identify gaps in knowledge and opportunities for improvement.

Data from incident reports, near misses, and employee feedback provides valuable insight into training effectiveness. Adjusting content based on real outcomes ensures that training remains relevant and impactful. Organisations that treat training as a dynamic process are better equipped to respond to emerging risks.

Long-term effectiveness also depends on reinforcement beyond formal sessions. Visual reminders, updated procedures, and accessible reporting tools help sustain awareness. When safety standards are supported through multiple channels, employees receive consistent cues that reinforce training messages daily.

Conclusion

Reinforcing workplace safety standards through employee training requires intention, consistency, and adaptability. Training that builds awareness, integrates into daily operations, aligns with regulations, and encourages accountability creates a safer environment for everyone involved. When employees understand their role in maintaining safety, they are more confident, engaged, and prepared to prevent harm.

A strong training program is not simply a compliance exercise. It is an investment in people and performance. Organisations that prioritise meaningful safety training protect their workforce while fostering trust, stability, and long-term success.

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Debt is Dragging Nigeria’s Future Down

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more concessional debt

By Abba Dukawa 

A quiet fear is spreading across the hearts of Nigerians—one that grows heavier with every new headline about rising debt. It is no longer just numbers on paper; it feels like a shadow stretching over the nation’s future. The reality is stark and unsettling: nearly 50% of Nigeria’s revenue is now used to service debt. That is not just unsustainable—it is suffocating.

Behind these figures lies a deeper tragedy. Millions of Nigerians are trapped in what experts call “Multidimensional Poverty,” struggling daily for dignity and survival, while a privileged few continue to live in comfort, untouched by the hardship tightening around the nation. The contrast is painful, and the silence around it is even louder.

Since assuming office, Bola Ahmed Tinubu has embarked on an aggressive borrowing path, presenting it as a necessary step to revive the economy, rebuild infrastructure, and stabilise key sectors.

Between 2023 and 2026, billions of dollars have been secured or proposed in foreign loans. On paper, it is a strategy of hope. But in the hearts of many Nigerians, it feels like a gamble with consequences yet to unfold.

The numbers are staggering. A borrowing plan exceeding $21 billion, backed by the National Assembly, alongside additional billions in loans and grants, signals a government determined to keep spending and building. Another $6.9 billion facility follows closely behind. These are not just financial decisions; they are commitments that will echo into generations yet unborn.

And so, the questions refuse to go away. Who will bear this burden? Who will repay these debts when the time comes? Will it not fall on ordinary Nigerians already stretched thin to carry the weight of decisions they never made?

There is a growing fear that the nation may be walking into a future where its people become strangers in their own land, bound by obligations to distant creditors.

Even more troubling is the sense that something is not adding up. The removal of fuel subsidy was meant to free up resources, to create breathing room for meaningful development.

But where are the results? Why does it feel like sacrifice has not translated into relief? The silence surrounding these questions breeds suspicion, and suspicion slowly erodes trust.  As of December 31, 2025, Nigeria’s public debt has risen to N159.28 trillion, according to the Debt Management Office.

The numbers keep climbing, but for many citizens, life keeps declining. This disconnect is what hurts the most. Borrowing, in itself, is not the enemy. Nations borrow to grow, to build, to invest in their future. But borrowing without visible progress, without accountability, without compassion for the people, it begins to feel less like strategy and more like a slow descent.

If these borrowed funds are truly building roads, schools, hospitals, and opportunities, then Nigerians deserve to see it, to feel it, to live it. But if they are funding excess, waste, or luxury, then this path is not just dangerous—it is devastating.

Nigeria’s growing loan profile is a double-edged sword. It can either accelerate development or deepen economic challenges. The key issue is not just borrowing, but what the country does with the money. Strong governance, transparency, and investment in productive sectors will determine whether these loans become a foundation for growth or a long-term liability. Because in the end, debt is not just an economic issue. It is a moral one. And if care is not taken, the price Nigeria will pay may not just be financial—it may be the future of its people.

Dukawa writes from Kano and can be reached at [email protected]

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Nigeria’s Power Illusion: Why 6,000MW Is Not An Achievement

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Nigeria Electricity Act 2023

By Isah Kamisu Madachi

For decades, Nigeria has been called the Giant of Africa. The question no one in government wants to answer is why a giant cannot keep the lights on.

Nigeria sits on the largest proven oil reserves in Africa, holds the continent’s most populous nation at over 220 million people, and commands the fourth largest GDP on the continent at roughly $252 billion. It possesses vast deposits of solid minerals, a fintech ecosystem that accounts for 28% of all fintech companies on the African continent, and a diaspora that remits billions of dollars annually.

If potential were electricity, Nigeria would have been powering half the world. Instead, an immediate former minister is boasting about 6,000 megawatts.

Adebayo Adelabu resigned as Minister of Power on April 22, 2026, citing his ambition to contest the Oyo State governorship election. In his resignation letter, he listed among his achievements that peak generation had increased to over 6,000 megawatts during his tenure, supported by the integration of the Zungeru Hydropower Plant. It was presented as a great crowning legacy. The claim deserves scrutiny, and the numbers deserve context.

To begin with, the context. Ghana, Nigeria’s neighbour in West Africa, has a national electricity access rate of 85.9%, with 74% access in rural areas and 94% in urban areas. Kenya, with a 71.4% national electricity access rate, including 62.7% in rural areas, leads East Africa. Nigeria, by contrast, recorded an electricity access rate of just 61.2 per cent as of 2023, according to the World Bank. This is not a distant or poorer country outperforming Nigeria. Ghana’s GDP stands at approximately $113 billion, less than half of Nigeria’s. Kenya’s economy is around $141 billion. Ethiopia, which has invested massively in the Grand Ethiopian Renaissance Dam and is already exporting electricity to neighbouring countries, has a GDP of roughly $126 billion. All three are doing more with far less.

Now to examine the 6,000-megawatt, Daily Trust obtained electricity generation data from the Association of Power Generation Companies and the Nigerian Electricity Regulatory Commission, covering quarterly performance from 2023 to 2025 and monthly data from January to March 2026. The data shows that in 2023, peak generation was approximately 5,000 megawatts; in 2024, it reached approximately 5,528 megawatts; in 2025, it ranged between 5,300 and 5,801 megawatts; and by March 2026, available capacity had declined to approximately 4,089 megawatts. The grid never recorded a verified peak of 6,000 megawatts or higher. Adelabu had, in fact, set the 6,000-megawatt target publicly on at least three separate occasions, missing each deadline, and later admitted the target was not achieved, attributing the failure to vandalism of key transmission infrastructure.

In February 2026, Nigeria’s national grid produced an average available capacity of 4,384 megawatts, the lowest monthly average since June 2024. For a country with over 220 million people, this means electricity supply remains far below national demand, with the grid delivering only about 32 per cent of its theoretical installed capacity of approximately 13,000 megawatts. To put that in sharper comparison: in 2018, 48 sub-Saharan African countries, home to nearly one billion people, produced about the same amount of electricity as Spain, a country of 45 million. Nigeria, the continent’s most resource-rich large economy, is a significant part of that embarrassing equation.

The tragedy here is not just technical. It is a governance failure with compounding human costs. An economy that cannot provide reliable electricity cannot competitively manufacture goods, cannot industrialise at scale, cannot attract the volume of foreign direct investment its endowments warrant, and cannot build the digital infrastructure that would allow it to lead on artificial intelligence, data governance, and the emerging critical minerals economy where Africa’s next great opportunity lies. Countries with a fraction of Nigeria’s mineral wealth and human capital are already debating those frontiers. Nigeria is still campaigning on megawatts.

What a departing minister should be able to say, given Nigeria’s endowments, is not that peak generation touched 6,000 megawatts at some unverified moment. He should be saying that Nigeria now generates reliably above 15,000 megawatts, that rural electrification has crossed 70 per cent, and that the country is on a credible trajectory toward the kind of energy sufficiency that unlocks industrial growth. That is the standard Nigeria’s size and resources demand. Anything below it is not an achievement. It is an apology dressed in a press release.

The power sector has received billions of dollars in investment across multiple administrations. The 2013 privatisation exercise, the Presidential Power Initiative, the Electricity Act of 2023, and successive reform promises have produced a sector that still, in 2026, cannot guarantee eight hours of reliable supply to the average Nigerian household. That a minister exits that ministry citing a megawatt figure that fact-checkers have shown was never actually reached, and that even if reached would be unworthy of celebration given Nigeria’s potential, captures the full depth of the problem. The ambition is too small. The accountability is too thin. And the country deserves better from those who are privileged to manage its extraordinary, squandered potential.

Isah Kamisu Madachi is a policy analyst and development practitioner. He writes via [email protected]

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