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NIESV FEM practice questions

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Question 1Estate Management and Valuation Practice

Under the Estate Surveyors and Valuers (Registration, etc.) Act, which body is empowered to register persons as estate surveyors and valuers in Nigeria?

  1. The Nigerian Bar Association
  2. The Federal Ministry of Works and Housing
  3. The Nigerian Institution of Estate Surveyors and Valuers
  4. The Estate Surveyors and Valuers Registration Board of Nigeria Correct answer.

Explanation

The Act creates the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) as the statutory body that registers and regulates practitioners. The professional institution (NIESV) is a voluntary association, not the statutory registrar.

Question 2Estate Management and Valuation Practice

A valuer is instructed to advise on the price at which a property would exchange on the valuation date between a willing buyer and a willing seller, both having reasonable knowledge and neither under compulsion. This instruction calls for:

  1. Market value Correct answer.
  2. Forced sale value
  3. Insurance reinstatement value
  4. Gross development value

Explanation

Market value assumes a willing buyer and willing seller, both reasonably informed, acting without compulsion. Forced sale value expressly contemplates a constrained or time-limited disposal.

Question 3Estate Management and Valuation Practice

Which method is conventionally most appropriate for valuing a purpose-built, owner-occupied specialist property such as a private hospital with no comparable rental evidence?

  1. Profits method
  2. Depreciated replacement cost Correct answer.
  3. Residual method
  4. Investment method

Explanation

Depreciated replacement cost estimates the cost of replacing the asset and deducts depreciation for age, condition and obsolescence. It is used where market evidence is scarce for specialist properties with no readily identifiable rental stream.

Question 4Estate Management and Valuation Practice

In the investment method, a freehold property produces a net income of ₦4,000,000 per annum and the appropriate capitalisation rate is 8%. What is the capital value?

  1. ₦320,000
  2. ₦50,000,000 Correct answer.
  3. ₦4,320,000
  4. ₦32,000,000

Explanation

Capital value is net income divided by the capitalisation rate: ₦4,000,000 ÷ 0.08 = ₦50,000,000. The multiplier is the reciprocal of the yield, so 12.5 years' purchase gives the same result.

Question 5Estate Management and Valuation Practice

A statutory right of way over a neighbouring plot that benefits the land being valued is best described as:

  1. A licence
  2. A mortgage
  3. An easement Correct answer.
  4. A restrictive covenant

Explanation

An easement is a right enjoyed by one piece of land over another, such as a right of way, and it runs with the benefited land. It is a proprietary interest capable of enhancing or burdening value.

Question 6Estate Management and Valuation Practice

Which leasehold term describes a lease granted for a fixed period that cannot be terminated early by either party except for breach of covenant?

  1. A periodic tenancy
  2. A fixed-term lease Correct answer.
  3. A tenancy at sufferance
  4. A tenancy at will

Explanation

A fixed-term lease runs for a definite period agreed in advance and cannot be ended early save for breach. Periodic tenancies, by contrast, renew automatically from period to period.

Question 7Estate Management and Valuation Practice

In preparing a valuation report, the valuer states that the inspection was limited to an external viewing only. This disclosure primarily serves to:

  1. Increase the fee chargeable for the instruction
  2. Satisfy the requirement for a planning certificate
  3. Transfer all liability to the client
  4. Define the scope of work and limit reliance on matters not inspected Correct answer.

Explanation

Terms of engagement and limiting conditions define the scope of work and the assumptions on which the opinion rests. Disclosing an external-only inspection warns the client that internal condition was not verified.

Question 8Estate Management and Valuation Practice

The term 'years' purchase' in valuation practice refers to:

  1. The unexpired term of a lease
  2. The period over which a building depreciates
  3. The multiplier applied to net income to derive capital value Correct answer.
  4. The annual rent payable under a lease

Explanation

Years' purchase is the multiplier by which net income is capitalised to obtain capital value. It is the reciprocal of the yield, so a 10% yield corresponds to 10 years' purchase.

Question 9Estate Management and Valuation Practice

A valuer must value a leasehold interest with 12 years unexpired where the passing rent is below the market rent. Which approach best captures the value of the interest?

  1. Use depreciated replacement cost of the buildings
  2. Capitalise the profit rent over the unexpired term at an appropriate yield Correct answer.
  3. Apply the residual method to the site alone
  4. Capitalise the full market rent in perpetuity

Explanation

Where a leasehold is held at a rent below market, the tenant enjoys a profit rent for the remaining term. Capitalising that profit rent over the unexpired term, typically with a dual rate or years' purchase approach, captures the interest.

Question 10Estate Management and Valuation Practice

A property has a net operating income of ₦2,400,000 and recent comparable sales indicate a capitalisation rate of 12%. Using the investment method, the indicated value is:

  1. ₦20,000,000 Correct answer.
  2. ₦2,688,000
  3. ₦200,000
  4. ₦28,800,000

Explanation

Dividing net operating income by the capitalisation rate gives ₦2,400,000 ÷ 0.12 = ₦20,000,000. The multiplier is 8.33 years' purchase.

Question 11Estate Management and Valuation Practice

In the residual method for appraising a development site, which item is deducted from gross development value to arrive at the site value?

  1. Only the purchase price of the land
  2. Only the construction cost of the buildings
  3. Only the professional fees
  4. Total development costs, developer's profit and finance charges Correct answer.

Explanation

The residual method deducts all costs of realising the completed value, including construction, fees, finance and developer's profit, from gross development value. The balance is the residual sum available for the site.

Question 12Estate Management and Valuation Practice

A tenant holds a lease at a passing rent of ₦1,000,000 per annum while the market rent is ₦1,600,000 per annum, with 10 years unexpired. Ignoring yields, what is the annual profit rent?

  1. ₦2,600,000
  2. ₦600,000 Correct answer.
  3. ₦1,600,000
  4. ₦100,000

Explanation

Profit rent is the difference between market rent and passing rent: ₦1,600,000 − ₦1,000,000 = ₦600,000 per annum. This annual advantage is then capitalised over the unexpired term.

Question 13Estate Management and Valuation Practice

In the profits method, the valuation of a hotel is derived primarily from:

  1. The site area multiplied by a rate per square metre
  2. The fair maintainable trading profit attributable to the property Correct answer.
  3. The rent passing under the current lease
  4. The replacement cost of the building

Explanation

The profits method capitalises the fair maintainable operating profit that the property can sustain in its current use. It is applied to trading properties where profit, rather than rent, is the measure of value.

Question 14Estate Management and Valuation Practice

A valuer is asked to assess the compensation payable where compulsory acquisition deprives an owner of land. Which principle underpins the assessment?

  1. The value of the land to the acquiring authority
  2. The developer's anticipated profit on the scheme
  3. The historical cost incurred by the owner
  4. Full and fair compensation for the loss sustained by the owner Correct answer.

Explanation

Compensation for compulsory acquisition is measured by the loss sustained by the claimant, assessed at market value plus disturbance and other statutory heads. It is not measured by the acquirer's gain.

Question 15Estate Management and Valuation Practice

A covenant restricting the use of land to residential purposes only, imposed for the benefit of neighbouring land, is:

  1. A profit à prendre
  2. An easement
  3. A restrictive covenant Correct answer.
  4. A mortgage

Explanation

A restrictive covenant is a promise restricting the use of land, enforceable in equity for the benefit of other land. It differs from an easement, which grants a positive right of use.

Question 16Estate Management and Valuation Practice

In a valuation report prepared for secured lending, the valuer should state the purpose and the intended user because:

  1. Lenders require a planning permission certificate in every case
  2. The opinion of value may differ depending on the basis and purpose of the instruction Correct answer.
  3. The report must be countersigned by the borrower
  4. All valuations for all purposes must produce the same figure

Explanation

Value is purpose-specific: a lending valuation uses market value with appropriate assumptions, while other purposes may require different bases. Stating the purpose and intended user prevents third-party reliance on an opinion not prepared for them.

Question 17Estate Management and Valuation Practice

A building has a gross external area of 1,200 m². Construction cost is ₦150,000 per m², fees are 10% of construction cost, and the building has depreciated by 30%. Using depreciated replacement cost, the depreciated value of the building is approximately:

  1. ₦138,600,000 Correct answer.
  2. ₦198,000,000
  3. ₦54,000,000
  4. ₦180,000,000

Explanation

Construction cost is 1,200 × ₦150,000 = ₦180,000,000; adding 10% fees gives ₦198,000,000; applying 30% depreciation leaves 70% × ₦198,000,000 = ₦138,600,000.

Question 18Estate Management and Valuation Practice

The term 'obsolescence' in the context of depreciated replacement cost refers to:

  1. A loss in value from factors such as outdated design or changing market demand Correct answer.
  2. Physical wear and tear from use
  3. The rent passing under the lease
  4. The cost of insuring the building

Explanation

Obsolescence is a loss of value arising from factors other than physical deterioration, such as functional inadequacy or external economic change. It is deducted alongside physical depreciation in the cost approach.

Question 19Estate Management and Valuation Practice

A valuer is instructed on a property subject to a lease with five years unexpired at a rent below market. The client asks for the value of the freeholder's interest. Which factor most directly reduces the freehold value?

  1. The property is in a prime location
  2. The tenant has insured the building
  3. The lease requires the tenant to repair
  4. The reversion to full market rent is deferred until the lease expires Correct answer.

Explanation

The freeholder's interest comprises the rent during the term plus the reversion, and the reversion is deferred until the lease ends. A longer deferment reduces the present value of the reversion, lowering the freehold value.

Question 20Estate Management and Valuation Practice

Which of the following best describes the principle of 'highest and best use' in estate management?

  1. The use that is legally permissible, physically possible, financially feasible and most profitable Correct answer.
  2. The use preferred by the local planning authority
  3. The use with the lowest construction cost
  4. The use currently carried out on the site

Explanation

Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible and produces the highest value. It is the benchmark against which alternative development options are tested.

Question 21Estate Management and Valuation Practice

Under a typical institutional lease, the tenant's covenant to pay rent and observe obligations is commonly supported by which remedy available to the landlord?

  1. Forfeiture and distress or commercial rent recovery Correct answer.
  2. An automatic transfer of the freehold to the landlord
  3. Specific performance of the tenant's business plan
  4. A statutory right to increase the rent at will

Explanation

A landlord may enforce covenants through forfeiture for breach and through statutory commercial rent recovery procedures. These remedies protect the landlord's income and reversionary interest.

Question 22Estate Management and Valuation Practice

A developer's appraisal shows gross development value of ₦500,000,000, total costs including fees, finance and contingency of ₦380,000,000, and a required developer's profit of 20% of gross development value. What is the residual site value?

  1. ₦480,000,000
  2. ₦100,000,000
  3. ₦120,000,000
  4. ₦20,000,000 Correct answer.

Explanation

Profit at 20% of ₦500,000,000 is ₦100,000,000. Deducting costs of ₦380,000,000 and profit of ₦100,000,000 from the gross development value leaves a residual site value of ₦20,000,000.

Question 23Estate Management and Valuation Practice

A valuer values a property with a lease containing a rent review in three years' time, where the current rent is above market. Which consideration most affects the freeholder's interest?

  1. The rent may fall at review, reducing income during the remaining term Correct answer.
  2. The tenant will certainly renew at the same rent
  3. The review extinguishes the lease
  4. The reversion will be brought forward by the review

Explanation

Where the passing rent exceeds market, an upward-only or market review may result in a reduction or a standstill, lowering the income profile of the freehold. The valuer must reflect the review terms and the market trend in the cash flow.

Question 24Estate Management and Valuation Practice

In the valuation of a leasehold interest, the 'dual rate' approach differs from the 'single rate' approach because it:

  1. Ignores the unexpired term entirely
  2. Applies only to freehold interests
  3. Allows for a sinking fund to replace the capital sum at the end of the term Correct answer.
  4. Uses the passing rent instead of the profit rent

Explanation

The dual rate years' purchase incorporates a sinking fund element at a lower accumulation rate so that the capital invested is recouped by the end of the lease. The single rate simply capitalises income over the term without that replacement provision.

Question 25Estate Management and Valuation Practice

An estate surveyor is instructed to advise on the redevelopment of a site currently occupied by a lease with 15 years unexpired. Which factor is most critical in determining whether redevelopment should proceed now?

  1. The colour scheme of the existing building
  2. The tenant's personal preference for the building
  3. The age of the valuer's professional indemnity policy
  4. Whether the value of the reversion after the lease exceeds the value of immediate redevelopment net of costs Correct answer.

Explanation

The decision turns on comparing the present value of the reversionary interest with the net value obtainable from immediate redevelopment. If the reversionary value exceeds the net development value, deferral is indicated.

Question 26Estate Management and Valuation Practice

In estate management practice, the term 'rack rent' refers to:

  1. The rent reserved under a lease that is below the market level because a premium was paid
  2. The rent that is set at the outset of a lease and remains fixed for the entire term
  3. The full market rent that a property would command if let on the open market Correct answer.
  4. The rent payable under a ground lease that is subject to periodic review

Explanation

Rack rent is the full open market rent for a property, reflecting its letting value at the date of assessment. It is not artificially depressed by premiums, nor is it necessarily fixed for the term.

Question 27Estate Management and Valuation Practice

A leasehold interest is being valued using the investment method. The valuer capitalises the net income by multiplying it by a years' purchase figure. The years' purchase is derived from:

  1. The capital value divided by the annual rent passing
  2. The reciprocal of the capitalisation rate, adjusted for the unexpired term and rent review pattern Correct answer.
  3. The gross rent multiplied by the number of years remaining on the lease
  4. The unexpired term of the lease divided by the capitalisation rate

Explanation

Years' purchase is the multiplier applied to net income to arrive at capital value; it is essentially the reciprocal of the yield, but adjusted for the lease term and rent review pattern when using dual rate or term and reversion approaches. It is not simply term divided by rate, nor a multiple of gross rent.

Question 28Estate Management and Valuation Practice

A valuer is assessing the compensation payable for the compulsory acquisition of a freehold property. Which principle governs the measure of compensation?

  1. The original purchase price paid by the owner, indexed for inflation
  2. The value to the acquiring authority of the land for its proposed scheme
  3. The open market value of the land, disregarding the scheme, plus disturbance and other statutory heads Correct answer.
  4. The value to the owner, including any special value arising from personal circumstances

Explanation

Compensation is based on open market value, disregarding any increase or decrease attributable to the scheme, and includes disturbance and other statutory heads. It is not based on the authority's value, nor on the owner's personal special value, nor on historic cost.

Question 29Estate Management and Valuation Practice

In the context of leasehold valuation, the 'term and reversion' approach is used to value:

  1. A freehold interest subject to a lease with no rent reviews
  2. A property held under a ground lease with a fixed ground rent for the whole term
  3. An interest where the income is split into a term at the passing rent and a reversion to market rent at review or expiry Correct answer.
  4. A leasehold interest where the rent is above market and no reviews are due

Explanation

The term and reversion approach separately values the current income for the remaining term and the reversionary income after the next review or lease expiry. It is typically used when the passing rent differs from market rent and reviews are expected.

Question 30Estate Management and Valuation Practice

A property has a net operating income of ₦3,600,000 and a capitalisation rate of 9%. Using the investment method, what is the indicated market value?

  1. ₦40,000,000 Correct answer.
  2. ₦32,400,000
  3. ₦44,400,000
  4. ₦324,000,000

Explanation

Market value is net operating income divided by the capitalisation rate: ₦3,600,000 ÷ 0.09 = ₦40,000,000. This is the direct capitalisation formula.

Question 31Estate Management and Valuation Practice

In the residual method of development appraisal, which of the following is deducted from the gross development value to arrive at the residual land value?

  1. The cost of construction, professional fees, finance charges, and developer's profit Correct answer.
  2. The existing use value of the site
  3. The purchase price of the land plus acquisition costs
  4. The rental income capitalised at an appropriate yield

Explanation

The residual method deducts all development costs-construction, fees, finance, contingency, and developer's profit-from the gross development value to leave the residual amount available for land. Existing use value is a separate comparison, not a deduction in the residual calculation.

Question 32Estate Management and Valuation Practice

A valuer is instructed to value a property for secured lending purposes. The valuer should state the purpose and intended user in the report because:

  1. It limits the valuer's liability to the lender and clarifies that the report may not be suitable for other purposes Correct answer.
  2. It is a statutory requirement under the Land Registration Act
  3. It ensures the valuation is automatically acceptable to all financial institutions
  4. It allows the valuer to charge a higher fee

Explanation

Stating purpose and intended user defines the scope of the valuer's duty and limits liability to the party for whom the report is prepared. It also warns third parties that the report may not be appropriate for their use.

Question 33Estate Management and Valuation Practice

In the profits method of valuation, the value of a property is based primarily on:

  1. The rent passing under the current lease
  2. The capital value of similar properties in the area
  3. The replacement cost of the building plus land value
  4. The maintainable trading profit of the business, capitalised at an appropriate rate Correct answer.

Explanation

The profits method values a property by reference to the business's maintainable profit, which is capitalised to arrive at the value of the property interest. It is used for specialised trading properties such as hotels, pubs, and petrol stations.

Question 34Estate Management and Valuation Practice

A covenant in a lease that restricts the tenant from assigning or underletting without the landlord's consent is known as:

  1. A forfeiture clause
  2. A user covenant
  3. A covenant against alienation Correct answer.
  4. A repairing covenant

Explanation

A covenant against alienation restricts the tenant's ability to transfer or share the leasehold interest, typically requiring landlord's consent. User covenants control the use, repairing covenants govern repairs, and forfeiture clauses allow termination for breach.

Question 35Estate Management and Valuation Practice

In the valuation of a leasehold interest, the dual rate approach differs from the single rate approach because it:

  1. Uses a lower yield to reflect the leasehold nature of the interest
  2. Ignores the unexpired term of the lease
  3. Assumes the income is received in perpetuity
  4. Makes explicit provision for a sinking fund to replace the capital at the end of the lease Correct answer.

Explanation

The dual rate approach incorporates a sinking fund element, recognising that the leasehold interest will expire and the capital invested must be recouped. The single rate approach does not make this explicit provision.

Question 36Estate Management and Valuation Practice

A building has a gross external area of 1,500 m². Construction cost is ₦120,000 per m². Professional fees are 12% of construction cost, and contingency is 5% of construction cost. What is the total depreciated replacement cost before deducting depreciation?

  1. ₦216,000,000
  2. ₦210,600,000 Correct answer.
  3. ₦180,000,000
  4. ₦201,600,000

Explanation

Construction cost = 1,500 × ₦120,000 = ₦180,000,000. Fees = 12% of ₦180,000,000 = ₦21,600,000. Contingency = 5% of ₦180,000,000 = ₦9,000,000. Total = ₦180,000,000 + ₦21,600,000 + ₦9,000,000 = ₦210,600,000.

Question 37Estate Management and Valuation Practice

In the context of depreciated replacement cost, 'obsolescence' refers to:

  1. The increase in value due to inflation
  2. Physical deterioration due to wear and tear
  3. The cost of repairing a building to its original condition
  4. A loss in value due to factors such as changes in technology, design, or market demand Correct answer.

Explanation

Obsolescence is a form of depreciation that arises from functional, technological, or economic factors, not physical wear. It reflects a loss in value because the property is less suited to current market requirements.

Question 38Estate Management and Valuation Practice

A valuer is assessing the highest and best use of a site. Which of the following is a valid consideration?

  1. The use that was historically established on the site
  2. The current use, even if it is not legally permissible
  3. The use that the owner personally prefers
  4. The use that is physically possible, legally permissible, financially feasible, and maximally productive Correct answer.

Explanation

Highest and best use is the reasonably probable use that is physically possible, legally permissible, financially feasible, and results in the highest value. Personal preference or historic use does not determine it.

Question 39Estate Management and Valuation Practice

In a leasehold valuation, the 'capitalisation rate' is best described as:

  1. The rate of depreciation applied to the building
  2. The rate at which income is converted into capital value, reflecting risk and return Correct answer.
  3. The rate of inflation applied to rental income
  4. The rate of interest used to discount future cash flows to present value

Explanation

The capitalisation rate, or yield, is the ratio of net income to capital value and reflects the investor's required return and risk. It is used to convert income into value, not to discount cash flows (which uses a discount rate) or to adjust for inflation or depreciation.

Question 40Estate Management and Valuation Practice

A tenant holds a lease with 8 years unexpired at a passing rent of ₦2,000,000 per annum, which is above the current market rent of ₦1,800,000 per annum. The lease has no rent review until expiry. How would a valuer most appropriately value the leasehold interest?

  1. By valuing the reversion to market rent after 8 years and adding it to the term
  2. By capitalising the market rent for 8 years at an appropriate yield
  3. By capitalising the passing rent for 8 years at an appropriate yield Correct answer.
  4. By using the profits method

Explanation

When the passing rent is above market and no reviews are due, the leasehold interest is valued as a term certain at the passing rent, because that income is secured for the remaining term. There is no reversion to market rent within the term.

Question 41Property Law and Land Tenure

Under the Land Use Act of Nigeria, in whom is all land in a state vested in trust for the people of the state?

  1. The traditional ruler of the community
  2. The Governor of the state Correct answer.
  3. The local government chairman
  4. The Minister of Lands

Explanation

Section 1 of the Land Use Act vests all land comprised in the territory of each state in the Governor, to be held in trust and administered for the use and common benefit of all Nigerians. Local governments only administer land in non-urban areas as delegated.

Question 42Property Law and Land Tenure

A statutory right of occupancy granted by a state Governor is best described as which type of interest?

  1. An easement over another's land
  2. A freehold estate in perpetuity
  3. A leasehold-type right for a defined term Correct answer.
  4. A mere licence revocable at will

Explanation

A right of occupancy is a right to occupy and use land for a defined term, commonly 99 years, and it is not a freehold. It is an interest in land created by the state, terminable on breach of conditions and subject to revocation.

Question 43Property Law and Land Tenure

Which document is issued to evidence a statutory right of occupancy granted by a state Governor?

  1. A deed of assignment
  2. A certificate of occupancy Correct answer.
  3. A survey plan
  4. A power of attorney

Explanation

Section 9 of the Land Use Act requires the Governor to issue a certificate of occupancy as evidence of the right. The certificate states the term, the rent, and any special conditions.

Question 44Property Law and Land Tenure

Customary land tenure in southern Nigeria is generally characterised by which feature?

  1. Ownership vested solely in the local government
  2. Absolute state ownership with no customary rights
  3. Communal or family ownership administered by heads Correct answer.
  4. Individual freehold title registered at the land registry

Explanation

Customary tenure treats land as belonging to the community or family, held in trust through heads and elders. Individual rights are usufructuary and can mature into family-level control rather than registered freehold.

Question 45Property Law and Land Tenure

Which of the following is a recognised mode of acquiring title to land under Nigerian law?

  1. Purchase from a person with no title
  2. Inheritance under the applicable personal law Correct answer.
  3. Verbal gift without delivery of possession
  4. Adverse occupation of state land

Explanation

Inheritance under the personal law applicable to the deceased is a recognised mode of acquiring title. Other recognised modes include purchase, gift, and long possession, but each requires the legal conditions to be met.

Question 46Property Law and Land Tenure

A deed of assignment is used primarily to do which of the following?

  1. Create a mortgage over land
  2. Transfer the assignor's interest in land to the assignee Correct answer.
  3. Appoint an agent to manage land
  4. Grant a temporary licence to occupy

Explanation

An assignment transfers the whole unexpired residue of the assignor's interest to the assignee. It is the standard instrument for sale of a right of occupancy or customary title.

Question 47Property Law and Land Tenure

Which statute governs the registration of instruments affecting land in Lagos State?

  1. The Stamp Duties Act
  2. The Land Instruments Registration Law Correct answer.
  3. The Wills Act
  4. The Land Use Act

Explanation

The Land Instruments Registration Law provides for registration of instruments affecting land in Lagos State and other states with equivalent laws. Registration gives priority and notice to the world.

Question 48Property Law and Land Tenure

A person who occupies land without the owner's permission and without any legal right is known as which of the following?

  1. A mortgagee
  2. A trespasser Correct answer.
  3. A licensee
  4. A beneficiary

Explanation

A trespasser enters or remains on land without the consent of the person entitled to possession. Trespass is actionable without proof of damage because it is a wrong against possession.

Question 49Property Law and Land Tenure

Under the Land Use Act, what is the maximum term for which a statutory right of occupancy may be granted?

  1. 50 years
  2. 150 years
  3. No numerical maximum is specified by the Act Correct answer.
  4. 25 years

Explanation

Section 8 of the Land Use Act requires a statutory right of occupancy to be granted for a definite term and permits lawful contractual terms. It does not set a numerical maximum. A 99-year term in a particular grant does not establish a statutory ceiling.

Question 50Property Law and Land Tenure

A customary right of occupancy is granted by which authority?

  1. The local government Correct answer.
  2. The High Court
  3. The Governor of the state
  4. The federal Minister of Lands

Explanation

Section 6 of the Land Use Act empowers local governments to grant customary rights of occupancy over land in non-urban areas. The Governor handles statutory rights of occupancy.