Forms and Organization of Informal Land Delivery

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Forms and organization of informal land delivery system: experience from the gateway city of Karu Nasarawa State, Nigeria Adamu, Daniel1 and *Danladi, Austine Audu2 1Department of Urban and Regional Planning, Nasarawa State University Keffi, 2Town Planning Department, Nasarawa State Urban Development Board

Corresponding Author: Danladi Austine Audu - Email: [email protected]; Phone: 07034246100

ARTICLE INFO ABSTRACT Article history The explosive growth of Karu the gate city to the nation’s Received 28 May 2020 Received in revised form 2 June, 2020 capital territory has made it very tasking for prospective Accepted 4 June 2020 housing developer to access government owned land. This

experience has compelled prospective developer to resort to non government owned land for housing development. This paper, therefore, examined the forms and organizational setting of informal land delivery in Karu the gate city. In

achieving this, 310 questionnaires were purposively distributed in the five districts of Karu urban area. Consequently, characteristics that define the operation of the informal land delivery in Karu were discerned vis-à-vis their Keywords: attendant policy implications. For instance, the study revealed Form, organization, informal land delivery susceptibility to double sale, involvement of land-brokers (agents) and flexibility of plot sizes as some of the visible characteristics that has over the years, emanated through the activities of informal land transaction generally in the city. The study concludes that informal land access should be tolerated and accommodated while their strengths are recognized and built upon their weaknesses. Hence, the study recommends that land regularization, transparency in the process, and improvement of tenure security and ensuring transparent systems in transferring land right should be enforced copyright @ 2020 cepa

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Introduction: information systems as well as social considerations should create a level of Informal land markets have remained accessibility to land. However, these popular and expanding rapidly throughout expectations are not always met as the developing countries of the world. This mechanisms do not usually bring about phenomenon to certain extent has not the efficiency in the market system where spared some of the developed cities as it access to land can be guaranteed. Yet the has also smeared their urban landscape multifarious land needs of households shaping their peri-urban development have continued to rise consistently contours. The emergence and thriving of inflating the pressure of demand for land. informal land markets has apparently The intensity of demand under this become a feature of the general urban circumstance follows the non-perfect setting and the disparity cause by the substitution and finite nature of land socio-economic inhibitions of the urban unlike other economic goods. Stemming residents. Although it is also a presage from the above market situation, the that is most times blamed widely on increase in demand practically does not public institutions and policies for the equate the supply. This therefore, leaves lacklustre response to emerging changes the price system to dictate solely the in societal land needs. allocation and distribution of land in the The global trend in urban population market among the competing demands. growth particularly among the developing Following that majority of the urban low countries has resulted in a significant income households presents ineffective response to the demand for urban demand, they become vulnerable to residential land by households with supply market segregation hence highlighting the constraints. In addition to the supply pertinence for the state’s intervention. constraints is the demand type itself which Payne, Durand-Lasserve and Rakodi is basically a derived one, and often (2009) also posited that it will be essential ineffective in view of the level of for government intervention if the poor economic inhibitions faced by majority of are to stand a chance of having access to the urban households. The next issue aside land in better locations within the urban from the supply limitation is that of areas. accessibility. Even when there is an ample It is worthy of note here that, despite the supply of residential layouts by the significant contributions in terms of government, access is often marred by access provided by the informal land challenges ranging from bureaucratic channels, transaction here does not come complexity, socio-economic to ethno- on a platter. In fact it is a market where religious bottleneck as revealed by Avav investments in its commodities come with (2002) and Bello (2007). some form of high risks. For instance, in In the urban land markets, the ideal the face of the existing formal land expectation is that mechanisms like the legislations, acquisition of informal rights price system, demand and supply, lacks basic tenure security, hence

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susceptible to expropriation with functioning. For example, government inadequate compensation. Furtherance, land surveyors are sometimes involved in another vital problem of informal land demarcating land for sale in the informal transactions identified by Kwame and market. Similarly, local government Antwi (2004) is that of double sales. councillors or government officials are According to their study findings, this often called upon to witness transactions accounted for 90% of market problems in in this sector. In some cases, these local Tema, Accra and Kumasi. Other state actors also keep informal records of challenges also includes those of insecure ownership in their areas of jurisdiction. tenure rights and property delineations Like the formal urban land market, (Rakodi and Leduka, 2005) informal markets consist of a variety of The irony here is, despite these risks, institutions which support, facilitate, urban households often retain their regulate and arbitrate informal land preferences for the rather precarious transactions. These include state officials, informal transfer and acquisition of rights such as local government councillors, to the much secured states’ sanctioned traditional leaders, chiefs, community channels. This sometimes involves those leaders, and community and family urban households with the willingness and networks. However, these regulatory ability to access land in the formal land bodies can be effective in facilitating markets. It is therefore on this premise exchange by making it less difficult for that this study sought to analyse the (some) poor people to access land. underlying reasons (factors) explaining Moreover, like formal regulations and urban households’ choice of alternative structures, they can collapse in on source of access to residential land in themselves. Nigeria. The informal land market has a large number of socially dominated land market Informal land delivery transactions, where the supply and The word ‘informal’ land delivery is used demand of land are mediated more by to describe several forms urban land social relationships than by a financial transactions, exchanges and transfers that logic. A study in South Africa has shown are not legally recognized by the state, but that although price or cost is still an issue, variety of urban actors who deal with it is of secondary importance in the way urban land transaction, socially and people transact (Marx and Roysten, 2007). legitimately accepted it. Informal land For example, where the right to land is delivery is an offspring of so many conferred by a chief, the beneficiaries will practices and made up of object of offer the leader a gift as a gesture, which customary/civil code law and social is often less than the market value. But practices adapted to suit existing urban research shows that peri-urban land conditions. Although this market is, practices are increasingly becoming according to the law, illegal, the state (or commodity for transactions, like in the some of its agents) is often complicit in its formal sector, hence, becoming more and

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more a financially driven, (Kironde, 2001; Therefore, local officials were identified Syagga et’al, 2002). as key actors in the informal land delivery.

Process of Informal Land Delivery Local residents: The process of informal land delivery They are either the original landowners or involves actors and how they manipulate squatters who owned plots through formal rules to claim or contest for land informal subdivision. They are usually property right. In what follows, this perceived as marginal actors once they review will discuss major actors involved have sold their land or secured their own in the informal land delivery system, plot. However, they are active actors who existing institutional arrangements that are involved in the informal land delivery. govern their interaction. Mahiteme (2009) In some cases, they became leaders of the identified six major actors involved in the informal delivery on their own land. They informal land delivery through interviews also play a key role as information centre and extensive field observation in his for the newcomers who want to buy land study of Kolfe_Keranio sub-city in Addis in the area. They also act as sub-brokers Ababa, Ethiopia. These includes: local by leading the new buyers to the main residents, land brokers, gatekeepers, land brokers. speculators, local officials and local labourers as the major actors considered to Land Brokers and local labourers be operating in the area. In the process of (agents): land delivery, actors are highly The main activity of land brokers is to interdependent and they play their own bring buyers and sellers together. The roles in land acquisition, transaction, brokers usually get information about development and legalization. plots through the owner or by their own information networks. As information is Local officials essential in this activity, there are sub- These groups include both local brokers, which supply information to the politicians and professionals. A study main brokers. Anybody who knows a made in 2003, mentioned corruption as person who is going to sell his plot can be one of the major causes of illegal land a sub-broker. Even though according to occupation and transaction (Shimelis, A. the study by Mahiteme in Kolfe-Keranio, 2003). Another study in (1999) had Addis Ababa, they identify themselves as already revealed that lack of clear rules brokers, they do multiple jobs as brokers, and regulation, a weak institutional land speculators, water vendors and as capacity and corruption were the primary guards at construction sites. Brokers in the causes for inefficient urban land use and area have wide-ranging social interactions uncontrolled land occupation. These through which they can get information on claims were also confirmed by most of the land. This network allegedly involves experts in the Land Administration and even officials in the Land Administration Development Authority in Kolfe-Keranio. and Development Authority.

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Speculators/Land buyers: different actions, which ranges from These include people who are involved in warning to demolition. land subdivision and those who acquire Djeroh (2005) in a study of N’djamena land for housing through the informal land Chad Republic identify the process of transaction. The formers are usually informal land delivery in Chad as permanent speculators while the latter are beginning with an individual land owner temporary speculators. Temporary who declares his interest to sale or give speculators are low-income people who land for free to a friend or relative. acquired land from the City However, where it is on request by a Administration but who have no capacity buyer, it still lies on the interest of the to build houses that fit to the standard owner to sell. His work presented in the required by the master plan in a given site. diagram below shows the process of As an alternative, people usually sell their informal land delivery in N’djamena. The current plot and move to another place to actors involved in securing the land to the get a plot at lower price. The money from new owner includes; the community the previous plot usually enables the leader, the land officers in the Local temporary speculators to acquire a new authority, witnesses confirms the plot and construct a house. transaction and a letter of agreement is In most cases, once they have built their signed and sealed by both the community own house, they will quit speculation leader, witnesses of both the buyer and activities. Other types of semi speculators seller indicating an alienation of right over are those who move from the centre to the the property for a lifetime. With this periphery of the city. People may sell their process it takes an applicant few days to houses or plots in the centre at higher guarantee his tenure security and as well price and come to buy a plot or a house at taking possession of the land for further lower price and will start a new business development. He however, states that with the leftover money. government does not recognize this agreement, but it’s acceptable amongst the Gatekeepers (Double agents): residents and social institutions in Gatekeepers are people who are employed N’djamena. In case there is no by the City Administration to control development of the said land by the time illegal land occupation, construction and government focus its interest on the area, the sanitation of the neighbourhoods. The the owner may lose the plot without team was established in 2003 in Addis compensation. Ababa and operates both at sub-city and kebele (lowest administrative) levels. The Forms and Organisation of Informal formal duties of the gatekeepers with Land regard to the regulation of informal land Like the formal urban land market, subdivision and illegal construction are to informal markets consist of a variety of patrol around the expansion areas and take institutions which support, facilitate, regulate and arbitrate informal land

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transactions. These include state officials, informal land is traded through the such as local government councillors, market. traditional leaders, chiefs, community The increasing demand for urban land has leaders, and community and family made informal land a commodity in areas networks. Like formal markets, these that have historically had communal regulatory bodies can be effective in tenure. Despite this, the informal market is facilitating exchange or can be overly generally considered a risky investment restrictive and make it more difficult for because of the fact that the transactions (some) poor people to access land. are sometimes affected by dubious trends. Moreover, like formal regulations and For example, in Ghana, disputes over land structures, they can collapse in on ownership have arisen when some family themselves. Within the informal land members have sold communal land market, there are varying degrees to which without the authority of the clan or other land is as a commodity for transaction and family members (Gbaguidi & subsequently has a significant impact on Spellenberg, 2004). In these cases, buyers how the price of land is determined. are at the risk of losing their monies and The informal land market has a large the lands respectively. number of socially dominated land market Informal land owners are not typically transactions, where the supply and registered by governments as the legal demand of land are mediated more by owners of the land – this tends to social relationships than by a financial discourage investment in land because of logic. A study in South Africa has shown fear of losing their land and property. that although price or cost is still an issue, Moreover, without a centralised and it is of secondary importance in the way reliable system for registering land and people transact (Marx and Roysten, 2007). owners’ rights, urban land transactions are For example, where the right to land is vulnerable to illegal sales such as the sale conferred by a chief, the beneficiaries will of one piece of land to more than one offer the leader a gift as a gesture, which buyer. These problems increase the risk is often less than the market value. But that potential buyers have to take, research shows that peri-urban land discouraging investment in land and practices are increasingly becoming dampening activity in the urban land commodity and transactions are, like in market. the formal sector, becoming more and more driven by a financial logic. (Kironde, 2001; Syagga et al, 2002). Methodology In fact, the sale of peri-urban land in the It is mostly a tasking venture in collecting informal market is fast becoming a data for research especially in most of our thriving trade, where sellers are able to traditional Nigeria cities. The scenario is fetch market related prices. Indeed, as much more pronounced when embarking demand for urban land increases as a on study with little or no record base like result of urbanisation, more and more informal land channel. Hence, to achieve

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our objectives, primary data were relied According to Yamene, the sample size of upon largely and a few document reviews 0.1-.05 is recommended for carrying out of data from previous research collected research depending on the size of your from five of the Karu urban districts such sample frame. Hence, having a sample as New Karu, Mararaba, Masaka, New frame of 124,043 the sample size of 0.25 Nyanya, and Ado. To achieve this, that falls within the recommended sample purposive sampling Technique was size was adopted. These 310 respondents utilised for this research. All householders were spread across the five districts of were eligible to answer the survey Karu Urban Area. The questions related to questionnaire; a sample size of 0.25 informal land process were drawn and percent was adopted from the five districts administered in order to ascertain the of Karu Urban Area which gives an influence of the Informal Land access on approximated value of 310 respondents housing delivery on each stratum, by large used for the study. The sample size was the entire city. This is summarized in the arrived at using Taro Yemane formula. table below:

Table 1 Sample Distribution for Household Owners Districts Projected Household Sample Size (%) Population Population (No Of Respondents - Household Owners) Mararaba 195,994 32,666 82 Kuruduma 142,306 23,718 59 New Karu 166,573 27,762 69 Ado 70,050 11,675 29 Masaka 169,333 28,222 71 Total 744,256 124,043 310 Source: Authors Field work, 2016 Result and Discussion attendant outcomes of informal land delivery such as haphazard development, Forms and Organisation of Informal susceptibility for double sale, flexibility Land in Karu the Gate City of plot sizes, presence of middle men or This research seeks to establish the land brokers (agents), multiple imbedded forms and organisation that are peculiar sources, and dominant of sale agreement to accessing land for development as supporting document. The source of through the informal channel in Karu, land acquisition that is much more the gate city, Nasarawa State. The study pronounced in an urban area is a function revealed the Procedures for Informal of the type of land market that is most Land Acquisition in Karu and other dominant. The informal land has

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supplied about 85% of the total Procedures for Informal Land developable land in via its multiple Acquisition in Karu imbedded sources such as the Individuals Procedures for acquiring land in Karu land owners, Family land owners, and were sourced through oral interview Traditional rulers (Adamu 2014). This from the stakeholders. It was found from implies that informal land channel is the the field that informal lands are dominant supplier of land for housing controlled by land holding family, delivery in the study area. This is in individual land owners (chiefs or family consonant with studies from literature heads and community land) and other that informal land mechanism is the actors involved. In the procedures, largest contribution of land for housing prospective buyers and sellers declare in most developing countries (Rakodi, their interest to buy or sell through the 2005), Leduka, 2006). However, it is land agents and the procedure continues also apparent that market forces dictate till the point where transaction is the mode of land acquisition through the completed. The general procedures for informal land channel as 89.6% of the land acquisition through the informal respondents acquired their land through mechanism are indicated in Figure 1. direct purchase.

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Figure 1: Flow chart for informal land access procedure in Karu Urban Area Source: Authors Field work, 2016

Haphazard or uncoordinated their houses constructed in a planned development environment. The reason being that, Haphazard or uncoordinated development ‘’those respondents acquired their lands does not in any way influence the delivery through the formal channel’’. This of housing stock however it does relate to revelation buttresses the findings of housing delivery in terms of the physical (Rakodi and Leduka, 2003) that informal characteristics of the built environment. land transactions are susceptible to Table 1 show 92.6% of respondents lives influencing haphazard and uncoordinated in an unplanned environment where housing development. This can be facilities that make up for good living attributed to near absence and ineffective environment are practically absent. planning mechanisms in informal land However, 7.4% of the respondents have transactions.

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Table 1 Development Haphazard New New Masaka Mararaba Ado Karu Nyanya Form/characteristics No. of No. of No. of No. of No. of Total % Response Response Response Response Response Development Planned 10 - - 13 - 13 7.4 Not Planned 59 59 71 69 27 297 92.6 Total 69 59 71 82 29 310 100 Source: Author’s Computation, 2016 Susceptibility for Double Sale of Land Susceptibility for double sale and Susceptibility for multiple sales of land is ownership of land is one of the attributes one of the few challenges that are of informal land transactions as revealed associated with informal land market, in the literature (Antwi 2002), which can (Adamu, 2014). The responses in Table 2 put buyers in problems of multiple indicate that (14.5%) did fall victims of buying. However, the strategy of being short-changed during the acquisition involving land agents who are experts in process, while (85.5%) never experienced informal land transaction and other such problem. This reason for this is not professionals such as lawyers, Town far fetch from the fact that the method has Planners and Surveyors among others adopted a formal process, such as the helps reduce the tendency for double issuance of agreements and documents crossing by land sellers. This indicates that have been witnessed by recognised that the possibility for double sale of land leaders in the community. While these through the informal land access is very forms of registration may not be legally rare in Karu, yet possible. Hence, this recognised, they are considered socially attribute may not have any negative legitimate by the actors involved and in influence regarding housing delivery in some cases help to reduce land fraud. Karu Urban Area.

Table 2 Susceptibility for Double Sale of Land New New Masaka Mararaba Ado Karu Nyanya Form/characteristics No. of No. of No. of No. of No. of Total % Response Response Response Response Response Development Victim 5 8 11 15 6 45 14.5 Not victim 64 51 60 67 23 265 85.5 Total 69 59 71 82 29 310 100 Source: Author’s Computation, 2016

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Nature of Plot Supplied area are less than 900sqm. The Another feature of informal access to land implication is that these different sizes of in Karu urban Area is the flexibility in plots developed are a product of terms of plot sizes. Table 3 shows that magnitude of use, status and ability to 58.4 % of the 310 household owners said purchase. However, this also informs the that their developed plot size ranges flexible pattern of accessing plot land between 450sqm-900sqm. This indicates through the informal channel as against that most of the developed lands by the rigid nature associated with the formal individual household owners in the study channel. Table 3: Plot Sizes New Kuruduma Masaka Mararaba Ado Karu Form/characteristic No. of No. of No. of No. of No. of Total % Response Response Response Response Response Plot in Sqm 225 - 9 15 10 6 82 26.5 450-900 19 11 19 27 8 181 58.4 1350-1800 29 29 22 31 7 30 9.7 2250-2500 21 10 15 14 8 17 5.4 Total 69 59 71 82 29 310 100 Source: Author’s Computation, 2016 Channels of Information about the got information from other sources such Availability of Land for Sale as friends/neighbours, religious The table below reveals that 38.1% got gatherings, associations etc accounted for information about the availability of the 12.9%. These channels of information plots of land they acquired from land reveal informality of information agents. 27.9% got information from the discharge. This suggests that privileges of community/traditional as well as land information are a determinant factor to holding families. Meanwhile, those who access land within KUA.

Table 4: Channel of information about land New Kuruduma Masaka Mararaba Ado Karu Form/characteristic No. of No. of No. of No. of No. of Total % Response Response Response Response Response Traditional leaders - 9 15 10 6 84 27.9 Agents 19 11 19 27 8 118 38.1 Others 29 29 22 31 7 40 12.9 Total 69 59 71 82 29 310 100 Source: Author’s Computation, 2016

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Supporting Document of land value appreciation that comes with One major characteristics of informal formal title will elude those without the access to land is the inability of the title. 31.3% had change of ownership developers to possess formal title on their which is issued by Local Government as a land. This attribute is very much certification that ownership of the land has pronounced in Karu. More than half been transferred from the seller to the (61.3%) of the developers, owned buyer. However, 7.4% had right of agreement letters as their major land Title occupancy (R of O) which is a preamble documents. The main reason giving was to final issuance of certificate of that high cost of land registration for land occupancy by the State Government. title. The implication being that benefits

Table 5: Supporting Documents New Kuruduma Masaka Mararaba Ado Karu Form/characteristic No. of No. of No. of No. of No. of Total % Response Response Response Response Response Agreement letter 30 48 49 41 22 190 61.3 R of O 10 13 23 7.4 Change of Ownership 29 11 22 28 7 97 31.3 Total 69 59 71 82 29 310 100 Source: Author’s Computation, 2016 Conclusion land right transfer is not easily understood. The great numbers of land Informal land supply has some level of seeker and inefficiency of public land formality that follows a well defined and delivery, make land prices higher than organized process of transaction. Land is referenced prices. Local landowners held primarily by customary landowners, cannot resist higher land price paid. There however many people converging towards is need for the government to regulate the area in search of land has initiated a land market in order to protect them and platform for an open informal land reduce land speculation. market. The size of land to be sold is negotiated between the land seller and the To overcome these problems, the informal land buyer ignoring national laws and sector is developing systematic other regulation governing land purchase. mechanisms of recognizing tenure and The great difference of sold land rights. These methods adopt formal engenders a haphazard development processes, such as the issuance of leading to the development of informal agreements and certificates that have been development. Land transfer is evidenced witnessed by recognised leaders in the by a simple sale transfer contract and is community. While these forms of not regularised at State level. Illegality in registration may not be legally recognised,

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