Right of Way Agreement (Nigeria)
RIGHT OF WAY AGREEMENT
Land Use Act 1978, Section 22 | Petroleum Industry Act 2021 (where applicable) | Conveyancing Act 1881
THIS RIGHT OF WAY AGREEMENT is made on [Agreement Date]
BETWEEN:
(1) [Grantor Name] of [Grantor Address] (hereinafter referred to as the "Grantor"); AND
(2) [Grantee Name] of [Grantee Address], [Grantee RC Number] (hereinafter referred to as the "Grantee").
1. GRANT OF RIGHT OF WAY
1.1 The Grantor hereby grants to the Grantee a right of way over the following land: [Right of Way Description], as more particularly delineated on Survey Plan [Survey Plan Reference] attached hereto (the "Right of Way Strip"), for the purpose of [Right of Way Purpose].
1.2 The width of the Right of Way Strip shall be [Width].
1.3 The Right of Way is granted for a period of [Duration].
1.4 This grant is subject to the prior consent of the Governor of [Governing State] State where required under Section 22 of the Land Use Act 1978.
2. COMPENSATION
2.1 In consideration of the grant of the Right of Way, the Grantee shall pay the Grantor: (a) a one-time compensation of [Lump Sum Compensation] for crop losses, disturbance, and any structures within the Right of Way Strip; and (b) an annual wayleave fee of [Annual Wayleave], payable on each anniversary of this Agreement.
2.2 For petroleum pipeline rights of way, compensation shall be assessed and paid in accordance with the Second Schedule of the Petroleum Industry Act 2021 (PIA 2021).
3. CONDITIONS OF USE
3.1 The Grantee shall use the Right of Way Strip only for the purpose stated in Clause 1.1 and shall not use or authorise any other use without the Grantor's prior written consent.
3.2 The Grantee shall repair all damage caused to the Grantor's land and crops arising from the construction, maintenance, or decommissioning of the infrastructure within the Right of Way Strip.
3.3 The Grantee shall comply with all environmental obligations under the National Environmental Standards Regulation and Enforcement Agency (NESREA) Act 2007 and, for petroleum infrastructure, under the Petroleum Industry Act 2021.
3.4 The Grantee shall indemnify the Grantor against all third-party claims arising from the Grantee's use of the Right of Way Strip.
4. TERMINATION AND GOVERNING LAW
4.1 This Agreement shall terminate upon expiry of the agreed duration, decommissioning of the infrastructure, or material breach by either party following 30 days' written notice to cure.
4.2 This Agreement is governed by the laws of the Federal Republic of Nigeria and the laws of [Governing State] State. Disputes shall be resolved by arbitration under the Arbitration and Conciliation Act (Cap A18, LFN 2004).
Grantor
________________
Signature
Grantee
________________
Signature
What Is a Right of Way Agreement (Nigeria)?
A Right of Way Agreement in Nigeria sets out the rights, duties and consideration binding the parties to it.
Rights of way in Nigeria are governed primarily by the Land Use Act 1978, which vested all land in the state governor as trustee, and by the Conveyancing Act 1881 (applicable in southern Nigerian states) under which easements are created as proprietary interests in land. The petroleum industry extensively uses rights of way in Nigeria for oil and gas pipelines operated by NNPC Limited, Shell Petroleum Development Company (SPDC), TotalEnergies EP Nigeria, and Nigerian Agip Oil Company (NAOC). The Nigerian Content Development and Monitoring Board (NCDMB) and the Department of Petroleum Resources (DPR) — now the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Petroleum Industry Act 2021 — regulate rights of way for petroleum infrastructure.
The Petroleum Industry Act 2021 (PIA 2021) introduced new provisions governing rights of way for petroleum operations in Nigeria. Section 104 of the PIA 2021 grants licensees and lessees the right to apply to the courts for a compulsory right of way where voluntary agreement with the landowner cannot be reached, subject to payment of compensation assessed under the Second Schedule of the PIA 2021. This statutory compulsory acquisition power coexists with voluntary right of way agreements, which are the preferred commercial approach.
For non-petroleum rights of way — such as power transmission lines (under the Electricity Act 2023 and the Nigerian Electricity Regulatory Commission (NERC) framework), road access, telecommunications infrastructure, and water pipelines — the relevant sectoral regulator's requirements apply alongside the Land Use Act 1978 consent obligations.
The legal framework governing the Right of Way Agreement (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Right of Way Agreement (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Land Use Act 1978 (Cap. L5, LFN 2004) sets the foundational requirements.
When Do You Need a Right of Way Agreement (Nigeria)?
A Right of Way Agreement in Nigeria is required whenever a party needs to access, cross, or use another party's land for a defined infrastructure or access purpose.
A Right of Way Agreement is needed when an oil company (SPDC, TotalEnergies, or a marginal field operator) requires access to lay a pipeline across privately held land or community land in Delta, Rivers, Bayelsa, or Imo State. The PIA 2021 and the NUPRC require voluntary right of way agreements with landowners as a precondition to pipeline construction, and the agreement must include compensation terms compliant with the PIA 2021 Second Schedule.
A Right of Way Agreement is required when a power distribution company — such as Ikeja Electric (IE), Eko Electricity Distribution Company (EKEDC), or the Transmission Company of Nigeria (TCN) — needs to run high-voltage power lines across privately owned or community land. The Electricity Act 2023 and the NERC (Nigerian Electricity Regulatory Commission) framework require formal right of way agreements with compensation.
A Right of Way Agreement is needed when a real estate developer constructing a new estate requires road access across an adjacent landowner's property to connect to a public road. Without a formal right of way, the developer's access road is legally precarious and may be blocked at any time by the neighbouring landowner.
A Right of Way Agreement is required when a telecommunications company — such as MTN Nigeria, Airtel Nigeria, or Glo Mobile — needs to install fibre optic cables or cell tower access roads across private land. The Nigerian Communications Commission (NCC) under the Nigerian Communications Act 2003 permits telecoms operators to negotiate rights of way for infrastructure deployment.
A Right of Way Agreement is needed when a farm or agricultural enterprise requires a formal access route across neighbouring land to reach its fields, irrigation infrastructure, or processing facilities — particularly in states with active agricultural development such as Kaduna, Kano, Ogun, and Benue.
Parties in Nigeria should prepare a Right of Way Agreement (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Right of Way Agreement (Nigeria)
A valid Nigeria Right of Way Agreement must contain the following essential elements.
Parties: Full legal names, addresses, and descriptions of the grantor (landowner) and grantee (beneficiary of the right of way). For corporate parties, include CAMA 2020 RC numbers. For community land, identify the community and its authorised representatives.
Description of the Right of Way Strip: Precise description of the land strip over which the right of way is granted — including width, length, GPS coordinates or survey plan reference, starting and ending points, and the LGA and state. A survey plan of the right of way strip prepared by a SURCON-registered surveyor should be attached as a schedule.
Purpose: The specific purpose for which the right of way is granted — pipeline, power line, access road, telecommunications cable, water pipeline, or other specified use. The right of way is limited to the stated purpose; any expansion of use requires a new or varied agreement.
Duration: The period of the right of way — whether a fixed term (e.g., 25 years for a pipeline), coterminous with an oil prospecting licence or oil mining lease, or perpetual. For petroleum rights of way, the duration typically matches the licence/lease period plus a decommissioning period.
Compensation: The compensation payable to the grantor for the grant of the right of way, including annual payments (ground rent or wayleave fee) in NGN, one-time compensation for crops or structures disturbed, and compensation assessment methodology. For petroleum rights of way, reference the PIA 2021 Second Schedule compensation formula.
Conditions of Use: Obligations on the grantee regarding care of the grantor's land, obligation to repair damage caused by construction or maintenance activities, access restrictions (time windows, vehicle weight limits), and environmental obligations under the National Environmental Standards Regulation and Enforcement Agency (NESREA) Act 2007.
Governor's Consent: For rights of way affecting statutory rights of occupancy in southern states, confirmation of the governor's consent under Section 22 of the Land Use Act 1978 or a condition that the agreement is subject to consent being obtained.
Indemnity: The grantee's obligation to indemnify the grantor against third-party claims arising from the grantee's use of the right of way, including spillage, fire, or structural damage.
Termination: Grounds for termination — including non-payment of compensation, expiry of the grant period, decommissioning of the infrastructure, and abandonment.
Additional compliance elements for a Right of Way Agreement (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Right of Way Agreement (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/real-estate/property/right-of-way-agreement-nigeria
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author = {{Forms Legal}},
title = {Right of Way Agreement (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/real-estate/property/right-of-way-agreement-nigeria}},
note = {Free legal document template. Based on Land Use Act 1978 (Cap. L5, LFN 2004)}
}
Frequently Asked Questions
A Right of Way Agreement is legally binding and enforceable in Nigeria where it meets the requirements for a valid contract under Nigerian law — offer, acceptance, consideration, capacity of the parties, and certainty of terms. For rights of way granted over land held under a statutory right of occupancy, the prior consent of the state governor under Section 22 of the Land Use Act 1978 is required to make the grant effective against third parties. A right of way agreement executed without governor's consent may be void ab initio under the Land Use Act 1978, as confirmed by the Supreme Court in Savannah Bank of Nigeria Ltd v Ajilo [1989]. For rights of way of more than three years, the agreement should be executed as a deed under the Conveyancing Act 1881 (applicable in southern states), stamped under the Stamp Duties Act (Cap S8, LFN 2004), and registered at the State Land Registry.
A community can grant a right of way for oil pipeline access in Nigeria, but the grant must be properly authorised by the community's governing body and comply with both the Land Use Act 1978 and the Petroleum Industry Act 2021 (PIA 2021). Under the Land Use Act 1978, customary rights of occupancy in non-urban land (granted by local government) may be alienated with the governor's consent. The PIA 2021, Section 104, requires petroleum companies to enter into voluntary right of way agreements with communities and landowners affected by pipeline construction, paying compensation in accordance with the PIA 2021 Second Schedule. Where agreement cannot be reached, the PIA 2021 provides for compulsory acquisition with court oversight. The Host Community Development Trust provisions under Chapter 3 of the PIA 2021 also require operators to establish community development funds, which often form part of the negotiated package alongside the right of way compensation.
Compensation for a right of way in Nigeria depends on the type of infrastructure and the applicable legal framework. For petroleum pipeline rights of way under the Petroleum Industry Act 2021 (PIA 2021), the Second Schedule prescribes compensation for surface damage, disturbance of crops, loss of economic trees, loss of structures, and annual wayleave fees. The PIA 2021 requires a Memorandum of Understanding (MoU) between the operator and the landowner or community setting out agreed compensation, with annual payments typically indexed to the prevailing land value. For power line rights of way, the Nigerian Electricity Regulatory Commission (NERC) wayleave regulations set compensation rates. For voluntary access road and telecommunications rights of way, compensation is purely market-negotiated. Independent valuation by an estate surveyor registered with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) is recommended to establish a fair compensation baseline.
In Nigerian property law, a right of way and an easement are closely related concepts but differ in scope. An easement is the broader category — a right enjoyed by the owner of a dominant tenement over a servient tenement for a limited purpose, such as a right to light, a right to support, or a right to run water pipes. A right of way is the most common type of easement in Nigeria: it is the right to pass over another person's land. Under the Conveyancing Act 1881 (applicable in southern Nigerian states), easements including rights of way are capable of existing as legal interests in land where they are created by deed for a defined purpose and period. The Land Use Act 1978 complicates the strict common law concept of dominant and servient tenements, since no one 'owns' land in the fee simple sense, but Nigerian courts have adapted easement principles to the right of occupancy framework and continue to enforce them.
A Right of Way Agreement in Nigeria should be registered at the relevant State Land Registry to bind third parties who subsequently acquire the grantor's land. Under the Lagos State Land Registration Law 2015, the Rivers State Land Instruments (Preparation and Registration) Law, and equivalent statutes in other states, instruments creating interests in land — including easements and rights of way — must be registered to be effective against a purchaser for value without notice. An unregistered right of way remains enforceable between the original grantor and grantee, but a purchaser of the grantor's land who has no notice of the right of way and pays valuable consideration may take the land free of the right of way. Registration requires the agreement to be first stamped at the relevant State Internal Revenue Service and executed in deed form with proper witnessing. For petroleum rights of way under the PIA 2021, the NUPRC may also require notification and filing.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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