Large Scale Land Acquisitions in Nigeria: To What Extent Do Property Rights Matter for Economic Development?

From 2008 onwards, developing countries have seen a surge in acquisitions of large areas of agricultural land by international investors. If local farmers have secure property rights and services that support business are available, positive spillover from the acquisitions is expected to drive up the size and value of their parcels. Otherwise, it could lead to conflict and land grabbing. This article studies the effects of such acquisitions in Nigeria by focusing on diverse legal- institutional factors observed across the country. It shows that (1) even if the acquisitions create a short term shock, they can be beneficial later on and that (2) protection of property rights on the ground can bring long term benefits, while their formal recognition helps only in the short term.