Choosing informal ways to acquire land

Purpose This paper examines why some sets of people choose an informal way to acquire land. It also examines challenges and drivers within indigenous communities in South-western Nigeria. Policy recommendations were proposed for formalization. What precisely are the contextual reasons that can be established empirically for the prevailing extra-legal practices in the developing land market? What are the challenges, and how can the informal land market be graduated into the formal system? Design/methodology/approach It begins with identifying the contextual features, drivers and challenges of the informal land market through a combination of literature synthesis and a pilot survey. Subsequently, copies of questionnaires were developed, tested and distributed to the critical actors in the informal land market. Lastly, a structured interview was conducted to elicit possible solutions from key actors (both formal and informal stakeholders). Data were analyzed using descriptive, inferential statistics and computer-aided qualitative data analysis software (CAQDAS, Atlas. ti). Findings The absence of administrative bureaucracy was the predominant characteristic of the informal urban land market, while household income is the strongest predictor of the informal land market drivers. Informal documentation of transactions is also one of the most severe challenges in the informal urban land market. Consensus between statutory and customary institutions and other 15 governance-related recommendations is proposed to confirm informality to formality. Originality/value The paper's outcome will provide a rational guide to landowners, land administrators and other stakeholders on relevant information needed to develop a viable and healthy urban and rural land market.