Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between land tenure system and farm profitability has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Lagos State where operating conditions differ markedly from more developed markets.

Lagos State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While land tenure system is widely discussed in policy and industry circles, empirical evidence on its actual effect on farm profitability within Lagos State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to land tenure system are helping or hindering farm profitability — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Land Tenure System on farm profitability in Lagos State.
2. To assess the extent to which land tenure system influences farm profitability within the study area.
3. To identify the challenges associated with land tenure system in relation to farm profitability.
4. To recommend strategies for optimizing land tenure system in order to improve farm profitability.

1.4 Research Questions

1. What is the effect of land tenure system on farm profitability in Lagos State?
2. To what extent does land tenure system influence farm profitability within the study area?
3. What challenges are associated with land tenure system in relation to farm profitability?
4. What strategies can be adopted to optimize land tenure system in order to improve farm profitability?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around farm profitability. For managers and practitioners within Lagos State, the study provides practical insight into how land tenure system can be better managed. Finally, it contributes to the academic literature on agricultural economics by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Land Tenure System and its relationship with farm profitability within the context of Lagos State. It reflects a BSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.