Purpose: Before the advent of the Land Use Act in 1978, individuals, families and communities owned land absolutely according to customary law. Thus, the family or community was free to give out their land to deserving members of the family or community or even to outsiders as the case may be. Where an individual was the absolute owner of the land, he was free to deal with it in any manner he liked. Therefore, the individual, family or community exercised all incidents of ownership without restrictions. All these were altered when the Land Use Act was promulgated. The extent to which this Act affected the existing land tenural system in Nigeria is discussed in this article. This article critically analyses the land tenure system under both conventional land law and customary land tenure in Nigeria.
 Methodology: Applying doctrinal research methodology, it uses some available resources in some Nigerian libraries, both online and offline.
 Findings: It concluded that the provisions of the Land Use Act have severe consequences on land tenural system in Nigeria.
 Recommendations: In view of the challenges highlighted in the Act, this article recommends among other things that the State Governors need to improve and quicken the process of issuing certificates of occupancy and payment of adequate compensation after revocation of tittle to land to forestall unnecessary litigation and that there should be a land reform that recognizes the rights of individuals or communities to land either freehold (indefinite absolutely) or for a relatively long-term duration. This will ensure a genuine free market economy.