This study examined the Governors’ powers to charge ground rent and revoke certificate of occupancy in Nigeria under the Land Use Act of 1978 in relation to its impacts on land development. The study found out that there is lack of clarity in the assessment, double payments in the collection of ground rents and loss of revenue by the government. This review strongly suggests that for effective application of ground rent that ensures rapid development of land, there should be an amendment of section 5 (1) of the Act, elimination of frequent revision of ground rent and the use of qualified Estate Surveyors and Valuers in the assessment and collection of ground rents.