[quote author=LearnNigeriaLaw post=49210084]LEGALITY OF GOVERNMENT’S COMPULSORY ACQUISITION OF LAND AND PAYMENT OF COMPENSATION PART 2
By Onyekachi Umah, Esq. ACIArb(Uk)
08037665878
Onyekachi.umah@gmail.com
www.LearnNigerianLaws.com



COMPENSATION FOR COMPULSORY ACQUISITION OF LAND

If you lend a car to a friend for a specified period of time but you suddenly need the car after your friend had filled its fuel tank; you may pay your friend for his unexhausted petrol. You will not pay for your car but for the petrol. This is what happens in compulsory land acquisition for public interest and payment of compensation. The lands are vested on the governors of states, who sub-lease same to people who in turn pay annual ground rent to them. Where in a governor wants to compulsorily take back (acquire) land, the Governor need not pay anything to any person for the land. Rather the governor MUST pay for the improvements, developments, structures and expenditures on such land. Compensation is for legally acquired lands and not fake or unapproved land tiles; you cannot benefit from your own illegality. So, note that government does not compensate for land rather for the unexhausted improvements/developments on lands legally and duly acquired by its holders/occupiers. Where a compulsorily acquired land is just a bare land no compensation can be paid. Land is and will always be that of government while the improvements on land are yours and entitles you to compensation. Hear me very well, no matter the length, width and largeness of your land, no government will compensate you unless there is an improvement/developmenton your land. (See, Section 29 of the Land Use Act, 1978).Improvements “means anything of any quality permanently attached to the land, directly resulting from the expenditure of capital or labour by an occupier or any person acting on his behalf, and increasing the productive capacity, the utility or the amenity thereof and includes buildings”, (See, Section 51 of the Land Use Act, 1978). Improvement/ expenditures includes;building, installation (mechanical apparatus), amount of the replacement cost of the building, crops on land, plantations of long lived crops or trees, fencing, wells, roads and irrigation or reclamations works, but does not include the result of ordinary cultivation other than growing produce.

Government does not just pay for improvements/development made on land rather for the value of the unexhaustedimprovements. It means that government will consider “Depreciation” (wear and tear) on the improvements while calculating compensation to be paid. So, government will pay you for the unexpired, unfinished, unexhausted part or value of your improvements. Well, government employs professional valuers to access the value/worth of improvements to be paid and interest therein. Government will pay interest on delayed compensation at the prevailing bank rate placed by Central Bank of Nigeria. Documentary evidence (receipts, invoices, bills and quotations) is welcomed to aid in assessment of payable compensation.(See, Section 29 subsection 4 of the Land Use Act, 1978)

Where residential buildings were erected on a compulsorily acquired land, government may offer residential building(s)/settlement in another area as a reasonable alternative accommodation to the affected persons in place of monetary compensation. If the value of the new settlement is higher than the compensation government would have paid, such excess/extra in value will be considered as loan to the persons, which they must pay to government.Anyone who takes government’s settlement/residential building (reasonable alternative accommodation) cannot seek for monetary compensation; his right has been waived, (See, Section 33 of the Land Use Act, 1978). Where compensation is payable as shown above, it shall be paid to the holder of the right of occupancy. Where the land in question is owned by a community, Governor may direct compensation to be paid to the community or to the chief/traditional ruler of the community or into a fund set aside by the Governor for the benefit of the community. (See, Section 29 subsection 3 of the Land Use Act, 1978).

Where one is not paid his compensation at all or has any challenge concerning the rightful persons to be paid compensation, he can seek redress in a State High Court only and not a customary court, area or magistrate court. (See, Section 39 of the Land Use Act, 1978). Please it is very important to note that NO court in Nigeria has powers and jurisdiction to entertain and deliberate over a case concerning the amount or adequacy of any compensation paid or even to be paid. (See, Section 47 subsection 2 of the Land Use Act, 1978). Hence, you cannot approach a court to challenge the amount paid to you by government as a compensation for your improvements on a land but you can approach a court to determine persons entitled to compensation. No matter how harsh it may appear, it is our law until same is amended by the National Assembly.

As seen above, government can compulsorily acquire any land but must do so cautiously within the confines of law and procedure. Government MUST pay compensation or provide an alternative accommodation where there are unexhausted improvements/developments on a compulsorily acquired land. Where government is reluctant or fails to compensate, the persons concerned have legal remedy in the State High Court.

Thank you.

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