COMPENSATION

 INTRODUCTION.

The right of an individual to acquire and own land in any part of Nigeria is one of the fundamental rights guaranteed by the 1999 constitution of the Federal Republic of Nigeria. The legal right of the Government to compulsorily acquire land which is subject to right of occupancy by revoking it is also recognized by the constitution. section 43 of the constitution provides:

subject to the provision of this constitution, every citizen of Nigeria shall have the right to acquire and own immovable  property anywhere in Nigeria.

section 44(a) provides:

No moveable property or any interest in an immovable property shall be taken possession of compulsorily in any part of Nigeria except in the manner and for the purpose prescribed by a law that among other things.

• requires the prompt payment of compensation
• gives to any person claiming such compensation a his interest in the property and the amount of compensation to a court of law or tribunal or body having jurisdiction in that part of Nigeria

Pursuant to these constitutional provision, section 29 of the Land Use Act provides that if a right of occupancy is revoked, the holder and the occupier should be entitled to compensation for the value at the date of the revocation and the unexhausted improvements. The holder may also exercise the option to accept resettlement for such revocation.

OBJECTIVE

The objective of this unit is to establish a balance between the Government’s right to revoke a right of occupancy granted on grounds of public interest, public purpose or breach of the terms of the grant and a person’s corresponding entitlement to compensation for such deprivation of a right of occupancy which is enforceable against the government

MAIN CONTENT.

Section 44(1) of the 1999 constitution is that no property of a citizen should be taken from him except in compliance with due process of law. See Seleh v Monguno (2006) 15 NWLR (PT 1001) 26 at 70.

Section 29 of the Land Use Act provide that where the right of occupancy has been revoked on grounds that the lands is required for mining purposes, oil pipelines or purposes connected with it or for the extraction of building materials, there is a corresponding obligation on the Government to pay the holder or occupier compensation.

In Eif Petroleum Nigeria Limited v Daniel C. Umah & ors (2007) 1 NWLR (PT 1014) 44 the court held that having fouled to acquire the Plaintiff’s land for the purpose of establishing a gas plant at Obite Community in Ogba /Egbema /Ndoni Local Government Area of Rivers State, by valid revocation and payment of compensation to the Plaintiffs, it was unconscionable for the Defendant Appellant to go on the Plaintiff/Respondent land to conduct oil exploration activities

PAYMENT OF COMPENSATION

section 29 (3) of the Land Use Act stipulates that if the holder or occupier entitled to compensation is a community, it may be directed by the Governor that such compensation should be made payable to

• The Community

or

• The Chief or Leader of the Community to be disposed of by him for the benefit of the community in accordance with the applicable customary 1

or

• into some fund specified by the Governor for the purpose of being utilized or applied for the benefit of the community

QUANTUM OF COMPENSATION

Compensation to be paid to the holder or occupier in accordance with section 29 (4) relates to :

• the land, for an amount equal to the rent, if any, paid by the occupier during the year in which the right of occupancy was revoked.
• building, installation or improvement thereon for the amount of the replacement cost of the building, installation or improvement that is to say, such cost as may be assessed on the basis of the prescribed method of assessment as determined by the appropriate officer less any depreciation, together with interest at the bank rate for delayed payment of compensation and in respect of any improvement in the nature of reclamation works, being such cost thereof as may be substantiated by documentary evidence and proof to the satisfaction of the appropriate
• crops on land apartfrom any building installation or improvement thereon for an amount equal to the value as prescribed and determined by the appropriate officer

Were however the land which is subject to compensation in accordance with 29 (4) forms part of a larger area, in computing  the compensation payable, it shall be less a proportionate amount calculated in relation to that part of the area not affected by the revocation. Any interest payable shall also be assessed and computed in a similar manner.

• Section 2a(5) of Land Use Act

Where there are buildings, installations, or improvements or crops on the land the compensation shall be computed in the same manner as stipulated in 29(5) of the Land Use Act .

Installation is defined in section 29(7) of the Land Use Act as relating to mechanical apparatus set up or put in position for use or materials set up in or on land or other equipment but excludes fixtures inn or any building.

COMPENSATION FOR LEASEHOLD INTEREST

Section 35 of the Land Use Act stipulates that where the compensation relatestoland held under leasehold  whether customary or otherwise and is comprised of an estate laid out by any person, group or family entitled to the reversionary interest,  the Governor shall in respect of improvement pay to that person, group or family compensation as specified in section 29 of the Land Use Act discussed in 3.0 and 3.1

There shall also be deductible from the compensation payable under section 3500 any levy by way of development or similar charges paid in respect of the improvement on the land by the lessee to the person group or family in which the reversionary interest of the leasehold vests and the amount to be deducted shall be determinable by the Governor taking cognizance of all the circumstances of the case.

INTEREST PAYABLE ON COMPENSATION

The Land Use and Allocation Committee by virtue of section 29(4)

• of the Land Use Act empowers the Land Use and Allocation Committee to calculate the interest payable at bank rate for delayed payment of compensation and in respect of any improvement in the nature of reclamation works being such cost as may be substantiated by documentary evidence and proof to  the satisfaction of the appropriate officer.

In Yakubu v M. W.T Adamawa State (2006) 10 NWLR (PT 989) 513 the Land Use Allocation committee delayed payment of compensation for the demolition of the Appellants building in Yola Metropolis over which the Appellants had a valid certificates of occupancy and approved building plans for the property demolished. The court held that the Appellants were entitled to 32 percent interest per annum on the N1,447, 409.34 interest payable by the Respondent as compensation.

DISPUTE RESOLUTION

Where there is dispute as to the amount of compensation calculated in accordance with section 29 of the Land Use Act, parties are at liberty to refer their dispute to the Land Use and Allocation Committee which is empowered by section 30 of the Land Use Act  to resolve such disputes.

Section 44(1) (b) of the 1999 constitution, also gives a person claiming compensation for being dispossessed of his proprietary rights, a right of access for the determination of his interest in the property and the amount of compensation to a court of law or tribunal or body having jurisdiction in that part of Nigeria.

CONCLUSION

Sanctity of proprietary rights of citizens is enshrined as a fundamental human right in the 1999 constitution of the Federal Republic of Nigeria. Inspite of the fact that the Government right to infringe on this right is recognized under the Land Use Act’s provisions for revocation on grounds of public interest and for public purpose, it is mandated to be subject to the notification of the occupier and the payment to him of compensation for the infringement of his proprietary rights. The right of access to the courts by aggrieved persons whose right of occupancy have been revoked is to ensure that the right of revocation conferred on the Governor by section 28 of the Land Use Act is not exercised arbitrarily and displaced persons are adequately compensated.

SUMMARY

• Section 44(1) of the 1999 Nigeria constitution provides for the payment of compensation to persons whose property have been compulsorily acquired
• Section 29 of the Land Use Act provides of the payment of compensation to holders or4 occupiers of Land who right of occupancy have been revoked or grounds of public purpose pr public interest
• The quantum of compensation payable to the occupier depends on the buildings, installation, improvements or crops on the Land
• The Land Use and Allocation Committee is empowered to calculated interest payable on delayed compensation
• Where there is dispute as to amount of compensation calculated as payable to an occupier, he is at liberty to refer their dispute to the Land Use and Allocation Committee as provided by section 30 of the Land Use Act
• An occupier can also institute proceedings in the High Court of the State, where he is of the view that his propriety right has been infringed on
• An occupier whose right of occupancy, has been revoked could opt for resettlement in lieu of the payment of monetary compensation by
• Quantum compensation payable under the Land Use Act is also applicable to leasehold

TUTOR MARKED ASSIGNMENT

A valid revocation of a right of occupancy granted under the Land Use Act 1978 is subject to the payment of compensation to the occupier or holder. DISCUSS

SUGGESTED ANSWERS

• Compensation for revocation of a right of occupancy is only applicable to revocation of right of occupancy on grounds of public interest and for the public purpose as provided by section 29(1) and 29 (2) . Where however the revocation is on grounds of breaches of the provisions of the Land Use Act pursuant to section 28 (5) of the Act

 SUGGESTED FURTHER READING/REFERENCES

Niki  Tobi  Cases  and  Materials  on  Nigerian  Land  Law  (Lagos: Mabrochi Books, 1997).

STATUTE

The Land Use Act 1978.