The Land Use Act and Compulsory Acquisition Without Compensation

Description

ABSTRACT

The Land Use Act and Compulsory Acquisition Without Compensation

Dr. Akintunde Otubu*

The paper examines the provisions of the Land Use Act on compulsory acquisition and compensation process in Nigeria vis-à-vis global standards and best practices. It highlights areas of injustice in the law, particularly instances of compulsory acquisitions without compensation. The paper evaluates the Act as a piece of expropriatory legislation with particular instances of compulsory acquisition processes without compensation. The paper advocates a review of the law particularly the overbearing regulatory and judicial powers of the governor under the Act. The paper also recommends payment of compensation for revocation of property rights as well as grant of access to court for the determination of issues arising therefrom.

INTRODUCTION
The right to acquire, hold and enjoy property is one of the fundamental pillars on which a democratic society rests.₁ The right to property is not however absolute. It is subject to eminent domain, an inherent right of the State to compulsorily acquire private property for common good.₂ In Nigeria, the Land Use Act₃ provides and sets out guidelines through which lands may be compulsorily acquired from land owners. Sections 43 and 44 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) also allude to revocation of rights and interests in land. The Constitution however stipulates that compensation must be paid whenever there is a compulsory acquisition of property rights of the citizen.₄

However, there are instances in the Land Use Act which deviate from this golden rule by denying land owners of any compensation or allowing payment of what amounts to inadequate compensation for the loss occasioned by the acquisition. In this paper, a deeper analysis of the controversy is undertaken in the light of emerging facts in the administration of the Act. The paper also discusses other instances of compulsory acquisition without compensation as found under the Act. The paper begins with the conceptual framework for compulsory acquisition and compensation and thereafter examines the Act as a piece of expropriatory legislation. The paper subsequently analyses specific provisions of the Act vis-a-vis expropriation of private property rights or otherwise. In conclusion, the paper offers some suggestions to ameliorate the rigours of the Act on private property rights.

* PhD., BL. Senior Lecturer, Department of Private and Property Law, Faculty of Law, University of Lagos, Akoka, Nigeria. The author acknowledges the Donor and Trustees of Femi Okunnu Research in Property Law who provided the funds for the research

1. A. Alias, & N. Daud, ‘Payment of Adequate Compensation for Land Acquisition in Malaysia’ (2006) 12(3) Pacific Rim Property Research Journal 326 at 329
2. See generally A. Ghosh, The Land Acquisition Act 1894-Law of Compulsory Acquisition and Compensation (6th edn, Eastern Law House 1973)
3. CAP 202 LFN 2004
4. ‘Compensation is the sum of money which the owner would have gotten had he sold the land on the open market plus other losses which results from the acquisition process. It is thus sacrosanct that compensation follows compulsory acquisition processes’. See: Otubu, T, ‘Private Property Rights and Compulsory Acquisition Process in Nigeria: The Past, Present and Future’ (2012) 8(3) Acta Universitatis Danubius Juridica 25-42

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.7 NO.4