Project – An evaluation of the problems of compulsory acquisition and compensation as it affects property development
CHAPTER ONE
INTRODUCTION
1.1 Background Of The Study
Compulsory land acquisition is the most challenging aspect in land management as it affects both the government and the populace, and this is due to the fact that land often means different things to different people and as such is not easy to let go. Berry, (2016) defined land as the portion of the earth’s surface that is solid and not covered by water, whereas other people view it as the area used to grow crops and grains to feed their families and livestock. Some people however, value land for it’s prestige, others derive their dignity from land, which is why people respect land more. The importance of land is not quantifiable, due to the fact that it is a basic necessity of life. It is therefore not difficult to understand, why there is very high demand for land; Owners have different attitudes to land and this originates from people’s perspective or views about land. This is what brings about different reactions to compulsory land acquisition and compensation made by government, Silvery and Larbi (as cited in Oladapo and Ige, 2014).
Public amenities and infrastructure are primarily provided to citizens by their Government around the world. The acquisition of suitable land is required for the development of such infrastructural facilities (Akujuru & Ruddock, 2013). The power of the government to acquire private rights or interests in land/landed property without the owner’s or occupier’ s consent with the sole aim of overriding public interest is known as compulsory acquisition (Akujuru, 2014). The authority for compulsory acquisition is frequently required by the government to address requirements for social and economic growth on a local, state, and federal level as well as to safeguard and preserve the environment from overuse by the private sector (Onyije & Akujuru 2016). But when the government acquires land for a reason of overriding public interest, compensation is frequently paid in accordance with the law’s provisions to at the very least return the affected parties to their prior state or an equivalent while also bringing about the desired benefits for society (Onyije & Akujuru, 2016).
According to Onyije and Akujuru, (2016) Compulsory land acquisition is a tool used to execute the land development function of land administration within the land management paradigm. The use of the compulsory land acquisition tool and the accompanying resettlement compensation method is a very complicated form of land acquisition since it involves the use of forceful deprivation of property.
Land acquisition by government is a global phenomenon, though it means different things in different countries (Oghenekevwe, 2016).
In the case of Australia, Mangioni, (2014) found that the majority of landowners do not approve of giving the power of eminent domain to the government even though they are satisfied with the amount of compensation payable. Efficient compensation is important but not the only factor to be considered for an efficient acquisition exercise. Miceli and Segerson, (2014) discuss the limitations of economic theories in the evaluation of compulsory purchase mechanism and state that “a broader perspective, therefore, requires the allowance for other values besides economic values (like fairness or justice”.). A good practice exists in Australia whereby land valuation act has been formulated within which the practice of compulsory acquisition is regulated. To make this act effective, a Valuer General is appointed to superintend over all valuation practice in the country. The Valuer General meets regularly with senior land and property information officers from across the regions of the country to review matters and issues pertaining to statutory valuation process (Queensland Government, 2017 and NSW Government, 2013). This arrangement is helping the entire statutory valuations systems in Australia and it specifically give guidance to contract valuers to provide accurate assessments while also informing and explaining significant changes in new assessments.
Shukla, (2020) In India there is lack of accessible land records, thereby complicating negotiations for land because it is difficult for participants to ascertain the ownership of land, this has affected land acquisition in favor of the compulsory acquisition power of the state. These powers of the state is legally backed by the provision of enabling law which allows the government and its agencies to acquire a privately owned land for public purposes. The affected private landowners however, strongly resist the process of compulsory acquisition. Rao (2018a, 2018b, 2019), discusses these landowners bear the loss of many interests associated with land for which the present frameworks of compensation (or resettlement) are unable to compensate.
Huggins, (2013) carried out a study in Trinidad and Tobago where he proposed that “compensation was one of the main problems of affected landowners and entities later in the process”. In many circumstances, the public are paid years later from the date of settlement and it costs additional interest 9% per annum. The process may involve problems of ownership and delays in the compensatory negotiation process, due to legal title being vague. Acquisition of land by the State acts as tool to assist in the management of a country’s natural resources.
Land acquisition for manufacturing industries in Sabata Town in Ethiopia is based on compulsory land acquisition for industrialization and urbanization. This is because Ethiopia has no unified, accountable, and independent institution for general land valuation (Asres, 2019). The government plays the main role as sole administrator and regulator of the land valuation or market.
Admasu et.al, (2019) investigated land expropriation for urban expansion in Bahir Dar Town, Ethiopia depicted the expropriated people lost their produce and sources of income. In an attempt to attract investment in manufacturing industries, particularly the foreign investors, the creation of job opportunity and technology transfer have been used as temptation in the study area. However, the industrial investors are “land hungry” ultimately culminating in encroaching farmland and grazing land (Rahmato, 2016). The impact of manufacturing industrial development on nearby farmers land tenure and natural resources use were not sufficiently anticipated (Rahmato, 2016).
A recent study in Ghana found that the farmers’ involvement in the compensation process did not go beyond the identification and measurement of their farms. With limited participation in the acquisition and compensation process, the farmers felt deprived of their entitlements and viewed the compensation as inadequate for their lost livelihoods and generational inheritance (Ablo & Asamoah, 2018). The affected community also made claims that their living conditions deteriorated following the acquisition, leading to various difficulties. These challenges included disagreements within families regarding the distribution of compensation awards, overcrowding, increased dust due to partial demolition of habitable homes, loss of business customers and profits, difficulties in finding alternative housing, and other damages that required compensation, such as the negative impact on properties. Multiple complaints were made to the responsible authorities regarding compensation payments, along with issues related to access and security, such as the demolition of frontages and security walls, which left houses vulnerable. Additionally, there was an increase in the cost of building materials, prolonged delays in compensation payments, and a delay in the road construction project due to some affected individuals preventing the demolition team from tearing down their structures until they received their compensations. As a result, the scheduled completion time for the road reconstruction was postponed, further prolonging the project. These circumstances highlight the importance of effective dialogue between the authorities and the affected individuals, which could have helped the affected persons better understand the process. It is worth noting that the compensation payments were often fragmented, with some individuals not receiving any compensation at all, causing significant negative impacts on the economic and social activities that relied on the demolished properties and consequently, on the livelihoods of the people involved (King & Sumbo, 2015).
Tagliarino et.al, (2018) In Nigeria, a lot of acquisitions occur without adequate or due compensation, thereby leaving affected landowners worse off with no mechanism for an independent appeal and sometimes the lands are not utilized for public purposes. These negative outcomes may be due to some factors like insufficient financing, corruption, limited capacity and the weak legal framework of the country.
Compulsory acquisition is a statutory practice in Nigeria under the Land Use Act Cap L5 LFN 2004 available to the government to acquire land (Sections 28 (1); 2 (a), (b), (c); 3(a), (b), (c), (d) and (4)) as government cannot rely on land markets alone when and where land is needed to provide major infrastructure facilities for the general public. Owners of property have their rights on the properties revoked for overriding public interest with promise to pay compensation.
Katsina, a state located in northern Nigeria, has due to significant positive development witnessed urbanization in recent years (Shehu, 2017). With the growing need for land for various public projects, compulsory acquisition has become a common practice in the state. However, there are concerns about the effectiveness and fairness of the compulsory acquisition process, as well as the compensation provided to affected landowners. These concerns have prompted the need for a comprehensive evaluation of the problems associated with compulsory acquisition and compensation in Katsina and their impact on development
1.2 Statement Of Research Problem
The Land Use Act of 1978 gives the government the power to compulsorily acquire land for overriding public interest, subject to the payment of just and adequate compensation. However, the implementation of the Act has been accompanied by several challenges, leading to conflicts between the government and affected landowners (Abdullahi, 2020). These conflicts often arise due to disputes over the valuation of land and compensation amounts, as well as the lack of transparency and participation in the acquisition process.
The dissatisfaction in the land acquisition is a worldwide phenomenon due to the statutory nature and approach used for the exercise whereby most of the terms are predetermined by the government and landowners with minimal input (Ndjovu, 2016). In some occasions, government authorities fail to properly negotiate compensation with landowners and when compensations are properly negotiated, payments to affected persons would be delayed (Tagliarino etal, 2018). Other issues include the dissatisfaction of claimants on compensation paid and the absence of a mechanism for the response of questions raised by affected landowners (Oladapo and Ige, 2014).
Ndjovu, (2016) opined that what has weakened the security of tenure besides payment of little or no compensation is the way in which governments in most developing countries have exercised power of eminent domain. However, much as there has been attempts in various land acquisition laws and practice in various countries to compensate affected persons for their loss, their dissatisfaction has persisted (Rao et.al, 2018) making it very challenging for the government to fulfil its mandate while requiring land with compulsory land acquisition (Pedlowski, 2013).
An instance exist (Ige et.al, 2016) where people were physically displaced from their properties before payment of compensation was completed. There is also the issue of delays in hearing of appeals on compensation decision in tribunals and courts ( Akujuru and Ruddock, 2015a &b ).
One of the key problems associated with compulsory acquisition in Katsina is the inadequate compensation provided to affected landowners. The problems associated with compulsory acquisition and compensation in Katsina can hinder development initiatives in the state. Furthermore, there is a lack of clarity and consistency in the valuation methods used to determine compensation amounts in Nigeria due to the fact that valuation for the purpose of compensation is a statutory valuation conducted under various policies, statutes and regulations that determine the basis and approach to its assessment (Kakulu et al, 2014). The absence of a standardized and transparent valuation process often leads to disputes and mistrust between landowners and the government (Ogunba, 2018).
Given the significance of these issues, there is a need for a comprehensive evaluation of the problems of compulsory acquisition and compensation in Katsina. Such an evaluation will help identify the specific challenges faced by landowners, assess the adequacy and fairness of compensation, and analyze the overall impact on development in the state. By understanding these problems and their implications, policymakers, government agencies, and stakeholders can develop strategies and reforms to address the shortcomings and promote more equitable and sustainable development in Katsina.
1.3 Aim Of Study
The aim of this study is to evaluate the problems of compulsory acquisition and compensation as it affects property development in Katsina metropolis. With a view to propose a framework for adequate compulsory acquisition and compensation.
1.4 Research Questions
To achieve the study objectives, the following research questions will guide the research:
- How can the challenges of compulsory acquisition and compensation be identified in Katsina?
- How is compulsory acquisition and compensation carried out in Katsina?
- How adequate and fair is the compensation provided to affected landowners in Katsina?
1.5 Research Objectives
- To identify problems associated with compulsory acquisition and compensation in Katsina metropolis.
- To examine the process of compulsory acquisition and compensation in Katsina metropolis.
- To evaluate the level of satisfaction of claimants on compensation paid.
- To propose a framework for compulsory acquisition and compensation to facilitate property development in Katsina metropolis
1.6 Significance Of The Study
This study is mainly concentrated on land acquisition, payment of compensation and land resources. This work therefore, will be of some interest and relevance to the Nigerian land owner and potential land owners. Professionals in environmental fields and students of Estate Management as well as Urban and Regional Planning will find this work useful. This study will be of importance to the policy makers in public and private sectors. The government and oil companies will not be left out in benefiting from this study in terms of the adequacy of compensation to be paid according to the land use act, so as to ascertain that all compensations would be considered fair.
This study’s findings will be of great significance to various stakeholders involved in land and property development in Katsina. The study will provide valuable insights into the problems and challenges associated with compulsory acquisition and compensation and their impact on development. The findings can serve as a basis for policy recommendations and improvements in the legal framework, institutional mechanisms, and compensation practices in Katsina, ultimately leading to more equitable and sustainable development in the state.
1.7 Scope Of The Study
Research on compulsory acquisition and compensation is a lengthy and complicated process that cannot be dealt with exhaustively in such a limited period of time. This study will focus on the problems of compulsory acquisition and compensation in Katsina and their impact on development. The research will be limited to examining the legal framework, institutional mechanisms, and compensation practices specific to the state.
1.8 Limitation Of The Study
Compulsory acquisition and compensation is a very broad subject, it’s practice spans throughout the country but for the purpose detailed interview the study is restricted to GRA Katsina and Kofar Kaura layout both in Katsina metropolis. For the purpose of this study, analysis is limited to lands and buildings.
1.9 Definition Of Operational Terms
Eminent domain: This is right or power of the government to acquire a private property for public use, with the provision of a payment of compensation.
Compensation: This is typically a monetary or other payment awarded to an individual in recognition of loss, suffering or injury.
Land: Land is a vacant and undeveloped property which has no improvements made on it, it encompasses all physical elements bestowed by nature.
Public amenities: These are basic facilities that are available to every individual in a locality to help provide comfort and convenience.
Land expropriation: This is also known as eminent domain or compulsory acquisition, it is the right or power of the government to acquire a private property for public use, with the provision of a payment of compensation.
Private property: This is a legal property owned by an individual or a non-governmental legal entity.
Stakeholders: This entails people with interest or concern in the acquisition process i.e the valuer, the government officials and the expropriated individuals.
Policy makers: These are individuals responsible for creating ideas and plans to formulate or amend an existing policy.
Property development: This is the process of improving the use-value of buildings or land.
Claimants: These are the individuals affected by the acquisition exercise, they are often referred to as expropriated individuals.
1.10 History And Description Of The Study Area
Katsina is a Local Government Area and the capital city of Katsina state, in Northern Nigeria. Katsina is located 260 kilometers east of the city of Sokoto and 135 kilometers northwest of Kano, close to the border of Niger Republic (KSG, 2016). The primary occupations of the residents include farming, traditional handicrafts, and animal husbandry. The people of Katsina State primarily speak Hausa and Fulfude languages (Shehu, 2017). While Islam is the dominant religion, there are still a few known families practicing Christianity and traditional religions in some homesteads, (KSG, 2016). The population of Katsina metropolis was estimated by the Katsina metro area population to be 524,000 in 2023.
Project – An evaluation of the problems of compulsory acquisition and compensation as it affects property development