An Estate Surveyor and Valuer ESV Karin Ngozi Nwaji has given reasons why compensation disputes will never end in Nigeria .
Nwaji made this known in Abuja yesterday.
She explained that compensation disputes arising from government acquisition of land have become a recurring issue across Nigeria.
“From road expansion projects to urban renewal schemes, affected property owners frequently complain of inadequate compensation, delayed payments, and valuation figures that do not reflect prevailing market realities.
“ At the heart of these disputes lies the intersection between the Land Use Act and property valuation practice”.
She added that while the Land Use Act was enacted to ensure equitable access to land and orderly development, its application particularly in compensation matters has continued to generate controversy and dissatisfaction.
Understanding Compensation Under the Land Use Act
She noted that the Land Use Act vests all land in each state in the governor, to be held in trust for the use and benefit of the people.
When land is acquired by government for overriding public interest, the Act provides for compensation to be paid to holders of statutory or customary rights of occupancy.
She stated that however, compensation under the Act is largely limited to unexhausted improvements on the land, such as buildings, crops, and other developments. In many cases, the land itself is either undervalued or excluded entirely from compensation assessment.
“This provision has remained one of the most contentious aspects of the Act”.
Where Valuation Problems Begin
She reiterated that from a valuation perspective, disputes often arise because compensation assessments do not align with established market-based valuation principles. Property owners expect compensation that reflects open market value, considering location, demand, and future potential.
“In practice, however, compensation figures are frequently based on outdated schedules, rigid government rates, or administrative directives that do not reflect current market conditions”.
She said another challenge is the lack of transparency in the valuation process. Affected parties are rarely involved in the assessment, and valuation reports are often not disclosed or explained. This creates mistrust and fuels perceptions of bias or injustice.
Data Limitations and Professional Constraints
According to her Estate Surveyors and Valuers engaged in compensation valuation under government acquisition often operate under strict instructions and limited data. “In many states, access to reliable land transaction records is poor, making it difficult to establish accurate market evidence”.
Additionally, valuers working for government agencies may face institutional pressure to adopt conservative figures due to budgetary constraints, even when market indicators suggest higher values.
“This puts professionals in a difficult position balancing professional ethics with administrative realities”.
Impact on Property Owners and Development
She explained that persistent compensation disputes have far-reaching implications. Property owners may resist acquisition, leading to project delays and increased costs for government. “Prolonged litigation also strains judicial resources and undermines public confidence in land administration”.
“For investors, uncertainty around compensation discourages long-term real estate investment, especially in areas prone to infrastructure expansion. Ultimately, inefficient compensation systems hinder sustainable urban development”.
The Way Forward
She lamented that to reduce compensation disputes, there is a need for a more market responsive and transparent valuation framework. “Compensation assessments should reflect prevailing market conditions and be periodically reviewed to account for inflation and urban growth”.
She added that government should also strengthen collaboration with professional Estate Surveyors and Valuers, allowing greater professional independence in compensation valuation exercises.
She added that public disclosure of valuation methodologies and figures can further enhance trust and accountability.
“In the long term, a comprehensive review of compensation provisions under the Land Use Act is necessary to align legal requirements with contemporary valuation practice and economic realities”.
Conclusion
Nwaji stressed that compensation disputes under the Land Use Act persist not merely because of legal provisions, but due to gaps between statutory requirements and practical valuation realities.
She said that bridging this gap requires transparency, professional integrity, reliable data, and policy reforms. Until then, compensation disputes are likely to remain an enduring feature of Nigeria’s land administration.
