An Estate Surveyor and Valuer Esv Irene U. Okogeri has listed some menace of informal negotiation practices in compensation administration in the Federal Captial Territory ( FCT).
Okogeri made this known in Abuja yesterday.
She stated that the administration of compensation for crops, economic trees, and improvements on land in the Federal Capital Territory (FCT) remains one of the most sensitive aspects of land management in Nigeria.
She disclosed that in
line with the provisions of the Land Use Act, compensation is expected to be assessed using approved rates determined by government, with professional input from Estate Surveyors and Valuers in public service.
She maintained that, however in practice, the process is increasingly undermined by informal negotiation practices between original inhabitants and private estate developers or individual allottees.
While nothing that Estate Surveyors working in government establishments are mandated to assess compensation based on officially approved rates for crops and economic trees, including the cost of land preparation where applicable. These rates are designed to ensure fairness, uniformity, and transparency in the compensation process. Unfortunately, this statutory procedure is often bypassed when original inhabitants insist on direct negotiations with developers or private individuals, leading to demands that are far above approved valuation benchmarks.
“In several instances, farm owners demand compensation ranging between ₦2.5 million and ₦5 million per hectare, even where the land contains minimal or no economic trees or cultivated crops.
“ In extreme cases, demands are made for bare land, with additional requests for boreholes, access roads, fencing, or other forms of infrastructure that fall outside the legally recognized scope of compensation. Such practices place heavy financial burdens on developers and individual allottees who have already fulfilled their statutory obligations to government, including payment for Statutory Right of Occupancy, Certificate of Occupancy, and ground rent”, She added.
She explained that the consequences of these informal negotiation practices extend beyond individual transactions.
“Estate developers inevitably transfer these additional costs to prospective buyers, thereby increasing the price of plots and housing units. This situation contributes to the rising cost of real estate in the FCT and undermines government efforts to make housing more affordable for citizens”.
The Estate Surveyor said it is important to recognize that the concerns of original inhabitants are not without merit.
“Land in many FCT communities represents not only an economic resource but also a source of cultural identity, ancestral heritage, and traditional livelihood
“Any compensation framework must therefore balance statutory requirements with social realities”, she stressed.
She stated that however, this balance can only be achieved through a structured and regulated system, not through uncoordinated negotiations that create uncertainty and inflate costs.
She said to address the growing challenges associated with compensation administration in the FCT, the following measures are recommended:
Government should review and periodically update approved rates for crops and economic trees to reflect current market realities.The compensation process should be strictly regulated to discourage direct negotiations between affected communities and private developers. Greater transparency should be introduced in land acquisition and compensation procedures to build trust among all stakeholders. Resettlement schemes and alternative livelihood support programs should be strengthened to reduce over-dependence on compensation payments.
Others are Professional Estate Surveyors and Valuers should be allowed to carry out their statutory duties without interference.
Sanctions should be applied where individuals or groups deliberately obstruct official valuation and compensation processes and
Public enlightenment campaigns should be conducted to educate communities on the legal framework guiding compensation in the FCT.
She concluded by saying that effective compensation administration is essential for orderly growth of the Federal Capital Territory. “Eliminating unregulated negotiation practices will not only protect investors and allottees but will also strengthen public confidence in the land administration system and promote balanced development for present and future generations”.
