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Developers’ Dilemma Over Huge Compensation Demands In FCT.

By Chinelo Nkiruka Nwosu

In the past, major factors militating against cheap and affordable housing in Nigeria included; high cost of building materials, funding challenge, access to land and a host of others. Currently, there’s a major shift in lands development challenge. This is manifest in the rabid demands for exorbitant compensation by the aboriginal community, the Fulani settlers and those who claim traditional ownership to lands in the FCT.

There’s no doubt, payment of compensation is part of our legal system. Sections 28 and 29 of the Land Use Act( LUA) of 1978 highlight revocation/ acquisition of land and payment of compensation respectively. Therefore, compensation needs to be undertaken in line with the provisions of the law. Unfortunately, it hasn’t been so

Recent research into the demands for compensation by the original inhabitants of Abuja shows that they are not specifically guided by the prescriptions of the law Besides, the compensation fee being demanded varies from one Area Council to another. There are even discrepancies within the same Area Council. The compensation fees demanded by each Chiefdom and family are in most cases at variance depending on exposure, propensity to acquire wealth amongst other factors.

For example, in a place like Guzape and its environs under the Garki chiefdom , Abuja Municipal Area Council, the aborigines demand as high as N40million per 2,000 square metres of land as compensation. In Karsana District under Jiwa Chiefdom, also in Abuja Municipal Area Council, they demand as much as N6 million per hectare which is comparatively lower than Guzape figure

Apart from these humongous amounts pursued by the aborigines as compensation, there are other sundry demands namely; “ matching ground “, youths development fees, community development fees , social responsibility projects, just to mention but a few. All these costs in addition to other financial involvements make the overall housing cost / delivery in Abuja unimaginably high and unrealistic

These social and economic extortions by the aborigines hamper housing development and delivery, impacting the efforts of property developers in a negative manner

Concerned about the situation, Minister of the FCT in the year 2005 created the Department of Resettlement and Compensation under the Federal Capital Development Authority. The duties of the agency amongst others included; handling professionally the valuation /assessment of unexpired interests on land based on the Heads Of Claim to determine the quantum of Compensation payable.

Since its creation, the department with the help of its qualified Estate Surveyors and Valuers who constitute part of the agency’s staff has been able to free up lands for development for both Public and Private sectors use with minimal hitches or confrontations.

Moreover, section 29, subsection 4 (a – c) of the Land Use Act of 1978 places the responsibility of the determination of the quantum of compensation on the “ Appropriate Officer “. The Act interprets the “appropriate Officer” to mean the Chief Lands Officer of a State and in the case of the FCT to be the Chief Federal Lands Officer.

Similarly, by virtue of the ESVARBON CAP, Only qualified ESVs have the right to place value on a property real or corporeal.

Allottees of land in the FCT should as a matter of urgency endeavour to bring all compensation matters leading to physical possession of their land to the relevant Department of FCDA and Professionals for proper coordination This body is also authorized by Law to ascribe value to land and landed property.

 

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