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Lagos-Badagry Road Expansion: Property Owners To Get Compensation

By Akinpelu Dada

 

Most of the over 1,065 property owners along the Lagos-Badagry Expressway, whose premises may give way to the expansion of the road and the construction of the light rail system, will be compensated by the Lagos Sate Government, which has commenced the process of evaluating the properties.

Governor Babatunde Fashola, had on Monday, given notice for the revocation of the Right of Occupancy of the parcels of land traversing Badagry and Ojo Local Government Councils for overriding public interest. He based his action on Section 28 of the Land Use Act of 1978.

He directed holders, owners and occupiers of the parcels of land to accordingly yield up possession on or before the expiration of 21 days, insisting that anybody that had right or interest on the land to come forward with appropriate documents to back up the claims.

The governor, however, said that compensation shall be payable on revocation of Right of Occupancy in ”appropriate and special cases” in accordance with the provisions of the Land Use Act Cap. 202 of 1990, Laws of the Federation of Nigeria.

Indications, however, emerged on Tuesday that the government was prepared to pay compensation to genuine claimants, as it had sent out its land officers to carry out an evaluation of the affected properties.

Confirming the development, the Director of Land Services in the state Lands Bureau, Mrs. Nike Animashaun, who spoke on behalf of the Permanent Secretary, Mr. Gbenga Ashafa, said that the land officers had enumerated over 390 properties for the first phase of the project from Eric Moore junction in Orile to Mile 2 and were ready to move to the second phase from Mile 2 to Volkswagen area, before extending their evaluation job to Badagry roundabout.

She said that the revocation of Right of Occupancy and payment of compensation was a legal issue and not administrative, noting that the expansion of the road was in overriding public interest with land title holders entitled to compensation from the government.

On how the monetary value of the compensation would be determined, Animashaun said that the Land Use Act prescribed that the replacement cost method should be used where a structure already existed on the parcel of land, while the exact amount paid to government as ground rent for that year would be paid for undeveloped parcel of land, noting that the government would use the current market valuation estimates prepared by the Nigerian Institution of Estate Surveyors and Valuers to determine compensation.

Though estate valuers commended the government for accepting to pay compensation to the property owners, they, however, insisted that the job of evaluating the value of each property should have been left in the hands of realtors in private practice.

For instance, the First Vice-President, NIESV, Mr. Bode Adediji, commended Fashola for the project, which he said would make properties along the route the most valuable real estate in the whole of West Africa because of its proximity to neighbouring countries, he, however, said that the job of determining the appropriate compensation should be given to independent valuers.

He said, ”Determining compensation should be a private sector job because if the government uses civil servants for it, the property owners are likely to object to it, but with independent valuers handling it, the agitation will be less.”

A Lagos Island-based realtor, Mr. Stephen Jagun, said it was wrong to use a general rate to determine compensation for a particular area since every property had its own distinct characteristics and value, which would be determined by location and type and size of structure on it.

He advised the government to always seek professional advice whenever the issue of compensation for land arose, noting that statutory valuation of properties was guided by the law, and that government would not pay compensation equal to the open market value of the properties if its officials were the sole determinant of value.

Though Animashaun said that tenants on the affected properties would not be paid any compensation because they were not the title holders to the land, Jagun, however, said that landlords should pay them for unexpired period of their lease agreements from whatever compensation given by the government, noting that most of the tenants doing businesses on the properties would still lose out because they would forfeit the goodwill they had in the area whenever they relocated to new areas.

 

Source: Punch