CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Estate management as a discipline and a noble profession especially in a developing country

like Nigeria is progressively becoming significant. Governments, groups, corporate bodies

and even private concerns action have taken a new dimension in the modern world as a result

of rising economic trend especially in this period of global economic recession. Now the

services of the experts and professionals abounding our labour force are being sought for, and

their advice being utilized (Wleclukwu, 2008).

It is fundamental fact that the quality of a development and the efficiency by which it is

produced is dependent upon the ability and the application of those involved right from the

inception through to completion. Even though the ability and the professional acumen of

individuals from different disciplines are capable of producing a work of the highest standing,

it is still necessary that their various skills are co-ordinated in such a way that will eradicate

the delays and thus harmonizes their efforts. (Albangbee, 2003).

The estate surveyor and valuer playing this role, is charge with the responsibility to supervise

and co-ordinate the work of other members of the members of the professional team. His

responsibility involves development decision right from the conception through to the

eventual disposition of the completed development and as such would cover aspects of

development in between though to a varying degree of details. To this end, the essential

attributes of the estate surveyor and valuer in road dualisation project includes, leadership,

enthusiasm, diplomacy, personality, self-confidence, that art of inspiring the confidence and

respect others, an ability to delegate, taking positive decision, mastery of clear

communication, exact establishment of priorities, rapid and precise problem solving,

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persistency in progress chasing, a capacity for hard work and of course humility (Wleclukwu,

2008)

The job of an estate surveyor and valuer at this instance includes, the liaising at the stages of

site assembly and feasibility studies, instructing the rest of the professional team, briefing the

team and molding them into homogeneous unit, programming, the selection of contractor and

placing of building contractor updating cash flow and feasibility studies, supervision,

authorizing design changes, monitoring progress and cost, payment of certificate, liaising

with promotion, letting and management agents, providing information for lease

documentation as well as negotiating compensation (Wleclukwu, 2008)

1.2 Statement of the Problem

In Nigeria, acquisition of and compensation for interest in property is statutorily controlled in

accordance with the provisions of the land use Decree (1978) among others. In acquiring land

for developmental project, there are bound to be problems which in some cases affect the rate

of development in the area.

In practices, there is evidence especially in remote village that the natives grumble because

compensation for land is no more paid to them as was the case before the promulgation of the

land use Decree. So, they do not even known that the land is now vested in the government.

Compensation for the properties compulsory acquired are not promptly paid by some

acquiring bodies. The delay in compensation payment greatly subjects the occupiers or

owners to serious financial problems and inconveniences and the problem of threat to the

lives of the field employees during acquisition.

Effort should be made to ensure that these activities be carried out by qualified professionals

on land and land related issues. This is to enable them put into practice their expertise in the

acquisition and compensation issues as well as other matters on land. Road activities are big
2
projects which need large areas of land spanning across many communities which would

require contacts and negotiations with many communities who hold tittles to the land. It is

obvious that development would be hampered with the aggressive nature of land holding in

the country which made it difficult for the government to acquire land easily and cheaply. To

ease acquisition, the role of estate surveyors and valuers are indispensable.

1.3 Research Questions

i. What is the role of estate surveyors and valuers in road dualisation project in Nigeria?

ii. What are the conflicts surrounding the role of estate surveyors and valuers in road

dualisation project in Nigeria?

iii. What is the solution to alleviate these problems encountered during acquisition of

land and compensation?

1.4 Aims and Objectives

The aim of this research study is to examine the roll of estate surveyor and valuers in road

dualisation with detailed discourse on the land use Decree on acquisition and compensation

for private owned lands.

Objectives:

i. To examine the role of estate surveyors and valuers in road dualisation project in

Nigeria.

ii. To evaluate the conflicts surrounding the role of estate surveyors and valuers in road

dualisation project in Nigeria.

iii. To determine the solution to alleviate these problems encountered during acquisition

of land and compensation.

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1.5 Significance of the Study

A research study of this magnitude would be of immense benefits to all stakeholders in the

property market in the following areas:

. This study covers areas of land acquisition, payment of compensation, land resources.The

study would be of immense benefits to property investors and other stakeholders in the

property investment market. The study will be of immense benefits to the practicing estate

surveyors and valuers in study area and beyond, as the outcome of the research would serve

as a reference material.

The research study would be of immense benefits to the students of the department of estate

management and others in the Allied Environmental studies, who wish to widen the scope of

their knowledge on the topic under review. This work therefore, will be of some interest and

relevance to the Nigeria land owner and potential and owners. Professional in environmental

fields; and students of Estate Management, Urban and Regional Planning and law 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.

The study is beneficial to other researchers in the Allied of environmental studies, who wish

to carry on a further research on the topic considered. The study would of immense benefits

to prospecting real estate investors, who are contemplating on the corruption associated with

real estate investment. The outcome of this study will educate the government and policy

maker, law enforcement agents on how to combat corruption as a way of promoting mortgage

development in Nigeria through proper policy formulation and implementation.

This research will also serve as a resource base to other scholars and researchers interested in

carrying out further research in this field subsequently, if applied will go to an extent to

provide new explanation to the topic. This study would help researchers to add to the body of

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knowledge in the field of study. It would also be of immense help to the government

Acquiring Authority and the stakeholders in land acquisition and compensation .It has been

observed that communication gap causes a lot of problem in relationship with people, and if

not well managed, may lead to negative thinking and perceptions of bundle of rights in land

which are held in high esteem by man.

1.6 Scope of the Study

The research scope will cover the compulsory acquisition of land and compensation which is

a length and complicated process that cannot be dealt with exhaustively in such a limited

space like this research work. In the light of this, the study is limited to compulsory

acquisition and compensation of the dualisation of Benin/Okene express road, Edo State and

Nigeria as a whole. Compulsory acquisition and compensation is a very broad subject. Its

practice spans throughout the country. While the geographical scope will cut across Agbede,

Aviele, Auchi and Okpila respectively.

1.7 Limitations of the Study

1.9 Operational Definition of Terms

Estate Surveyor and Valuer: According to Mr Sam Eboigbe of Sam Eboigbe & Co.

properties an Estate Surveyor /valuer is a professional who has been trained to advise clients

on investments with a view to making positive returns.

Valuer: A valuer is someone who has a good knowledge and experience in appraisal of

development project, selection and acquisition of property finance for disposition of complete

project and advises the developers in development decision. Wikipedia

Road Dualisation: A dualisation highway has opposing direction of traffic separated by a

median. Dualized highways can be designed with two or more lanes, but four lanes is the

most common built. Wikipedia

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction to the Study

2.1 Land

If there is no land and ownership of land, there may be no need for acquisition. According to

Tobi (1992, 8), ‘‘Land is generally defined to include not only the surface of the earth and

subsoil, but also the appurtenances permanently attached to it, which include: buildings, trees,

streams, and ponds’’. The Property and Conveyance Law of Western Nigeria, ( S.2 , cap.

100) defined land to include land of any tenure, buildings or parts of buildings (whether the

division is horizontal, vertical or made in any other way and other corporal hereditaments,

and an easement, right, privilege, or benefit in, over, or derived from land.

According to Nwabueze(1972,3) ‘‘Among laymen , land does not just mean the ground and

its subsoil, but includes also all structures and objects, like buildings and tree standing’’.

Lawrence and Chavasse (1958) also defined land to mean tenements and hereditaments of

any tenure. Public lands Acquisition Act, Cap 167 in Section 2 defined land to “ mean such

lands as are not native lands under the land and native rights ordinance and includes any

estate or interest in such lands’’. It is believed that in Igbo society of Nigeria, the deities of

land or “Ana” are given important place in the moral values of the people. Coker (1966, 45)

sees land as the simplest object of property in any system of jurisprudence. The Latin maxim

“quicquid plantatur solo solo cedit” is taken as a legal meaning which as a maxim of most

legal which, is also a part of Yoruba native law and customs.

Ogbuefi, (2004) also noted that all those free gifts of nature such as ‘land’, forest, minerals,

etc are commonly called natural resources or known to economists as land are a major factor

of production. This is so because every development, investment, agricultural activities etc

6
upon which income is generated by an earth man is based on land, without which it may be

impossible to exercise these activities on earth. Umeh, (1967) defined land using some

concepts which include physical, economic, legal, abstract, spiritual and socio-political. His

abstract concept sees land as power which is exercised over land:-i.e. the right and the

interest that is derived from land in its notion as real property. In essence, it is this aspect of

land that leads to ownership. It should be noted that land cannot be held and since only that

thing which can be held is owned and claimed, then one can say that land is not owned since

one cannot hold or carry the land about but it is the quantum of interest, the right, prestige,

the power that one exercises on the land over every other person that may have need or

longing for that piece of land, that constitutes ownership.

It is important here to state that Land is classified according to its use as follows: Residential

land use, Commercial land use, Industrial, Agricultural, Pastural, Recreational and

Transportation land use. This classification aids the Zoning of Towns and Cities by the Town

and Country planners. Project Conceptualization The role of the Estate Surveyor and Valuer

commences from the moment an idea to embark on real estate development is conceived. The

estate surveyor through his training and knowledge advices a project proponent on the

optimum location for a conceived development project. His advice at this stage is cursory as

it is not based on any pre- investment studies.

Having conceived a development project, the estate surveyor goes further to advice on the

site, (location) most suitable for the proposed real estate development. He explores such

factors as zoning permissibility, soil sustainability neighbourhood compatibility and

availability or possibility of providing infrastructural services – electricity, water, drainage,

health services, educational, institutions, site relationships with places of work, worship, and

7
recreation among others. At this stage, cursory contributions of some other professionals may

be required, depending on the nature and magnitude of the project.

2.2 Site Acquisition

The Land Surveyor, the Estate Surveyor and the Lawyer are involved in site acquisition. The

Land Surveyor carries out the peripheral survey to determine and define the boundary lines of

the project site and delineates same with survey pillars (beacons). He further carries out the

topographic survey to establish the ground levels (contour) which will be very useful at the

project design stage. Soil test and report by a qualified geologist may be required at this stage

and this will help the designers – architect and engineers in their respective designs as regards

the type of foundation, soil load bearing capacity and type of reinforcements that may be

required. With the project boundaries determined, the estate surveyor proceeds to determine

whether there are items or interests that may be affected by the proposed development that

may qualify for payment of compensation. Having regard to the Land Use Decree of 1978

(Land Use Act), he carries out the enumeration and valuation of the identified interests (if

any) and determines the amount of compensation payable on those interests.

2.3 Environmental Impact Assessment (EIA)

The Environmental Manager carries out an Environmental Impact Assessment of the project

where the proposed project is likely to have a significant effect on the environment (EIA

Decree, 1992). The EIA seeks to identify, predict and evaluate foreseeable impacts of a

proposed project on the environment (positive or negative), and proffers measures to

eliminate or minimize the negative impacts and optimize the positive ones. It could equally

seek an alternative to a proposed project or an alternative location if the negative impacts so

indicate. The relevance of the EIA to a proposed development project is that the project

cannot be conclusively certified positive by a mere feasibility and viability appraisal without

8
incorporating the environmental factors component. Thus, it is an independent but

complimentary study to feasibility and viability appraisal.

2.4 Preparation of Bill of Quantities

The Quantity Surveyor using the architects working drawings and the engineer’s drawings

prepares the bill of quantities. This document provides a guide to the cost components of the

project.

Pre-Investment Studies – Feasibility and Viability Appraisal

The Estate Surveyor using the project drawings and the Bill of Quantities carries out a

feasibility and viability appraisal of the proposed project. He may however, require some

input from some other professional, depending on the project scope. The basic concern in the

feasibility appraisal is the work ability of the proposed development with regard to some

feasibility criteria/indicators. (Ogbuefi, 2002) classifies the indicators into economic and

noneconomic. The economic indicators answer the question as to whether the project can be

executed in the light of the prevailing or future economic conditions – the availability of

development fund for the project. The non-economic feasibility criteria/indicators consider

the physical, technological, socio-cultural and political aspects of the proposed project. The

question as to the worthwhileness of the proposed projectwill be answered by the viability

appraisal. This aspect of the study looks at the costs and benefits implications, and the

profitability or otherwise of the proposed project. A decision as to whether the project design

should be altered, or the project relocated elsewhere, or whether an alternative project should

be proposed will be taken based on the Appraisal and the EIA Reports.

2.5 Acquisition of Land

Acquisition can be seen as the act or process of transferring something valuable from one

person to the other. The acquisition of land could be said to be central to the existence,

comfort and well-being of man. As stated above, it has been a subject of interest, anxiety,

9
dispute, quarrel and wars in the country. Various interest on land in the country can be

acquired in the following ways: (a) Private treaty. (i.e. by mutual agreement). Here land is

transferred on the terms, conditions and consideration agreed by the owner and the acquiring

person or the land transferred through gift of an owner. (b) Compulsory acquisition. (i.e. by

force). Here the acquisition arises where a private ownership of land is given up without the

owner being allowed to exercise the ownership right of saying “NO” to the transfer, for

instance “Compulsory Purchase” which is the taking of private lands and interest on land for

Public purposes.

2.6 Ownership

Ownership could be defined as a state of owning a thing or a right of possession, a right to

decide to use a thing without permission granted from any superior person(s). Omotola,

(1985) sees it as ‘‘the collection of right to use and enjoy property, including right to transmit

it to others. The right to possess and use a thing to the exclusion of others’’. Udoh, (2003, 9-

11) defined it as ‘‘the right to the exclusive enjoyment of a thing. This right may be absolute

in the sense that the owner may deal with the property as he likes, It may alternatively, be

restricted as in the case of joint ownership’’. In the same manner, Nwabueze (1972) stated

that ‘ownership implies the fullest amplitude of rights of enjoyment, management and

disposal over property’. This means that the owner’s title to these rights were superior and

paramount over any other rights that may exist in the land in favour of other persons. With

the promulgation of Land Use Act in 1978, “all land comprised in the territory of each state

in the federation are vested in the state Governor and such land shall be held in trust and

administered for the use and common benefits of all Nigerians”. Also, all that land within the

local government areas are vested on the local government chairman. Olawoye (1982), stated

that “by this Act, the previous owners, communities, families or individuals are divested of

the ownership of their land, whether occupied or unoccupied’’. The Act allows citizens to

10
hold an interest called a “Right of Occupancy” which may be statutory or customary.

Therefore, the land itself is incapable of being owned but the right of occupancy can be

owned. However, the fact remains that ownership of land is modified from Absolute

ownership (Freehold) to Right of Occupancy (lease). The implication is the degree of control

one has on a particular thing. In other words, from the provision of the Land Use Act, it can

be said that all land in the country is owned by the government, since they decide what and

nature of activities that goes on it at any point in time. But with the right of Occupancy given

to citizens of Nigeria through purchase of land, then it is expected that they should be entitled

to some level of control in matters relating to land.

2.4 The Land Tenure System in Nigeria.

Land tenure is known as various ways through which a group of people manage and

administer land within their locality, such group as the Igbos, Yorubas, Housas etc. There are

two main land tenure system in Nigeria namely

(1) The land tenure system in the North

(11) The land tenure system in the South.

According to Adelakun (1982), “the land tenure in the North before the Act was governed by

the land tenure law of 1962 which itself was adopted in the enactment of the Land and Native

Right proclamation of 1910, which declared all land in the North to be ‘‘Native land’’,

subject to control and disposition by the Commissioner charged with the responsibility for

land matters who will administer same for common benefit of all. The Natives were

conferred with customary right of occupancy; while the Non-natives enjoyed the statutory

right of occupancy. But in the South, there are dual land tenure system i.e. The customary and

the Non- customary, the customary land tenure considers land ownership in terms of

communities, clans, hamlets, families, groups, individuals, e t c held in trust by the chiefs;

while the Non- customary land tenure system is the English system of land ownership’’,

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Adelakun (1982) . The law of land tenure did not divide the land into classes or categories as

to urban and other lands rather it provided for compensation even for inconveniences caused

to the 29 holder or occupier when government exercises the power of eminent domain on

land. It is known that a greater percentage of Nigerian populace depended mainly on

subsistence farming. This activity somehow also patterned the land use system .

According to Udoh, (2003, 1), “land system denotes the manner in which land is owned and

possessed. It is an institutional frame-work within which decisions are taken about the use of

land embodying those legal or customary arrangements whereby individuals or groups or

organizations gain access to economic and social opportunities through land’’. It is well

known that Nigeria is diverse, and made up of varied and various ethnic groups, or tribes,

cultures and traditions. The country is said not to be only complex but highly diversified and

heterogeneous which gives rise to problems of duality of laws and the concomitant problem

of internal conflict of the land tenure system. In the words of Yakubu, (1985, 113) ‘‘Among

the Northerners, land is regarded as public property, the use of it is free to every person as

long as its use does not affect the public adversely.

The Moslem law does not allow an exclusive right on the bare land to any person’’, they

believe that land is gift of God that everybody has a usufructuary right to it and that any

occupier has the right of access to land, a right to use and enjoy the fruits of his labour in the

land and the right to prevent other members from interfering with his use and enjoyment of

the land. Once a land has been occupied, the occupier has absolute occupation right over that

piece of land. Unoccupied land in the North are made up of lands in the vicinity and 30 lands

far-away from the town. The Emir is the Chief Trustee of all vacant lands in his domain. No

occupation of such land can be made without the consent of the Emir. Once the Emir

allocates land to an individual, such individual has absolute right on the land and can occupy,

12
develop, alienate or transfer the interest to another person by sale, pledge, loan, inheritance,

etc but may not alienate to a total stranger without the consent of the Emir.

Uduehi (1987) in his view on land tenure system in the Southern part of the country, said that

“ during the precolonial era, under the customary system, land was vested in the elders to

hold in trust for themselves and the community. Permanent alienation of land was forbidden

because land was believed to belong to gods and the Ancestors; and therefore no-body can

sell it. The elders have the right to give land to an individual as a gift in return for an

obligation of service. In the case of land needed for public purpose (which is not common in

those days because of low level of public activities), the elders also exercise the prerogative

to grant land whenever such need arose. Those whose “lands” were affected get alternative

land as compensation’’.

According to Umeh (1973), ‘‘the Pre-colonial land acquisitions made for public purpose were

of two broad types:- (a) For the establishment of public institutions such as traditional village

shrines and so on and land needed for public health and safety. (b) As a punitive

expropriation operating in part of the traditional machinery for public justice. He noted that

there were Acquiring Authorities which were made up of (i) The appropriate socio-political

authority and (ii) special types of super natural gods or deities or 31 sacred cults who acquire

lands compulsorily as occasions warranted’. Compensation is paid in form of protection of

the socio-political group which the individual enjoyed and gained (actual or fictitious).

The land owners were deemed to have shared in the public purpose for which the land was

compulsorily taken and these were deemed enough compensation for loss of ownership. In

the case of compulsory acquisition by the oath deity, the question of compensation need not

arise at all. Where compensation is paid for land compulsorily acquired, an alternative piece

of land is given with no clear definition of the nature and quantum of compensation payable.

13
There was absence of disputes or disagreements between the acquiring authorities and the

land owners because there was adequate communication between the parties, Umeh (1973).

From the above statements, it is clear that compensation can be of any kind, not necessarily

monetary or exchange of land but the satisfaction and social benefits derivable from such

acquisition. However, it could be said that this practice was very simple and easy although

the population then were relatively small compared with the area of land available and people

were more natural and less complicated than people of the present time embodied with greed,

jealousy, speculation and lack of love which hampers land management. It was not like this

in old time. In any case, the forceful occupation of Lagos by British government and the

consequent expansion of human and commercial activities epitomized by presence of

missionary rules and infrastructural projects to sustain the government, necessitated the need

for compulsory land acquisition.

2.7 Community Land: Communal Ownership.

Umeh (1967) in his spiritual concepts of land believed that land has spiritual connotation or

sentimental aspect. That a bond exists between people and land. This could be the reason why

land is held in common among people, town, or community. In our traditional system (Igbo

land), all land designated as Ajo ohia (bad bush), shrines, village square, farm land far from

the village settlement (Ikpa, Agu ) belong to the general public (community). All the

members of the community, village, or family have an equal right to the land while the chief

or village head or head of the family is in-charge of the land. He is the trustee and has control

of it. When an individual needs a piece of land for farming, part of the land is given to him

and at the end of the farming season, the land goes back to the community. Sometimes, a

piece of land could be given to an individual as a gift in recognition or appreciation of service

rendered or bravery exhibited. Everybody within the community had right to use land under a

grant from the chiefs or elders in return for obligation of service while the chief reserve the

14
right to withdraw the grant if the grantee failed to carry out his duty which obliged him to

render services to his overlord, which includes presenting to the overlord a portion of annual

harvest or the fattest cattle on his farm land, e t c. ‘‘In the Northern part of the country,

communal ownership exists in form of : (a) Territory: This is regarded as a town territory :

one whose distance is equivalent to a journey on foot for fire-wood gathering in one day.

Nobody can claim ownership of such an area.

The leaders can also allocate a portion to a person for use. But the leaders are not allowed to

allocate areas which are near to the town or within the grazing area of the town. (b) The Area

of Well or Lake: All wells and lakes not owned by any person which is not situated on a land

already owned have their territorial area. The territorial areas are all roads leading to the

wells, lakes or any other piece of water and the surrounding space accommodating all the

animals that come for watering. No person is allowed to dig a well very close to another etc.

(c) Mosques and other places of worship belong to the public in general. (d) The resting place

used by travelers also belong to the public, Tobi (1992, 219).

2.8 Introduction of English Law.

English law was introduced in Nigeria by the British government in the year 1861.Harley

(1968) said that ‘‘By this cession to the crown, the government asserted rights which have

been embodied in statutes and all land in the territory were held and administered for the use

and common benefit of the natives of the territory, while partitioned family holdings for

individual heirs were converted to freehold interest’’. Umeh (1973) stated that ‘‘two types of

rights on land exists under the English law. These are (i ) The freehold interest and (ii) The

lease-hold (The term of years absolute). The freehold estate is the superior estate and the

highest and most complete form of proprietary interests in the land. They confer 34 upon

their owners’ rights of ownership in perpetuity as well as the highest scope for proprietary

decisions as to usage and alienation’’. The leasehold interest known as the inferior interest is

15
described by tenancy (kola or gin tenancy) pledge, mortgage, borrowed and life interest.

These interests are normally for limited periods but subject to superior interest.

In the work of Onuorah (2005), he said that ‘‘Land is owned not only for its utility value but

also for the expected future value which the valuers are often commissioned to value. He

called these future benefits proprietary rights which are legal rights on land recognized by

law. These rights include Freehold, Leasehold i.e. limited ownership and easements, profits

i.e. limited rights over land. These rights have been nationalized by the Land Use Decree No

6 of 1978 (Now Cap 202 LFN 1990). With the enactment of this law, the nature of

acquisition and compensation known to the people were drastically altered. The Government

now use power of eminent domain to acquire lands needed for the establishment of

townships, government offices, station, etc, instead of dialogue as was practiced by the local

people’’ .

According to Uduehi, (1987), “Vehement protests by dispossessed land owners in Lagos

made the government to devise methods of acquiring land. Thus, Ordinance No 17 of

October 1863 was promulgated to empower the Government to pull down buildings that

might be affected in Lagos Island by activities of the government’’. One may not be far from

concluding that 35 all these Ordinances promulgated were in a bid to let government have

access to land. Such Ordinances include:- (i) The Ikoyi Land Ordinance of 1908 which

declared certain lands as crown land. (ii) The Native Lands Acquisition proclamation law of

1900. (iii) The Native Lands Acquisition proclamation law of 1903. (iv) The Crown Lands

Management proclamation law of 1906. (v) The Native Acquisition Ordinance 1917. (vi) The

Niger Lands Transfer Ordinance, 1916. (vii) The crown Ordinance, 1918. In 1935, a major

legislation was enacted, The Registration of Title Act, The Land Registration Act, Cap 99,

and The Registered Land Act, 1965.

16
In 1958, the state lands Act, Cap 45 were enacted. This Act vested ownership of all public

lands in the state. In the Northern Nigeria, section 2 of the Lands and Native Right

proclamation, 1910 declared the whole lands of the protectorate of Northern Nigeria native

lands. But this was reproduced by 1916 Ordinance which made further provision on the

powers of the Governor. This continued until 1962 when the Land Tenure law was enacted

by the Northern House of Assembly. It was noted that this law declared “the whole of the

lands of Northern Nigeria, whether occupied or unoccupied… to be native land. In 1967, the

requisition and other powers Decree No 39 was promulgated.

The Decree vested in the Army and Police the power to requisition land and other property

during the period of emergency and compensation was payable to owners of property so

requisitioned. The Decree was amended in 1975 in which the central compensation

committee was established to deal with matter of compensation. In 1968, the state lands

compensation Decree No 38 was promulgated. The Decree made provisions for the payment

of compensation in respect of land acquired by the state. Two years later, The Land Decree

No 30 of 1970 was promulgated. The Decree amended section 2(2) of the land Perpetual

Succession Act, Cap 48, laws of the Federation. It was affirmed that the purpose of the

amendment was to indicate a specific fee payable to the Commissioner –in-charge of land

before the granting of a certificate of incorporation under the Act.

The public lands Acquisition Amendment Decree No 4 was also promulgated in 1970. The

Decree amended Form ‘A” of the second schedule to the Public Lands Acquisition Act, Cap

167 law of the Federation, by insertion of the following words:- “ Any such statement shall

be made by the claimant in person or through an agent (duly authorized by the claimant in

that behalf) having qualifications which are not less than those of legal practitioner, of a

land , estate or valuation officer employed in the public services of the Federation committee

17
was established to deal with matters of compensation”. A close look at all these laws enacted

and amended revealed that the Government wants easy and suitable ways of having

unhindered access to land.

2.8.1 Public Lands Acquisition Act, 1917(Cap 167)

According to Uduehi (1987), this law derived its principle from the English Law whose one

of its obligation is that the Acquiring Agent should publish acquisition notice/ issuance for at

least six weeks as stipulated in the Act, (see section 8 ) and also pay adequate compensation

for acquired land. Section 3 of this Act authorizes the Acquiring Authority to acquire lands

for an Estate in fee simple or for a term of year as it thinks proper. Once the land is acquired,

it became vested in the state as its land. The purposes for which land can be acquired by the

government are defined as ‘‘Matter with respect to which the government has power to make

laws”. It was this law which zoned the country for the purposes of compensation. It was

noted that because of the manner by which lands are held in the Northern state of Nigeria,

this law was not applicable in the Northern states. Although state can create statutory and

customary rights, but these rights can be wiped out when it is required. But in the Southern

part of the country where land is owned by individual, families or communities, the rights of

ownership can be exercised by each of them subject only to other law like the Town and

Country Planning laws of the land, etc.

2.9. Land Use Act 1978

‘‘The Land Use Act of 29th March 1978 was enacted by the Head of the Military

Government Commander -in –chief of the Armed Forces, Federal 38 Republic of Nigeria Lt.

General Olusegun. Obasanjo . It is made up of V111 Parts of 51 Sections. Part 1 (General) of

the Act, Section 1:- (i) Vest all land comprised in the territory of each state except land vested

in the Federal government solely in the Governor of the state who would hold such land in

trust for the people and would henceforth be responsible for allocation of land in urban areas

18
to individual for all purposes while that in rural areas is vested on the Local government

chairman with similar power and responsibilities. By this section, the freehold interest in

possession became nulled and the highest and best title an individual can acquire on land is

converted to right of occupancy. (ii) A body known as “ Land Use and Allocation Committee

made up of at least Two(2) Estate Surveyors and Valuers of five years post qualification and

a lawyer whose duties includes (a)Advising the government on any matter connected with the

resettlement of persons affected by the revocation of rights of occupancy on the ground of

overriding public interest.(b)Advising the government on any matter connecting with the

resettlement of persons affected by the revocation of right of occupancy on the ground of

overriding public interest. Determining disputes as to the amount of compensation payable

under this Act for improvements on land. In the case of the rural area, a body known as “the

Land Allocation Advisory Committee” which shall consist of such persons as may be

determined by the Military Governor acting after consulting with the Local Government and

shall have responsibility for advising the Local Government on any matter connected with the

management of land to which paragraph (b) of subsection (1) above relates. This Part also

stipulated/ designated an urban areas. PART 11 of the Act deals with Principles of Land

Tenure, Powers of Military Governor and Local Governments’ and Rights of Occupiers. This

includes Restrictions on right of person under the age of 21, Issuance and

Conditions/provisions implied in Certificate of Occupancy, Power of the Governor or Public

officer to enter and inspect land and improvements or to grant licenses to take building

materials, Duty of Occupier of Rights of occupancy to maintain beacons/ Exclusive rights of

occupiers, and also, the right to carry out improvement. PART 111 is on Rents (principles of

fixing and revising rent, penal rent including unlawful alienation). PART 1V is on Alienation

and Surrender of Rights of Occupancy. PART V is on Revocation of Rights of Occupancy

and Compensation thereof. This part is on the power of Governor to revoke rights of

19
occupancy. Section 28 of the Act, Part v states that “it shall be lawful for the Governor to

revoke a right of occupancy for overriding public interest”. This can come in form of

alienation through assignment, mortgage, or transfer of possession by the occupier contrary to

the provisions of the Act or when the government requires the land for public purposes or for

mining or oil pipelines or any purposes connected therewith. A right of occupancy can also

be revoked when there is any breach of any term of the right of occupancy or refusal or

neglect to accept and pay for a certificate which was issued in evidence of a right of

occupancy but has been cancelled by the Military Governor under subsection (3) of section

10. In (6), the public officer duly authorized by the Military Governor shall signify and give

notice to the holder of right of occupancy whose title shall be extinguished on receipt by him

or a notice given under subsection (5) or on such later date as may be stated in the notice.

Section 29 of this same part deals with the payment of compensation to the holder/occupier

of the rights revoked by the Governor. Details of compensation payable under subsection (1)

are … (i) For land the occupier shall be entitled to an amount equal to ground rent he paid

during the year the right was revoked. (ii) For improvements on land to an amount of the cost

of replacement together with interest at bank rate for delayed payment. (iii) For crops, to an

amount determined by appropriate officer authorized by the Governor. The law also provides

that where a residential building is affected, the governor may offer in lieu of compensation

payable an alternative accommodation for resettlement. But where the value of the alternative

accommodation is higher than the formal, then an agreement between the Land Use and

Allocation Committee and the occupier will be made in which the excess shall be treated as a

loan. PART VI deals with transitional provisions on land. All rights vested in any person

before the commencement of the Act shall remain as if the right was given by the Governor,

including the ½ hectare of land in an urban area. Section 37 of this Part made it clear that

penalty of N 5,000 will be paid by a person who made a false claim of any land to the

20
Governor or will be imprisoned on conviction for one year. Above all, power over revocation

is preserved for the Governor. PART VII deals with the jurisdiction of the High Court and

other courts in respect of proceedings to declaration to titles, to compensation payable for

improvements on land, to recovery of rent in respect to right of occupancy. PART VIII and

the last, deals with the penalties for unauthorized use of land and prohibition of occupier from

illegal improvements on land i.e. erection of any kind without obtaining license from the

Governor. That the Governor has the right to delegate to the state commissioner the power to

act on his behalf. It also made provision for any modification of the existing laws.

2.9.2 Objectives of the Act.

With the provisions of the Act, it is obvious that the Government is interested in achieving

objectives:- (1) An easy access, use, enjoyment, benefit, and preservation of all right of

Nigerians over land by law. 42 (2) That the activities of land speculators who is believed to

be contributory to high cost of land in the country be checked so that acquisition of land will

be made possible for companies, banks, or individuals who may wish, to acquire land at low

rate for developmental purposes in the country. (3) To help check/ avoid land dispute and

clashes between individuals, communities and regions over boundaries. (4) To control

development of buildings by establishing uniform land use in appropriate location and

provision of infrastructures and amenities in our town, urban and rural areas. (5) Proper and

adequate provisions were made to ensure continuance of the Act after the regime of the

Military Government. By section 274 (5) (d) of the constitution, the Land Use Act was

entrenched in the constitution and can only be repealed or amended by vote of majority in the

legislation (i.e. constitutional amendment is required to repeal the Laws).

2.9.3 Problems of the Act

It was the belief of many that the Land Use Act was promulgated in order to streamline the

problems encountered by the land tenure system practised in the country. According to

21
Olawoye, (1982, 14), “ poor performance of the economy, inability of both the public and

private sectors to provide sufficient shelter for the people, inability of the nation to feed itself,

even the inflationary trends in the economy have been blamed in a major respect on the

system of land tenure”. The question now is how far we have gone in actualizing these

objectives for the past 30 years of instituting this Act. No doubt, the provision of the Act is a

very good step taken by the then Government of the country in a bid to solve some problems

of associated by land and its use. However, it is believed that there is the need to make some

amendments in some Section of the Act: (1) Part 1 section 1 of the Act vest all land in a state

in Military Governor of the state to hold in trust for the benefit of all Nigerians. Section 28

gave Governor power to revoke right of occupancy for over riding public interest. With this,

the Governors now see themselves as the over all in land issues and this made many of them

to abuse the privilege by allocating too much power to themselves. Section 47 of the Act

prevented the interference of court in any matter concerning the state Governor on land.

Although the Act made provision for Land Use and Allocation committee charged with some

responsibility connected with management of land, it is very obvious that this Committee is

being utilized in most States of the Federation. With this empowerment, many of them

become conceited. In Smith, (2003), “ Where the interest on land is statutory Right of

Occupancy, overriding public interest include the requirement of land by the three tiers of

government for mining or oil pipeline and where the grantor alienate without the consent of

the Governor or the grant of breach of any of the provision implied in the certificate of

occupancy ,’’. According to (Tobi, 1992), “ The notice for acquisition must be served and

published in the Gazette for at least 21 days and contain such particulars as would enable the

owner know the ground upon which the revocation is based”. All this to some extent is not

put into consideration by the government. They revoke right of occupancy at will sometimes

even on personal grounds all in the name of overriding public interest. Searches conducted

22
revealed that right of occupancy is refused to many while the certificates of occupancy took

years before they are signed. There were instances where federal government are refused

grant of land for development by state government. These have brought about problems

between some states and the federal government. With this in mind, it will be good if the

activities of the Governors are checked by the Federal government just as the powers of the

Local government chairmen are checked by the state government. A close look at part V of

the Act shows that there is no payment of compensation for undeveloped land. Section 29(1)

approved payment of compensation on bare land for an amount equal to the rent, if any paid

by the occupier during the year in which the right of occupancy was revoked. This means that

an occupier is entitled to nothing if he paid no rent and records showed that the rent paid to

the government for undeveloped land is ground rent which is a small amount of hundreds of

naira payable yearly. “It is called peppercorn rent”. According to Ikpe (1982, 47), “But this

parcel of land is taken away from you compulsorily by government and you go back to

government and say, you have taken this land, give me an alternative land, I wish to point out

that as a chief land officer, that when you are given any, you will pay the full economic value

of that plot including all the premium, representing the capitalized services both water supply

electricity and then the rent. You pay legal fee and all other fees. So we think this is very

unfair”.

2.10 Compensation.

Akujuru, (2005), stated that “compensation simply means to place in the hands of the owner

expropriated the full money equivalent of the thing of which he has been deprived.

Compensation prima facie means recompense for loss, and when an owner is to receive

compensation for being deprived of real or personal property his perfumery loss must be

ascertained by determining the value to him 46 of the property taken from him. It cannot be

less than the money value into which he might have converted his property had the law not

23
deprived him of it. You do not give him any enhanced value that may attach to his property

because it has been compulsorily acquired by the governmental authority for its purposes…

Equally you exclude any diminution of the value arising from the same cause. The hypothesis

upon which the inquiry into value must proceed, is that the owner had not been deprived by

the exercise of compulsory powers of his ownership and of his consequent rights of

disposition existing under the general law at the time of acquisition’’. Davies, K (1975) in the

case of Horn V Sunderland corporation in London. Here a particular piece of land is acquired

in its entirety, (meaning that what the land owner loses in land value he must get back to the

equivalent amount in money). The monetary value of the property acquired worth Ten

thousand N10,000 and the claimant also received N10,000. It is generally believed that

compensation should be a measure of the loss suffered by a person whose interest on land

been compulsorily acquired. Onuorah, (2005) called this measure Open Market Value. Open

Market value is “The estimated amount for which a property should exchange on the date of

valuation between a willing buyer and seller in an arm’s- length transaction after proper

marketing wherein the parties had each acted knowledgeably, prudently, and without

compulsion”.

According to Sonoiki, (1978) “ The right to compensation for any property acquired

(voluntarily or compulsorily)is a basic proprietary and human right particularly where such

acquisition is compulsory, an owner is entitled to no more and no less than at which he is

being deprived of. This principle is long established in the English legal system under the

decision in the case of Harvey V Crawly Development Corporation, See also case of Horn V

Sunder land Corporation”, where it was stated that the compensation must reflect the value

and the circumstance of the person who is compelled to sell.

2.10.1 Compensation Under the Public Land Acquisition.

24
Uduehi (1987), defined compensation to mean “The amount paid for his land to a claimant by

an acquiring authority which puts the claimant in the same position as he was immediately

before the acquisition”. Basic rules for assessing compensation under The Public Lands

Acquisition Law of the Federation of Nigeria. (a) No allowance was to be made for the fact

that the acquisition was compulsory. The claimant was not expected to be paid an inducement

for surrendering his land or interest. (b) The value of the land was usually taken as the

amount the land would fetch if sold in the open market by a willing seller to a willing buyer.

It meant that compensation was based on the best value the property could fetch at the date of

acquisition. (c) The special suitability or adaptability of the land for any purpose was not

taken into account if that purpose deprived from obligation imposed by statutory powers for

which there was no market apart from the particular needs of a special purchaser. (d) If the

value of land was increased by unlawful use or for any use detrimental to health, that increase

was to be ignored. (e) By the rule of equivalent reinstatement, the principle behind

compensation was to put the claimant in the position in which he had been when his land was

acquired no more no less. (f) In certain cases, compensation was limited to equivalent

reinstatement, especially where the land was devoted to a purpose having no general demand

or market for land. Section 15(b), of the Public Lands Acquisition Act, 1917 which strongly

supported the above had earlier been replaced by a new definition in section 17 of the public

Lands Acquisition (miscellaneous provisions) Decree 1976 and transferred the powers of the

High Court in compensation matters to a new Lands Tribunal to be established in each state

of the Federation (section 18). source : uduehi, (1987,8) It is also important to note that this

Act enforces acquiring Authorities to pay compensation for any land rendered useless on the

event of acquisition of one part of the land through intersection of a road or any kind (i.e.

injurious affection). Under this Act, it is obligatory for the acquiring authority to publish

acquisition notice for at least six weeks before the acquisition takes place. During the

25
preliminary works or survey of the site to be acquired, adequate care is taken not to cause

unreasonable damage to the properties of the owner or the occupier because adequate

compensation must be paid both to damage caused during the preliminary stage and to the

properties acquired.

2.10.2 Effect of Land Acquisition and Compensation on Land Administration

Nigerian’s land ownership desire can be fulfilled with his ability to exercise ownership rights

to the exclusion of others. In as much as ownership is established over a piece of land,

improper land acquisition process, non-payment or inadequate compensation will impact on

land administration. In acquisition by private treaty, there is an agreement between two

parties (say Mr. A the land owner and Mr. B the buyer or acquiring agent) thus there is no

problem in the administration unless where a man dies without proper statement as regards

his WILL. However, under Compulsory acquisition and Compensation, in as much the

relevant laws give the property owner/claimants prompt payment of compensation, the

provisions of the Land Use Act Cap 202 LFN of 1990 does not offer a fair compensation and

this adversely affects the perception of the claimants. Furthermore, the sudden changes in

government policies, inadequate compensation or where compensation money is not enough

to go round the claimants affected, unfaithfulness to proposed purpose of acquisition, non-

continuity and abandonment of government projects, weighs so much on the people and this

causes lots of confusion, problem, dispute, distrust and riots among youth and communities in

general. Below are some cases of land acquisition and compensation aimed at buttressing the

above point. 60 2.12.1 Sites and Services Scheme, Ibeagwa Nike, Enugu, Enugu State.

In 1990, the then Anambra state government by Government Gazette No 5 vol. 15 of 2nd

February, 1990 released 139.33 hectares of land in Ibeagwa Nike, Enugu to the Federal

ministry of Works and Housing for Sites and Services Scheme in December 1992. Another

official Gazette No 19 vol. 2 of the state revoked the earlier acquisition. The federal ministry

26
Works and Housing protested and the revocation were reversed in July 1993. In 1994,

additional land area of 110.67 hectares was added making the whole acquisition to be 250

hectares. The perimeter survey of the first phase was carried out but that of the 2nd phase was

partially done due to the community protest. The enumeration exercise could not be carried

out due to incomplete perimeter survey and uncooperative actions of the community. Despite

these irregularities in the acquisition process, the federal ministry of Works and Housing,

went ahead to prepare a layout design, plotting the 139.33 hectares of land into 1,222 plots.

The plots in the phase one and part of phase two were allocated to people and some allottees

paid the necessary premium and ground rents to the ministry. Since the early 1990s further

actions on the scheme have been stalled due to incomplete land acquisition process by way of

non-payment of compensation and perfection of the transfer of title to federal government.

27
 CHAPTER THREE

RESEARCH METHODOLOGY

3.0. Introduction

This chapter discussed the methodological approached to be used in achieving the aim and

objective of this study. Method of research is the process, strategies and techniques adopted

by researchers to collect, organize, analyse and interpret data in any research endeavour.

Thus, this chapter discussed the research design, population of study, sample frame, sample

size, sampling procedures, instrument of data collection, and method of data analysis.

3.1 Research Design

The research design was drawn on the basis of the descriptive research method. The

consideration for this research method is based on the fact that descriptive research seeks to

finding out the impact of corruption on mortgage development. In the application of the

descriptive research method, the researcher adopted the survey approach in the gathering of

data and information through the administration of survey questionnaires, interviews and

personal interaction.

3.1.1 Population of the Study

In view of the scope of the research study, the population of commercial property investment

in the study area will be narrowed to the geographical scope which covers the GRA areas,

Aduwawa, Ugbowo and the New-Benin area respectively. Therefore, a population of one

28
hundred respondents of commercial property investment was employed in the study as drawn

from the various zones.

3.1.2 SAMPLE/SAMPLING TECHNIQUES

The sample is object of target population. It represents the actual number of the population

that was investigated. Therefore, the sample of one hundred of the population (estate

surveyors and valuers, property managers, estate agent, etc) of the study was adopted and

investigated. This was done so as to remove any element of bias and also to make sure that

the sample was large enough to accommodate every element in the given population.

The sampling techniques adopted for the research study, is the cluster or random probability

sampling techniques. The choice of the researcher was predicted on the premise that the study

area already existed in a cluster of relative socio-economic harmony. The researcher then

selected at random a number corresponding to the individual commercial properties in the

study area. It is important to stress at this point that the integrity of the random sampling was

to ensure that every element in the given population, had equal opportunity to be selected or

chosen as a representative of the entire population of the study. It also aided the establishment

of a wider coverage on the given population.

3.1.3 INSTRUMENTATION/DATA COLLECTION PROCEDURE

The research instrument adopted in obtaining relevant data for this research study includes;

survey questionnaires, conduct of interview and personal interactions. Set questions were

prepared in two dimensions: the first being prepared and designed for the property investors

in the commercial sector and the occupiers of these properties. Set questions were also

designed and prepared for the practicing estate surveyors and valuers so as to seek their

general opinion on the topic under review.

Data collection for the research study was realized through the following sources of data

collection. They are the primary sources of data collection and secondary sources of data

29
collection. The primary source of data collection offered information through the

administration of survey questionnaires, conduct of relevant interviews and the researcher’s

personal interaction with the property market trends. While the secondary sources of data

collection offered information through the review of related literatures, past project works of

other authors and writers in the field of study, journals, magazines internet as well as

newspapers respectively.

The data used in the production of this dissertation are derived from two broad sources;

Primary Sources: These are original sources of raw data collected in the process of

investigation. The necessary data or information required for this study were collected under

this source.

The ministry of land and housing which is the government agent responsible for the exercise

of power of compulsory acquisition, was interviewed.

Secondary Sources: Information derived from this sources are basically form text books,

government publication, maps and newspaper were used in this study.

Research Participants

The randomly drawn participants were 120 adult male representatives of the host

communities who were in leadership position in the community, members of the town union

resident in other parts of the country and some land owners (those whose land were among

the one revoked for the company. The educational level showed that 105(87.5%) of the

respondents had tertiary education, 12(10%) had secondary education while 3(2.5%) did not

indicate the highest education level. A look at their occupation showed that 69(57.5%) were

job applicants, 21(17.5%) were businessmen, 12(10%) were civil servants, 9(7.5%) were

students, 6(5%) did not indicate their occupation, while 3(2.5%) were retired civil servants.

30
The participants marital status also showed that54 (45%) were married and to one wife each

while 66(55%) were single. None of the participants was a divorcee.

3.5 RESEARCH INSTRUMENT

The instrument used in this study was a 25 item questionnaire which has two sections, A and

B. Section A covered demographic information; while Section B focused on major indices on

perception of the participants on the adequacy of compensation following compulsory

revocation of rights of occupancy and acquisition. 77 In order to ensure that the instrument

actually gathered the requisite information, it was subjected to review by experts in Estate

surveying and valuation profession whose useful input was integrated before the instrument

was used. Items numbers 14-19 measured if there was compensation while items 20

measured adequacy of compensation (Hypothesis 1). In addition, items 4-7 measured whether

the participants were informed before the acquisition or not (Hypothesis3). In addition, oral

interview was also used to gather information from staff of the Udenu local government head

quarters in Obollo-afor, Enugu state Ministry of lands, survey and urban planning, the

Permanent Secretary Ministry of lands during the developmental stage of Ama brewery, and

Emma Ezeh & Co, Estate Surveyors and Valuers who was the Attorney to communities

Umuezeani, Amaeke Ngwo and Obollo-afor, Iheakpu and Iheaka communities during the

acquisition and compensation period in the year 1982 respectively. An insight into

documented records on the acquisition and compensation of both sites and other documents

related to that was very beneficial. Oral interview was also administered to the staff of the

Public Relation Office of the Ama Brewery to supplement field information. 3.6 RESEARCH

PROCEDURE 200 Number questionnaire were produced and distributed among the people

of Umuezeani, Amaeke Ngwo and the people of Udenu local government area. The

participants especially in Amaeke were reluctant to fill the instrument due to 78 their belief

that the mode of acquisition of the land by the government was controversial and had led to

31
conflicts between the people and the Enugu state government on the other hand. The

researcher then made personal appeal to one of the leaders who later convinced the

community that it is a research work for his wife’s Master’s Degree programme. The

instrument was then distributed to few leaders in the village. Following this rigorous

procedure, data collection lasted between December 2006 to August 2007. A total of 120

respondents representing 60% of the instrument distributed were completed. 74 (37%) of the

distributed questionnaire were returned uncompleted while 6(3%) were not properly filled.

While the above process was on, the researcher visited the Land Registry of the Ministry of

Lands, Enugu and Ama Brewery factory to examine the processes involved in the acquisition.

3.7 DESIGN AND STATISTICS. Two statistical devices were involved in this study. The

first is percentile which described the percentage of the participants perception of

compensation . Subsequently, Chi-square statistics was used as an inferential statistics to test

the correctness of fit of hypothesis. The formula for Chi-square is

This section of the research study represents an overview of the basic plan that guides the

researcher in his data collection and logical research work. It contains and explains the

research design, method of data collection, sample/sampling techniques, instrument for the

accomplishment of the set aim and objectives of the research work.

3.2 METHOD OF DATA ANALYSIS

The essence of any research study is the generation of the basic facts which would enable the

researcher to make reference and recommendation whichever is applicable. The data and

information collected in respect of this research study was dully analysed using the following

statistical tools and technique.

Documentation sheet: the documentation sheet is a broad sheet which was devised by the

research to record raw data during the sampling and survey processes. This became necessary

so as to ensure that no data was lost on transit while the research process lasted.

32
Tables: the research also adopted the use of tables. These comprises of the frequency

distribution table to ascertain the strength of the data in numerical term. This gave the

research firsthand information on the number respondents, frequency and percentage

distribution.

CHAPTER FOUR

DATA ANALYSIS, INTERPRETATION AND DISCUSSION

4.1 DATA PRESENTATION AND ANALYSIS

This section of the research work presents a general overview of the data and information

sourced from the field of study. The data and information presented was accomplished

through the primary and secondary source of data collection.

TABLE 1: perception of compensation

s/n RESPONSES FREQUENCY PERCENTAGE

1 compensation 10 60%

2 No compensation 60 20%

3 Adequate compensation 20 10%

4 Low compensation 30 10%

Total 120 100%

Source: field survey, September 2018.

From the table presented, response indicated that the corruption level associated with

mortgage development is high. This was attested by 60% of the respondents. Nevertheless,

20% claimed it is on the average, while 10% of the respondents had no response.

TABLE 2: types of corruption associated with mortgage development

s/n RESPONSE FREQUENCY PERCENTAGE

1 Business corruption 30 30%

33
 2 Market corruption 20 20%

3 Financial corruption 15 15%

4 Liquidity corruption 15 15%

5 Purchasing power corruption 20 20%

Total 100 100%

Source: field survey September, 2017.

From the table presented, response indicated that the categories of corruption associated with

mortgage development are the following; business corruption, which accounted for 30%,

market corruption 20%, financial corruption and liquidity corruption 15% each. While

purchasing power corruption was 20% respectively.

Table 3: level of information received by participant before acquisition

s/n RESPONSES FREQUENCY PERCENTAGE

1 No information 40 40%

2 Partial information 40 05%

3 Informal information 20 50%

4 Formal information 20 05%

Total 120 100%

Source: field survey 2018.

From the table presented, response indicated that the level of returns on commercial property

investment in the study area is low. This was confirmed by 50% of the total number of the

respondents. However, 40% of the respondent claimed it is high, 05% said it is on the

average, while 05% had no response.

Table 4: what are the factors that explain corruption elements?

34
 s/n RESPONSE FREQUENCY PERCENTAGE

1 High sales of property 30 30%

2 Investment cost 30 30%

3 Investment period 10 10%

4 Interest rate 15 15%

5 Market capture 15 15%

Total 100 100%

Source: field survey September, 2017.

From the study as presented, response indicated that the factors that explain the corruption

elements in mortgage development are the following; high sales of property which accounted

for 30%, investment cost which accounted for 30%, investment period 10%, interest rate 15%

and market capture 15% respectively.

Table 5: corruption factor in mortgage development

s/n RESPONSE FREQUENCY PERCENTAGE

1 Design disapproval 20 20%

2 Peculiar Site conditions 20 20%

3 Defects in structure 20 20%

4 General restriction and rate of exchange 15 15%

5 Strike by labour force 15 15%

6 Others 10 10%

Total 100 100%

Source: field survey September, 2017.

From the table presented, response indicated that the major corruption factors are the

following; design disapproval which accounted for 20%, peculiar site conditions 20%,

35
defects in structure 20%, general restriction and rate of exchange 15%, strike by labour force

15%, as well as other not mentioned in the table which accounted for 10% of the respondents

respectively.

Table 7: risk management in mortgage finance.

s/n RESPONSES FREQUENCY PERCENTAGE

1 Risk identification 30 30%

2 Analysis of risk 30 30%

3 Risk response 30 30%

4 No response 10 10%

Total 100 100%

Source: field survey September, 2017.

From the table presents, response indicated that risk management in mortgage finance can

best be managed through the following; risk identification, analysis of the risk as well as risk

response. They all accounted for 30% each of the total number of the respondents.

Nevertheless, 10% of the respondents had no response.

Table 8: stages in mortgage development

s/n RESPONSE FREQUENCY PERCENTAGE

1 Comparative stage 12 12%

2 Appraisal stage 10 10%

3 Fund sourcing stage 12 12%

4 Planning stage 12 12%

5 Legal stage 10 10%

6 Timing 12 12%

7 Agency disposal stage 10 10%

36
 8 Taxation stage 10 10%

9 Holding period stage 12 12%

10 Total 100 100%

Source: field survey August, 2014.

From the tables presented, response indicated that the stages involved in mortgage finance are

the following; comparative stage which accounted for 12%, appraisal stage 10%, fund

sourcing stage 12%, planning stage 12%, legal stage 10%, timing 12%, agency disposal stage

10%, taxation stage 10% and holding period stage 12% respectively.

Table 9: type of mortgage property

s/n RESPONSES FREQUENCY PERCENTAGE

1 Offices 25 25%

2 Shops 25 25%

3 Stones 15 15%

4 Shopping centre 20 20%

5 Plazas 15 15%

Total 100 100%

Source: field survey August, 2014

From the table presented, response shows that the types of mortgage property in the study

area included the following; offices which accounted for 25%, shops 25%, and plaza 15%,

stores 15%, shopping centre 20% respectively.

4.3 DISCUSSIONS OF FINDINGS

After a careful examination of the impact of corruption on mortgage development in the

study area, the outcome of the findings is discussed below cotangent to their implications.

37
Firstly, the study reveals that corruption on mortgage development in the study area is high.

This was attested to 60% of the total number of respondents. The implication of this is that

commercial property investments require a thorough investigation before taking decision to

invest or not to invest. Furthermore, the study revealed that the returns on investment are low.

This was given by 50% of the total number of the respondents. This implies that the risks

associated with property investments are high.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY OF FINDINGS

5.2 CONCLUSION

Having considered the implications of the outcome of the implications of the outcome of the

research findings on the corruption associated with the mortgage finance, the researcher wish

to conclude that the amount financial risk an investor is prepared to shoulder in order to

secure a given level of return is generally a question of values; there is no logical criterion by

which such choices are made. Nevertheless, it is expected that a prudent investor would

formally define his investment goals, identify and quantify all possible risks, eliminate certain

of the risks, transfer some and take necessary step to curtail whatever risk remain. He will

then decide whether or not the estimated returns are worth the risks still remaining and on

that basis accept or reject the investment proposal.

5.3 RECOMMENDATIONS

The following recommendations are proffered on the account of the research findings:

The Federal Mortgage Bank of Nigeria (FMBN) should concentrate only on its wholesale

functions and operate in the secondary mortgage market by providing mortgage banking

38
services to the primary mortgage institutions (PMIs), housing financial institutions (Mortgage

Bankers of Nigeria) and construction companies/associations in the country. This will

guarantee the large-scale securitization of mortgage portfolios, a mechanism that has

remained the primary engine of growth in the housing finance systems in developed countries

such as United States, Germany, France and Italy.

The Central Bank in Nigeria should ensure that interest rate charged on loans by financial

institutions should be reduced, amortization period of loans should also be lengthened and the

duration of loan repayment is within the confines of what the statute mandates and also

closely monitor their activities.

Private estate developers should seek from the other numerous sources of funding available

to boost their capital base instead of trying to use the short-cut.

Financial institutions should slack their stringent lending requirements/rules for granting

loans.

39
 REFERENCE

Agbola, S. implementation. Research Reports No. 14 Ibadan, Nigeria:

Development Policy Centre.

B. (1998) The housing of Nigerians - A review of policy development

Agbola, T., Egunjobi, L., Qolatubara C.O. (2007) Housing Development and

Management: A Book of readings. University of Ibadan:

Malijoe Softprint.

Ajoku, C. V. & Nubi,T.G.(2009) The nexus between effective land Ebie,

management and housing delivery: An overview of the Lagos situation. The

Estate Surveyor and Valuer 32 (1), 39-50

Anyanwu, J. C. (2002). Nigerian Public Finance: Joaneel Publishers, Onitsha

Audu, B. S. (2014). Corruption, insecurity threaten economic growth in Nigeria.

Punch newsonline. March 2014

Oduwaye, E. O. (2014). The effect of corruption and economic reforms on

economic growth and development in Nigeria. Journal of Social Sciences

and Finance, 2(1): 15-25

Ribadu, M. N (2003). Economic Crime and Corruption in Nigeria: the Causes,

40
 Effects, and efforts aimed at combating these vices in Nigeria. Paper presented

at the Monaco World Summit 5th International Summit on Transnational Crime

Monte Carlo 23rd and 24th October 2003

Ruzindana. G. (1999). “Corruption Remains Nigeria’s Long Term Challenge”.

The Daily Independent Newspapers Tuesday, 24 April 1999 Sharing is caring!

S.P.O.F.(2009, May). Public sector driven housing; achievements and

problems. Paper presented at the 2009 Faculty of Environmental Sciences

Annual lecture, Nnamdi Azikiwe University, Awka.

Efina & FinMark Trust (2010). Access to housing finance in Africa:

Overview of the housing finance sector in Nigeria. Retrieved from

http://www.efina.og.ng/assets/documents.

Federal Government of Nigeria (2004) National Housing Policy Draft,

Abuja.

Federal Government of Nigeria (2012) New National Housing Policy,

Abuja.

Ikejiofor, U. (2005). Land issues in the new national housing policy for

Nigeria:

41
 Lessons from research experience. Liverpool University Press. Retrieved

from http://www.deepdyve.com/liverpool-university-press .

Federal Republic of Nigeria (1999) Constitution 10 17

APPENDIX 1

QUESTIONNAIRE FOR DATA COLLECTION ON ISSUES AND CHALLENGES

OF MANAGING MULTI-TENANTED COMMERCIAL PROPERTY IN AUCHI

Department of Estate Management,

42
 School of Environmental Studies,

Auchi Polytechnic,

P.M.B. 13,

Auchi,

Edo State.

2017.

Dear Respondent,

LETTER OF INTRODUCTION

We are final year (ND II) student of the Department of Estate Management, Auchi

Polytechnic, Auchi.

We are carrying out a research study on the topic “the impact of corruption on mortgage

development in Nigeria”.

Please assist in providing answers to the following questions to enable us get the data

needed to complete the investigation.

The exercise is purely for academic purpose. So, your co-operation in answering the

question in the questionnaire and private discussion will help us in carrying out this work

properly. Every piece of information given out will be handled with utmost confidentiality.

Thanks for your anticipated co-operation.

43
 Yours faithfully,

Group ……………

APPENDIX II

QUESTIONNAIRE

SCETION A

BACKGROUND INFORMATION

Sex: Male [ ] female [ ]

Age Bracket: 18yrs-25yrs [ ] 26yrs-35yrs [ ] 36yrs-45yrs [ ] 46yrs-55yrs [ ] 56yrs-

above [ ]

Marital status: single [ ] married [ ] widower [ ] divorce [ ]

Educational Background: HND[ ] B.sc [ ] Master [ ]PHD[ ]

Occupational background: Estate surveyor & valuer [ ] engineer [ ] technicians [ ] civil

servant [ ] student [ ] farmer [ ]

Do you reside in Benin-city? Yes [ ] no [ ]

If yes in 6(above), how long have lived in Benin-city? Below 5years [ ] 6-15 years [ ] 16-

25 years [ ] 26-35 [ ] 36 years and above [ ]

Which part of Benin-city do you reside? GRA [ ] Aduwawa [ ] New-Benin [ ] Ugbowo [

44
Are you a landlord or a tenant? Landlord [ ] tenant [ ]

Which of the under listed properties do you own or occupied? Residential [ ] commercial

[ ] others [ ]

SCETION B

RESEARCH QUESTIONS

Do you transact commercial property in Benin-city? Yes [ ] no[ ]

If yes in question 1(above) what class of commercial property do you transact in the study

area? Retail properties [ ] office complex [ ] gas station [ ] parking lots [ ]

What is the level of returns from commercial property investment in the study area?

---------------------------------------------------------------

What is the level of risk associated with the investment in commercial properties in the study

area? ---------------------------------

Is the commercial property investment sector more risky than the others in the study area?

Yes [ ] no [ ]

If yes in 5(above) how does this happen? ---------------------------------

Can the risk associated with the commercial property investment in the study area be

managed? Yes [ ] no [ ]

If yes in 7(above) how can these risks be managed so as to accomplish a viable investment

environment? --------------------------

CHAPTER FIVE 5.1 FINDINGS. This study has been able to establish that there was a

significant difference among participants in their perception of compensation. For the

construction of IkemNsukka federal road, a total of 452 claimants were compensated. Out of

this number, 392 were compensated for crops while 60 were compensated for improvements

45
on land including shrine. The highest paid claimant for crops is Umuadaga family c/o Mr

Pius Eze who collected N3,793.00; while the least paid was Virginia Ugwuanyi that received

N8.00. Apart from the people of Nsukka who showed some level of achievement and

happiness over the construction of road for them by the government, percentage of the

participants in Amaeke who accepted that there was no compensation at all were slightly

lower than those who accepted that compensation was paid but that it was inadequate, while

those who accepted that compensation was paid were very minimal compared with those who

said that the compensation that was paid were very inadequate. Some comments made by

participants which confirmed that they may not have been paid were the following comments

made to items number 14, 15, 18, and 19 of the questionnaire. These include: (1) Still

wondering why they never paid. (2) Have not seen their face up till this moment (3) Enugu

state government hijacked the money. 89 (4) Acquiring agent claimed that the land was

acquired through the Land Use Act. (5) No reason-the Bible said “man will dominate man to

his injury” (6) They said we do not have natural resources to be paid for (7) The company

claimed that the state government is their landlord and that they can not afford to have two

landlords. (8) No single reason, dominance using police and government to intimidate us. (9)

We suspected that the State government collected the money. (10) They are using

government to oppress and suppress us. etc. Further more, participants who accepted that

compensation that was paid were inadequate made the following comments:- (i) Inadequate

compensation for economic trees only. (ii) The economic trees were grossly under valued and

paid for. (iii) It was inadequate payment at the onset of the acquisition. (iv) About N75,000

(seventy- five thousand naira), not worth what was taken. (v) It was not fair for the size of

that land and the economic trees on it, etc. It is very important to note that the amount of N

75,000 accepted by some of the participants that was paid to the community as inadequate

compensation corresponded with the figure the researcher obtained from the government’s

46
record in the Ministry of lands, Enugu. This information is contained in a Report 90 of

23/2/1988 made by the Nigerian Brewery PLC to Enugu state government,(see the

acquisition of Ama site in the Study area of chapter 1). From the result obtained from the

hypothesis 2, it may be said that a good number of the participants without tertiary institution

did not know or understand what was meant by payment of compensation because of their

comments to items number 14, 15, 16,17,18,19, and 20. Some of them after indicating (No)

to item number 14 still answered inadequate compensation to item number 20. Result also

showed that the type of information the respondents anticipated were those information that

comes through the informal means but unfortunately they were mostly informed through the

formal means. They were not properly informed about the purpose of the acquisition and

when they eventually noticed that it was given to Nigerian brewery they argued that

production of beer is not for over riding public interest. This made them sad and resorted to

violence. The bitterness resulted to humiliation and harassment of the field lands surveyors

who went to survey on the site on 27/7/82 by the villagers. These surveyors rushed back to

government requesting via letter written by the Surveyor General in August 1982 to the

Permanent Secretary to despatchtach police to them to enable them do their work. A good

number of the respondents were of the opinion that if the government did not want to pay

cash that the community needed to have communicated with the authorities of the company

to suggest other ways like giving scholarship to their children, giving employment to their

children , community developments, etc. This corresponded with Umeh (1973) stating that 91

compensation could come in any other form… It is also important to note Sec.28 (3) of the

Land Use Act of 1978. Further more to the responds given to items number 21, 12.5% said

they will still insist on compensation, 10% said they will disregard compensation, 65% said

they will want to give more land if available, while others were of the opinion that common

sense should have told the company that they should take care of the host community. 5.2.

47
RECOMMENDATION AND CONCLUSION. The following recommendations are

considered relevant to militate the identified problems in this study and to prevent re-

occurrence of such in future acquisition by the government for developmental purposes: (i)

Good community Relations;. This may have significant effect in sustaining peace and

harmony (ie continuous interaction between the community, staff and management of Ama

Brewery), as well as maintenance of environmental sustainability. (ii) Adequacy of

revocation:- The Land Use Act provides that rights on land should be revoked for over-riding

public interest. It also stated that the notice of acquisition must be served and published in the

Gazette for at least 21 days and contained such particulars as would enable the owner know

the grounds upon which the revocation is based. However, this work is recommending that

informal information rather than formal information be 92 used in local areas so as to bring

the community closer to the heart of the acquiring Authorities. The information is better

given by the ones they know and in the language they understand. It is not very easy for land

owners to give up within 21 days ownership of land they have held and cherished for so

many years just like that without something reasonable to show for it. (iii) Identification of

genuine beneficiaries: - Informal relationship will help the acquiring Authorities to identify

genuine claimants when compensation is being paid. (iv) Adequacy of Compensation:- It is

lawful for acquiring authorities to pay compensation to owners whose rights are both for the

land, development and crops to the value as at the date of the acquisition and any damage

caused by the severance, or injurious affection due to the exercise. This will help to reduce

stress and social problems to the deprived. Thus, the work is recommending that various

Sections of the Land Use Act of 1978 be amended to reflect the above suggestions. (v)

Faithfulness to the purpose of acquisition:- The government should try as much as possible to

be faithful to communicate the purpose of acquisitions, not saying one and doing the other.

(vi) The powers of the Governor:- It seems that the power given to the state Governors over

48
land under the Land Use Act is so much that many of them now abuse the power. Suggestion

is hereby made that the power be balanced by involving members of the House of

Representatives and also making it 93 compulsory that the Land Use and Allocation

Committee be strictly incorporated on issues relating to land acquisition and compensation.

(vii) The issue of notice to treat as is practiced in London according to Davies ,K(1975)

meaning the procedural stage at which the interest to be acquired are fixed. “The date of

service of the notice to treat was as a rule conveniently acceptable also as the date for

assessing compensation but only in so far as no disagreement existed”. 5.3. LIMITATIONS

OF THE STUDY One limitation of the study was the difficulty experienced at reaching out

to the participants. Some of them who responded to the subject were very bitter, so there is

the possibility that the subject might not have responded truly how they really felt as they

went through the instrument. In addition to the foregoing, some of them felt that it was the

government who wanted the information and this informed their behavior otherwise, the

work of this nature should have been a longitudinal one where large sample of people’s

opinion are repeatedly noted on the nature of revocation and acquisition of landed properties

as it regards the Land Use Act of 1978 in order to give more credence to the findings of the

study. However, this was impossible in the present study considering the fact that as a

masters degree programe, there was limitation of time imposed by the school of postgraduate

studies of the university within which the student must complete the programe, 94 in addition

to the fact that postgraduate school fees have gone up considerably and there was no support

funding for the research work. Another major difficulty encountered was the financial

involvements of the study. Due to the fact that many of them are not happy about the

acquisition of Ama Land and that there time are being wasted, the only way to sustain them

was to engage with a bottle of soft drink or a token as you issue out the questionnaire or as

you go back on the agreed day for collection. 95 BIBLIOGRAPHY BOOKS Aboh, U. and

49
Obidigbo, G. (1998): Quantitative Analysis in Psychologh, Eddymore Promt Entrprises,

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death, Sunday Champion, Agust 6th . Onuorah, E. (2005),The impediments to the

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Rivers state, Nigeria 5-10th April . Research Reports Agu, J. Ngwo: Its People and Culture,

Obio (Nigeria)Enterprises, Asata Enugu. Ama Brewery: World Class (2003). EMMAEZEH

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& CO. Valuation Report on Building/crop enumaration along Ikem- Nsukka Federal road.

For Obollo-Afor and Iheaka , Enugu state. Maluze, F(2007): The Relevance of the Land Title

Re-certification programme in 98 Enugu state. A working luncheon paper presented to The

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51