793 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

Chapter 32

Public Acquisition of Land in Oil and Gas Industry and Issues in

Compensation: A View
---------------------
O. B. Akinola*

Abstract
The focus of this chapter is on the acquisition of land by the State for
exploration for oil and gas and the adequacy of compensation for such a
lucrative venture. The chapter reviewed existing legislation in the Oil and
Gas industry, Mines and Minerals sector and two major Bills pending
before the National Assembly which is the Petroleum Industry Governance
and Institutional Framework Bill 2015 and Petroleum Host and Impacted
Communities Development Bill 2018 with focus on rights of land owners.
The chapter finds that the customary owners of lands upon which oil
exploration is carried out are not only exploited by the companies involved,
the legal regime appears to be unfavourable to them. The chapter therefore
makes recommendations towards adequate compensation for land owners
and good governance, which would ensure transparency and accountability
in the oil and gas sectors of Nigeria.

1. Introduction
In most cases, the African heritage is tied to communal and family lands which
determine the extent of their settlement and boundary. To, therefore, deny an heir
to his heritage without adequate and timely compensation may, therefore, be
counterproductive for the acquiring authority. The focus of this paper is on the
acquisition of land by the State for the purpose of exploration for oil and gas. The
paper focused on the adequacy of compensation for land compulsorily acquired
for oil and gas production activities in Nigeria.

2. Land Acquisition and Compensation

It is apposite to anatomise the meaning of the key word, which is an acquisition.
The word ‘Acquisition' according to the Blacks Law Dictionary1 is the gaining of
possession or control over something. Hence, it is something acquired a valuable
acquisition. In essence, acquisition entails again on the part of the acquiring party
(authority) which invariably may be a pain on the part of the party parting with
the property for the purpose of prospecting for oil and gas.

1Ph.D, Barrister at Law and Senior Lecturer, Acting Head of Department, Department of
Professional Ethics and Skills, Nigerian Law School, Enugu Campus. Email:
omoniyi.akinola@nigerianlawschool.edu.ng
1
B. A. Gardner; Blacks Law Dictionary, (8th edn, Dallas Texas: West publishing Co 2004) 25.
794 Laws on Oil and Gas Exploration and Production in Nigeria: A Text in Honour of Austin Avuru

In this context, the law is being used as an instrument to acquire another

person's property. It is, therefore, apposite that the law makes provision for a
timely compensation for the person whose property is acquired. The author
therefore frowns at a situation where the acquiring authority through the legal
instrument acquire the real property of a party and uses all manner of delay tactics
to frustrate the payment of compensation to the party parting with his property.
Now the poser is: ‘what is compensation?' again; the Blacks Law
Dictionary2 defines compensation as follows:

Compensation is just compensation; a payment by the government

for property it has taken under eminent domain usually the property's
fair market value so that the owner is theoretically no worse off,
after the taking. This is also termed adequate compensation; land
damages.

It states further that compensation is remuneration and other benefits

received in return for services rendered; especially salary and wages. The context
in this chapter is not in respect of salary and wages but the light of the public
acquisition of lands either rural or urban for public purposes in accordance with
section 29 of the Land Use Act 1978 and other statutes in the Oil and Gas
Industry such as the Petroleum Act.3

3. Public Acquisition and Compensation under the Land Use Act 1978
The Land Use Act 1978 (hereinafter referred to as the Act) is a revolutionary
legislation in the aspect of landholding in Nigeria. The Act emphasises the public
purposes of protecting the rights of all Nigerians to the land of Nigeria. 4 The
preamble of the Act states:5

Whereas it is in the public interest that the right of all Nigerians to

the land of Nigeria be asserted and protected by the law; and
whereas it is also in the public interest that the rights of all Nigerians
to use and enjoy land in Nigeria and the natural fruits thereof in
sufficient quantity to enable them to provide for the sustenance of
themselves and their families should be assured protected and
preserved.

2
Ibid., p. 854
3
Cap P10, LFN 2004
4
L M O Adeleye, “Land Reform- Experience from Nigeria” 5th Regional Conference Accra,
Ghana (2006), available at: www.googlesearch.com, accessed on 05/03/2019
5
Preamble, Land Use Act, Cap L5, LFN 2004
795 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

It is apposite to state that the land Use Act was based on four objectives
namely to:6
(a) remove the bitter controversies, resulting at times in loss of lives and
limbs which land is known to be generating.
(b) streamline and simplify the management and ownership of land in the
country.
(c) assist the citizen, irrespective of his social status to realise his ambition
and aspiration of owning the place where he and his family will live a
secure and peaceful life.
(d) enable the government to bring under control the uses to which land can
be put in all parts of the country and thus facilitate planning and zoning
programmes for particular purposes.

According to a writer7 the avowed purposes of the land reform Act are, to:
(i) make investment in agriculture attractive by removing the uncertainty in
the control over land;
(ii) curb speculation in urban lands;
(iii) make opportunities to occupy land generally available to Nigerians
throughout the country thereby bringing about mobility of resources,
especially, human recourses; and
(iv) reallocate rural land to large scale farming.

It is the view of the author that none of the purposes cum objectives
operates to deny a person who owns his land by inheritance, settlement or
conquest his land and fail to compensate him adequately and timeously for the
acquisition based on public purposes.
However, section 28(1) of the Act states that “It shall be lawful for the
Government to revoke a right of occupancy for overriding public interest.” Sub
section 2 of the section under consideration provides further that overriding public
interest in the case of a statutory right of occupancy means: 8
(a) The alienation by the occupier by assignment mortgage,
transfer of possession, sub-lease or otherwise of any right of
occupancy or part thereof country to the provisions of this Act
or of any regulations made thereunder.

6
See Preamble to the Land Use Act dated 29th March 1978
7
Uchendu, Alienation of family property in Nigeria, (1980), quoted from Land Reform-
Experience from Nigeria by M. Olayiwola and O. Adeleye 2006, Being a Paper presented at the
FIG Regional Conference, Accra, Ghana, March 8 – 11, 2006, 4.
8
Land Use Act, section 28(2), Cap L5, LFN 2004
796 Laws on Oil and Gas Exploration and Production in Nigeria: A Text in Honour of Austin Avuru

(b) The requirement of the land by the government of the state or

by a Local Government in the state, in either case for the
public purpose of the Federation.
(c) The requirement of the land for mining purposes or oil pipeline
or for any purpose connected therewith.

According to Babalakin, 9 what public purpose is quite vexed under Nigerian

law. Unlike advanced countries where the motive for compulsory acquisition is
hardly questioned, in Nigeria there is clearly a serious abuse of power in this
regard. It is suggested that contravention of section 28 (2) (c ) of the Land Use
Act in respect of acquisition for Mines, Minerals and Oil should be treated as
capital offence for the officers of government in charge of the acquisition at the
material time. This is because, oil and gas is of high national economic value.
Discovery of oil and gas will also confer economic fortune on the government and
the entire citizens. It will therefore be unconscionable for the original owners of
such land to be treated with levity over their natural heritage.
Section 51 of the Land use Act states that public purpose includes: 10

Exclusive Government use or general public use; use by Body Corporation

directly established by law or under Companies and Allied matters Act in
which Government owns shares, stock, debenture; in connection with
sanitary improvement of any kind; for controlling land contiguous to land
that would be enhanced by the construction of railway, road, or other public
work or convenience about to be undertaken by Government; For
controlling land required for development of telecommunications,
electricity or mining purposes; for controlling land required for planned
urban or rural development of settlement; or controlling land for economic,
industrial or agricultural development; for education and other social
services.

It should be noted that the definition of public purposes made use of the
word “includes” which suggests that the list is not exhaustive. Applying the
ejusdem generis rule, the court has X-rayed this section in some cases. The
Supreme Court in Osho v Foreign Finance Corporation,11 (despite not being the
major issues before the court), states that any revocation for public purpose
outside the ones prescribed in section 51(1) of the Act even though for a related
purpose is against the policy and intention of the Act.12
9
W Babalakin, “Key Constraints' to Real Estate Development in Nigeria,” available at:
www.babalakinnandco.com, accessed 16/02/2019.
10
Land Use Act, section 51 (i)-(viii), Cap L5, LFN 2004
11
(1991)4 NWLR (Pt184) p.157
12
In the opinion of this writer, acquisition for security purposes falls within the contemplation of
the Act.
797 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

Also, the Court of Appeal in Olatunji v Military Governor, Oyo State &
13
ors considered whether the compulsory acquisition of the land in issue is not a
nullity taking into account that the appellant who was the owner or the person in
effective possession was not served with a Notice of revocation. The Oyo State
government compulsorily acquired a parcel of land at Orita Ikereku Challenge
Ibadan belonging to the appellant without Notice to him but vide Oyo State
Gazette,14 wherein the Certificate of Occupancy of the appellant was revoked and
re assigned to Tawa Investment (Nig) Ltd. The appellant sued and the court
categorically held that:

Although the section opens with the words “public purpose

includes” which words convey that the definition of public purpose
therein may not be exhaustive, it seems to me that other public
purposes not stated under section 51 have to take their coloration or
meaning from the public purposes stated therein.

Such other public purposes must be those similar to those stated in the
section. It is therefore further suggested that the law should not be made a cheap
instrument of divesting individual or communal land owners of their interest in
other to satisfy political cronies. The implication of the above judicial authorities
is that our Court has imposed a very restrictive meaning of public purpose, which
is well applauded. This is because it protects private owners and investors who
have risked all their life saving and fortunes in an attempt to develop land in
Nigeria, only for the government to turn around and improperly acquire it for
purposes described as overriding public interest under the Land Use Act, 1978.
In the same vein, section 51 of the Land Use Act as espoused above should
be amended to expressly mention the words ‘Oil and Gas'. This suggestion is
without prejudice to the express provisions in the Petroleum Act. Where the
acquisition is properly done and the landowners adequately compensated, it will
reduce security tension and save the government unnecessary extra budgetary
provision for security. 15
Babalakin wrote about one Chief J.H. Bassey whose land was acquired by
the Federal Government in the 1980s. The acquisition was illegal, and while the
matter was still being challenged in Court, the then Federal Military Government
promulgated a Decree specifically for Chief Bassey's land which it titled J.H.
Bassey Acquisition of Properties Decree. Such is the naked abuse of power by the
government on compulsory land acquisition in Nigeria. 16

13
(1995) 5 NWLR (Pt 397) p. 586 at 606 Paras B-C.
14
No 10 in volume 17 of 11th March, 1982.
15
Land Use Act, Cap L5, LFN 2004, section 51.
16
W Babalakin, “Key Constraints' to Real Estate Development in Nigeria,” available at:
www.babalakinnandco.com, accessed 16/02/2019
798 Laws on Oil and Gas Exploration and Production in Nigeria: A Text in Honour of Austin Avuru

It should, however, be noted that the Governor of a state may revoke a

statutory right of occupancy on the ground of a breach of any of the implied
provision which a Certificate of Occupancy is by section 10 of the Act deemed to
contain; or for breach of terms contained in the certificate of occupancy or in any
special contract made under section 8; or for a refusal to accept and pay for a
certificate issued in evidence of a right of occupancy but cancelled by the
Governor under section 10 (3) of the Act.17
Before analysis on the legal requirement for compensation, there exists a
procedure for valid revocation, which is summarised under section 28 (6) and (7)
thus:
a. Revocation must be by a person who has the power to
revoke i.e. a public officer duly authorised by the
Governor.
b. Notice shall be issued stating the purpose of revocation
as prescribed by the Act.
c. Notice shall be served on the holder of the right of
occupancy and service must constitute good service in
accordance with section 44 of the Act.
d. Notice must be proved to have come to the knowledge
of the person concerned, i.e. there must be receipt of
such Notice.

It is our view that where a parcel of land is not properly acquired, for a
public purpose, the acquisition is invalid notwithstanding that there was lapse of
time between the date of acquisition and the transfer of land to a third party or
that the parcel of land was only a small portion of a larger portion of land
acquired.
In this present dispensation,18 the allocation policy of the various tiers of
government appears most scandalous. This is because the Land Use Allocation
Committees are no more than mere appendages of the various state Governors
that merely endorse lists approved by them. The avowed commitments to repeal
or amend the Act by various governments only catapulted them into allocating
other people's land to friends, relatives and political party faithful; land becomes
indeed an item of political patronage. Hence, allocation of land was rarely made
to low-income earners as stated in the objectives of the Land Use Act 1978. Land
is now beyond the reach of the ordinary Nigerian but within reach for affluent
citizens. This is a misnomer for which if adequate steps are not taken may soon
result in prejudice.

17
I.O. Smith, Practical Approach to law of Real Property in Nigeria (Lagos: Ecowatch
Publications (Nig) Ltd, 1999), 328. See also, the Land Use Act, Cap L5, LFN 2004, ss 8 and 10
18
1999–Till date.
799 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

Another statute which provides for revocation of a right of occupancy is

the Nigerian Urban and Regional Planning Decree,19 which requires a holder of a
right of occupancy to seek for Development Permit from the Development
Control Department, for developmental purposes. Although, some provisions of
the Decree has been struck out by the Supreme Court in A.G. Lagos State v A.G.
Federation20 based on the hallowed principles of federalism. The Supreme Court
stated that the provisions of the Decree are Constitutional only to the extent that
they apply to the Federal Government and the Federal Capital Territory but not if
they relate to the states as they impose duties and responsibilities as on the latter
contrary to the principles of Federalism. 21 In this case, the Supreme Court settled
the issue of whether the subject matter of urban and Regional planning falls
within the exclusive preserve of the National Assembly, the court held that:

Therefore each government exists not as an appendage of another

government but as autonomous entity in the sense of being able to
exercise its own will in the Conduct of its affairs free from direction
by another government. It follows, therefore, that the National
Assembly cannot impose on the plaintiff in this case or determines
for the plaintiff the types and levels of Physical plans the plaintiff or
any state of the federation should have. It is only in the context of
Federal Capital Territory that the National Assembly can make such
enactment by virtue of the provisions of section 299 of the 1999
Constitution. Consequently, I hold that section 1(20 of the 1992 Act
is unconstitutional Null and void.22

It should be pointed out that the Decree also conflict with the Land Use Act
in the sense that under section 75 (1) of the Decree a right of occupancy can be
revoked when it appears to the National Urban and Regional Planning
Commission (NURPC), created under the 1992 Decree that it is necessary to
obtain land in connection with planned urban or rural development. The Decree
states further under section 75 (2) of the Decree that revocation under the Decree
shall be in accordance with the Land Use Act, 1978.

4. Compensation for Compulsory Acquisition of Land

The essence of revocation has been stated to be for overriding public interest. The
Land Use Act under section 29 states as follows:
(1) If a right of occupancy is revoked for the cause set out
in paragraph (b) of subsection (2) of section 28 of this

19
No 88 of 1992, now Cap N138 LFN 2004
20
(2003) 14 NSCQR (Pt. 11) 834.
21
Per M L Uwais CJN (as he them was) at page 905 of the Judgment.
22
per Uwais CJN (as he then was) at pages 889-890
800 Laws on Oil and Gas Exploration and Production in Nigeria: A Text in Honour of Austin Avuru

Act or in paragraph (a) or (c) of subsection (3) of the

same section, the holder and the occupier shall be
entitled to compensation for the value at the date of
revocation of their un-exhausted improvements.
(2) If a right of occupancy is revoked for the cause set out
in paragraph (c) of subsection (2) of section 28 of this
Act or in paragraph (b) of subsection (3) of the same
section the holder of the certificate of occupancy shall
be entitled to compensation under the appropriate
provisions of the Minerals Act or the Minerals oil Act
or any legislation replacing the same. 23

It is important to note that the provisions of section 29 of the Land Use Act
on compensation only apply where revocation of a right of occupancy is not
penal. For instance, revocation of a right of occupancy on the grounds of unlawful
alienation, breach of express or implied covenants in a certificate of occupancy
will not attract compensation.
This writer's focus is on those holders or occupiers under section 29 (1) and
(2) who are lawfully entitled to compensation based on the revocation in section
28 of the Land Use Act and other statutes in the Oil and Gas industry. Hence,
those statutorily not entitled to compensation based on penal provisions ought to
comply with the terms and conditions of the Certificate of Occupancy issued to
them.24
The issue of compensation happens to be a daily incident in Nigeria. For
instance, in the Guardian Newspaper,25 there was a report that some investors and
traders in Lagos suffered in the hand of Lagos State's Physical Planning and
Development Authority (LAPPDA) officials. A firm, Messrs Kwality Textile
Industries Limited claiming that it duly obtained all the necessary development
permits from the LAPPDA which still went a head and pulled down its staff
quarters on Jonah Ese street, Mende Maryland, Lagos. Elsewhere at the popular
Oshodi Market on the mainland the location of a transit park for the Bus Rapid
Transit (BRT) scheme has been the source of losses for traders who until March
2008 had plied their trade in the Market. The traders woke up one morning only to
discover that their means of livelihood had been wiped off by the Lagos State
Government officials.

23
E.g. Minerals and Mining Decree No 34 1999 now Act No 34 Cap M 12 LFN 2004
24
Land Use Act, 1978, Cap L5, LFN 2004, ss 28 and 29
25
The Guardian Newspapers of Monday April 7, 2008, 31 captioned “Controversy trails Lagos
demolitions, as textile firm traders seek Compensation.”
801 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

The affected parties are now seeking compensation from the Lagos State
Government.26 The question is why compensation and when will the Lagos State
Government, and other tiers of government accede to request for compensation
under the requisite laws. It is important to note that the process of acquisition
through compulsory, should not be made confiscatory. The acquiring body will be
required in all cases to justify its need for the land and to show why that need
should outweigh the claim of the owner to remain there. It is further suggested
that where a right of occupancy has been revoked, the acquiring authority should
put the land to the purpose for which it was acquired within a reasonable time. 27 It
is further submitted that issues as to the adequacy of compensation ought not to be
adjudicated upon by the Land Use Allocation Committee as stipulated in section
30 of the Act but by Section 39(1)(a)(b) and (2) of the Land Use Act. Section 39
(1) (b) ought to read “Proceedings to determine any question as to the amount of
and persons entitled to compensation payable for improvements on Land under
this Act.”

5. Compensation in Other Statutes in the Oil and Gas Industry

This provision28 ought to be the preventive measure for the raging Niger Delta
Crisis because upon revocation of a right of occupancy on the ground that the land
is required for mining purposes or oil pipelines or for any purpose connected
therewith, the holder and the occupier shall be entitled to compensation under the
appropriate provisions of the Minerals Act29 or any other legislation. The Niger
Delta Development Commission30 ought to rely on the various legal instruments
devised for the benefit of its people and ensure that legislation such as the
Petroleum Act31, Nigerian National Petroleum Corporation Act32 etc. are
exhausted to ensure adequate compensation for its people. Section 8 (3) of the
Minerals and Mining Act 199933 buttresses this point when it provides that:

26
Ibid
27
C. Harpum; The Law of Real Property, (6th edn., London: Sweet and Maxwell, 1999) 1359
28
Cap M12 LFN 2004. Section 6 (3) provides that ‘The holder of a permit to survey acting under
the authority of section 5 of this Act shall take all reasonable steps to avoid unnecessary damage to
any land entered upon and any buildings, crops or profitable trees thereon, and shall make
compensation to the owners or occupiers for any damage done under such authority and not made
good.'
(4) In the event of dispute as to the amount of compensation to be paid or as to whether or to
whom any compensation shall be paid, the provisions of Part I of this Act shall apply.
29
Cap 226 LFN 1990. It was amended by Minerals (Amendment) Decree No. 24 1998 and
eventually repealed by Mineral and Mining Decree No. 34 1999 Act Cap M12 LFN 2004
30
Niger Delta Development Commission Act No 2, 2000 Cap. N86 LFN 2004.
31
Cap P10 LFN 2004
32
Cap N 123 LFN 2004.
33
Cap M12 LFN 2004.
802 Laws on Oil and Gas Exploration and Production in Nigeria: A Text in Honour of Austin Avuru

A licensee or Lessee who causes injury or damage to any area, tree or

thing mentioned in subsection 134 of this section shall pay fair and
adequate compensation to the persons or communities affected by the
injury or damage.

In furtherance of the above, Part IV and sections 6 (3), 19 and 20 of the Oil
Pipelines Act No 24 of 1965 35 made provisions for compensation, its assessment,
and jurisdiction of the High Court in cases of its inadequacy and took cognisance
of the provisions of the Land Use Act for entry into the land and damages done to
same.
The emphasis of the author is on fair and adequate compensation for
persons or communities. The poser therefore is: to what extent are these laws
obeyed in respect of compensation payable by the Oil Mining Licence holders. It
is our view that compensation to persons or communities in cases of the aforesaid
acquisitions be made a condition precedent to the said entry into the land. It is
further suggested that some long term leasehold interests be made to entitle the
original owners to at least five per cent of the proceeds coming from the oil and
gas gains in the acquired land. This will reduce the quagmire for which the
Petroleum Industry Governance Bill has found itself in the National Assembly.
It should be pointed out that the various state governments have the Public
Land Acquisition (Miscellaneous provisions) Laws36 with adequate compensation
packages in letters while the ordinary citizen has its business and means of
livelihood compulsorily acquired in the overriding public interest. The various
settlements displaced in the Niger Delta area and other regions in Nigeria ought to
be adequately compensated and promptly too so as to avert a revolution due to the
proliferation of arms and incessant banditry in the region.
In furtherance of the above, the innovations of the Petroleum Host and
Impacted Communities Development Bill 2018 ought to be seen as a welcome
development. The National Assembly is the arm of government saddled with the
responsibility of making laws for the good of the citizens. Therefore, the 9 th
National Assembly that will be inaugurated as from 29th of May, 2019 should
revisit and pass the Petroleum Host and Impacted Communities Development Bill
2018 into law. Section 7 of the Petroleum Host and Impacted Communities
Development Bill provides for the sources of funding for Petroleum Host and
Impacted Communities Development Trust as follows:

34
S 8(1) provides that: No person shall in the course of prospecting or mining, carry out operations
on, in or under any area held to be sacred or permit injury or destruction of any tree or other thing
which is the object of veneration.
35
Cap O7 LFN 2004.
36
Decree No.33 applicable in the Federal Capital Territory
803 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

7 (1) The constitution of the Petroleum Host and Impacted Community

Development Trust shall contain provisions requiring that the Petroleum
Host and Impacted Community Development Trust shall have an
Endowment Fund to which the following monies shall be paid:
(a) an annual contribution of an amount equal to 2.5% (two and a half
per cent) of the actual operating expenditure (Opex) of the settlor for
the accounting period of the preceding year relating to the settlor's
operations in the particular licence or lease area for which the
Petroleum Host and Impacted Community Development Trust is
established;
(b) donations, loans, grants or honorariums that are extended to the
Petroleum Host and Impacted Community Development Trust for the
attainment of its objectives;
(c) incomes derived from the interest or profits from Reserved Fund; and
(d) any other income granted to the Petroleum Host and Impacted
Community Development Trust for the attainment of its objectives.

From the legislative intent of this Bill as stated above, the National
Assembly would be doing a great service to the nation by warding off pressure
from any quarter not to see this Bill come into fruition.

6. Recommendations
It is suggested that section 315 of the 1999 Constitution which houses the Land
Use Act should be expunged in accordance with section 9 of the said
Constitution. 37 The National Assembly has a duty to repeal section 30 of the Land
Use Act 1978 which vests jurisdiction in the Land Use Allocation Committees
and fuse the said section into section 39(1) (b) of the Land Use Act so that the

37
S 315(1) provides: ‘Subject to the provisions of this Constitution, an existing law shall have
effect with such modifications as may be necessary to bring it into conformity with the provisions
of this Constitution and shall be deemed to be - (a) an Act of the National Assembly to the extent
that it is a law with respect to any matter on which the National Assembly is empowered by this
Constitution to make laws;...'.
S 315 (5) preserves the Land Use Act 1978 among the list of laws as follows: Nothing in this
Constitution shall invalidate the following enactments, that is to say - (a) the National Youth
Service Corps Decree 1993;
(b) the Public Complaints Commission Act;
(c) the National Security Agencies Act; and
(d) the Land Use Act,
and the provisions of those enactments shall continue to apply and have full effect in accordance
with their tenor and to the like extent as any other provisions forming part of this Constitution and
shall not be altered or repealed except in accordance with the provisions of, s 9 (2) of this
Constitution ith respect to any matter on which the National Assembly is empowered by this
Constitution to make laws; and...'.
804 Laws on Oil and Gas Exploration and Production in Nigeria: A Text in Honour of Austin Avuru

High Court can automatically assume jurisdiction as to the adequacy of the

amount payable as compensation to the deprived owner. The trial at the High
Court should be assigned to specialised courts to forestall the delay litigation
brings to bear on the citizens.
It is further suggested that the said compensation should be made ready
before the Notice of revocation is sent to the holder or occupier of a right of
occupancy. This is to prevent incidental losses and cost of litigation usually borne
by such holders when agitating or requesting to be compensated.
Moreover, bureaucratic bottlenecks should be removed from the payment of
compensation by the government. This can be made possible through the adoption
of various electronic payment devices.
In furtherance of the above, any revocation that is outside the purview of
section 28 (2) of the Act ought to be made a cogent reason for the grant of an ex
parte application against the acquiring authority until compensation is paid.
The practice whereby peanuts and the meagre sum is given to original
landowners ought to be discountenanced by the various government agencies.
Rather, the market value of the developed or unimproved land with other
allowances for inconvenience or resettlement benefits ought to be the value
payable to the party whose property is being compulsorily acquired.
Also, the practice wherein the Governor or the Land Use Allocation
Committee revokes lands only to reallocate same to their friends, relatives and
political cronies should be criminalised and totally discouraged as it amounts to
robbing Peter to pay Paul. The allocation politics of the various tiers of
government ought to reflect the actual overriding public interest for which the
right of occupancy of a holder is being revoked.
The Petroleum Industry Governance Bill geared among other things towards
the promotion of transparency and accountability in the petroleum industry; and
the creation of a conducive business environment for operators in the petroleum
industry ought to be passed as a matter of urgent national importance by the
National Assembly. In the same vein, the revisit and passage of the Petroleum
Host and Impacted Communities Development Bill Submitted by the National
Assembly for Presidential Assent in June 2018 will give a further ray of hope to
indigenous landowners in the Niger Delta area whose ancestral home is being
used by the nation for the common good.

7. Conclusion
Land as a universal phenomenon is cardinal and sensitive to the owner. To
compulsorily acquire another person's land or a communal land without prompt
and adequate compensation is to invite a revolution. Where there are mineral
resources in the form of oil and gas etc. found in a particular land or some lands
required for the developmental purpose by the government, compensation should
be uppermost in the mind of the acquiring authority. Had it been this was done
805 Public Acquisition of Land in Oil and Gas Industry and Issues in Compensation: A View

alongside requisite developmental projects, the escalated Niger Delta crisis for
which a percentage of the national budget is now devoted would have been
averted. The proponents for unbundling the Oil and Gas sector in Nigeria have
done well by the proposed earlier discussed Bills in this work. The legislature and
the executive at the Federal level should give the necessary impetus to revisit and
pass into law the Bill by the 9th National Assembly. By doing this, the nation
would heave a sigh of relief when compensatory measures provided in the
legislation are implemented within the ambit of the spirit behind the letters of the
Bills.