Compensation study of Boboroku, Jesse, Delta State, Nigeria

Abstract

Purpose

The purpose of this paper is to examine issues of compulsory acquisition, evaluating the quantum of compensation paid to natives of communities whose farmlands are acquired and issues that must be dealt with to provide adequate compensation to claimants.

Design/methodology/approach

Using an oil well acquisition base in Boboroku, Jesse in Ethiope-West local government area of Delta State as a case study, various compensation claims were examined vis-à-vis market value claims in compulsory acquisition.

Findings

It was found that many claimants received N1,000.00 (naira) or less as full compensation claims for their crops while families lucky to own lands received more reasonable payments. It was also found that 40 of the 142 claimants in Boboroku community received only N4,146,120.00 as opposed to N8,802,750.00 they should have received under market values. Similarly, 39 claimants in Okuno should have received a market value of N3,195,920.00 as against N1,370,609.00 that was actually paid by the acquiring authority confirming that the rates applied were grossly inadequate.

Practical implications

It was established that there was no statutory provision for disturbance losses from revocation of land interests. Also, the productivity of economic crops and trees was not considered nor was the computation of claims based on market values. The paper further established that claims should be compensated on the basis of productivity value and life span of interests being acquired and not on arbitrary rates supplied by the acquiring authorities.

Originality/value

The case study methodology used in this paper enabled contribution to the body of studies which hitherto highlighted the issues of compulsory acquisition and quantum of compensation. It, therefore, adds to the problem-solving framework on compulsory purchase matters in Nigeria.

Citation

Odudu, C.O. and Iruobe, P.O. (2017), "Compensation study of Boboroku, Jesse, Delta State, Nigeria", Property Management, Vol. 35 No. 5, pp. 490-507. https://doi.org/10.1108/PM-05-2016-0021