07/08/2026
MEANING OF COMPENSATION FOR BARE LAND IN NIGERIA.
Under the Land Use Act 1978, the government may revoke a statutory or customary right of occupancy where the land is required for an overriding public interest/public purpose for example, a road, school, hospital, housing scheme, public infrastructure or other government project.
1. Is compensation payable for the bare land itself?
Generally, no. Where the land is completely bare and there are no improvements on it, compensation is usually not based on the market value of the land or its future development value.
The main compensation principle under section 29 of the Land Use Act is payment for the value of βunexhausted improvementsβ existing on the land at the date of revocation.
Examples of improvements include:
- Buildings and other structures;
- Fences and gates;
- Boreholes and wells;
- Roads, drainage and paved areas;
- Agricultural crops and economic trees;
- Installed equipment or infrastructure;
- Other permanent or valuable works carried out on the land.
Therefore, if a person holds a valid right of occupancy over an undeveloped plot but has made no improvements on it, the statutory compensation may be π§π’π₯ π¨π« π―ππ«π² π₯π’π¦π’πππ, apart from any specific entitlement recognised under the circumstances.
2. What if the land is described as bare but money was spent on it?
The land may not be legally bare if there are identifiable improvements, even if there is no building. For example, compensation may be claimed for:
- Site clearing and preparation;
- A perimeter wall or fencing;
- A foundation;
- A borehole;
- Access roads;
- Drainage;
- Crops or trees;
- Other provable works.
The relevant question is the value of the improvement ππ¬ ππ ππ‘π ππππ π¨π π«ππ―π¨ππππ’π¨π§, not what the owner hoped to build later.
3. What is usually not compensated?
The following are generally not payable merely because the land was acquired:
- The speculative increase in land value;
- Expected future profits;
- The cost of a proposed building that was never constructed;
- Emotional attachment to the land;
- The full open-market price of undeveloped land;
- Business opportunities that had not materialised.
However, the precise position can depend on the type of title, the wording of the acquisition notice, the applicable state law, and whether the acquisition was carried out under the Land Use Act or another statute.
4. Conditions for lawful revocation
A revocation for overriding public interest should generally:
i. Be for a recognised public purpose;
ii. Be made by the proper authority for example, the Governor or, in the FCT, the Minister exercising the relevant powers;
iii. Comply with the Land Use Act and applicable regulations;
iv. Be communicated through the required notice;
v. Address compensation for valid unexhausted improvements.
If the government merely calls an acquisition βpublic interestβ but the purpose is actually private or the procedure is unlawful, the affected person may challenge the revocation in court. A challenge to the validity of the revocation is separate from a claim for compensation.
5. How compensation is assessed
The value is normally assessed by an authorised government valuation officer or another qualified valuer. The owner should preserve evidence such as:
- Certificate or right of occupancy;
- Survey plan;
- Purchase and development documents;
- Building approvals;
- Receipts and invoices;
- Photographs and videos showing the land before acquisition;
- Valuation reports;
- Evidence of crops, fencing, boreholes or other works.
Where there is a dispute over the amount, the affected person may use the dispute-resolution and court procedures available under the Land Use Act and applicable state law.
Simple example
If a person owns a vacant plot with no fence, building, crops, borehole or other work, compensation may be π³ππ«π¨ π¨π« π§π¨π¦π’π§ππ₯, despite the plot having a high market value.
If the same plot has a completed perimeter fence, borehole and foundation, compensation may be assessed based on the value of those works not necessarily the market value of the land itself.
