The Determination of Compensation Payable in the Niger Delta for Compulsory Acquisition and the Need for Sustainable Practice

The right to compensation for the compulsory acquisition of real property is constitutional and most enabling laws prescribe valuation methods to be adopted in determining the compensation payable. This paper aims at ascertaining the implications of the constitutional provisions and its impact on the compensation payable. It reviews some legislation, prescribed compensation rates and a valuation report on the Obite- Ubeta- Rumuekpe (OUR) pipeline acquisition and analyses the valuation method used. When compared with internationally prescribed standards, the paper concludes that the compensation determined does not meet the compensation requirements of adequacy and that the use of predetermined compensation- rates corroborates the inadequate compensation determination and renders agricultural practices unsustainable. It recommends the adoption of valuation methods that indicate compensation sums that are equivalent to market realities to sustain agricultural practices.