Compulsory acquisition of oil exploration fields in Delta State, Nigeria. The compensation problem
| DOI | https://doi.org/10.1108/14635780710720171 |
| Published date | 13 February 2007 |
| Pages | 62-76 |
| Date | 13 February 2007 |
| Author | P.S. Ogedengbe |
| Subject Matter | Property management & built environment |
Compulsory acquisition of oil
exploration fields in Delta State,
Nigeria
The compensation problem
P.S. Ogedengbe
Obafemi Awolowo University, Ile-Ife, Nigeria
Abstract
Purpose – The purpose of this paper is to focus on the problems of compensation for compulsory
acquisition of oil exploration fields in Delta State with particular reference to the oil field acquired by
Agip Oil Company for gas pipeline way leave in Irri and Okpai towns of Delta State.
Design/methodology/approach – A survey was conducted in which ques tionnaires were
administered on some residents whose lands were acquired compulsorily on one hand and some
estate surveying and valuation firms who are professionals in the fields of compensation on the other
hand. The data collected were analyzed and presented using simple statistical methods.
Findings – The findings in this paper show that the compensation paid to residents whose lands
were acquired is grossly inadequate, since professionals are not always involved in the process.
Practical implications – The paper shows that the issue of compensation for compulsory
acquisition for oil exploration is very central in the oil-rich Niger-Delta, and if this is not handled
carefully, it can lead to uncontrollable crisis.
Originality/value – This paper empirically ex amined the process involved in compulsory
acquisition and compensation of land in the Niger-Delta for oil exploration with a view to
determining the adequacy or otherwise of the compensation paid.
Keywords Compensation,Compulsory purchase, Oil industry,Nigeria
Paper type Research paper
Introduction
Land is the subject of compulsory acquisition and compensation worldwide. There is
hardly any human activity that does not require the use of land. It is a gift of nature
that man’s existence depended upon through the ages, even now.
Historically, the Nigerian society has always attached a high value to land since
housing that has been acclaimed second most important need in the hierarchy of man’s
needs depends on land.
Ever since the discovery of crude oil in Oloibiri in 1958. In the Niger-Delta, the
acquisition of land has become a common phenomenon in the oil producing areas since
the government and the oil prospecting companies are empowered by the various
legislations to acquire land compulsorily for public purpose and oil exploration
respectively. Delta state is one of the oil producing states in the Niger-Delta, as a result,
most oil exploration companies have pitched their tents in this oil rich state. Oil
exploration in the Niger-Delta since its discovery, has always taken place in the rural
areas of the region due to the fact that oil is found in abundant quantity in swampy
areas that are mainly inhabited by the rural dwellers.
The current issue and full text archive of this journal is available at
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JPIF
25,1
62
Journal of Property Investment &
Finance
Vol. 25 No. 1, 2007
pp. 62-76
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635780710720171
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