When Government Acquires Your Land: Compensation Reality in Lagos

TL;DR: Yes, the Lagos State Government can acquire your land for overriding public interest under the Land Use Act, but compensation is not open-market value for the bare land. Under Sections 28 and 29, you are mainly paid for unexhausted improvements — buildings at replacement cost less depreciation, crops at prescribed value, and for the land itself only rent paid in the year of revocation.

I will be straight with you. Most landowners hear "compensation" and assume government will pay what the land would sell for in Ajah or Ikeja today. That is not how the Land Use Act is written, and the gap between expectation and statute is where the pain sits. This is general information, not legal advice — if you receive a notice, get a property lawyer and a registered estate surveyor involved immediately.

The legal basis: Sections 28 and 29

All land in a state is vested in the Governor, who holds it in trust. What you hold with a Certificate of Occupancy is a right of occupancy, not absolute freehold in the old sense.

Section 28 allows the Governor to revoke a right of occupancy for overriding public interest, including land required by Federal, State or Local Government for public purposes, land required for mining or oil pipelines, and cases where the holder has alienated the land contrary to the Act. Section 29 deals with money: for the public-purpose grounds in Section 29(1), you and the occupier are entitled to compensation for the value, at the date of revocation, of your unexhausted improvements. Compensation is tied to what you have put on the land, not to the speculative value of empty land in a rising corridor.

What "unexhausted improvements" actually covers

Section 51 of the Act defines improvements broadly. Buildings, installations, fencing, wells, roads, reclamation works, and plantations of long-lived crops or trees can count, provided they resulted from capital or labour and increase the productive capacity, utility or amenity of the land. Ordinary cultivation, other than growing produce, does not count in the same way.

Section 29(4) breaks the assessment into three heads:

For the land itself, the amount is equal to the rent, if any, paid by the occupier during the year the right was revoked. If you occupied rent-free, that head can be nil.

For buildings, installations or improvements, the amount is the replacement cost, less depreciation, together with interest at the bank rate for delayed payment. For reclamation works, you need documentary evidence that satisfies the appropriate officer.

For crops, the amount is the value prescribed and determined by the appropriate officer.

There is no line that says "market value of the bare land." Two neighbours on the same Lekki-Epe road can therefore receive very different figures — one with a completed, approved building valued on replacement cost, the other with fenced empty land qualifying for little beyond the rent head. Valuers will argue depreciation, finishes, approvals and proof of cost, so keep receipts, approved plans, survey and photographs. Owners who document early argue from a stronger position.

How Lagos has handled recent road acquisitions

In a recent exercise reported by BusinessDay and Radio Nigeria Lagos, the State presented over ₦3 billion to 331 property owners whose properties were acquired for strategic road projects. Governor Babajide Sanwo-Olu said the payments were made under Sections 28 and 29 and described compensation as a right, not charity. Beneficiaries went through enumeration, valuation by certified estate surveyors, and verification of title documents before payment.

The practical sequence is: identify the corridor, enumerate affected properties, verify title, value improvements, then pay verified claimants in batches. Title verification is the bottleneck — if your Deed, survey, C of O or consent chain has gaps, payment stalls while a neighbour with clean papers is cleared. Do not wait for enumeration to fix your documents; regularization problems that were merely annoying during a sale become urgent during acquisition.

The notice matters

A revocation must be signified under the hand of a public officer duly authorised by the Governor, and notice must be given to the holder. Where the stated ground is public purpose, the public purpose must be clearly outlined in the notice. Courts have treated revocations that are not genuinely for public purpose, or that skip proper notice, as challengeable.

When a notice arrives, note the date you received it, keep the envelope, photograph any pasted notice, and diarise any deadline. Your lawyer will want the exact wording, because the ground stated determines which compensation head applies and whether revocation itself can be contested. Confirm who is acquiring — Federal, State and Local Government projects share the Land Use Act umbrella but run different valuation teams and payment queues, and owners waste months chasing the wrong ministry in Alausa.

Where owners lose money

First, building without approval. The building exists physically, but expect arguments about how it should be valued; depreciation and approval status can pull the figure down sharply from new-build rates. Second, empty land bought purely for appreciation — under the statutory formula, prime bare land can produce a small cheque because the land head is rent-based, so have that conversation before buying land banking stock near a gazetted corridor. Third, delay: interest at the bank rate helps, but keep a paper trail and keep your bank and contact details current so "we could not reach you" does not become the story. Fourth, multiple claimants — family land and unprobated estates generate competing claims and government will not pay twice, so sort executors and court orders early.

What to do if your land is marked

Have a surveyor chart the affected portion against the road design — sometimes only a strip is taken and the residue remains usable, which changes both compensation and redesign options. Get an independent valuation of improvements on the Section 29 basis before agreeing a figure; government valuation is the starting point for negotiation or objection, not a number to accept blindly. Assemble your title pack — C of O or root of title, Deed, survey, Governor's Consent where applicable, building approvals, rent receipts and photographic evidence — and identify any missing consent now, since it is common in Lagos resales.

Separate the two possible fights with your lawyer: "should this revocation stand?" is a validity question for the courts, while "is this figure correct on replacement-cost-less-depreciation?" is a quantum question, and most owners actually have the second. If only part of your plot is taken, confirm in writing what happens to access, setbacks and building lines on the remainder — a residue that no longer meets planning rules is worth less than the cheque suggests.

Frequently asked questions

Will government pay me the market value of my land in Lagos?

Generally no, not for the bare land under Section 29 of the Land Use Act. The land head is limited to rent paid in the year of revocation, while buildings and other improvements are assessed at replacement cost less depreciation. That is why completed, approved developments usually produce far higher compensation than empty plots.

What documents do I need to claim compensation?

Expect to show your root of title and chain — C of O, Deed of Assignment, survey plan and Governor's Consent where applicable — plus building approvals, receipts and evidence of your improvements. Lagos enumeration teams verify title and use certified estate surveyors to value improvements, so gaps in your papers can delay payment. Bring originals and keep copies of everything you submit.

Can I challenge a revocation notice?

Yes, in appropriate cases. The notice must be properly authorised and served, and where public purpose is the stated ground, that purpose must be clearly outlined. Revocations not genuinely for public purpose or done without proper procedure can be challenged in court, but you need prompt legal advice because compensation disputes and validity disputes follow different routes. Do not ignore the notice while you decide.

What if only part of my land is taken for a road?

Government can acquire the strip needed and leave you with the residue. Have a surveyor chart exactly what is taken and confirm the new boundary, access and applicable setbacks in writing. Your compensation should still reflect your qualifying improvements on the acquired portion, and the usability of what remains affects your real loss.

How long does Lagos compensation take to arrive?

There is no single guaranteed timeline I can honestly give you. Recent Lagos exercises show payment follows enumeration, title verification and valuation, and owners are paid in batches once cleared. Interest at the bank rate applies to delayed payment on the building head under Section 29(4)(b), but you should budget for delay and keep your contact and bank details updated with the team.

Related reading: Regularization & Ratification: Fixing Imperfect Title in Lagos Related reading: Can Government Revoke Your C of O? Land Rights Explained Related reading: Right of Way & Setbacks: Lagos Planning Rules for Builders