Section 28 Compulsory Acquisition & Compensation Rights: Protecting Ultra-Prime Real Estate Portfolios

The power of the state to revoke rights of occupancy for overriding public interest is enshrined in Section 28 of the Land Use Act. However, this power is not absolute, arbitrary, or unreviewable. Institutional investors must understand the constitutional perimeter of compulsory acquisition and their enforceable rights to prompt, adequate compensation.

What Constitutes Valid "Overriding Public Interest"?

Section 28 specifies permissible grounds for revocation, including:

• The requirement of land by the Federal, State, or Local Government for public purposes (highways, ports, hospitals, schools).
• The requirement of land for mining operations, oil pipelines, or public utility installations.
• Breach of contractual covenants contained in the Certificate of Occupancy, such as unauthorized commercial use or failure to pay ground rent.

Crucially, Nigerian appellate courts have repeatedly held that the state cannot revoke private land under the pretext of "public interest" only to immediately reallocate that same land to favored private commercial developers. Such actions are ultra vires, null and void.

The Constitutional Guarantee: Section 44 Compensation

Section 44 of the 1999 Constitution of the Federal Republic of Nigeria guarantees that no property shall be compulsorily acquired except in the manner prescribed by law and with the prompt payment of compensation.

For unexhausted improvements (buildings, walls, landscaping, industrial foundations), compensation must reflect true depreciated replacement cost. For agricultural land, valuation incorporates the economic value of standing crops and trees.

How Botabed Shields Syndicated Assets

Every asset selected for Botabed’s Fractional Exchange or Trophy Portfolio is located in master-planned zones where municipal development blueprints are already locked into statutory regional gazettes. This eliminates the vulnerability of proximity to future unexpected infrastructure acquisitions, guaranteeing uninterrupted tenure security for decades to come.