Compulsory Acquisition and Compensation For Business Owners Due To Infrastructural Development In Port Harcourt Metropolis
Title
Compulsory Acquisition and Compensation For Business Owners Due To Infrastructural Development In Port Harcourt Metropolis
Authors
Ogban, Elenwo and Akujuru
Keywords
Business | Infrastructure
Publication Details
Vol: 8; No: 3; SEP 22 | ISSN: 2455-3921
Abstract
Compulsory acquisition is an important development tool for the government because it ensures that land is available when it is needed for critical infrastructural development such as rail/road improvement, institutions of learning, sewage works, airport and other similar infrastructures. During this process, the human condition suffers as people are forced to move from their place of comfort and stable existence to an unknown or new place, increasing costs of relocation. In all this, compensation is usually paid to property owners excluding owners of businesses in the property. This study therefore assesses difficulties encountered by business owners during the construction of Rumuepirikom Flyover, adopting a quantitative approach. 112 questionnaires were administrated through random sampling on business owners along the flyover construction site out of which 71 were retrieved. Descriptive statistics was used to analyze the data. The study revealed that the current compensation practice does not accommodate business losses and affected business owners suffer greatly in terms of loss of revenue/income, loss of customer/client, problems of ownership with landlord, problems of securing new business places, loss of business goodwill during the construction period. The study further revealed that there was no refund of rent paid to the property owners neither was any compensation paid for disturbances. The study therefore recommends the adoption of compensation laws that include business losses and engagement of affected persons in the consultation processes to ensure the meaningful participation in decision making, through a process that is transparent. It further recommends that governments should Relocate/Resettle affected business owners to an alternative accommodation, to continue their operation or pay them Relocation allowances.
