Alhaji (Chief) S.d. Akere & Ors V. The Governor of Oyo State & Ors (2002)

LawGlobal-Hub Lead Judgment Report

A. AKINTAN, J.C.A.

The dispute that led to the institution of this case at Ibadan High Court in Oyo State as Suit No. M/367/92 arose over payment due to the plaintiffs, who are now appellants, for compensation due to them in respect of their parcels of land acquired by the government. The parcels of land were acquired in 1963 by the old Western Region Government for the purpose of establishing a farm settlement at Araromi-Akufo in Ibadan. The acquisition notice was published in the Western Region Gazette No.9 Volume 12 of 7th February 1963. It was given Western Nigeria Notice No. 206 of 1963. The plaintiffs filed their claims for compensation shortly after the publication in the Gazette.

About three years after the acquisition, the government paid compensation due in respect of crops found on the land. But compensations due in respect of buildings and land were left unpaid. The government then promised to pay them later. The promise was, however, not honoured until the old Western Region was broken into states and the present Oyo State Government inherited the liability to pay the outstanding compensation due on the acquisition. However, between 1984 and 1987, compensations in respect of buildings were paid, thereby leaving unpaid compensation due in respect of the land.

This was the situation when the appellants as plaintiffs, instituted the present action by originating summons on 25th November 1992. Their claim before the court was as follows:

“1. Whether the plaintiffs are entitled to be paid compensation including interest for delayed payment for their land compulsorily acquired in 1963 along Araromi-Akufo road, Ibadan.

If the answer to the above question is in the affirmative, then the plaintiffs claim:

(i) Declaration that under and by virtue of the provisions of section 31 of the Constitution of the Federation 1963, the plaintiffs are entitled to be paid compensation for their land situate along Araromi-Akufo road, Ibadan compulsorily acquired by the defendants in or about 7th February 1963.

(ii) Declaration that by the provisions of the Public Land Acquisition (Miscellaneous Provisions) Act 1976 No. 33, the plaintiffs are entitled to be paid interest at bank rate on the said compensation.

(iii) An order directing the defendants to pay the plaintiffs the sum of N21, 222,348.25 representing principal and interest due to the plaintiffs as compensation.

(iv) Interest at the rate of 21% per annum on the sum of N21, 222,348.25 from 1st January 1992 until the whole amount is paid.”

The claim went for trial before Adekola, J. as he then was, and the learned judge delivered his reserved judgment in the case on 20/3/96. He held, inter alia, as follows in the concluding portion of his said judgment:

“In the circumstance, I hereby declare that the plaintiffs are only entitled to the payment of the sum of N1,233,960 as compensation in respect of 822.64 hectares of land acquired by the defendants in 1963 and that the said amount shall not attract any interest whatsoever.

I cannot, however, grant the other order for declaration that the plaintiffs are entitled to be granted interest at the bank rate on the compensation due because the provisions of the granting of interest on compensation due will not cover land acquired from original land owners. And even if applicable, the maximum interest payable would have been limited to ten years after the time of purchase up to the time of the notice of acquisition. In the circumstance, that leg of the plaintiffs’ claim fails and it is hereby dismissed.

I hereby direct the payment of the sum of N1, 233,960 to the plaintiffs as the amount due as compensation to the plaintiffs in respect of the 822.64 hectares of land acquired from them by the defendants… The defendants are to pay N1, 500 costs to the plaintiffs.”