Conditions for Payment and Non-payment of Compensation for the Revocation of Development Permit off a Developer

Conditions for Payment and Non-payment of Compensation for the Revocation of Development Permit off a Developer

According to Section 42 of the Nigerian Urban and Regional Planning Decree No 88 of 1992, compensation shall be payable for the revocation of development permit to a developer or the holder for the time being of a development permit if:

• Development has commenced; or
• The developer or holder is liable under an existing contract to a third party to damages for breach of conflict; or
• The developer has incurred any expense or has suffered a loss during the process of obtaining development permit.

The amount of compensation payable shall be such as to reimburse the developer or holder for the time being of a development permit of the loss incurred as result of the revocation and shall not be in the form of payment of damages or in excess of the sum incurred by the developer.

According to Section 43(2) no compensation shall be payable if:

• A development is not in accordance with the terms and conditions under which the development permit was granted; or
• The right of occupancy of the land on which a development was to take place has been cancelled or revoked on the ground that the applicant did not comply with the requirements of the Land Use Act of 1978  (check revocation of rights of occupancy for overriding public interest); or
• A claim for compensation is made 28 days after a notice of revocation is served on the developer or the holder for the time being of a development permit.

References

L.A. Adeyeye (2010), Understanding Urban and Regional Planning Law and Administration in Nigeria