Saturday, August 3, 2013

After a long wait, land reform gets N45.5bn attention

While we wait for the finance minister’s 2009 budget breakdown, it is important we bring to the fore the provision of N91.8 billion for Land Reform and Food Security as, announced by the president. If our calculations are right, about N45 billion of the figure would be allocated to the former. This is important lest the minister forgets to interpret the provision of such bogus amount for land reform.
However, experts postulate that government may organise conferences to examine the Land Use Act as it affects development purposes in various parts of the country. But this is just conjectural.

Again, the explanation of the huge allocation for the land reform becomes crucial in the face of the president’s declaration that the government will seek to be more efficient in the use of public resources by eliminating or rationalising areas of waste and focusing on the critical sectors that would propel the growth of our economy and help us realise the objectives of the Seven-Point Agenda.
In 1978, precisely on the 29th of March of that year, the then federal military government of Nigeria promulgated the Land Use Decree. The law was maintained by the succeeding civilian administrations and the Decree was changed to act.

The act, as reported by Biodun Aluko and Abdul Aminu, purports to take over the ownership and control of land in the country thereby providing a uniform legal basis for a comprehensive national land tenure system. It was enacted to deal with problem of uncontrolled speculations in urban lands, make land easily access to every Nigerian irrespective of gender, unify tenure system in the country ensure equity and justice in land allocation and distribution and, amongst others, prevent fragmentation of rural lands arising from the application of the traditional principle of inheritance.

According to the experts who quoted other reports, the Land Use Act approaches the control of land through three strategies: the investment of proprietary rights in land in the state; the granting of user rights in land to individuals; and the use of an administrative system rather than the market system in the allocation of right, in land.
Primarily, therefore, the act vested the ownership of land rights in the state.
Under the act as outlined at FAO.org, control and management of land in urban areas becomes the responsibility of the state governor, while all other land (rural, public, etc.) is the responsibility of the local government of the area. It is noted that state governors are empowered to designate certain areas as urban land and to grant statutory rights of occupancy of fixed periods and rights of access to any person, subject to rental arrangements fixed by and payable to the state. The local government can grant a customary right of occupancy to land in the local government area (LGA) to any person or organization for agriculture, grazing, residential or other purposes. Land so granted should not exceed 200 hectares for agricultural purposes, or 2000 hectares for grazing purposes, for any single customary grant.

Certificates of occupancy are to be issued in respect of both types of grant.
The decree which turned into act in the democratic setting, has received criticism since its promulgation with experts stating that the Act is an urban legislation which only superficially touches the tenure problems in the rural areas in the country.

Without doubt, then, the granting of rights of occupancy under the Land Use Act has radically modified previously existing notions of ownership, control and other interests in land. This is particularly manifest in the granting of land rights to wealthy individuals, corporate bodies and cooperatives in the name of public purposes for development. Lasun Mykail Olayiwola and Olufemi Adeleye in their piece Land Reform: Experience from Nigeria, noted that the objectives of the land use act have remained largely unfulfilled 30 years after its enactment and title to land appears to be more insecure now than it ever was. According to them, the deficiencies of the land use act were aptly summarized by Justice Augustine Nnamani who, as Attorney General was responsible for drafting of the act and its incorporation into constitution. He said in the course of these years, it has become clear that due to its implementation, not its structure or intent, the objectives for which the land use act was promulgated have largely remained unfulfilled; indeed, they have been distorted, abused and seriously undermined.

They argued that the position today is that land is less available to the ordinary Nigerian than it was before the Land Use Act, thus holding most of the citizens to inevitable state of perpetual tenancy.
It is also noted by the authors that the allocations policy of various governments particularly during the civilian era has been scandalous. The land use and allocation committees, which are no more than appendages of the governors merely, endorsed lists approved by them. Sometimes, as observed by the duo writers, the civilian governor, who has vowed to repeal the act before entering into office, grabs it with both hands on getting into power. The result to be expected were allocations of land mostly to friends, relatives and party faithful; land become indeed an item of patronage. Worse still the patronage was withdrawn as one government succeeded the other.
Land is usually taken to include not only the physical soil, but also everything beneath it (minerals and water) and everything extending up to the sky above it. The 1979 Constitution of the Federal Republic of Nigeria recognizes and stipulates that all interests in mineral resources belong to the owner of the land and water resources containing them.
The allocation of land was hardly made to the low-income earners as Lasun Mykail Olayiwola and Olufemi Adeleye further noted. No government has yet earmarked a percentage of land available for allocation to this category of Nigerians as a deliberate policy. Nor has there been allocation of a percentage of land available forallocation to the community or family that previously owned the land now acquired by government.
On compensation to those whose lands were taken for development activities, Olayiwola and Adeleye said it seems that no amount of compensation can assuage the feelings of an average Nigerian to whom land has profound cultural and social-political values and spiritual aspects. To the subsistence farmer, land is the basis of his survival; it is to him life given. Thus to take land away from him for a public purpose, with which he cannot identify, without prompt payment of adequate compensation or resettlement, is to ask for trouble.
They say besides, the title is a misnomer; it should have appropriately been titled Land Allocation Act.
The act, according to them, has not eliminated speculation in land; it has only driven it underground or fueled it and it concentrates both economic and political powers in the hands of governors, military elites and rubber barons’ who use it to dispossess their political opponents and/or peasant farmers through large-scale acquisition of land for commercial agriculture, paying only for unexhausted improvement, stipulated by the act.
It is further said that it has not succeeded in removing the uncertainties in title to land. Instead, it seems to accentuate it. For example, a certificate of occupancy can be revoked for public purpose or a contravention of the act.
With all these contradictions against the Land Use Act, what does government intend to do with the budgeted amount. We wait for explanations from the budget breakdown.
On reform, what would happen then? Uwakonye, and Gbolahan S. Osho, say land reform is concerned with changing the institutional structure governing men’s relationship with the land, involving intervention in the prevailing pattern of land ownership, control and usage in order to change the structure of holdings, improve land productivity and broaden the distribution of benefits.

According to them, land reform is an aggregate of ideas and courses of action designed to resolve tenure problems. Nigeria is an agrarian nation with over 56.8 percent of her working force engaged in farming.
Doner and Kanel emphasize the significant contribution of the agricultural sector towards the overall economic development of underdeveloped countries, such as Nigeria where more than 50percent of the working population is engaged in farming. Agricultural reform has the advantage of provision of more employment, more equitable income distribution, a wider relevant structure for the growing manufacturing sector, a better base for farm financed welfare, and more rational investment policies in both the agricultural and non-agricultural sectors of the economy.

In order to consolidate this gain and to make the operation and implementation of the Act achieve the objectives for which it was promulgated, Olayiwola and Adeleye suggestion that the act be removed from the constitution is subject to the cumbersome provision of amending so that amendments to it can be effected.

Since the Act Constitution under section 5 of the constitution, no meaningful amendment can be carried out to it in a civilian democracy. Because the Act has become in incident of political power, the threat of abrogation which necessitated its entrenchment in 1979 is no longer present.

Thursday, August 1, 2013

Nigeria: Where Are the Seized Assets?

The Economic and Financial Crimes Commission should account for, and dispose of seized assets
The House of Representatives last week directed its Committee on Drugs, Narcotics and Financial Crimes to initiate a probe of the Economic and Financial Crimes Commission (EFCC) with a view to accounting for all the assets the commission has seized from suspects it investigated since its inception in 2004.

The decision of the House followed a motion sponsored by Hon. Toby Okechukwu and 15 others who expressed the need for proper management of the seized assets. Okechukwu told the House that the EFCC had between 2004 and 2010 confiscated over 200 mansions through 46 forfeiture by court orders. The seized items include landed property, business concerns, billions of Naira in bank accounts, shares in blue chip companies, exotic vehicles, fuel stations, hotels, warehouses, shopping malls, schools, bakeries, estates, telecommunication companies, and radio stations, in and outside Nigeria.

The House move is indeed a welcome development in view of the unusual secrecy that has enveloped seized assets of accused and convicted persons in custody of the EFCC from its inception to date. In the United States of America where "confiscation" or "forfeiture" of assets was first adopted as part of the government's war against drug barons, property and bank accounts of suspected narcotics lords can be frozen or seized without a court judgment. All that was required is a "reasonable ground" to prove that the assets in question are indeed traceable to the drug baron. In fact this method of fighting crime has become popular in many countries including Britain, Italy and South Africa.

That explains why when the EFCC adopted the asset seizure at its inception about a decade ago it was hailed as one sure way of fighting sleaze. Consequently the commission has over the years seized countless number of real estate property, vehicles as well as physical cash. Unfortunately in typical Nigeria fashion, after the initial public show, nothing more is heard of the confiscated assets.

Whether under its pioneer Chairman Mallam Nuhu Ribadu or his successor, Mrs. Farida Waziri, the EFCC is known to have seized huge amount of assets from politicians, drug barons, bank chief executives and other suspects and convicts over the years. But the commission has so far failed to account for the whereabouts of these confiscated assets. And as presently alleged on the floor of the House, over $170 million proceeds from seized assets was allegedly transferred to an unidentified account, while 200 mansions, countless landed properties and exotic cars were left to rot away or vandalised. According to House Speaker Aminu Tambuwal "these landed property, monies, and business concerns were estimated to be worth in excess of two trillion Naira."

It is therefore only proper that the EFCC should be held to account for the properties it had confiscated from all the people it had investigated from its inception to date. There is also the urgent need to locate the whereabouts of the $170 million allegedly transferred to an unnamed account after it had been traced to the office of the Accountant General of the Federation (AGF).

Unfortunately, the two individuals who at one time or the other headed the anti-corruption agency failed to honour the House Committee's invitation to appear before it and help with the search for the confiscated assets. While we consider that to be rather unfortunate, the House should not despair in its determined efforts to ensure that the seized assets were accounted for by the EFCC.

Such assets were meant to be auctioned in a transparent bid and the proceeds deposited with the Central Bank or the money returned to the government agency or private organisation from where it was looted. For an organisation set up to fight corruption, EFCC should be transparent in its dealings

Nigeria: Heirs Holdings, Lsdpc to Turn Falomo Buying Complicated In to World Type Mall

Heirs Holdings, a pan-African investment company, chaired by Mr. Tony Elumelu, Tuesday signed an agreement with the Lagos State Development Property Corporation (LSDPC), for the redevelopment of the iconic Falomo Shopping Mall located in Ikoyi, Lagos State.  The mall will undoubtedly be redeveloped in to a shopping mall, a company complex and top notch residential apartments that will serve the requirements of the burgeoning populace in Lagos State and beyond.

Speaking at the website tour, the Managing Director of LSDPC, Mr. Biodun Oki, said: "The Falomo Shopping Mall's redevelopment is long overdue. Our partnership with Heirs Holdings is consistent with their state government's urban redevelopment project and it bodes well for their state, the united states and for the citizens.
"Once this project is completed, we can all look forward to a fresh and improved landscape that will stimulate business activity in this area and beyond.


"Relating to the private sector within our redevelopment agenda could be the model for all future projects."
Speaking on the program to remodel the shopping complex, the chairman of Heirs Holdings said: "Redeveloping among the country's most iconic malls is part of our commitment to drive development and move Nigeria forward through our business activities.

"As well as financial services, oil and gas, and power, real estate and hospitality is another of our core sectors since it plays a vital role in a nation's development. Specifically, real estate development contributes not merely visually but economically to the country's progress.
"We've other development projects in the offing. This include the Transcorp Hotels in Ikoyi, Lagos and Port Harcourt, that'll commence this quarter now that people have secured the land.

"We are also expanding our existing property in Abuja and that is just the start of the mega plans we have to transform the Nigerian skyline."
The Falomo Shopping Mall redevelopment project is really a private-public sector agreement between Heirs Real Estate Limited, a wholly owned subsidiary of Heirs Holdings, and the Lagos State Development Property Corporation (LSDPC).

Heirs Holdings is really a pan-African proprietary investment company that deploys capital in projects that will yield value on the long term.