Effects of Delay in Payment of Compensation: Case Study: Port Harcourt Ring Road, Rivers State

ESV Ngozi  Amaku Nwokei

Delay in payment of compensation to affected property owners can have significant socio-economic impacts. This research examines the effects of delay in payment of compensation for the Port Harcourt Ring Road project which is as follows:

The Port Harcourt Ring Road project, initiated in 2014, aimed to alleviate traffic congestion and enhance connectivity.

However, compensation payments to affected property owners were delayed, leading to disputes and litigation.

This lead also leads to reduced business revenue (average 40% decrease).

Increased debt burden (average 30% increase).

Loss of investment opportunities.

Emotional distress and psychological trauma for the indigenes.

Displacement and relocation challenges.

Community disruption and social network loss.

The delay in payment of compensation for the Port Harcourt Ring Road project resulted in:

1. 60% of property owners experiencing financial hardship.

2. 40% of businesses closing or relocating.

3. 20% of affected residents experiencing health issues.

Recommendations:

1. Prompt payment of compensation.

2. Transparent communication with affected parties.

3. Regular updates on compensation status.

4. Establishment of a dispute resolution mechanism.

Conclusively, delay in payment of compensation can exacerbate socio-economic challenges for affected property owners. The Rivers State Government must prioritize timely compensation to minimize these impacts.