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Compulsory land acquisition tool facilitates obtaining of land for provision of infrastructures and development projects. Its successful implementation requires adoption of good governance merits such as participation, transparency, rule of law and accountability for better livelihood rebuilding of project affected people. This research evaluates socio-economic impacts of the tool on affected people after relocating to new settlements through interviews, focus group discussions and field observations. Results show that, the tool worsens the livelihood of PAPs both economically and socially due to limited transparency, accountability and the rule of law resulting into delayed payment of compensation plus little payments. Consequently, most PAPs failed to rebuild their livelihoods after relocation coupled with loss of occupation; living in un-finished houses; declined income levels; social nets breakup and loss of access to adequate services. All these calls for proper planning of the programs while upholding the principles of good governance and community participation.