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The Federal Government has said that it will review the compensation rates on crops and economic trees for landowners affected by projects to ensure fairness and justice.
The Minister of Housing and Urban Development, Ahmed Dangiwa, disclosed this move by the Federal Government on Monday in Abuja.
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Dangiwa made this known at the 2024 National Technical Development Forum on Land Administration.
The theme of the forum was: “Review of Compensation Rates on Crops and Economic Trees for Project Affected Persons in Nigeria.”
According to Dangiwa, the move was imperative because the current compensation rates, set in 2008, have become obsolete and do not reflect today’s economic realities or global best practices.
“In light of this, the Federal Government is reviewing these rates to ensure fairness and justice for landowners affected by expropriation.
“This review, supported by the Rural Access and Agricultural Marketing Programme, seeks to ensure that compensation reflects the true market value of lost assets.
“These include long-term investments like cocoa, oil palm, rubber, and cashew trees, which generate income for affected communities.”
The Minister noted that economic trees such as cocoa, oil palm, kolanut, mango and cashew, are sources of income and multi-generational assets that represent years of labour and hope.
Dangiwa added that these trees were also tied to cultural and social identities.
“When displaced or destroyed in the course of land acquisition for public projects, the loss can be devastating, not only financially but emotionally.
“That is why it is essential to ensure that compensation rates reflect the true value of these assets, considering both their immediate and long-term economic importance.”
Dangiwa said the Land Use Act of 1978 stipulates that the government has the right to acquire land for public purposes and also provides the framework for fair compensation when public land acquisition affects livelihoods.
He, however, said the reality on the ground reflected delays, disputes, and inadequate compensations that failed to account for the true value of agricultural investments.
He added: “Under the Renewed Hope Agenda of President Bola Tinubu, we believe that adequate compensation for crops and economic trees is not just a legal obligation; it is a moral one.
“This reflects our commitment to fairness, equity and the protection of vulnerable citizens, who may lack the means to advocate for themselves in the face of powerful interests.
“Fair compensation ensures that Project Affected Persons are not further impoverished by the very projects that are supposed to bring development and prosperity to our nation.”
Dangiwa said that during the process of producing the blueprint for the revised compensation rates, the Federal Government had ensured that compensation reflected current market realities.
The Minister added that it would ensure that the environmental and social value of economic trees were considered and vulnerable groups, including women, the elderly, and marginalised communities, were not left disadvantaged.
He also said that compensation payments would be timely through a straightforward and transparent process.
He said: “Together, we must develop a policy framework that balances development needs with the protection of livelihoods and the environment.
“Let us remember that the true measure of development is not only in the infrastructure we build or the projects we complete, but in the lives we uplift and the communities we strengthen.
“I have full confidence that the outcomes of this forum will pave the way for a more equitable, just, and transparent compensation system for all project-affected persons in Nigeria to secure the future of farmers and landowners.
Dr. Aminu Bodinga, the National Coordinator, Rural Access and Agricultural Marketing Project, said RAAMP was working on several projects to develop rural areas and ensure that project affected persons were well catered for.
Bodinga said the projects included road development, provision of storage facilities, asset management, sector reforms, among others, in rural areas.
“The project development objective is to improve rural access linking people to other market communities, access to social amenities, including pipe-borne water, primary schools, markets, health facilities, and what have you.
“So far, the project is going on in 19 states.
“We just negotiated another facility with the World Bank in terms of expanding the project to become a national project.
“So we are looking forward to admitting all the other states that are not currently part of this project, but the state selection criteria is to show interest.”
Bodinga said that recently, RAAMP got financial support from the European Investment Bank to finance additional states, so it was looking forward to constructing a 500km road in each of these states.
He said: “The project currently has $575 million, and the largest contributor is the World Bank with $218 million.
“We equally have a development agency with $230 million, which is equivalent to 40 percent.
“We also have the government of Nigeria, including the state governments contributing $65 million, which is equivalent to 11 percent.
“By next year, we are expecting another $600 million for intervention in these rural areas.”
Bodinga said the project has three major components: improvement of rural access, sector reform, and institutional development.
He said that this was to cushion the effect of taking lands, farms, livelihood from to give the right of way for the construction of roads.
Dr. Michael Illesanmi, Senior Social Development Specialist, World Bank, lauded the Federal Government for the initiative, adding that it showed that the government of Nigeria meant business.
Illesanmi said the review was a key step not only to strengthen the country’s capacity for environmental and social framework management, but also land acquisition resettlement and the poverty reduction agenda of the movement.
“We will continue supporting Nigeria to carry out reforms for economic growth by putting the people first,” he added.
