The federal government of Nigeria has outlined plans to review compensation rates for economic trees and crops to ensure equity for landowners affected by Infrastructure projects. Minister of Housing and Urban Development, Ahmed Dangiwa made this known at the 2024 National Technical Development Forum (NTDF) on Land Administration in Abuja, with the theme “Review of Compensation Rates on Crops and Economic Trees for Project Affected Persons in Nigeria”. Dangiwa highlighted the necessity of the review, noting that the current compensation rate, standardized in 2008, is outdated and does not reflect current economic realities and global standards.
This review, which is being funded by the Rural Access and Agricultural Marketing Program (RAAMP), aims to ensure that compensation correctly reflects the market worth of lost assets. These include long-term investments that provide income for impacted communities, such as cashew trees, cocoa, oil palm, and rubber. The minister described crops and economic trees as both financial assets and cultural icons connected to years of labour and legacy, underscoring the significance of providing them with just recompense. Given the emotional and financial toll that land acquisition takes, he emphasized the significance of adjusting compensation rates to reflect their actual value.
Inflation and changes in agricultural output have sparked concern.
Dangiwa noted that it is both morally and legally required of the current administration to provide equitable compensation for economic trees and crops. He reaffirmed the government’s dedication to equity and the protection of vulnerable communities, ensuring that development initiatives promote wealth and national advancement rather than adding to poor Project Affected Persons (PAPs). This policy review is a response to the growing demands from agricultural communities for such compensation and also indicate the government’s larger endeavor to guarantee that those impacted by public projects receive appropriate compensation,
On several occasions, the government and rural landowners have argued over compensation for crops and trees impacted by road building, dam projects, or other significant infrastructure initiatives. Numerous landowners and farmers have voiced their displeasure with the current compensation structure, pointing out that the rates have become obsolete and do not represent the current market values. The compensation rate was last formally standardized over ten years ago. Since then, Inflation and changes in agricultural output have caused many people to believe that the rates are not enough to compensate for their losses.
Govt decision is to balance social justice and development.
It is anticipated that the planned review will include both a rate increase and the implementation of a more effective and transparent compensation determination mechanism. Currently, rates differ greatly from state to state, and crop values are frequently determined arbitrarily, which causes controversies and payment holdups. The government’s decision to start reviewing the pay rate is to strike a balance between social justice and infrastructure development. Nigeria has undertaken a number of significant infrastructure projects over the last ten years, ranging from building roads to hydroelectric power facilities, many of which have necessitated the acquisition of agricultural land.
While these projects are essential to the development of the country, local farmers frequently pay a price for them—they lose their crops, trees, and sources of income. State governments, agricultural associations, and landowners will all be consulted in the planned review to make sure the new rate is justifiable and represents the well-being of the economy. The new policy may address not only monetary compensation but also the wider effects of land acquisition on rural populations.
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Farmers are optimistic that the government would enact improvements quickly as many of them have already suffered from delayed or insufficient compensation. The government has promised to make the procedure more equitable and transparent when the updated compensation policy is put into effect later in the near future. Through this move, the federal government seeks to lessen the detrimental effects of public projects on rural communities by bringing the compensation rates into line with contemporary agricultural valuations, guaranteeing an inclusive and equitable development process.