The Federal Government has announced plans to review compensation rates for crops and economic trees, aimed at ensuring fairness for landowners impacted by infrastructure projects.
The Minister of Housing and Urban Development, Ahmed Dangiwa, revealed this at the 2024 National Technical Development Forum (NTDF) on Land Administration in Abuja on Monday, themed “Review of Compensation Rates on Crops and Economic Trees for Project Affected Persons in Nigeria.”
Dangiwa emphasized the need for the review, noting that the current compensation rates, established in 2008, are outdated and fail to align with present economic conditions or international standards.
“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 Program (RAAMP), 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,” he said.
Dangiwa, emphasized the importance of fair compensation for crops and economic trees, describing them as both economic assets and cultural symbols tied to years of labour and heritage.
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The minister emphasized that economic trees like cocoa, oil palm, and cashews are both income-generating assets and cultural symbols, representing years of labour and hope. He stressed the importance of updating compensation rates to reflect their true value, given the financial and emotional impact of land acquisition.
He noted that the Land Use Act of 1978, while providing a framework for compensation, has faced challenges in implementation, resulting in delays, disputes, and inadequate payouts.
The minister emphasized that under the current administration, fair compensation for crops and economic trees is both a legal and moral duty.
He stressed the government’s commitment to equity and the protection of vulnerable citizens, ensuring that development projects do not further impoverish Project Affected Persons (PAPs) but instead foster prosperity and national growth.
“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,” the minister stated.
Dangiwa reaffirmed the government’s commitment to align compensation with market realities, ensuring timely, transparent payments and prioritizing vulnerable groups, such as women, the elderly, and marginalized communities.