The Federal Government, in collaboration with the World Bank, has revised its compensation framework for land acquisition, setting matured cocoa trees in the North Central Zone at N160,000 per tree and N160 million per hectare.
The framework also values matured mango trees at N105,000 per tree and N13 million per hectare, while matured cashew trees are pegged at N45,000 per tree and N5.5 million per hectare in the same region.
This was announced by the Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa, during a meeting with state commissioners responsible for lands and housing at the 13th National Council on Housing, Lands, and Urban Development in Gombe, as stated in a ministry website statement.
The framework, developed to address an 18-year gap in Nigeria’s land acquisition compensation policy, ensures fair and equitable recompense for those impacted by infrastructure and housing projects while aligning with current economic realities.
“Dangiwa also affirmed that the Ministry, in collaboration with the World Bank, has introduced a new compensation framework for individuals affected by land acquisition. This updated system according to the Minister, addresses the 18-year gap in compensation policy, ensuring fair and equitable recompense for those impacted by infrastructure and housing development projects.
“He cited some examples under the revised rates for matured trees in the North Central Zone as follows; i. Cashew which increased from N2,000 per matured stand to N45,000 and N5.5M for a hectare, ii. Mango increased from N4,000 per matured stand to N105,000 and N13M per hectare and iii. Cocoa which also increased from N3,000 per matured stand to N160,000 and N160M per hectare,” the statement read in part.
While the revised rates for some economic trees in the North Central Zone have been disclosed, a comprehensive rate card covering all economic trees across the six regions of the country is yet to be released.
What you should know
The Minister of Housing and Urban Development, Musa Dangiwa, in October, announced the Federal Government’s plans to review the compensation rates for crops and economic trees impacted by infrastructure projects nationwide.
- At the time, he noted that the previous rates, established in 2008, were outdated and failed to align with current economic realities or international standards.
- Dangiwa emphasized that revising these rates was crucial to ensuring fairness for landowners and accurately reflecting the value of their assets.
- The Minister described economic trees such as cocoa, oil palm, and cashew as both income-generating resources and cultural symbols tied to years of labor and heritage.
He highlighted that the updated rates would address the financial and emotional impact of land acquisition, providing affected communities with fair and adequate compensation.