The Ministry of Housing and Urban Development recently announced its intention to review the compensation rates for economic crops and trees for landowners affected by projects, in a bid to ensure equity and fairness. This comes at a time when the current compensation rates, set in 2008, are outdated and no longer reflect current economic realities and global best practices.
Speaking at the National Technical Development Forum (NTDF) on Land Administration in 2024 in Abuja, Minister Ahmed Dangiwa highlighted the importance of the review. He stressed that compensation rates must now reflect the true market value of the assets lost, particularly economic trees such as cocoa, oil palm, rubber and cashew, which generate income for affected communities.
It is essential to recognize that these trees represent long-term investments, sources of income and assets passed down through generations that are linked to the cultural and social identities of local populations. Thus, when displaced or destroyed in the course of acquiring land for public projects, the losses can be devastating both financially and emotionally. It is therefore imperative that compensation rates reflect the true value of these assets, taking into account both their immediate and long-term economic importance.
The Land Use Act of 1978 stipulates that the government has the right to acquire land for public purposes and also provides for a fair compensation framework when the acquisition of public land affects livelihoods. However, the reality on the ground illustrates delays, litigation and inadequate compensation that fails to reflect the true value of agricultural investments.
As part of President Bola Tinubu’s Agenda for Renewed Hope, the government affirms that adequate compensation for crops and economic trees is not only a legal obligation, but also a moral one. This demonstrates its commitment to fairness, equality and the protection of vulnerable citizens, who may lack the means to defend themselves against powerful interests.
The ongoing review of compensation rates aims to ensure that payments are made transparently, taking into account the environmental and social value of economic trees and ensuring that vulnerable groups, including women, the elderly and marginalized communities, are not disadvantaged.
In the interest of fairness and transparency, it is essential to develop a policy framework that balances development needs with the protection of livelihoods and the environment. Because beyond the infrastructure built and the projects completed, real progress is measured by how we improve lives and strengthen communities.
In this light, the Development of Rural Access and Agricultural Marketing (DARMA) project plays a crucial role by working on various projects aimed at developing rural areas and ensuring that project-affected people are taken care of. These initiatives include road development, construction of storage facilities, asset management and sector reforms, among others, in rural areas.
In conclusion, the review of compensation rates for economic crops and trees for project-affected people is a critical step towards a more equitable and transparent system. By ensuring adequate compensation and taking into account the interests of local communities, we can ensure a sustainable future for farmers and landowners in Nigeria.