The Federal Government, in collaboration with the World Bank, has revised its compensation framework for land acquisition, setting new compensation rates for mature trees in the North Central Zone.
Under the revised framework, matured cocoa trees are valued at N160,000 per tree or N160 million per hectare, matured mango trees at N105,000 per tree or N13 million per hectare, and matured cashew trees at N45,000 per tree or N5.5 million per hectare.
This was announced by the Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa, during the 13th National Council on Housing, Lands, and Urban Development meeting in Gombe, as outlined in a statement from the ministry.
The revised framework was developed to address an 18-year gap in Nigeria’s land acquisition compensation policy, ensuring that those impacted by infrastructure and housing projects receive fair and equitable compensation.
It aligns with current economic realities, providing more accurate and up-to-date valuations for affected landowners and communities.
“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.
Although the revised compensation rates for some economic trees in the North Central Zone have been disclosed, a comprehensive rate card that covers all economic trees across Nigeria’s six regions is yet to be released.
In October, Minister of Housing and Urban Development, Musa Dangiwa, revealed the Federal Government’s intention to review compensation rates for crops and economic trees affected by infrastructure projects across the country. He pointed out that the existing rates, set in 2008, were outdated and did not reflect current economic conditions or international standards.
The review aims to ensure fairer and more equitable compensation for those impacted by such projects.
