The Federal Government, in partnership with the World Bank, has revised its land compensation framework for land purchase, valuing matured cocoa trees in the North Central Zone at ₦160,000 per tree and ₦160 million per hectare.
Additionally, matured mango trees are now valued at ₦105,000 per tree and ₦13 million per hectare, while matured cashew trees are set at ₦45,000 per tree and ₦5.5 million per hectare in the same region.
According to the ministry’s website, the announcement was made by the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, during a meeting with state commissioners for lands and housing at the 13th National Council on Housing, Lands, and Urban Development in Gombe.
Addressing the Gap in the Land Compensation Policy
The framework, created to close an 18-year gap in Nigeria’s land compensation policy for land acquisition, ensures fair and equitable compensation for those affected by infrastructure and housing projects, reflecting present 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.
Although the updated rates for some economic trees in the North Central Zone have been announced, a complete rate card covering all economic trees across the six regions of the country has not been made available.
The Need for the Revised Land Compensation Policy
During the meeting, he noted that the previous rates, set in 2008, were outdated and no longer aligned with current economic realities or international standards.
Dangiwa stressed the importance of revising these rates to ensure fairness for landowners and accurately reflect the value of their assets.
The Minister highlighted that economic trees such as cocoa, oil palm, and cashew are not only income-generating resources but also cultural symbols representing years of labor and heritage.
Furthermore, he explained that the updated rates aim to address the financial and emotional impact of land acquisition, ensuring affected communities receive fair and adequate land compensation.
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