The federal government says it will review the compensation rates on crops and economic trees for landowners affected by projects to ensure fairness and justice.

The Minister of Housing and Urban Development, Ahmed Dangiwa, announced this at the 2024 National Technical Development Forum on Land Administration on Monday in Abuja.

According to Mr Dangiwa, the move was imperative because the current compensation rates, set in 2008, have become obsolete and do not reflect today’s economic realities or global best practices.

“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, 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.

The minister noted that economic trees such as cocoa, oil palm, kola nut, mango and cashew are sources of income and multi-generational assets that represent years of labour and hope. He added that these trees were also tied to cultural and social identities.

“When displaced or destroyed in the course of land acquisition for public projects, the loss can be devastating, not only financially but emotionally. That is why it is essential to ensure that compensation rates reflect the true value of these assets, considering both their immediate and long-term economic importance,” he said.

Mr Dangiwa said the Land Use Act of 1978 stipulates that the government has the right to acquire land for public purposes and also provides the framework for fair compensation when public land acquisition affects livelihoods.

He, however, said the reality on the ground reflected delays, disputes, and inadequate compensations that failed to account for the true value of agricultural investments.

“Fair compensation ensures that Project Affected Persons are not further impoverished by the very projects that are supposed to bring development and prosperity to our nation,” the minister said.

Mr Dangiwa said that during the process of producing the blueprint for the revised compensation rates, the federal government had ensured that compensation reflected current market realities.

The minister added that it would ensure that economic trees’ environmental and social value were considered and vulnerable groups, including women, the elderly, and marginalised communities, were not left disadvantaged.

He also said that compensation payments would be timely through a straightforward and transparent process.

(NAN)