The Federal Government, in partnership with the World Bank, has updated its land compensation framework, significantly increasing rates for matured cocoa, mango, and cashew trees in Nigeria’s North Central Zone. Under the revised policy, matured cocoa trees are valued at ₦160,000 each, translating to ₦160 million per hectare.
The new framework also sets the value of matured mango trees at ₦105,000 each or ₦13 million per hectare, while matured cashew trees are now valued at ₦45,000 each or ₦5.5 million per hectare.
Bridging an 18-year gap in compensation policy
The announcement was made 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. According to a statement on the ministry’s website, the revised framework addresses an 18-year gap in Nigeria’s land acquisition compensation policy, ensuring fair and equitable recompense for individuals affected by infrastructure and housing projects.
“The previous rates, established in 2008, were outdated and failed to align with current economic realities or international standards,” Dangiwa explained.
ALSO READ Nigeria sets 1.3m metric tonnes fish production goal
Revised cocoa and other rates reflect economic realities
The revised rates aim to provide fair compensation for landowners while reflecting the economic and cultural significance of these economic trees.
- Cocoa: Increased from ₦3,000 to ₦160,000 per tree and ₦160 million per hectare.
- Mango: Increased from ₦4,000 to ₦105,000 per tree and ₦13 million per hectare.
- Cashew: Increased from ₦2,000 to ₦45,000 per tree and ₦5.5 million per hectare.
Dangiwa emphasized that these rates recognize the income-generating potential and cultural heritage tied to these trees, which often represent years of labour and personal investment.
Comprehensive nationwide rate card awaited
While the new rates for some economic trees in the North Central Zone have been disclosed, a comprehensive rate card covering all regions and tree types across Nigeria is still under development.
Aligning with global standards
In October, the Minister announced plans to overhaul compensation rates for crops and economic trees affected by national infrastructure projects. He highlighted the importance of aligning Nigeria’s compensation policies with international standards to ensure fairness and adequately reflect the value of landowners’ assets.
“These trees are more than economic resources; they symbolize heritage and labour. This revision addresses not just the financial, but also the emotional and cultural impact of land acquisition,” Dangiwa said.
The updated framework is expected to offer better financial support to affected communities, helping them rebuild and sustain their livelihoods in the face of development projects.
