FG Revises Tree, Land Compensation for Cocoa Crop: Matters Arising

Farmers’ pains for loss of cash crops like cocoa and land may soon be over as the federal government has revised the land compensation framework for the crops in the country. The Federal Government, in collaboration with the World Bank, has revised its compensation framework for land acquisition, setting matured cocoa trees in the North Central Zone at N160,000 per tree and N160 million per hectare.

The framework also values matured mango trees at N105,000 per tree and N13 million per hectare, while matured cashew trees are pegged at N45,000 per tree and N5.5 million per hectare in the same region.

Minister of Housing and Urban Development, Arc Ahmed Musa Dangiwa, revealed these at a meeting with state commissioners responsible for lands and housing at the 13th National Council on Housing, Lands, and Urban Development in Gombe, as stated in a ministry website statement.

The framework, developed to address an 18-year gap in Nigeria’s land acquisition compensation policy, ensures fair and equitable recompense for those impacted by infrastructure and housing projects while aligning with current 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 in part.

While the revised rates for some economic trees in the North Central Zone have been disclosed, a comprehensive rate card covering all economic trees across the six regions of the country is yet to be released.

The information regarding the revised land compensation framework by the Federal Government of Nigeria for cocoa trees in North Central Nigeria indicates as follows:

Per Tree Compensation: Each cocoa tree is now valued at N160,000

Per Hectare Compensation: The value set for cocoa trees per hectare in the North Central region is N160 million. This revision aims to ensure that compensation for land acquisition or displacement due to governmental or public projects reflects a more accurate valuation of assets lost, particularly for economic trees like cocoa which represent significant income for many farmers.

Matters Arising

Implications and Considerations:

Economic Impact:

This increase in compensation value could significantly boost the income for farmers affected by land acquisition, potentially leading to better financial outcomes for those displaced or whose lands are used for public projects.

Agricultural Importance:

 Cocoa is a major cash crop in Nigeria, contributing to both the economy through exports and local income. This valuation recognizes the long-term investment farmers make in cocoa trees, which take years to mature.

Regional Variation:

The valuation might differ across different regions of Nigeria due to variations in land quality, yield, and market access. The North Central region’s figure might reflect specific conditions or strategic agricultural focus in that area.

Challenges in Implementation:

Ensuring that the number of cocoa trees on a property is accurately counted and valued can be challenging, potentially leading to disputes.

Inflation and Economic Changes:

The rates might need periodic reviews to keep pace with inflation, changes in cocoa prices, or shifts in agricultural policy.

Legal and Administrative Processes:

The framework would require a robust legal and administrative system to manage claims, appeals, and payments effectively.

Policy Goals:

Fairness: The revision aims at fairness in compensation, ensuring that what’s lost by landowners is adequately reflected in monetary terms.

Encouragement of Investment:

By valuing cocoa trees highly, there might be an indirect encouragement for more investment in cocoa farming, knowing that there’s a safety net of good compensation if the land is needed for public use.

Critiques and Considerations:

Critics might argue about the feasibility of such high compensation rates in terms of government expenditure or the potential for it to encourage land speculation. There might also be discussions on whether this valuation adequately addresses the socio-economic and cultural value of land beyond mere agricultural yield.

This change is part of broader efforts to reform land use and compensation policies in Nigeria, aiming to balance development needs with the rights and livelihoods of those affected by land expropriation. However, the success of such a framework would largely depend on transparent, fair, and efficient implementation.