By: ESV. TAIWO OLUROTIMI and ESV. LAWAL-RAHEEM RASHEEDAT BAMIDELE
The approval of the new compensation rate by the Federal Government of Nigeria marks a major milestone in promoting fairness, transparency and social justice for Project-Affected Persons (PAPs) individuals and communities whose properties or livelihoods are impacted by public infrastructure projects. For decades, one of the most contentious aspects of project implementation in Nigeria has been the issue of inadequate and delayed compensation. The new framework, therefore, brings relief, restores confidence and strengthens the relationship between government and citizens.
- Fair and Market-Based Valuation
Under the previous system guided by the Land Use Act of 1978, compensation was limited to unexhausted improvements such as buildings, crops and economic trees, often excluding the true market value of land. The new rate corrects this long-standing injustice by introducing market-reflective valuation standards that ensure affected persons are paid what their properties are truly worth. This fair approach not only protects property rights but also reduces grievances and the likelihood of litigation.
- Transparency and Professionalism
The new policy mandates that registered Estate Surveyors and Valuers (ESVs), under the supervision of the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) and the Nigerian Institution of Estate Surveyors and Valuers (NIESV), handle valuation exercises. This professional oversight eliminates arbitrary assessments and promotes transparency. Project-Affected Persons (PAPs) now have greater confidence that compensation is determined through objective and standardized methods.
- Timely Payment and Reduced Project Delays
Clear valuation guidelines and structured procedures shorten the compensation process, reducing delays in disbursement. This benefits PAPs directly, as they receive payments promptly to resettle, rebuild, or invest in alternative means of livelihoods. It also helps the government by reducing project delays caused by disputes and resistance from affected communities.
- Improved Livelihood Restoration
For many PAPs, especially farmers and small business owners, displacement can result in significant livelihood disruption. The new compensation framework recognizes this and ensures that payments are adequate to support resettlement and income recovery. By aligning compensation with replacement cost, affected persons can rebuild their lives with dignity and financial security.
- Strengthened Trust and Social Harmony
When citizens perceive that government projects are implemented with fairness and integrity, public trust increases. The new compensation rate demonstrates government’s commitment to justice and inclusiveness. This builds goodwill, enhances cooperation from host communities and reduces incidents of conflict, protests or sabotage during project implementation.
Conclusion
The new compensation rate if gazetted through the act of parliament will be a transformative reform that will empower Project-Affected Persons (PAPs) and enhances Nigeria’s reputation for equitable development. It will uphold the principles of fairness, transparency and professionalism ensuring that those who give up their land or property for public benefit are adequately rewarded. Ultimately, this reform if enforced will fosters social harmony, strengthens institutional credibility and contributes to smoother, faster and more sustainable infrastructure delivery across the country.
Authors: –
ESV Taiwo Olurotimi is a Private Practitioner and Compensation Consultant based in Abuja, Nigeria.
ESV. Lawal-Raheem Rasheedat Bamidele is an Acquisition and Compensation Desk Officer at the Federal Ministry of Transportation, Abuja, Nigeria.
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