By: ESV. TAIWO OLUROTIMI and ESV. LAWAL-RAHEEM RASHEEDAT BAMIDELE
Infrastructure development remains a key driver of economic growth and social transformation in Nigeria. Roads, bridges, railways, airports and other public facilities provide the foundation for industrialization, trade and investment. However, a major obstacle to timely infrastructure delivery has consistently been land acquisition and compensation disputes. For decades, inadequate compensation, delayed payments and lack of transparency have led to protests, litigation and project delays across the country.
Recognizing this long-standing challenge, the Federal Government of Nigeria recently approved a new compensation rate for land acquisition and resettlement in public infrastructure projects. This reform marks a significant policy shift aimed at promoting fairness, transparency and professional valuation standards in the compensation process. The impact of this change is expected to be far-reaching both in improving social equity and accelerating infrastructure delivery nationwide.
Fairness and Professionalism in the Compensation Process
Historically, compensation for compulsory land acquisition in Nigeria has been guided by the Land Use Act of 1978, which limits payments to the value of unexhausted improvements (such as buildings, economic trees and crops) rather than the market value of land. This has often been perceived as unjust by Project Affected Persons (PAPs). The new compensation rate, approved in 2024, addresses these concerns by introducing market-reflective valuation standards and ensuring that registered Estate Surveyors and Valuers (ESVs), under the supervision of Estate Surveyors and Valuers Registration Board of Nigeria Institution of Estate Surveyors and Valuers (ESVARBON) and NIESV, to handle all valuation exercises. This professionalization of the process enhances credibility, ensures consistency and reduces opportunities for manipulation. When project affected individuals are fairly compensated, it reduces community resistance, improves government–citizen trust and promotes a smoother project implementation process.
Accelerating Infrastructure Delivery
One of the major benefits of the new policy is the potentials to fast-track infrastructure projects. Compensation disputes have historically caused lengthy delays in projects delivery such as highways, airports and mass housing developments. With clearer valuation benchmarks and transparent procedures, the government can now minimize bottlenecks that typically occur during right-of-way processes. In addition, by providing fair compensation that reflects economic realities, communities are more likely to cooperate with project implementers. This cooperative environment enables contractors to mobilize faster and reduces litigation costs, ultimately improving efficiency in infrastructure delivery.
Boosting Investor and Public Confidence
Infrastructure development may increasingly depend on Public–Private Partnerships (PPPs). Investors are often wary of political and social risks, including conflicts over land acquisition. The introduction of a transparent and standardized compensation rate now will signal policy stability and predictability, both of which are critical to investor confidence. This reform also aligns Nigeria’s compensation system with international best practices, such as the World Bank Resettlement Framework and the African Development Bank’s Safeguard Policy, positioning the country to attract more international funding for infrastructure development.
Challenges and Implementation Realities
Despite its positive outlook, the success of the new compensation rate depends on effective implementation. Many Ministries, Departments and Agencies (MDAs) still fail to allocate sufficient funds for compensation at the project planning stage. This oversight often results in work stoppages once affected persons demand payment. Another challenge lies in inflation as compensation processing takes time, the real value of money often declines before disbursement. There are also data gaps due to poor land record systems, especially in rural areas, making verification and valuation difficult. Without updated cadastral data, duplication and false claims which may continue to undermine the process.
Policy Recommendations
To maximize the impact of the new compensation policy, several steps are crucial:
- Integrate compensation costs into project budgets from inception to avoid funding shortfalls.
- Digitize land records and establish a national asset register to improve transparency and verification.
- Review compensation rates regularly to reflect inflation and market trends.
- Enhance interagency coordination, particularly between the Ministry of Works, MOFI and state land bureaus, to prevent duplication and ensure uniform standards.
- Public enlightenment and stakeholder engagement should be prioritized to improve understanding of valuation processes among affected communities.
Conclusion
The approval of a new compensation rate by the Federal Government is a progressive and long-overdue reform in Nigeria’s infrastructure landscape. It addresses decades of inequity in land acquisition while laying the foundation for faster and more transparent project execution. To actualize this new rate now needs urgent passing of the bill and gazette it to be effective as a working development.
If effectively implemented with adequate funding, professional oversight and digital transparency the new policy could transform Nigeria’s approach to infrastructure delivery. Beyond compensating affected persons fairly, it could build public trust, attract investors and strengthen the country’s institutional capacity for sustainable development.
In essence, the new compensation framework has the potential to bridge the gap between policy and practice, creating a balance between social justice and infrastructural progress; an outcome vital to Nigeria’s economic future. Once it has legal backing and made a working document across board.
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.
