Experts call for enhanced role in resettlement action plans

Estate surveyors and valuers (ESVs) have called for a significant role in shaping and implementing Resettlement Action Plans (RAPs) for public projects in the country.

Speaking at a webinar titled ‘Understanding the Critical Roles of ESVs in Resettlement Action Plans (RAP)’ they highlighted key issues that hinder the effectiveness of RAPs, including inadequate consultation, lack of stakeholder buy-in, and undervaluation of properties.

The conversation focused on the challenges surrounding resettlement in public projects, with an emphasis on the importance of thorough planning, community consultation, and compensation strategies that align with both local and international standards.

The Chairman, Compensation and Right of Way Faculty, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr Ezenwa Odigbo, explained that a well-prepared resettlement plan is essential in mitigating the negative impacts that public projects can have on communities.

“A resettlement plan sets out the actions to be taken to mitigate the adverse effects of the project and compensate for losses caused to the communities in that area,” Odigbo said. He pointed out that one of the biggest challenges currently faced in public projects is the lack of consultation and engagement with affected communities.

“This lack of community engagement often leads to tension between project sponsors and the people affected, resulting in project delays or even legal battles,” he said.

According to Odigbo, acquiring authorities often make decisions without proper consultation or stakeholder buy-in, which causes a breakdown of trust. “Acquiring entities often ride roughshod over everyone else’s point of view,” Odigbo stated, urging estate surveyors to play a more active role in ensuring that the concerns of the affected communities are addressed right from the beginning of the project.

For a successful RAP, he advocated comprehensive Environmental and Social Impact Assessment (ESIA), adding that many public projects either skip this process or do not conduct it rigorously. “Most projects do not have rigorous ESIA that fully engages the project-affected persons and the communities, and interrogates the risks, impact, and mitigate measures,” he added.

“This missing step can be detrimental to the overall success of public projects. A thorough ESIA ensures that the economic, social, and environmental concerns of the affected persons are addressed, without which projects are prone to delays, protests, or even abandonment.”

Odigbo emphasised that estate surveyors have an opportunity to add significant value to public projects. “This is where you add value to the project and earn your fee, representing and connecting the project-affected persons to the project sponsors or acquiring authority,” he said.

He recommended that estate surveyors submit their valuation schedules for the properties they represent to acquiring authorities, ensuring that the compensation rates are fair and reflect the actual value of the properties.

In addition to the challenges of community engagement and proper valuation, Odigbo highlighted the issue of inadequate funding for many public projects. He explained that international standards require that resettlement funds be secured before any acquisition notices are served.

However, in Nigeria, some projects begin without the necessary financing in place. “The lack of proper funding leads to delays in compensating affected persons, making it difficult for those displaced to adjust and settle,” he said.

Another issue that Odigbo identified is the practice of undervaluing properties by using depreciated replacement costs rather than full replacement value. “You cannot give someone a new property at a depreciated cost; you must give them the full replacement cost,” he explained. He called on estate surveyors to use their discretion and professional judgment to ensure that valuations are fair and defensible, even in the face of resistance from acquiring authorities.

The Principal Partner, Adamu Kasimu & Associates, Adamu Kasimu, explained that the RAP is an encapsulating document that outlines the legal framework, socio-economic baseline studies, and strategies for community participation and compensation.

“The primary goal of a RAP, according to Kasimu, is to avoid displacement wherever possible. However, when displacement is unavoidable, the RAP should ensure that the resettlement process is as smooth as possible for those affected,” he said.

Kasimu noted the importance of livelihood restoration, which extends beyond merely compensating people for lost property. He explained that resettlement plans must consider other factors such as transportation allowances, land improvement allowances for displaced farmers, and compensation for employees of affected businesses. He advised that affected employees should be provided with a national minimum wage to support them during the resettlement period.

Another crucial aspect of RAP, according to Kasimu, is the monitoring process to ensure that affected persons are properly resettled. He also stressed the importance of using the Land Use Act as a benchmark for compensation rates.

“We should endeavour to use the Land Use Act as the benchmark; endeavour to perform within the Act but never below it,” he said. Achieving a balance between World Bank standards and local government policies is critical, and the Land Use Act offers a viable framework to ensure compliance with both.

Kasimu pointed out the need to keep compensation rates up to date. He urged his colleagues to adjust compensation rates in line with inflation and market trends. “If a government develops a rate in the year 2000, the assumption is that the rate is for property acquisition for that year.

“There is nothing wrong with adjusting the rate using the current bank rate and inflation rate. If something was N10 naira in 2020, it is assumed that the price may have gone up to N15 at this time. This is where compensation policies come in. Compensation policies should be drafted and domiciled in the state government.”

He encouraged estate surveyors to advocate the development of state-level compensation frameworks that would be acceptable to both the government and the affected communities.