Nigeria - Nigeria Transmission Expansion Program Ntep-1 - RPF

Language: English
Original: English
PROJECT : NIGERIA TRANSMISSION EXPANSION PROGRAM (NTEP-1)
COUNTRY : NIGERIA
SAP CODE : P-NG-FA0-011
RESETTLEMENT POLICY FRAMEWORK

20 May 2019
Philippe Junior
Principal Electrical Engineer PESD 4904
Task Managers OSSOUCAH
Egeruoh CHIGOZIRI Chief Power Engineer PESD 7791
Chief E & S Safeguards

Bakia MBIANYOR SNSC 4212
Compliance Officer
Principal E & S Safeguards

E & S Team Osric Tening FORTON SNSC 5078
Officer
Members
Andrew ABOJE E & S Safeguards Consultant SNSC 7745
Project
Team Climate Change and Green
Innocent ONAH PECG
Growth Consultant
Sector Director Batchi BALDEH PESD 4036
Division Manager Jacques MOULOT PESD 2948
Country
Operations Lawson L. ZANKLI RDGN 7751
Manager
Senior Director Ebrima FAAL RDGN 7754

NIGERIA TRANSMISSION EXPANSION PROGRAM (NTEP-1)
RESETTLEMENT POLICY FRAMEWORK (RPF)
FINAL REPORT
Prepared by
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MAY 2019
RPF FOR THE NIGERIA TRANSMISSION EXPANSION PROGRAM (NTEP-1)
TABLE OF CONTENTS
TABLE OF CONTENTS............................................................................................................. iii

LIST OF TABLES.......................................................................................................................v
ACRONYMS AND ABBREVIATIONS ......................................................................................... vi
GLOSSARY OF TERMS ........................................................................................................... vii
EXECUTIVE SUMMARY .......................................................................................................... ix
CHAPTER ONE: INTRODUCTION ............................................................................................ 1
1.1 Background ......................................................................................................... 1
1.2 Rationale for the RPF .......................................................................................... 2
1.3 Purpose of the Resettlement Policy Framework .................................................. 3
1.4 Objectives of the Resettlement Policy Framework ............................................... 3
CHAPTER TWO: PROGRAM DESCRIPTION .............................................................................. 5
2.1 Project Overview ................................................................................................. 5
2.2 Project Phases and Activity Sequence .................................................................. 7
CHAPTER THREE: LEGAL AND ADMINISTRATIVE FRAMEWORK GOVERNING RESETTLEMENT 9
3.1 Introduction ........................................................................................................ 9
3.2 Applicable Legal and Administrative Framework (Power Sector) ......................... 9
3.2.1 Land Use Act – 1978 ......................................................................................... 9
3.2.2 Electric Power Sector Reform (EPSR) Act - 2005 .............................................. 11
3.2.3 Nigeria Electricity Regulatory Commission (NERC) .......................................... 12
3.2.4 Nigerian Electricity Supply and Installation Standards (NESIS) Regulations 2015
12
3.2.5 Acquisition of Land Access Rights for Electricity Projects Regulations, 2012.... 13
3.2.6 Transmission Company of Nigeria (TCN) ......................................................... 13
3.3 Overview of the Land Take process in Nigeria .................................................... 14
3.4 Legal Mechanisms for Resolving Land-related Grievances ................................. 16
3.4.1 The Constitution ................................................................................................. 16
3.4.2 Land Use Act ................................................................................................... 17
3.4.2.1 Scope of the Land Use and Allocation Committee........................................... 17
3.5 Traditional Land Tenure in Nigeria ..................................................................... 17
3.5.1 Certificates of Occupancy ............................................................................... 18
3.6 Institutional Framework .................................................................................... 18
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3.6.1 Federal Government ........................................................................................ 18

3.6.2 State Government ........................................................................................... 19
3.6.3 Local Government ........................................................................................ 19
3.6.4 Traditional Leadership ........................................................................................ 20
3.6.5 International Standards and Guidelines related to Involuntary Displacement .... 20
3.6.6 The African Development Bank Group’s (AfDB) Integrated Safeguard System
(ISS) ................................................................................................................ 21
3.7 Benchmarking of Relevant Nigerian Legislation and the AfDB’s OS2. ................. 22
3.8 Compensation Framework................................................................................. 27
3.8.1 Compensation Principles ................................................................................ 27
3.8.2 Eligibility Principles ......................................................................................... 30
3.8.3 Establishment of Entitlement Cut-off Date ....................................................... 30
3.8.4 Entitlements ..................................................................................................... 31
3.8.5 Entitlement Planning ....................................................................................... 36
3.8.6 Method of Compensation ................................................................................ 36
3.8.7 Entitlement for Compensation ......................................................................... 36
3.8.8 Valuation ........................................................................................................ 37
3.10 10.10 Method of Valuation ........................................................................... 37
3.8.9 Arrangements for Compensation ..................................................................... 39
3.8.9.1 Public Participation........................................................................................ 39
3.8.9.2 Notification ................................................................................................... 39
3.8.9.3 Documentation of Holdings and Assets ......................................................... 40
3.8.9.4 Agreement on Compensation and Preparation of Contracts ........................... 40
3.9 Compensation Payments ................................................................................... 40
3.9.1 Community Compensation Payments ............................................................. 40
3.9.2 Procedures for Delivery of Compensation ....................................................... 40
3.10 Monitoring and Evaluation ...................................................................................... 41
3.10.1 Monitoring Process........................................................................................... 41
3.11 Livelihood Restoration ......................................................................................... 41
3.11.1 Key Principles Guiding Livelihood Restoration Planning .................................... 41
3.11.2 Process for Determining Livelihood Restoration Options ............................ 42
3.11.3 Livelihood Restoration Plans....................................................................... 42
3.12 Outline of a Resettlement Action Plan (RAP)...................................................... 43
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LIST OF TABLES
Table 2.1: NTEP-1 Sub-projects ............................................................................................. 5

Table 2.2: Project Implementation Phases and Activities ...................................................... 7
Table 3.1: Right of Way ....................................................................................................... 13
Step 1: Preparation of a Survey Description ........................................................................ 14
Step 2: Publication of a Notice of Acquisition ...................................................................... 14
Step 3: Surveying the Property ............................................................................................ 15
Step 4: Assessment ............................................................................................................. 15
Step 5: Registration and Stamping ...................................................................................... 15
Step 6: Preparation of Certificate of Occupancy .................................................................. 16
Table 3.2: Benchmarking of Nigerian Law and principles of the AfDB on Involuntary
Displacement..................................................................................................... 23
Table 3.3. Categories of PAPs and compensation according to Nigeria guideline and AfDB
requirements ..................................................................................................... 28
Table 3.4. Eligibility Criteria for Compensation .................................................................... 30
Table 3.5. Example of an entitlement matrix that could be applied in sub projects ............. 32
3.8.8.1 State (urban and non-urban) owned Land ............................................................ 37
3.8.8.2 Privately owned Land ........................................................................................... 37
3.10.8.3 Assets held under Customary Law ...................................................................... 37
Table 3.6. Indicative Valuation Methods ............................................................................. 38
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ACRONYMS AND ABBREVIATIONS
AfDB African Development Bank

ARAP Abbreviated Resettlement Action Plan
CSO Civil Society Organization
E&S Environmental and Social
EPSR Electric Power Sector Reform
ERGP Economic Recovery and Growth Plan
ESIA Environmental and Social Impact Assessment
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
FGN Federal Government of Nigeria
FPIC Free, Prior, Informed and Consented
FRAP Full Resettlement Action Plan
GRM Grievance Redress Mechanism
ISS Integrated Safeguards System
JICA Japan International Cooperation Agency
LFN Laws of the Federation of Nigeria
LRS Livelihood Restoration Strategy
MW Megawatts
NEEDS National Economic Empowerment and Development Strategies
NEPA National Electric Power Authority
NESIS Nigerian Electricity Supply and Installation Standards
NERC Nigerian Electricity Regulatory Commission
NGO Non-Governmental Organisation
NNLTS Northern Nigeria Land Tenure System
NTEP Nigerian Transmission Expansion Project
OS Operational Safeguard
PACs Project Affected Communities
PAP Project Affected Persons
PCR Physical and Cultural Resources
PCR Project Completion Report
PHCN Power Holding Company of Nigeria
PS Performance Standard
PSRP Power Sector Recovery Plan
RAP Resettlement Action Plan
ROW Right of Way
RPF Resettlement Policy Framework
SNLTS Southern Nigeria Land Tenure System
SNSC Safeguards and Compliance Department
TCN Transmission Company of Nigeria
TL Transmission Line
TREP Transmission Rehabilitation and Expansion Programme
TOR Terms of Reference
UN United Nations
UNFCC United Nations Framework Convention on Climate Change
WB World Bank Group
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GLOSSARY OF TERMS
Children: all persons under the age of 18 years according to international

regulatory standard (convention on the rights of Child 2002).
Community: a group of individuals broader than households, who identify
themselves as a common unit due to recognized social, religious, economic and
traditional government ties or shared locality.
Compensation: payment in cash or in kind for an asset or resource acquired or
affected by the project.
Cut-off-Date: the date on and beyond which any person who occupies land or
assets, or constructs assets on land, required for project use, will not be eligible for
compensation. The date is often the day when assessment of persons and their
property in the project area commences.
Economic Displacement: a loss of productive assets or usage rights or livelihood
capacities because such assets / rights / capacities are located in the project area.
Entitlement: The compensation provided to a displaced person including: financial
compensation; the right to participate in livelihood enhancement programs;
housing sites and infrastructure; transport and temporary housing allowance; and,
other short term provisions required to move from one site to another.
Female Headed Household: a household where a woman is the principal earning
member of the family.
Head of the Household: a person in a household who is running the household and
looking after his dependents
Household: a group of persons living together who share the same cooking and
eating facilities and form a basic socio-economic and decision-making unit. One or
more households often occupy a homestead.
Involuntary Resettlement: resettlement without the informed consent of the
displaced persons or if they give their consent without having the power to refuse
resettlement.
Lost Income Opportunities: refers to compensation to project affected persons for
loss of business income, business hours/ time due to project.
Physical Displacement: a loss of residential structures and related non-residential
structures and physical assets because such structures / assets are located in the
project area.
Private property owners: persons who have legal title to structures, land or other
assets and are accordingly entitled to compensation under the Land Act.
Project-Affected Community: a community that is affected by the project.
Project-Affected Household: all members of a household, whether related or
not, operating as a single economic unit, who are affected by the project.
Project-Affected Person: any person who, as a result of the project, loses the right to
own, use or otherwise benefit from a built structure, land (residential, agricultural, or
pasture), annual or perennial crops and trees, or any other fixed or moveable asset,
either in full or in part, permanently or temporarily.
Rehabilitation: the restoration of the PAPs resource capacity to continue with
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productive activities or lifestyles at a level higher or at least equal to that before the
project.
Relocation: a compensation process through which physically displaced
households are provided with a one-time lump-sum compensation payment for
their existing residential structures and move from the area.
Replacement Cost: the amount of cash compensation and/or assistance suffices to
replace lost assets and cover transaction costs, without taking into account
depreciation or salvage value.
Resettlement Action Plan (RAP): Documented procedures and the actions a project
proponent will take to mitigate adverse effects, compensate losses, and provide
development benefits to persons and communities affected by a project.
Resettlement Assistance: support provided to people who are physically displaced
by a project. This may include transportation, food, shelter, and social services that
are provided to affected people during their resettlement. Assistance may also
include cash allowances that compensate affected people for the inconvenience
associated with resettlement and defray the expenses of a transition to a new
locale, such as moving expenses and lost work days.
Resettlement:a compensation process through which physically displaced
households are provided with replacement plots and residential structures at one of
two designated resettlement villages in the district. Resettlement includes initiatives
to restore and improve the living standards of those being resettled.
Squatters: squatters are landless household squatting within the public / private land
for residential and business purposes.
Valuer: the valuer of property, land and the level of compensation for all the
affected persons.
Vulnerable: people who by virtue of gender, ethnicity, age, physical or mental
disability, economic disadvantages, or social status may be more adversely
affected by resettlement than others and who may be limited in their ability to
claim or take advantage of resettlement assistance and related development
benefits.
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EXECUTIVE SUMMARY
The Federal Government of Nigeria (FGN), through the Transmission

Company of Nigeria (TCN) is taking steps to improve the quality and reliability
of Electricity supply, while striving to ensure the sustainability of the power
sector. TCN intends to increase the wheeling capacity of its network through
expansion of existing substations, construction of additional lines and new
substations, and to upgrade existing transmission lines through the
replacement of their conductors with higher amperage conductors. To
achieve this objective, TCN has developed the Transmission Rehabilitation
and Expansion Programme (TREP) to be financed by the African
Development Bank (AfDB), World Bank (WB), Agence Française de
Développement (AFD) and Japan International Cooperation Agency (JICA).
Under the TREP, the FGN has requested the AfDB financing for the Nigerian
Transmission Expansion Project (NTEP). For ease of implementation, TCN has
divided the project into two phases, namely NTEP-1 and NTEP-2. The
intervention under NTEP-1 includes (i) The reconstruction/upgrade of two (2)
330kV double circuit (Quad) transmission lines (Alaoji-Onitsha and Delta-
Benin); (ii) The construction of the Kaduna-Kano double circuit (Quad)
transmission line; (iii) The construction of 330/132kV Substations at Zaria and
Millennium City; and (iv) The construction of 132/33kV Substations at Rigasa
and Jaji.
As part of the Environmental and Social (E&S) safeguards documentation

required to support the projects under NTEP-1, a Resettlement Policy
Framework (RPF) is required to provide the necessary context to ensure that
all projects under the program that will involve land acquisition and/or
resettlement and loss of livelihoods of any people will comply with both
Nigerian law and the AfDB's Operational Safeguards, particularly Operational
Safeguards OS2: Operational safeguard 2 – Involuntary resettlement: land
acquisition, population displacement and compensation.
This document presents the RPF that has been developed for the Program to
essentially guide the process of preparation of a Resettlement Action Plan
which will harmonize the social impacts and ensure that they are minimized.
The RPF harmonises the provisions of Nigerian laws, particularly the Land Act,
and the principles of the AfDB OS2 in a manner that will ensure displacement
is minimal and affected persons are duly compensated in an internationally
acceptable manner. The RPF also spelt out the processes of resolving any
resettlement related grievances to ensure the overall sustainability of the
program.
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CHAPTER ONE: INTRODUCTION
1.1 Background
The Federal Government of Nigeria (FGN) approved the Power Sector
Recovery Plan (PSRP) in March 2017 within the context of the Economic
Recovery and Growth Plan (ERGP). The ERGP 2017 - 2020 builds upon the
previous Strategic Implementation Plan of 2015, and has been developed for
restoring economic growth. The objectives of the PSRP are: to restore the
power sector's financial viability on a contract-based electricity market; to
improve power supply reliability to meet growing demand; and to strengthen
the sector's institutional framework and increase transparency.
In order to meet these objectives, the FGN, through the Transmission
Company of Nigeria (TCN) is taking steps to improve the quality and reliability
of Electricity supply, while striving to ensure the sustainability of the power
sector. TCN intends to increase the wheeling capacity of its network through
expansion of existing substations, construction of additional lines and new
substations, and to upgrade existing transmission lines through the
replacement of their conductors with higher amperage conductors.
To achieve this objective, TCN has developed the Transmission Rehabilitation
and Expansion Programme (TREP) to be financed by the African
Development Bank (AfDB), the World Bank (WB), the Agence Française de
Développement (AFD) and Japan International Cooperation Agency (JICA).
Under the TREP, the FGN has requested AfDB financing for the Nigerian
Transmission Expansion Project (NTEP) as one of the components of TREP
NTEP as a subset of TREP is designed to improve the wheeling capacity from
10,000MW to up to about 25,000MW. The program will boost socio-economic
activities through the availability of reliable power to drive commercial and
industrial activities, create employment and alleviate poverty. The NTEP
project cuts across the states of Kano, Kaduna, Borno, Yobe, Adamawa,
Delta, Edo, Anambra, Imo and Abia. It includes both green field (i.e.
construction of new lines) and brownfield (i.e. reconstruction of existing lines)
developments.
The NTEP is divided into two sub projects as set out in Table 1.1 below.
Table 1.1: Components of the NTEP program

Program
Overall Objective Brief Description
component
NTEP 1 NTEP1 will strengthen • The construction of a 205km 330kV
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Program
Overall Objective Brief Description
component
and improve the grid double circuit line with quad

wheeling capacity in conductors between Kaduna (Mando)
the North-West and and Kano (Rimi-Zakara) with two
South-South regions 330/132 kV substations (Zaria and
where the transmission Millennium City) and two 132/33 kV
lines are constrained substations (Jaji and Rigassa).
• The reconstruction of two 330kV
transmissions lines in the south-south of
Nigeria, i.e. The 330 kV lines Delta-Benin
and Alaoji-Ihiala-Onitsha which will be
replaced by double circuit lines with
quad conductors.
• The construction of five (5) 132kV
transmission lines i.e.
o Maiduguri-Bama-Gwoza-Gulak
o Maiduguri-Mongunu-Marte-
Dikwa-Bama
o Damboa-Chibok-Askira/Uba-
NTEP2 focuses on grid Mubi
expansion in the North- o Damaturu-Buni Yadi-Biu
NTEP 2 East region, the o Mayo Belwa-Jada-Ganye
poorest region of • The construction of eleven (11)
Nigeria. 132/33kV substations at Monguno,
Marte and Dikwa, Bama, Gwoza, Jada,
Ganye, Askira/Uba, Chibok, Buni Yadi
and Kwaya Kusar;
• The provision of line bay extension to six
(6) existing 132/33kV substations at Old
Maiduguri, New Maiduguri, Mubi, Mayo
Belwa, Damaturu and Gulak.
The scope of this RPF is limited to the NTEP 1 program components.
1.2 Rationale for the RPF

Involuntary resettlement involves the displacement of people arising from
development where the project affected people are not in a position to
refuse the activities that result in their physical, cultural or economic
displacement. What distinguishes involuntary from voluntary resettlement is
that the former involves people who may be displaced against their wishes,
as they are often not the initiators of their movement.
The NTEP 1 program is made up of projects, which may have the potential to
result in significant physical and economic displacement of project affected
persons. The RPF sets out a unified framework, which will be used to develop
the Resettlement Action Plans (RAPs) of each project in the program.
The Resettlement Policy Framework (RPF) provides the necessary context to
ensure that all subprojects under the program that will involve land
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acquisition and/or resettlement and loss of livelihoods of any people will

comply with both Nigerian law and the Bank's Operational Safeguards,
particularly Operational Safeguards OS2: Operational safeguard 2 –
Involuntary resettlement: land acquisition, population displacement and
compensation.
The RPF should be read in conjunction with the Environmental and Social
Management Framework (ESMF) for the program. The ESMF has been
prepared as a separate document specifically for guiding the preparation of
the ESIA and ESMPs associated studies for each of the sub projects under the
NTEP 1.
1.3 Purpose of the Resettlement Policy Framework

The RPF has therefore been prepared to appropriately deal with matters such
as the necessity for land acquisition, compensation and resettlement of
people affected by the implementation of the projects in NTEP 1 program
The RPF describes the design criteria for the resettlement of affected persons
in the course of implementation of the projects under the program, the legal
context, the process for the preparation of a RAP, the expected c o n t e n t
of RAP (aligned to the requirements of AfDB’s Operational Safeguards 2), the
process for its execution and finally the required institutional organization
towards livelihood improvement.
The RPF outlines the resettlement principles, organizational arrangements and
design criteria to be applied to projects under NTEP 1 program which will be
prepared during project implementation. The RPF will also guide the process of
preparation of a Resettlement Action Plan which will harmonized the social
impacts and ensure that they are minimized
1.4 Objectives of the Resettlement Policy Framework

The overall objective of the RPF is to provide guidance on how to deal with
issues relating to land acquisition, compensation and resettlement during the
implementation of sub projects within the NTEP1 program. This will ensure that
displaced and resettled persons are compensated for their loss at
replacement cost, given opportunities to share in project created benefits,
and assisted with the move and during the transition period at the
resettlement sites or locations as applicable.
The specific objectives of the RPF are as follows:
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i. to minimize, as much as possible, acquisition of land for

implementation of project sub-components, where such acquisition or
project related activities will result in adverse social impacts,
ii. to ensure that where land acquisition is necessary, this is executed as
sustainable programs to enable people share in the project benefits,
iii. to ensure meaningful consultation with people to be affected or
displaced; and
iv. to provide assistance that will mitigate the negative impacts of the
project implementation on the livelihoods of people affected in order
to improve their livelihoods or at least restore to pre-project levels.
v. Outline roles and responsibilities by various stakeholders in the planning,
implementation, monitoring and evaluation of resettlement activities.
vi. Allow redress among communities affected by project activities; and
vii. Reduce stress on project affected communities/households.
The operational objective of the framework is to provide guidance to
stakeholders participating in the mitigation of adverse social impacts of the
project, including rehabilitation/resettlement operations, in order to ensure
that project affected persons (PAPs) will not be impoverished by the adverse
social impacts of the projects within the NTEP 1 program.
The target groups for the RPF are all the stakeholders relevant to the
implementation of the projects within the NTEP 1 program. This includes
project-affected persons (PAPs), communities, NGOs and CSOs as
applicable.
The ESMF was prepared after extensive field visits (northern and southern
components of NTEP 1) and engagement with a wide range of stakeholders
between the 15 and 26 of April 2019.
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CHAPTER TWO: PROGRAM DESCRIPTION
2.1 Project Overview

With financing to be provided by AfDB, TCN is planning to build in the North-
West region of Nigeria a 330kV double circuit line with quad conductors
between Kaduna (Mando) and Kano (Rimi-Zakara), two 330/132 kV
substations and two 132/33 kV substations. In the South-South region, TCN is
planning the reconstruction of two 330 kV transmission lines is planned. The
330 kV lines Delta-Benin and Alaoji-Ihiala-Onitsha shall be replaced by double
circuit lines with quad conductors. The sub-projects were conceived for
improvement of the transmission system operation and reliability of the
transmission network in both the Northern and Southern region. A brief
description of the components of the program is presented below.
The NTEP 1 program, includes the following:

1. The construction of a double circuit, Quad Conductor (4 lines) of
330kV type with a total length of about 205.05km, between the
proposed TCN substations at Mando in Kaduna State and the
substation at Rimi Zakara, Kano State. As part of the line, 4 new
substations will be constructed at Zaria, Jaji, Rigasa and Millennium city
2. Upgrade of existing transmission lines with a total length of about
107km between the existing substations at Benin, Benin State and
Ugheli, Delta State to a 330kV double circuit, quad conductor lines.
3. Upgrade of existing transmission lines with a total length of about
137km between the existing substations at Alaoji, Abia State and
Onitsha, Anambra State to a 330kV double circuit, quad conductor
lines.
The detail specifications of the substations and transmission lines being

considered under NTEP-1 are described in Table 2.1.
Table 2.1: NTEP-1 Sub-projects

S/N Region Location Type of Project Description/Components
Construction of the203km 330kv T Line between Mando and Rimi Zakara with associated
substations
Construction of • Installation of 2nos 150MVA 330/132/33

1 Kaduna Zaria 330kV kV Transformer
Substation • 2nos 150MVA 330kV Transformer
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S/N Region Location Type of Project Description/Components

• 2nos 60MVA 132/33 kV Transformer
• Installation of 6nos 132 kV line bays
• Installation of 2nos 60MVA 132/33 kV
Construction of Transformer
2 Kaduna Jaji 132kV • Installation of 4nos 132 kV line bays
Substation • Installation of 6nos outgoing 33 kV
feeders
• Installation of 2nos 60MVA 132/33 kV
Construction of Transformer
3 Kaduna Rigasa 132kV • Installation of 5nos outgoing 33 kV
Substation feeders
• Installation of 2nos 150MVA 330/132/33
kV Transformer,
Construction of • Installation of 4nos 330 kV line bay
Millennium
4 Kaduna 330kV • Installation of 6nos 132 kV line bay
City
Substation • 2nos 60MVA 132/33 kV Transformer and
• 23number associated outgoing 33 kV
feeders.
Construction of • Construction of Quad 330 kV double
Kaduna
330kV circuit lines
(Mando)-
5 Kaduna Transmission • Installation of appropriate towers to
Kano (Rimi
line Kaduna - carry the quad lines
Zakara
Kano • Length of line is 205.05km
Reconstruction of 2 South –South lines
• Upgrading of existing line to double
Reconstruction
circuit 330 kV
Benin – of Delta to
• Removal of existing towers
6 Benin Delta Benin 330 kV
• Installation of appropriate towers to
(Ugheli) Transmission
carry the quad lines
Line
• Length of line is 107km
Alaoji • Upgrading of existing line to double
Reconstruction
(Abia circuit 330 kV
of Alaoji to
Port- State) – • Removal of existing towers
7 Onitsha 330 kV
Harcourt Onitsha • Installation of appropriate towers to
Transmission
(Anambra carry the quad lines
Line
State) • Length of line is 183km
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2.2 Project Phases and Activity Sequence

It is expected that each project within the NTEP 1 program will be delivered in
a number of phases typical of linear projects of this scale and magnitude. The
project activity order for the proposed sub-projects transmission line is given in
Table 2.2 below. This does not however show the interdependencies of the
activities.
Table 2.2: Project Implementation Phases and Activities
Project Component Description
Transmission lines
• Above ground power transmission lines
Transmission Towers
• Steel, wood or aluminium towers and pylons.
• Power Distribution Lines
Substations
Project Components • One or more transformers, as well as switching, control,
and protection equipment.
• Substations can be located in fenced enclosures,
underground, or inside buildings.
Temporary construction components
• Temporary construction facilities (e.g. workshops,
laydown areas, working corridors along the RoW,
workers’ accommodation, etc.).
• Temporary access roads within and between
construction areas / temporary facilities.
• Surveys (including topographic survey)
• Conceptual Design
• ROW acquisition programme
• EPC contract award
• Mobilization
• Check survey of EPC contractor
• Transmission line detail design
Pre-construction
• Material production (conductor, insulator, line hardware)
• Material testing
• Material shipment
• Tower production
• Tower testing
• Tower shipment
Clear and grub site along transmission line corridor
Monitoring of ESMP performance.

Monitoring of compliance with loan covenants.
Monitoring of sub-contractor contract provisions
Construction activities will include:
Construction • Establishing temporary access to work and ancillary
areas, demarcating clearance zones, establishing access
control.
• Clearance and levelling of the transmission line route.
• Construction of pylons / towers and installation of
overhead power lines.
• Construction of substations.
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Project Component Description
The equipment required will include heavy mobile plant (e.g. excavators) and temporary
fixed plant such as power generators.
Operation and
Maintenance Project implementation: Compliance Monitoring
During operation impacts will generally be small, related to visual, safety and
electromagnetic impacts, and to disruption of aerial routes used by birds and bats.
RoW maintenance is required to protect the system from windfall, and contact with trees
and other vegetation. This involves mowing with heavy-duty equipment, use of herbicides,
trimming and pruning. Maintenance of power lines and substations will entail many of the
activities described above for the construction phase, although they are likely to be smaller
in scale and spatial extent.
Decommissioning
Project Completion: Compliance Report
(Closure)
Where temporary access roads are developed during construction they should be
decommissioned and rehabilitated in accordance with a site-specific closure plan
developed in consideration of international good practice.
Both for temporary facilities and ultimately the transmission line and associated facilities, the
closure process will include site clearance, removal of all equipment including underground
power lines, appropriate disposal of waste materials and reinstatement / revegetation as
appropriate.
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CHAPTER THREE: LEGAL AND ADMINISTRATIVE FRAMEWORK

GOVERNING RESETTLEMENT
3.1 Introduction
The legal framework relating to displacement and involuntary resettlement
issues consists of the various Nigeria legislations and AfDB Operational
Safeguards (OS2).
The legal basis for resettlement in Nigeria is the Land Use Act of 1978,
modified in 1990. According to the Act, all land in Nigeria is vested in the
Governor of each State, to be held in trust for the use and common benefit
of all people. The administration of urban land is directly under the control
and management of the Governor, whereas non-urban land is under the
control and management of the Local Government Authority. The Governor
has the right to grant statutory rights of occupancy to land while the Local
government has the right to grant customary rights of occupancy. Since the
Land use Act gives to the State ownership of all land, compensation by
projects and sub-projects is restricted to structures, installations, and
improvements on the land, not the land itself. However, the Act does require
the State or Local Government to provide alternative land for affected
people who will lose farm land, residential (commercial/industrial) plots.
3.2 Applicable Legal and Administrative Framework (Power Sector)
3.2.1 Land Use Act – 1978

The principal piece of legislation for the expropriation of land in Nigeria is the
Land Use Act, 1978 Cap L5, and Laws of the Federation of Nigeria (LFN) 2004.
The law establishes the legal framework for government expropriation of land
from individuals and communities, when it is required for “overriding public
interest/good”. It prescribes the circumstances under which the State can
revoke rights of occupancy to the land and the compensation provisions that
are required.
Before 1978, the principal land tenure systems differed in Northern Nigeria
and Southern Nigeria, with the Northern Nigeria Land Tenure System [NNLTS]
and the Southern Nigeria Land Tenure System [SNLTS]. Traditionally, NNLTS was
based on the premise that land belongs to the Government (i.e. no private
ownership), while the SNLTS was based on the premise that land belongs to
communities, families and individuals.
The Land Use Act came into force on 29th March 1978 and replaced all pre-
existing land tenure systems in Nigeria. The Act essentially does three things:
9|Page
• It places land into two categories: urban land and non-urban land, as
designated by the Governor of a state wherein the land lies.
• It redefines title in land to be a right to occupy or use the land, rather
than to own it; namely:
o a statutory right or a deemed statutory right of occupancy for
land in urban areas; and
o a customary right or a deemed customary right of occupancy
for land in non-urban areas.
• It empowers the Governor of a state to revoke rights of occupancy.
There were several key repercussions as a result of the Act:
• There is now a common Land Tenure System throughout the country;
• Control and management of land is in the hands of Government;
• A system of registration of titles has been introduced and paper titles
(Certificates of Occupancy) are issued; and
• The process of acquiring land is deemed to have been simplified for
developers.
The most significant change in the land tenure system, brought about by the
Land Use Act, is the empowerment of the Governor of a state to revoke rights
of occupancy compulsorily, for public purpose. Section 28(1) makes it lawful
for the Governor to revoke a right of occupancy for “overriding public
interest”.
Sections 28 (2) (b) and (3) (a) define this to mean, among other things, “…the
requirement of the land by the state for public purposes within the state”. This
means that a governor can revoke the right of occupancy to land (i.e.
expropriate) for use either by the State, Local or Federal authority for
overriding public interests. As per the provisions of the Land Use Act, this can
include telecommunication, power projects, hospitals, market places, mining
activities or agricultural use etc. When rights of occupancy are subject to
revocation in this way, holders of rights of occupancy are, under the Land
Use Act, entitled to compensation.
However, this compensation is for the value of land improvements
(“unexhausted improvements”) at the date of revocation (section 29).
Depreciation is considered when assessing the value of these improvements
based on the national process of land-taking. The term “unexhausted
improvement” is defined in Section 51 of the Land Use Act as:
“anything of any quality permanently attached to the land directly resulting
from the expenditure of capital or labour by an occupier or any person
acting on his behalf and increasing the productive capacity the utility or the
amenity thereof and includes buildings, plantations of long lived crops or
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trees, fencing, wells, roads and irrigation or reclamation works, but does not
include the result or ordinary cultivation other than growing produce.”
Where occupancy rights are not claimed by any one individual, the Act
states that the recipient of the compensation may be:
a. the community;
b. the chief or leader of the community, to be disposed of by him for the
benefit of the community in accordance with the applicable
customary law; or
c. a community fund, to then be utilised for the benefit of the community
(section 29(3)).
All rights of occupancy whether granted by the State or Local authority are
typically for a fixed tenure and not usually more than 99 years. A person may
not be entitled to compensation if the leasehold has expired.
The Land Use Act has provisions for compensation in kind, rather than cash,
through the provision of Resettlement Land. Section 33 of the Land Use Act
stipulates that, when alternative land has been given, compensation will be
deemed to have been made. The concerned party is thereby prevented by
law from demanding further financial compensation.
The provision of Section 43 of the Constitution affirms the fundamental rights
of persons and communities to own and hold land or property. It stipulates
that any authority taking such land must do so in accordance with a law
made in that regard. Importantly, such authority is required to pay the
affected party compensation. Additionally, they must afford the right of
access to the relevant adjudicatory forum, where any grievances regarding
the amount of compensation to be paid and/or interest to the land in
question, can be raised and resolved.
3.2.2 Electric Power Sector Reform (EPSR) Act - 2005
This piece of legislation repeals and replaces the Decree 24 of 1972, to
enhance service delivery in all facets of its operation i.e. generation,
transmission and distribution.
The EPSR Act details the consultations Nigeria Electricity Regulatory
Commission (NERC) has to undertake with both the rights holders and
Commissioner of Land of relevant State of the Federation before land can be
legally expropriated from person and communities (Sections 77(1), (2) and (3)
EPRS Act).
The EPSR Act affords rights holders and/or land occupiers to challenge the
declaration by the Commission. It states that any person or group of persons
including the right holders or occupiers affected by the decision of the
Commission may apply to the Commission for a review of the Commission’s
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decision (Sections 77(8), 50(1) and 78(4), EPRS Act). The EPSR Act also affords
the concerned aggrieved party the opportunity of being heard publicly in
accordance with Sections 36 and 44 (1) (b) of the Constitution, 1999 as
amended. Moreover, an aggrieved party may further appeal against the
decision of the Commission to the Federal High Court (Section 49, EPSR Act).
It is not possible for the President or the Electricity Commission to suo motu
(effectively acting under its own volition) revoke the right of occupancy over
a piece of land deemed necessary for a power/other project. Rather, the
Governor is vested with this responsibility and is required to exercise it
carefully, with appropriate engagement with project stakeholders.
3.2.3 Nigeria Electricity Regulatory Commission (NERC)
NERC is the independent regulatory body for the regulation of the electric
power industry in Nigeria. Established through the EPSR Act of 2005, NERC is
responsible for the review of electricity tariffs, subsidy policies, promotion of
efficient and environmentally friendly electricity generation and enforcing
standards for electricity creation and use in Nigeria. NERC is largely
responsible for regulating tariffs of power generating companies 1.
NERC has the following legislation in place, Acquisition of Land Access Rights
for Electricity Projects Regulations, 2012, to provide a regulatory framework
for:
a. the acquisition of land and access rights for electricity projects in
Nigeria;
b. making provisions for the payment of compensation and resettlement
of persons affected by the acquisition of their land for the
establishment of electricity projects; and
c. the monitoring and evaluation of project designs of licensees to ensure
compliance with environmental standards.
The Regulations apply to the acquisition of land access rights for electricity in
Nigeria, including projects related to generation, transmission and distribution
of electricity.
3.2.4 Nigerian Electricity Supply and Installation Standards (NESIS)
Regulations 2015
These Regulations provide guidance, license terms and conditions to any
person engaged in the generation, transmission, distribution, system
operation, and trading in electricity or in any aspect in the value chain of
electricity supply, including but not limited to engineering designs,
installations, commissioning, decommissioning and maintenance of electric
power systems for the purpose of achieving safe and reliable supply, and
utilization of electricity in Nigeria. The regulation also states among other
things Health, Safety and Environment issues including approved Right of Way
for Transmission and Distribution lines in Nigeria. According to the NESIS 2015,
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Right of Way (RoW) is the distance of any structure from the middle
conductors of overhead power lines of any voltage level. The approved Right
of Way for different voltage Levels are presented in Table 3.1
Table 3.1: Right of Way

Voltage Levels Right of Way from centre line in Meters
330kV 50
132kV 30
33kV 15
11kV 11
3.2.5 Acquisition of Land Access Rights for Electricity Projects Regulations,

2012
This is a Nigerian Electricity Regulatory Commission Act which provide a
regulatory framework for the acquisition of land and access rights for
electricity projects in Nigeria. This Act also stipulates provisions for the
payment of compensation and resettlement of persons affected by the
acquisition of their land for the establishment of electricity projects as well as
the monitoring and evaluation of project designs of licensees to ensure
compliance with environmental standards. The Regulations apply to the
acquisition of land access rights for electricity in Nigeria, including projects
related to generation, transmission and distribution of electricity.
3.2.6 Transmission Company of Nigeria (TCN)

TCN was incorporated in November 2005, emerging from the defunct
National Electric Power Authority (NEPA) as a product of the merger of the
Transmission and Operations sectors on April 1, 2004. Being one of the 18
unbundled Business Units under the Power Holding Company of Nigeria
(PHCN), the company was issued a transmission license on 1st July, 2006. TCN
licensed activities include: electricity transmission, system operation and
electricity trading which is ring fenced.
TCN has the following legislation in place, Harmonised Rates for Economic
Trees and Cash Crops for Compensation Assessment, July 21, 2009. Because
of the unstable prices of assets and the harmonised rates keeps changing for
different regions. What will be adopted for the RAP will be the current rates as
at the time of preparation of RAP and this will be benchmarked against the
current market value after which the best values will be adopted.
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3.3 Overview of the Land Take process in Nigeria

The process involves the following steps:
Step 1: Preparation of a Survey Description
This is a preliminary survey / mapping of the property intended for land-take.
The survey description is to be prepared by the Ministry of Lands and should
contain the following information:
• Position and dimensions of the land parcel to be acquired;
• Spatial relation to other properties in the area; and
• A list of all the communities on the property.
The survey description provides the basis / information upon which approval
for the chosen property to be acquired is provided and the property is thus
surveyed or marked out with suitable marking points (see Step 3).
For the projects within the NTEP 1 program, this will entail clearly defining the transmission line routes,
substation locations, the right of ways and applicable buffers. Constraints mapping with the help of high-
resolution satellite imagery will be required.
It is expected that the requirements of NTEP 1 will be detailed in the Project Scoping Report.
The Scoping report shall also include a comprehensive Stakeholder Engagement Plan (with a fit for
purpose grievance redress mechanism) that will be used to guide the entire RAP process
Step 2: Publication of a Notice of Acquisition

This is usually prepared by the Ministry of Lands and is then published in two
newspapers (one national and the other local) and the government gazette,
in order to enable any claims or objections to the intended acquisition to be
made. These claims have to be made within the given period stated in the
publication.
The notice must also be approved and signed by the Governor, along with
the survey description, before publication. Both documents are usually
forwarded to the Governor with a covering memo prepared by the
Permanent Secretary and signed by the Honourable Commissioner for Lands.
Claims are then usually forwarded in writing to the Ministry of Lands within the
stipulated period stated in the publication of the notice, following which the
processing of claims and the negotiation of compensation can begin.
For the projects within the NTEP 1 program, the Stakeholder Engagement Plan (SEP)
developed for each project will identify all potential stakeholders (Federal, State, Local
government, NGOs, CSOs, communities, PAP, law enforcement, etc.) who would be
involved in the RAP process.
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Step 3: Surveying the Property

Surveying can be conducted immediately, and before the expiration of the
notice period. The time that this takes to complete depends on the speed
with which the survey fees are agreed and funds dispersed to the Ministry of
Lands. It is understood that the Ministry of Lands has the sole right to do the
surveying work when (in the case of the projects in the NTEP 1 program) it is
the State that is acquiring the land. However, this does not prevent
independent surveyors from being employed by the NTEP 1 program in order
to ensure compliance with international standards. This step incorporates
detailed consultation with local communities on the RAP principles and the
start of the direct consultation process directly with the affected individuals.
Individual PAPs or their representatives will have access to the project
developer to verify issues relating to their properties through GRM.
TCN through their in house surveyors and external consultants shall carry out the survey
of all properties to be affected by the projects under NTEP 1 program. This will allow
independent assessment from both State Governments and TCN
Step 4: Assessment
This is essentially a State enumeration and valuation of unexhausted
improvements on the land (estimates of compensation amounts due to
affected individuals) to determine the compensation liability of government
and for tax purposes (in cases involving private purchase of land). The
compensation amounts arrived at are then discussed with the affected
community or its attorney where the evaluator is present. Once agreement is
reached, the compensation is paid. In some cases, direct disbursement takes
place to each household. In other cases, the compensation is provided to
the attorney who is then responsible for onward distribution. However for
projects in NTEP 1 program, payments for compensation will not be made to
attorney but directly to the PAPs. For land take, the bank prefers land for land
compensation and this should be prioritized while cash compensation should
be the last option.
Payment of agreed compensations should be done directly to PAPs with documented

evidence
Step 5: Registration and Stamping

This process involves placing land sale agreements (including survey plans /
maps clearly delineating the piece of land in the sale transaction) at the
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lands registry / records after they have been stamped at the office of
Commissioner of Stamp Duties, upon the payment of a fee. The Certificate of
Occupancy is also registered at the Lands Registry for records purposes, after
stamping of the documents. In the case of compulsory land-take (as in the
Project case) there are no sale documents for stamping or registration;
however, the Certificate of Occupancy issued to the Project Company may
be registered with the Lands Registry.
TCN will ensure that land within each state is registered on the land data base to the
level of issuance of Certificate of Occupancy
Step 6: Preparation of Certificate of Occupancy

The Certificate of Occupancy is then prepared by the Ministry of Lands and
signed by the Governor, after which it is issued to the applicant. The overall
land acquisition process may be concluded within approximately twelve to
eighteen weeks.
The end product of the RAP process will ensure that there is a Certificate of Occupancy
issued to the project by the Governor of states concerned. This is to prevent future
encroachment as available land title will prevent double allocation.
3.4 Legal Mechanisms for Resolving Land-related Grievances
3.4.1 The Constitution

The Constitution specifically guarantees the right of individuals to acquire and
own immovable property [Section 43]. It further gives individuals the right to
dispute decisions made in the courts of the country. If any person feels that
their right to own and acquire property is threatened or their entitlement to
compensation has been overlooked or underestimated, they may approach
the High Court of a State for necessary redress [Sections 44 (a) and (b) and
46 of the Constitution].
NTEP 1 program will follow the provisions of the Constitution as well as the requirements
of OS2 of the AfDB in land acquisition for the projects.
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3.4.2 Land Use Act

The Land Use Act only makes provisions for a dispute in relation to
compensation payable; stating that it should be referred to the relevant
committees established by the governor of the concerned state. There are
no provisions in place for challenges against the legitimacy of a revocation
order by the governor. This may be connected to the Trusteeship position of
the governor and the fact that such revocation is seen to be based on the
overriding public good of the people.
An aggrieved party may approach the high court of a state in relation to
compensation payable for improvements on land (Section 39 (2)). In urban
areas, aggrieved persons or group of persons are to raise their grievances
with the Land Use and Allocation Committee. For non-urban areas, such
disputes are laid before the Land Allocation Advisory Committee. These two
committees are constituted by the governor of a state.
3.4.2.1 Scope of the Land Use and Allocation Committee
The Terms of Reference of the Land Use and Allocation Committee are
described in Section 2(2) (a) – (c) of the Land Use Act and includes:
• advising the governor on any matter connected with the resettlement
of persons affected by revocation of right of occupancy on the
grounds of overriding public interest; and
• determining disputes as to the amount of compensation payable
under the Act for improvement on land.
The Committee is made up of at least two (2) people who are qualified
under the civil service to be appointed estate surveyors or land officers.
3.5 Traditional Land Tenure in Nigeria

The legal context of land tenure in Nigeria is complex, resulting from the co-
existence of traditional (at times with Islamic influence) and state systems,
neither of which is dominant.
Traditional land tenure in Nigeria is based on traditional laws under which
land is considered community property. Title to land under traditional law is
vested in the community; no individual within the unit can lay claim to any
portion of it as a formal owner. Individuals only ever retain rights to use.
Normally, the village chief of a community acts as the ‘manager’, holding
the land for the use of the whole community, and they mediate disputes
involving traditional landholdings.
An individual enjoys rights to the land for farming within his lineage or
community area. The individual possesses the land to the extent that he uses
it for his family’s or society's benefit and passes the land on to heirs (i.e.
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traditional rights to land can be inherited) or pledges its use to satisfy a debt.
The right of disposal belongs to the community only, which, acting through
traditional authorities or family representatives, exercises this right in
accordance with traditional law.
Where decisions about land use need to be made within a family,
representative members of different branches are selected (e.g. from
different branches within a polygamous family) and come to agreement
about the issue. This happens most often regarding transactions between the
family and third parties in conjunction with the village chief.
Under traditional land tenure women can inherit land from their fathers, but
not from their husbands. While women may be “granted” plots by their
husbands, often for crop production, they do not retain the right to use this
land following their husband’s death. Rather, the total land holdings of the
husband are subdivided equally according to the number of wives, and use
rights pass directly to the children. This includes passing to female children, so
women are able to inherit land from their fathers, through their mothers. They
are then free to pass this land on to whomever they choose.
3.5.1 Certificates of Occupancy
The Nigerian mechanism to formalise customary land ownership is a
Certificate of Occupancy, which is issued by an authorised Government
Office as evidence of a holder’s right to occupy and use a specific piece of
land under certain terms of contract. Certificates of Occupancy afford
customary rights of occupancy to land in non-urban areas for agricultural,
residential, grazing and other uses. Certificates of Occupancy can be
granted for a period of time up to 99 years.
3.6 Institutional Framework

Compensation and resettlement issues fall under the jurisdiction of various
levels of government in Nigeria. They are also governed by a range of
legislation. Some of the principal government institutions and laws and their
impacts are described below.
3.6.1 Federal Government
Nigeria functions under a Presidential system of government. The President,
elected for a maximum of two terms of four years each, serves as both head
of state and head of government. The President wields executive power
through the Federal Executive Council, which is also composed of the Vice
President and a representative of each state as Ministers.
Legislative power is vested in the bicameral National Assembly of Nigeria,
whose members are popularly elected for four-year terms. The upper house
(Senate) comprises 109 members while the lower house (House of
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Representatives) has 360 members. The Senate and House of Representatives

have concurrent legislative functions. Bills are not deemed to be validly
passed if they have not received the joint assent of both houses.
The Federal Government typically has limited involvement in land acquisition
and resettlement, except in cases related to federal property, which is not
the case for this Project.
3.6.2 State Government

Nigeria is a federal republic comprised of 36 states and a Federal Capital
territory in Abuja. The executive powers of each state are vested in the
governor, who exercises these powers directly or through the deputy
governor, commissioners or other designated state officials. The legislative
powers of a state are vested in the House of Assembly. The House of
Assembly has power to make laws for the peace, order and good
government of the state.
In light of the fact that the Land Use Act (1978) prohibits challenge to the
acquisition of land and gives the Governor of the State/Local Councils
authority to issue (or revoke) statutory or traditional rights of occupancy, the
main focus of government engagement for land acquisition and
resettlement is at the State and Local Government levels.
The ministries and parastatals at the state level that will have some input into
or provide some oversight regarding land acquisition, land-take and
resettlement planning include the Ministry of Land; Ministry of Agriculture;
Ministry of Environment; Ministry of Water Resources; Ministry of Commerce;
Ministry of Local Government; Ministry of Justice and Ministry of Women
Affairs.
3.6.3 Local Government
At the local level, Project and sub projects falls within a particular Local
Government. A typical LGA is headed by an Executive Chairman, and has a
Vice Chairman, Secretary to the Local Government, Treasurer and a Council
Manager who, together with the department supervisors, form the Executive
Committee. Key departments at the local government level which are likely to
be of relevance to this Project include: Women’s Affairs and Poverty
Alleviation; Education (specifically the Local Government Education
Authority); Agriculture and Rural Development (including Culture and Tourism,
and Community Development Associations); Works and Housing; and Health
(Medical Officer of Health).
Local government administrations usually have a wide variety of functions
prescribed under the Constitution, including but not limited to:
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• Construction and maintenance of roads, streets, street lightings, drains,

parks, gardens and open spaces.
• Provision and maintenance of public conveniences, sewage and
refuse disposal
• Registration of births, deaths and marriages.
• Assessment of privately owned houses or tenements for the purpose of
levying such rates as prescribed by the House of Assembly of the State.
• Participation in the provision and maintenance of primary, adult and
vocational education.
• The development of agriculture and natural resources, other than the
exploitation of materials
• The provision and maintenance of health services.
• Establishment and maintenance of cemeteries, burial grounds and
homes for the destitute or infirm.
3.6.4 Traditional Leadership

The traditional leaders are the custodians of the land who oversee day to
day activities in the various communities. They are relevant for the
engagement with affected persons and information dissemination. They also
have local knowledge which could be relevant to the Project and are key in
achieving community buy in. Their role is to facilitate stakeholder
engagement at the community level, manage disputes and grievances, and
provide information on community preferences and livelihood restoration
options.
For each of the NTEP 1 projects, a comprehensive Stakeholder Engagement Plan

(SEP) and Grievance Redress Mechanism (GRM) will need to be developed.
The goal of the SEP shall be to improve and facilitate decision making and create an
atmosphere of understanding that actively involves project-affected people and
other stakeholders in a timely manner, and that these groups are provided sufficient
opportunity to voice their opinions and concerns that may influence Project
decisions.
Develop a Grievance Redress Mechanism and make it operational to take care of
issues arising from land take. The Grievance Redress Committee should have
members of traditional leadership of communities as members
3.6.5 International Standards and Guidelines related to Involuntary

Displacement
In addition to the need to adhere to Nigerian legislative requirements, RAPs
of the NTEP 1 program projects will also need to be aligned to international
best practice standards in involuntary land acquisition and compensation. As
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the main funding agency, the RAPs will need to be aligned with the
requirements of the AfDB’s Integrated Safeguards Standards (ISS) Operational
Safeguards 2: Involuntary resettlement: land acquisition, population
displacement and compensation as well as the Bank’s Involuntary
Resettlement Policy of 2003. The policy was developed to cover involuntary
displacement and resettlement of people caused by a Bank financed
project and it applies when a project results in relocation or loss of shelter by
the persons residing in the project area, assets being lost or livelihoods being
affected.
3.6.6 The African Development Bank Group’s (AfDB) Integrated Safeguard
System (ISS)
In 2013, the African Development Bank Group updated their policy on
Involuntary Resettlement and created an Integrated Safeguards System (ISS)
to improve clarity, coherence and consistency as well as overall operational
effectiveness. Resettlement is covered under Operational Safeguard 2
(Involuntary Resettlement: Land Acquisition, Population Displacement and
Compensation), which includes comprehensive notions of livelihood and
assets, accounting for their social, cultural, and economic dimensions. It also
adopts a definition of community and common property that emphasises the
need to maintain social cohesion, community structures, and the social
interlinkages that common property provides. It furthermore stresses the
importance of improving living conditions for PAPs through a Livelihood
Restoration programme.
OS 2 has the following specific objectives to:
• avoid involuntary resettlement where feasible, or minimise resettlement
impacts where involuntary resettlement is deemed unavoidable after
having explored all other alternative project designs;
• ensure that displaced people are meaningfully consulted and given
opportunities to participate in the planning and implementation of
resettlement programmes;
• ensure that displaced people receive significant resettlement
assistance under the project, so that their standards of living, income-
earning capacity, production levels and overall means of livelihood
are improved beyond pre-project levels;
• mitigate the negative impacts of displacement and resettlement,
actively facilitate social development and establish a sustainable
economy and society; and
• set up a mechanism for monitoring the performance of involuntary
resettlement programs and remedying problems as they arise so as to
safeguard against ill-prepared and poorly implemented resettlement
plans.
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3.7 Benchmarking of Relevant Nigerian Legislation and the AfDB’s OS2.

The primary difference between national legislation and AfDB’s resettlement
standards is that Nigerian law concentrates on compensation for lost assets,
whereas the AfDB Safeguard have an additional focus on livelihood
enhancement (or, as a minimum, restoration). Emphasis is not only on
compensation for lost assets but also on assisting people to improve (or at
least restore) standards of living, incomes, and livelihoods. This includes
providing access to income-earning opportunities such as agricultural
production or to natural resources deemed critical for subsistence.
Nigerian legislation does not provide any compensation for the value of lost
land (except for reimbursement of any rent paid by the occupier during the
year in which the right of occupancy was revoked). OS2 of the AfDB
stipulates that affected people are compensated for all their losses at full
replacement costs before their actual move; before land and related assets
are taken; and, if the project is implemented in phases, before project
activities begin for each particular phase. The borrower or client gives
preference to land-based resettlement strategies and as a matter of priority
offers land-to-land compensation and/ or compensation-in-kind in lieu of
cash compensation where feasible; further, the borrower or client clearly
explains to affected people that cash compensation very often leads to
rapid impoverishment.
With regard to loss of access to commonly held resources, Nigerian legislation

provides that, where a right of occupancy of land owned by the community
is revoked for public purposes, compensation for unexhausted improvements
on the land, taking account of depreciation, may be paid to the community
at the relevant governor’s discretion and such payment may be to the
relevant chief on behalf of the community or into a specially designated fund
for the benefit of the community. OS2 on the other hand provides for
compensation to offset restrictions on access to communal resources.
Assistance measures may include initiatives to enhance the productivity of
the remaining resources, to which the community will continue to have
access, in-kind or cash compensation for the loss of access, or access to
alternative sources of the lost resource.
The NTEP 1 program will follow the Nigerian legislation and will also implement
such additional measures as necessary to achieve outcomes that are
consistent with AfDB OS2 requirements.
Table 3.2 below compares the AfDB Operational Safeguard 2 (OS2) and to
Nigerian legislation for those categories of displacement impacts that Project
activities are expected to incur. The table also prescribed what will be
adopted for NTEP 1 program.
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Table 3.2: Benchmarking of Nigerian Law and principles of the AfDB on Involuntary Displacement
To be adopted by
Category Nigerian Legislation (Land Use Act) AfDB OS 2 the NTEP 1
program
Minimise Land
Explore all viable alternative project Project proponent to consider feasible alternative project
Take and
design options to ensure minimisation of designs, including re-siting and re-routing, to avoid or AfDB OS 2
Involuntary
impacts (Land Use Act of 1978) minimise physical or economic displacement.
Displacement
A notice of acquisition is usually
prepared by the Ministry of Lands, in
Consultation conjunction with the survey description. Open, inclusive and effective consultation with local AfDB OS 2 and
and Disclosure This notice is then published in two communities is required Land use Act
newspapers (one national and one
local and the government gazette
AfDB identifies three groups of displaced people that shall
be entitled to compensation or resettlement assistance
for loss of land or other assets taken for project purposes:
Under Nigerian legislation, all land rights • Those who have formal legal rights to land or other
constitute occupancy rights rather than assets recognised under the laws of the country
ownership rights and accordingly concerned.
eligibility for compensation for loss of • Those who may not have formal legal rights to land or
land is not provided for. Anyone other assets at the time of the census / asset survey
possessing a statutory or customary right but can prove that they have a claim that would be
Eligibility of occupancy to affected land is recognised under the customary laws of the country.
AfDB OS 2
entitled to compensation for Those who have no recognisable legal right or claim to the
unexhausted improvements made to land they are occupying in the project area of influence,
that land. Encroachers are not and who do not fall into either of the two categories
recognised as an eligible group, and described above, but are entitled to resettlement
are thus not entitled to any assistance in lieu of compensation for land to improve their
compensation provisions. former living standards (compensation for loss of livelihood
activities, common property resources, improvements
(structures and crops) etc.), provided that they themselves
or witnesses can demonstrate that they occupied the
project area of influence for a reasonable time (at least six
months) prior to a cut-off date established by the borrower
23 | P a g e
To be adopted by
program
or client and acceptable to the Bank.
A survey to record the dimensions of the
affected land parcels needs to be
carried out. The enumeration process is
A census, asset inventory and comprehensive
Census and asset driven and not household driven.
socioeconomic survey is required with gender AfDB OS 2
Asset Inventory There is no particular format which is
disaggregated information.
currently used by the Land Department.
The process mostly comprises of generic
questions that are administered orally.
Livelihood No provisions Strategies to improve livelihoods of PAPs are required. AfDB OS 2
Special consideration has to be paid to the needs and
rights of women. In the context of gender vulnerability, the
client must give careful consideration to actively
facilitating consultation with both women and men in
ways that are sensitive to the social and political
constraints and barriers that women and men may face.
The land-taking report (RAP or LRF/LRP) must include a
specific protocol specifying safeguards for the quality and
quantity of land to be allocated to women, especially
Gender No provisions AfDB OS 2
widows and divorcees, to ensure their means to generate
income and achieve food security.
Specifically, applicable to resettlement, land titles at the
resettlement site are to be in the name of both spouses or
of single heads of household, regardless of gender, if this
does not conflict with the borrower or client’s own laws
and legislation. Compensation payments to families are
made to both husbands and wives when this is technically
feasible and socially acceptable.
Though a cut-off date is not defined by There is a requirement to establish a cut-off date for
Cut-off date Nigerian legislation, there is a six-week eligibility that is acceptable to project financiers/lenders.
AfDB OS 2
notice period given for land to be The borrower or client documents the cut-off date and
acquired by a Project. This is not, disseminates information about it throughout the project
24 | P a g e
To be adopted by
program
however, a formal cut-off date. area of influence in a culturally appropriate and
accessible manner, before taking any action on clearing
land or restricting local community access to land.
Once the compensation amounts have Compensation is to be made before land and related
Timing of assets are taken; and, if the project is implemented in
been discussed with the affected AfDB OS 2
Compensation phases, before project activities begin for each particular
people.
phase.
Cash compensation is generally made
based upon government rate as well as PAPs are compensated for all their losses at full
depreciation value. Whilst in principle replacement cost. PAPs can be offered a range of
Compensation there is allowance for in-kind different compensation packages, resettlement
AfDB OS 2
compensation or replacement of assistance, and livelihood improvement options.
assets, cash compensation is common Engagement is key to determine the appropriate
practice compensation packages.
Section 29 sub section 3 only provides

Communal for compensation where the holder or Page 32 of the ISS mentions compensation for the loss of
resources the occupier of land entitled to AfDB OS 2
communal resources.
compensation is a community
Displaced people are provided with targeted assistance
Livelihood with the aim of ensuring that their standards of living,
No provisions income-earning capacity, production levels and overall AfDB OS 2
Assistance
means of livelihood are improved beyond pre-project
levels.
Many Nigerian policies address the
needs of vulnerable people, such as the
Vulnerable Gender Policy, Child Act or NEEDS Special attention needs to be paid to vulnerable groups
People framework. However, there are no and special provisions required in the livelihood AfDB OS 2
specific provisions related to physical or restoration process.
economic displacement.
Section 30 of the Land Use Act 1990 6 v: There is a requirement to establish a culturally appropriate
Grievances “Where there arises any dispute as to and accessible grievance and redress mechanism to AfDB OS 2
the amount of compensation resolve, in an impartial and timely manner, any disputes
25 | P a g e
To be adopted by
program
calculated in accordance with the arising from the land-taking process and compensation
provisions of section 29, such dispute procedures. PAPs must be informed about the
shall be referred to the appropriate mechanism.
Land Use and Allocation Committee.”
An independent third party is required to monitor the
implementation of large-scale or complicated
resettlement or livelihood restoration plans, with regular
Monitoring No provisions feedback from PAPs. For largescale displacement AfDB OS 2
operations quarterly reviews are recommended, and in-
depth reviews of 6 months progress, consistent with the
overall project scheduling, are critical.
26 | P a g e
3.8 Compensation Framework

Compensation refers to payment in cash or in kind for loss of land, access to
land, and immoveable asset or resources that is acquired or affected by a
project.
3.8.1 Compensation Principles

The main compensation principles include the following:
§ Provide transparent, fair and timely compensation (prior to land
clearance or taking land) for displacement, including compensation
for assets in accordance with national regulations and international
standards, specifically the AfDB OS2;
§ Compensate for lost assets at full replacement value; and
§ Restore the livelihoods and welfare of PAPs and local communities
such that their well-being is at the least, equal to their pre-resettlement
conditions, or that they are better off.
27 | P a g e
Table 3.3. Categories of PAPs and compensation according to Nigeria guideline and AfDB requirements
Category of Nigeria Law (Land Use What will the NTEP 1 program
S/N AfDB OS2
PAPs Act) do
Entitled to compensation for land, priority is given to
land-to-land compensation and/or compensation-in-
Cash compensation kind in lieu of cash compensation. When cash payments
Adopt the provisions of AfDB
1 Land owners based upon market are made, the affected people should be provided with
OS2
value. counselling to ensure that they have the knowledge to
use the compensation wisely. Compensation for other
assets at full replacement costs.
Entitled to compensation
Entitled to resettlement assistance and compensation
based upon the amount Adopt the provisions of AfDB
2 Land Tenants for all their assets such as crops, structures and other
of rights they hold upon OS2
livelihood activities at full replacement cost.
land
Not entitled to Not entitled to compensation for land but are entitled to
Land compensation for land, resettlement assistance including compensation for loss Adopt the provisions of AfDB
3
users/Squatters entitled to compensation of livelihood activities, structures, crops etc to improve OS2
for crops their former living Standards.
Owners of
These groups are entitled to resettlement assistance to
“Non- Cash compensation Adopt the provisions of AfDB
4 improve their former living standards (compensation for
permanent” based on market value. OS2
loss of livelihood activities, structures, crops etc.).
Buildings
Cash Compensation is
Owners of Entitled to resettlement assistance and compensation
based on market value. Adopt the provisions of AfDB
5 “Permanent” for all their losses at full replacement costs before their
(that means depreciation OS2
buildings actual move.
is allowed)
Losers of Compensation factors in the “total economic cost”
livelihoods No consideration other including the social, health, environmental and
(farmers, than cash values for psychological impacts of the project and the Adopt the provisions of AfDB
6
business assets as described displacement, which may disrupt productivity and social OS2
people, above by asset category cohesion. Considerations are given to the loss of
employees livelihood and earning potential of the affected people.
28 | P a g e
Category of Nigeria Law (Land Use What will the NTEP 1 program
S/N AfDB OS2
PAPs Act) do
Affected people are provided with targeted
resettlement assistance with the aim of ensuring that
their standards of living, income-earning capacity,
production levels and overall means of livelihood are
improved beyond pre-project levels.
Requires the establishment of a culturally appropriate

and accessible grievance redress mechanism to resolve,
in an impartial and timely manner, any disputes arising
from the resettlement process and compensation
procedure as early as possible in the resettlement
process. The borrower or client is required to work with
No specific requirement
informally constituted local committees made up of
Grievance for establishing an Adopt the provisions of AfDB
7 representatives from key stakeholder groups and, in
Procedure independent grievance OS2
particular, vulnerable communities to establish the
mechanism
grievance and redress mechanism. The grievance
redress mechanism, which should be monitored by an
independent third party should not impede access to
judicial or administrative remedies but must inform
affected people about the Bank’s Independent Review
Mechanism (IRM).
Put the compensation value
in an ESCROW account and
Rejection of continue to negotiate using
8 No categorical statement No categorical statement
Compensation the GRM to resolve issues
before proceeding with take
over
29 | P a g e
3.8.2 Eligibility Principles

PAPs are eligible for compensation entitlements if they are the owners or users
of immovable built or planted assets within the Project site footprint. This
includes structures (such as fences or sheds), land, crops, trees, and other
natural resources. PAPs are eligible for compensation for their assets if they
have formal or recognisable rights to these assets.
The typical eligibility criteria for compensation which may be implemented
on subprojects is presented in Table 0.
Table 04. Eligibility Criteria for Compensation

Eligible for
PAP Classification
Compensation No Compensation Assistance
For land, assets, and
Land or asset at replacement structure on the land Assistance
Those with legal right
cost after the cut-off needed
date
For land, assets, and
Those with temporary
Land and assets at structure on the land Assistance
or leased rights at cut-
replacement cost after the cut-off needed
off date
date
Those who use land
Assets on land at replacement Assets on land after Assistance
without any form of
cost cut-off date needed
right
Assets at replacement cost
Those with no legally
except that compensation
recognized right but Assets on land after Assistance
may be “topped off” to allow
arrived before cut-off cut-off date needed
the PAP to acquire a new
date.
residence.
Those who arrived
None None None
after Cut-off-date
For business located
Those with business Assets and lost income as a in community after
Assistance
located within the result of lost business during the cut-off date and
needed
Community project duration outside the affected
area.
3.8.3 Establishment of Entitlement Cut-off Date

Prior to the commencement of a census survey during the RAP preparation,
consultations will be conducted to explain to PAPs that a last day of a census
survey (to be carried out during the LRP stage) will constitute a cut-off date,
after which any individual or a family who moved into the project area but is
not listed in the census list of PAPs, will not be entitled to compensation.
To ensure smooth running of the RAP process, each affected community should
have a CLO from the community appointed through active consultations with the
communities. The CLO shall be the link between the project and the community.
The Cut-off date will be communicated officially to the community in writing as
well as in print media and radio advert.
30 | P a g e
3.8.4 Entitlements
Each project within the NTEP1 program will have defined range of
appropriate compensation entitlements and suggested livelihood restoration
measures.
Based on the preliminary findings of site visits undertaken along the line routes
in April 2019, the categories of assets that are likely to be affected are:
§ Farmland/land plots;
§ Crops and economic trees.
§ Completed commercial Buildings
§ Uncompleted Commercial buildings
§ Residential buildings both completed and uncompleted
§ Cultural facilities such as shrines
§ religious centres such as Churches and Mosques
§ Community facilities such as boreholes, markets, schools etc.
§ Livelihood/Business premises
An example of an entitlement matrix which may be applicable to each of
the sub projects is presented the table below:
31 | P a g e
Table 3.5. Example of an entitlement matrix that could be applied in sub projects
Additional compensation or
Asset Impact PAPs Nigeria Requirement measures in line with AfDB
Livelihoods Support
OS2
• Compensation at • PAPs are consulted to

Registered owners state rates or support confirm their
with title deed for to find replacement compensation
land land of similar size and preferences (land-for-
quality. land or cash).
• Compensation at • Livelihood restoration
replacement value (in- options to affected
Land cash) or where possible, farmers: continuous
replacement land of the crop cultivation on
same quality and close alternative plots,
to the location of the agricultural skills
original land plot. improvement training, or
Permanent/
• Livelihood restoration small livestock package
Non-registered
Temporary and alternative income • Land Plot Transfer
occupants of land • Compensated for lost
land take earning opportunities allowance - 10 % of
who either assets other than land
e.g. skills training offered. market value payment
cultivate such (such as crops and
• Support before, during (as one-off) in cash, to
land based on structures) at
and after taking cover all administrative
Crops and customary replacement value.
cultivated land plots to fees related to the
Economic ownership rights
cover a reasonable purchase or provision of
Trees period of time necessary replacement land.
for PAPs to re-establish
their new land plots
(which they either were
allocated, or bought with
the received cash
compensation).
32 | P a g e
Livelihoods Support
OS2
• None (crops are • Crops-Training in

• Cash compensation at
typically harvested improved agriculture
replacement value on
prior to displacement) methods and seeds
the basis of type, age
Loss of crops • Compensation for provided for three
and market price of tree
and productive All PAPs regardless perennial crops at seasons (18 months)
and crops (the
trees (fruit/nut) of legal status existing compensation • Trees-Training in
compensation amounts
rates improved agriculture
to be determined by a
• Trees are categorised methods and saplings
certified evaluator during
as: saplings, provided for fruit trees
the LRP stage)
productive, or old. and perennial crops
Tenants and • Cash compensation
original owners of for loss of built-up
the house and structures at full
• Housing unit at chosen
replacement costs.
Loss of homes / land relocation site; or • Compensation for loss of
• Owners of affected
dwellings structures will be • Cash compensation at livelihood or livelihood
Physically allowed to take and replacement cost value; development support
Tenants
displaced reuse their • Relocation assistance for economically
salvageable materials such as transport of displaced
Permanent for rebuilding and
Economically belongings within 25 km • Transfer allowance to
loss of rehabilitation of
displaced radius, etc. cover cost of shifting
Structure structure.
Owners of the • In case of relocation, • One-time cash (transport plus
structure other assistance equivalent to loading/unloading)
transfer allowance to
than house,
Tenants and cover cost of shift 4-month rent moving to personal effects paid on
whether or not
original owners of (transport plus alternate premise. actual cost basis or on
the land on
which the the structure and loading/unloading) current market rates
structure stands land the effect and
is legally material will be paid
occupied.
on actual cost basis or
33 | P a g e
Livelihoods Support
OS2
Tenants on current market

rates
School, church, Complete rehabilitation/

Cultural, restoration by the project;
Mosque, water
Religious cash compensation for • Construction of structure
channels, • Additional monetary
and All PAPs regardless restoring affected as other forms of
pathways, and incentives to succour
community of their legal status cultural/community compensation by the
other losses
structure structures and installation project where possible.
community
facilities to the recognize patron/
structures
custodian.
Special
provision
for Women
headed • Needs based special
vulnerable Women headed • Empowerment training to • Support before, during
household, assistance to be
PAPs household, be carried out alongside and after training.
disabled or provided either in
disabled or elderly cash support.
Re- elderly persons cash or in kind.
persons
establishing and the
and/or landless
enhancing
livelihood
34 | P a g e
Livelihoods Support
OS2
Change in
livelihood Vulnerable Restoration of livelihood Needs based special
for women PAPs , (Vocational training) assistance to be
and other Vulnerable PAPs and subsistence provided as incentives.
particularly
vulnerable particularly allowance at agreed
women.
Aps that women rate per day for a total Support before, during
need to Owners whose and after training.
of 6 month while enrolled
substitute landholding
in a vocational training
their has been
facility
income reduced to less
because of than 5 acres
adverse Same as additional
impact Relocation to new grazing Consider possible compensation or measures.
area where possible assist compensation for loss
Loss of
Cattle Rearers Cattle Rearers the cattle herdsmen to income for the period of
grazing locate new grazing field. locating new grazing area
area
35 | P a g e
3.8.5 Entitlement Planning

The entitlement planning process entailed two primary tasks:
§ Preliminary identify the appropriate cash compensation rates at
replacement value to compensate for specific impacts to eligible
households, including crop compensation rates; and
§ Design of complementary supportive measures to further mitigate the
impacts of land-take, including livelihoods restoration initiatives, and
vulnerable person assistance measures.
To establish the applicable rates (which will be confirmed and verified by a
certified evaluator during the RAP stage), an independent valuation expert
will be contracted at the RAP stage to advise on the market values of
affected land, crops and economic trees in the Project area. The evaluator
will be requested to prepare a Valuation Report which will be presented as
part of the RAP and included as an Annex in the main report.
3.8.6 Method of Compensation

Individual and household compensation will be made in cash, in kind, and/or
through assistance in the knowledge and presence of both man and wife
and adult children or other relevant stakeholders where applicable. The type
of compensation will be an individual choice although every effort will be
made to instil the importance and preference of accepting in-kind
compensation especially when the loss amounts to more than 20% of the
total loss of productive assets.
It should be noted that when land holdings necessary for the livelihood of
affected persons are taken away or reduced in size by project works, the
preferred form of compensation is to offer an equivalent parcel of land
elsewhere, i.e. “land for land.” Where such land is not available, cash
payment can be an option even though cash compensation is not the
preferred form of compensation in such cases. It should be noted that, under
this framework, cash compensation is only appropriate where there is a
market for land or other lost assets in the area of the impact. It is
unacceptable to offer cash compensation to, say, a farmer, when he/she
has no possibility of acquiring new land in the same area.
3.8.7 Entitlement for Compensation
Entitlements for compensation shall be based on the eligibility criteria and the
various categories of losses identified in this RPF and the actual field
consultations during the preparation of the RAP. Unless otherwise indicated,
payment of compensation and other entitlements and the extension of
assistance will be made to PAP households and individual PAPs, as the case
may be. In dealing with compensation, preference shall be given to land
based resettlement strategies for PAPs whose livelihoods are land-based
36 | P a g e
Where sufficient land is not available at a reasonable price, non-land based

options centered on opportunities for employment or self-re-employment
should be provided in addition to cash compensation for land and other
assets lost. However, this lack of land shall be documented and justified.
Palliative assistance should be avoided, i.e. assistance that is not sustainable
such as temporary payments or food donations.
3.8.8 Valuation
Valuation methods for affected land and assets will depend on the type of
asset. The following land asset types identified under Nigeria law in this policy
framework include:
3.8.8.1 State (urban and non-urban) owned Land
State owned land will be allocated free by the Governor or Local
Government (perhaps except for processing and registration fees). The State
Agency will be expected to pay compensation to acquire land in this
category in cases where the state-owned land is being used by landlords or
squatters, settled upon or otherwise being used.
3.8.8.2 Privately owned Land

Privately owned property, will be acquired at replacement value. The guiding
principle is that whoever was using the land to be acquired will be provided
other land of equal size and quality or compensation.
3.10.8.3 Assets held under Customary Law
According to Nigeria law, assets held under customary rights are in the Local
Government jurisdictions only and will be valued according to the following
method and compensation paid for. The project will compensate assets and
investments, including buildings, and other improvements, according to the
provisions of the resettlement plan. Compensation rates will be replacement
cost as determined by surveys of recent transactions of similar assets in the
same area as of the date and time that the replacement is to be provided.
Under customary law land belongs to chiefdoms, towns and villages. The
permanent loss of any such land will be covered by community
compensation, which will be in-kind only. A customary land owner or land
user on state owned land will be compensated for land, assets, investments,
loss of access etc. at replacement rates at the time of the loss.
In ensuring that during the project implementation, PAPs will be provided full
replacement cost of lost structures and other impacted assets and are able
to rebuild or replace their structures/assets without difficulties. The valuation
will estimate asset compensation rates based on full replacement cost
without depreciation. The replacement cost approach is based on the
premise that the costs of replacing productive assets is based on damages
caused by project operations.
37 | P a g e
Relevant data to be captured during valuation will include:

• Location details of the land, boundaries of the area/section of the land
to be affected. Affected immovable properties: detailed measurement
of buildings, shops, other assets, and structures;
• Property details including noting accommodation, constructional
details of affected property external works (fence walls, gates,
pavements) affected details etc. were relevant.
• Categorizing temporary structures based on constructional details (wall
materials), size of structure and use of structure
(business/residential/institutional/agricultural); and, Data on households
affected (tenants, owners, relative apprentices/trainees and livelihood).
Valuation shall be based on comparisons to recent comparable
transactions/costs and comparable assets or land and not simply on general
tables that may be out of date and may be based on non-comparable
assets or land.
An indicative table with the Valuation Methods that could be used on sub
projects is presented in Table 3. below.
Table 3.6. Indicative Valuation Methods

Based on the open market
Comparative Sales
S/N Loss of Land value of comparable recent
Method
land transactions
Replacement Cost
Method or Comparative Full replacement cost value
Loss of Buildings, structures
1 Sales Method (which ever as if new, recent construction
and other civil works
gives a commensurate cost rates
value)
Loss of Business Income and Based on the average

2 Comparative Method
Loss of Business Good will monthly net profit
Loss of Income from Rent

and Expenditure Incurred for Based on the comparable
Comparative Sales
3 Alternative rent passing, rent advance
Method
Accommodation during paid
reinstatement period
Expenditure incurred for
Transfer of movable Based on truck/transport
properties and temporary hiring charges
structures
Loss of Wages, -Loss of Fees
Based on Current Fees and
5 from Apprentice, - Loss of Comparative Method
Wages
Job Training
Based on Crop
Loss of access to land used compensation Resettlement
for agriculture assistance: Economic
Rehabilitation assistance:
38 | P a g e
The regular or unpredictable fluctuations of Naira due to inflation, the RAP process shall consider
inflation when calculating the rates.
3.8.9 Arrangements for Compensation

A Compensation and Relocation Committee will be set up and be responsible
for planning, coordinating and monitoring of compensation and relocation
activities. The compensation process for the subproject will involve several
steps to be carried out in accordance with the resettlement and
compensation plan and the RAP. This will be in accordance with the
individual project resettlement and compensation plans as outlined below:
3.8.9.1 Public Participation
This process seeks the involvement and concerns of the PAPs and the
communities in a participatory approach with the project, from the
beginning to implementation. Public participation with local communities is
an ongoing process throughout resettlement planning and this will have
taken off at the screening stage. PAPs will be notified as early as possible and
consulted throughout the ESIA and RAP process. The subsequent socio-
economic survey will record all relevant information about the PAPs and
ensure that this is accurately reflected in the RAP in order to allocate the
appropriate compensation. Periodic monitoring will ensure that PAPs have
been consulted and that compensation and relocation has been carried out
satisfactorily. This will ensure that no affected individual household is simply
“notified” one day that they are affected in this way.
3.8.9.2 Notification
Landowners will be notified by the TCN that their property is required for
development of the subproject. The user will be informed through both a
formal notification, both written and verbal, to be delivered in the presence
of the community heads and the Coordination Committee. To ensure that
any sensitive areas are accurately identified during this procedure, all
necessary community heads, religious leaders, other elders and individuals
will accompany the project team to the site.
Prior development of Stakeholders Engagement Plan will help in this stage of the
process. The community leaders and PAPs who have already been identified and
included in the SEP shall have good understanding of the process thereby making it
easy for notification to be disseminated.
39 | P a g e
3.8.9.3 Documentation of Holdings and Assets

TCN and the local community will arrange meetings with the project affected
persons in the presence of the agency of government in charge of land to
discuss the compensation process. For each individual or household
affected, the project officials completes a compensation dossier containing
necessary personal information on, the affected party and those individuals
considered as household members, total land holdings, inventory of assets
affected, and information for monitoring future arrangements. The dossier
shall be confirmed and witnessed by village/community officials and will be
kept up-to-date. This is necessary because it ensures monitoring of an
individual over time. All claims and assets should be documented in writing.
3.8.9.4 Agreement on Compensation and Preparation of Contracts
The types of compensation shall be clearly explained to the individual or
household involved. TCN will draw up a contract, listing all property and/or
land being surrendered, and the types of compensation (cash and/or in-
kind). A person selecting in-kind compensation has an order form, which is
signed and witnessed. The compensation contract and the grievance redress
mechanisms are to be read aloud in the presence of the affected party and
the representative of the local government chairman (or his/her
representative), the project officials, and other community leaders prior to
signing.
3.9 Compensation Payments
All handing over of property such as land and buildings and compensation
payments will be made in the presence of the affected party, representative
of the state environmental agency and the community officials. Inflation rate
shall be considered during valuation and implemented during payment.
3.9.1 Community Compensation Payments
Community compensation will be in-kind only for a community as a whole in
the form of Corporate Social Responsibilities. Examples of community
compensation include; School Building (public or religious), Public Toilets, Well
or borehole, Market Place, Taxi Park, Road, Storage warehouse, etc.
Community compensation may in itself require land take and people may be
affected, thus a change of impacts which will be compensated.
3.9.2 Procedures for Delivery of Compensation
The procedure for delivery of compensation will be detailed in each RAP.
TCN will follow approved procedures ensuring that:
• Full payment of compensation is carried out before possession of
acquired sites and before works begin.
• TCN formally make offers to affected persons and allow persons to
accept or reject offer, offer a counter claim and seek redress under
the grievance procedures established
40 | P a g e
• Land/Asset valuation committee communicates the amount to be

paid to the acquiring agency and the Ministry of lands will ensure
that the amounts are fair and adequate.
• Cheques in the name of the beneficiary or deposits to the
beneficiary’s bank account shall be the preferred and first mode of
payment.
• Payments are made to the affected person personally in the
presence of Land/Asset Valuation Committee and an independent
witness of the affected person/opinion leader
• Proper receipts are issued and copies given to the affected person,
the Finance Department of the State Agency and the Land/Asset
Valuation committee;
• Comprehensive reports on payment made are submitted for review
by Management of the TCN Project Implementation Unit (PIU) and
the Land/Asset Valuation committee.
3.10 Monitoring and Evaluation

Monitoring is a crucial element for the success of any resettlement project as
it is important to accurately verify the information related to implementation
of the Resettlement Plan, and should be planned and costed as early as
possible in the project. The monitoring will provide feedback to project
management which will help keep the programs on schedule and successful.
3.10.1 Monitoring Process
In order to comply with the AfDB requirements, the overall internal monitoring
procedures will include internal performance monitoring, Impact monitoring
and final external evaluation.
3.11 Livelihood Restoration
The Livelihood Restoration Strategy (LRS) is to prevent and mitigate the
potential adverse impacts to the vulnerable PAPs as a direct result of the
resettlement process.
3.11.1 Key Principles Guiding Livelihood Restoration Planning
The sustainable approach to livelihood restoration is based on the
following principles:
§ Livelihoods are multi-faceted strategies and a combination of
approaches is therefore required to support restoration of income and
the reestablishment of community support networks;
§ Active participation of intended beneficiaries in planning and decision
making to ensure proposed support reflects local realities / priorities
and have PAPs active buy-in;
41 | P a g e
§ PAPs should be provided with choices so that they can self-determine

how their household will best benefit from the livelihood restoration
options;
§ Vulnerable households are, by definition, less able to adapt to changes
and therefore require targeted support through the planning and
implementation of livelihood restoration;
§ Transition allowances are necessary, but require clear eligibility and
end points;
§ Capacity building should be incorporated into livelihood restoration
activities to develop PAPs skills, including in agricultural practices.
Capacity building acknowledges the different needs of women, men,
youth and vulnerable groups with respect to skills development.
3.11.2 Process for Determining Livelihood Restoration Options
The livelihood restoration options shall be based on the information gathered
from the socio-economic baseline interviews undertaken for the Project. From
these activities, the following key subjects may emerge.
§ Livelihood options and roles varying for women, men and youth.
§ PAP welcome livelihood options and view them as part of their
expectations of the Project’s development.
Continuous Engagement should continue with PAPs and local communities
throughout the project life-cycle, and with traditional leadership and the
relevant authorities to discuss the livelihood programmes to make sure that
they are meeting the needs of PAPs.
3.11.3 Livelihood Restoration Plans

To recognize the potential and magnitude of adverse impacts and develop
Livelihood Restoration Plans, the following approach should be considered:
1. LRP for vulnerable PAPs should refer to the ecological conditions,
livelihoods and socio-cultural characteristics possessed by PAPs.
2. The LRP should be able to support the PAPs to gain a similar or even
better livelihood, independently. It is important that the land acquisition
and resettlement process will not cause a dependency to the project
which eventually would make more problems in the future.
3. The LRP should be focused on the characteristics of the vulnerability
and potential sources of livelihood assets owned by each household,
either in the form of Natural Capital, Human Capital, Financial Capital,
Social Capital and Physical Capital.
4. Involving representatives of both communities, the project-affected
people and host populations, in the consultation process to build
42 | P a g e
familiarity and to resolve disputes that are expected to arise during and
after the resettlement process.
3.12 Outline of a Resettlement Action Plan (RAP)
Introduction
The OS 2 requires the borrower or client prepares a Full Resettlement Action

Plan (FRAP) which is compliant with OS2 and the Bank’s Resettlement Policy
of 2003 for the following nature of displacement:
i. any project that involves 200 or more persons (as defined by the
involuntary resettlement policy), or
ii. any project that is likely to have adverse effects on vulnerable groups.
The outline of a typical RAP can be found in Annex A of the Involuntary

Resettlement policy and the related IESIA Guidance Note1.
For any project in which the number of people to be displaced is fewer than
200 people and land acquisition and potential displacement and disruption
of livelihoods are less significant, the borrower or client prepares an
Abbreviated Resettlement Action Plan (ARAP). Annex B of the Involuntary
Resettlement policy describes an ARAP, and related guidance can also be
found in the relevant IESIA Guidance Note.
As per AfDB guidance, the expected content of each RAP of the subprojects
within the NTEP 1 program will be as set out in Table 3.7 below.
Table 3.7. Outline of a RAP
S/No Chapter Description
Executive
• Summary of the RAP report
Summary
• Introduce the need for RAP. The RAP should be in line with the
Introduction
AfDB OS 2 and the Bank’s resettlement policy of 2003.2
•
• Define the Project, and its components and the Project Site (s)
• Determine whether the Project will require land acquisition and
relocation of persons
Description of the
1 • Describe the amount of land acquisition and resettlement
Project
required
• Identify options of reducing amount of resettlement
• Quantify the options of minimizing resettlement
• Description of project components that can give rise to
resettlement
2 Potential Impacts
• Detailed description of impacts and alternatives considered to
minimize resettlement
1
See Annex 13 (Format of a Full/Abbreviated Resettlement Action Plan, A/FRAP) of the AfDB ESAP.
https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/SSS_%E2%80%93vol1_%E2%80%93_I
ssue4_-_EN_-_Environmental_and_Social_Assessment_Procedures__ESAP_.pdf
2 https://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/10000009-EN-BANK-GROUP-
INVOLUNTARY-RESETTLEMENT-POLICY.PDF
43 | P a g e

• Identification of institutions for execution of the RAP
• Evaluation of capacity and commitment of such institutions to
carry out resettlement plan
Organizational
3 • Consideration for strengthening institutions and steps to be
responsibility
taken together with timetable for implementation and budget
• Involvement of local people and CSOs in planning
implementation and monitoring of resettlement
• Detailed description of consultation and participation of
displaced and host communities in design and implementation
of the resettlement activities.
• Details of views expressed and how they were taken into
account during preparation of resettlement plan
Community
4 • A review of resettlement alternatives presented and choices
Participation
made by displaced person including compensation and
resettlement assistance
• Description of procedure for redress of grievances by project
affected people which shall be accessible throughout planning
and implementation
• Details of consultations with host communities and local
governments and arrangements for prompt tendering of any
payments due to host for land and other assets
Integration with
5 • Details of addressing any conflict between resettlers and host
Host Community
community (if any)
• Details of efforts made to augment public services e.g. water,
education, health etc.
• Population census covering affected community/individual
and their assets. Baseline information on livelihoods and
standards of living of the displaced population
• Inventory of assets of displaced households, extent of physical
and economic displacement.
• Information on disadvantaged groups or persons whom special
provisions may have to be made
Socio-Economic • Updated information on displaced person’s livelihood and
6
Studies/Census standards of living at regular intervals
• Description of land tenure system in place, lot sizes and any
cultural heritages/values that may be restricted by the project
• Description of type and size of infrastructure and other services
that may be impacted
• Summarize impacts of the project for each categories of
affected groups
• Social and cultural characteristics of displace communities
• Details of local agencies responsible for resettlement
Legal/Institutional • Details of applicable legal and administrative procedures
Framework, including a description of the remedies available to displaced
including persons in the judicial process
7
mechanisms for • Details of laws and regulations relating to agencies responsible
conflict resolution for implementing resettlement activities.
and appeal • Details of legal steps necessary to ensure the effective
implementation of resettlement activities
• Details of agencies responsible for resettlement activities and
Institutional
8 NGOs that may have role in project
framework
• Details of institutional capacity of agencies and CSOs
• Definition of displaced persons and criteria for determining
Eligibility and
9 eligibility for compensation and other resettlement assistance.
Entitlements
• Details of cut-off date
Valuation of, and • Appoint Registered/District Valuer for compensation purposes
10 compensation for • Carry out consultation with affected persons
losses • Identify and inspect affected assets for valuation
44 | P a g e

• Process Valuation Report and prepare Compensation Schedule
• Determine whether additional income assistance is necessary
• Details of methodology used for valuation
• Determine need for relocation and discuss with affected
person
• Select site for relocation and make arrangement for land titling
in favour of resettlers
• In consultation with respective District Settlement Planning
• Department, prepare Resettlement Plan
Identification and • Discuss outsourced services if any and draw up cost
selection of implications
11 resettlement site, • Ensure Plan comply with environmental consideration
site preparation • Evaluate the impact of the Plan on host community
and relocation. • Determine any special assistance measures necessary to
vulnerable groups
• Identify risks associated with the Plan and chart out ways of
overcoming them
• Provide information on updating of the Plan
• Details of legal arrangements for regularizing tenure and
transferring titles to resettlers
Shelter,
• Details of social development services planned to be
12 Infrastructure and
implemented for host communities
social services
Environmental • Details of environmental impacts of proposed resettlement and
13
protection mitigation measures
• Details of implementation schedule for resettlement from
Implementation
14 preparation to final implementation including target dates for
schedules
achievement of expected benefits to resettlers
• Prepare a financial plan with emphasis on responsibilities and
accountability
• List sources of funds
• Identify components of the sub-project that may require
15 Costs and Budget
additional external funding
• Discuss provisions for handling price fluctuations, contingencies
and excess expenditure
• Prepare a template for Project Cost Estimate/budget
• Discuss measures for external and internal monitoring
• Define monitoring indicators
Monitoring and
16 • Determine mode and frequency of reporting and content of
Evaluation
internal monitoring
• Discuss feedback mechanism
• Compensation Valuation Rate for Project based on their
location
• Checklist of Resettlement Screening
• Affected Plot sheet
Annex
• Affected Building Sheet
• Affected Household Sheet
• Sample of Grievance Log
• List of Stakeholders Consulted
45 | P a g e

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PROJECT : NIGERIA TRANSMISSION EXPANSION PROGRAM (NTEP-1)

RESETTLEMENT POLICY FRAMEWORK

Egeruoh CHIGOZIRI Chief Power Engineer PESD 7791

Chief E & S Safeguards

Principal E & S Safeguards

Sector Director Batchi BALDEH PESD 4036

Division Manager Jacques MOULOT PESD 2948

Senior Director Ebrima FAAL RDGN 7754

RESETTLEMENT POLICY FRAMEWORK (RPF)

Suite DC5, Apo Sparklight Mall, Durumi Abuja

TABLE OF CONTENTS............................................................................................................. iii

3.6.1 Federal Government ........................................................................................ 18

Table 2.1: NTEP-1 Sub-projects ............................................................................................. 5

ACRONYMS AND ABBREVIATIONS

AfDB African Development Bank

Children: all persons under the age of 18 years according to international

The Federal Government of Nigeria (FGN), through the Transmission

As part of the Environmental and Social (E&S) safeguards documentation

CHAPTER ONE: INTRODUCTION

Table 1.1: Components of the NTEP program

NTEP 1 NTEP1 will strengthen • The construction of a 205km 330kV

and improve the grid double circuit line with quad

The scope of this RPF is limited to the NTEP 1 program components.

1.2 Rationale for the RPF

acquisition and/or resettlement and loss of livelihoods of any people will

1.3 Purpose of the Resettlement Policy Framework

1.4 Objectives of the Resettlement Policy Framework

i. to minimize, as much as possible, acquisition of land for

CHAPTER TWO: PROGRAM DESCRIPTION

2.1 Project Overview

The NTEP 1 program, includes the following:

The detail specifications of the substations and transmission lines being

Table 2.1: NTEP-1 Sub-projects

Construction of • Installation of 2nos 150MVA 330/132/33

S/N Region Location Type of Project Description/Components

2.2 Project Phases and Activity Sequence

Monitoring of ESMP performance.

Project Component Description

CHAPTER THREE: LEGAL AND ADMINISTRATIVE FRAMEWORK

3.2 Applicable Legal and Administrative Framework (Power Sector)

3.2.1 Land Use Act – 1978

Table 3.1: Right of Way

3.2.5 Acquisition of Land Access Rights for Electricity Projects Regulations,

3.2.6 Transmission Company of Nigeria (TCN)

3.3 Overview of the Land Take process in Nigeria

Step 2: Publication of a Notice of Acquisition

Step 3: Surveying the Property

Payment of agreed compensations should be done directly to PAPs with documented

Step 5: Registration and Stamping

Step 6: Preparation of Certificate of Occupancy

3.4 Legal Mechanisms for Resolving Land-related Grievances

3.4.1 The Constitution

3.4.2 Land Use Act

3.5 Traditional Land Tenure in Nigeria

3.6 Institutional Framework

Representatives) has 360 members. The Senate and House of Representatives

3.6.2 State Government

• Construction and maintenance of roads, streets, street lightings, drains,