Resettlement Policy Framework of Lagos Urban Transport

Project II

Submitted to

Lagos State Metropolitan Area Transport Authority (LAMATA)

Block C, 2nd Floor, Motorways Centre, 1, Motorways Avenue,

Alausa, Ikeja, Lagos State Tel: 234-1-2702778-82

Fax: 234-1-2702784

July, 2009

RP837v1

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Table of Contents RPF Repor:1

Table of Contents LIST OF TABLES ....................................................................................................... ..

LIST OF FIGURES ...................................................................................................... .

LIST OF ACRONyMS.............. .................................................................... ............. ..

EXECUTIVE SUMMARy ............................................................................................. .

3.0 Legal Frameworks ........................................................................................ ,

4.0 Institutional Frameworks .............................................................................. .

5.0 Assessment of Project Affected Persons................................................... .

6.0 Organisational Procedures for Delivery of Entitlements ......................... ..

7.0 Valuation Procedures .................................................................................. ..

8.0 Sources of Funding .................................................................................... " ..

9.0 Consultation and Participation ............. ~ ....................................................... .

10.0 Monitoring and Evaluation .......................................................................... ..

11.0 Disclosure of Social Safeguard Instruments ............................................. ..

1.0 BACKGROUND AND OBJEcrIVES ............................................... t • • "

1.1 The Lagos Urban Transport Project ........................................................... ..

1.2 Objectives of Lagos Urban Transport Project (LUTP) ............................... .

1.3 Components of Lagos Urban Transport Project Phase II (LUTP II) ...... .

2.0 OPEMTIONAl PROCEDURES ......................................................1'

2.1 Principles Governing the Resettlement Policy Framework ...................... .

2.2 Objectives of the Resettlement Policy Framework ................................ '" ..

3.0 LEGAL FMMEWORKS ................................................................... "

3.1 Land Use Act of 1978 and Resettlement Procedures .............................. ..

3.2 World Bank Policy on Involuntary Resettlement (OP 4.12) .................. ..

3.4 Comparison of the Land Use Act (LUA) with the World Bank OP 4.n 4.0 INSTITUTIONAL FMMEWORKS ......•......................................... r •• ;

4.1 Introduction .................................................................................................... ,.

4.2 Lagos State Metropolitan Area Transport Authority (LAMATA).............. ,

4.3 Federal Ministry of Environment .................................................................. .

4.4 Lagos State Ministry of Physical Planning ................................................... .

Table of Contents RPF Report for LUTP II

4.5 Lagos State Ministry of Transport............................................................................. 22

4.5.1 Lagos State Traffic Management Authority Law 2004................................... 22

4.6 Lagos State Ministry of Environment.. ...................................................................... 23

4.7 Lagos State Ministry of Lands ................................................................................... 24

4.8 Local Government Authority ...................................................................................... 24

4.9 National Union of Road Transport Workers (NURTW)........................................... 25

4.10 Measures for Strengthening Organizational Capability .......................................... 25

4.11 Utilities Agencies.......................................................................................................... 26

5.0 ASSESSMENT OF PROJECT AFFECrED PERSONS .................................. 30

6.0· ORGANISATIONAL PROCEDURES FOR DELIVERY OF ENTITLEMENT .. 32

6.1 Eligibility Criteria .......................................................................................................... 32

6.2 Proof of Eligibility......................................................................................................... 33

6.3 Defining Entitlements and Preparing an Entitlement Matrix ................................ 34

7.0 VALUATION PROCEDURES .•.•.•.•.•...•...•...•••.••••••...•...•..•...••.••••.•......•..••.• 34

7.1 Identification and Categorization of Loss and Impact.. ......................................... 34

7.2 Method of Valuation .................................................................................................... 35

7.3 Basis of Valuation ........................................................................................................ 36

7.4 Procedures for Delivery of Entitlements .................................................................. 38

7.5 Arrangements for Demolition .................................................................................... 39

7.6 Grievance Redress Mechanisms ................................................................................ 39

8.0 SOURCES OF FUNDING......................................................................... 41

9.0 CONSULTATION AND PARTICIPATION ................................................ 43

10.0 MONITORING AND EVALUATION .....•...•........•...•......•.•..•......•..•••.•.•.•••.. 45

10.1 Internal Monitoring .....................................................................................................45

10.2 External Monitoring .....................................................................................................45

10.1 Completion Audit .........................................................................................................46

11.0 DISCLOSURE OF SOCIALSAFEGUARDS INSTRUMENTS ....................... 47

APPENDIX 1: RESETTLEMENT INSTRUMENTS ......................................................................... 48

APPENDIX 2: LAND USE ACT, 1978 ..................................................................................... 50

APPENDIX 3: OP 4.12 INVOLUNTARY RESEITLEMENT.................................................... 67

ii July 2009

Table of Contents RPF Report f

LIST OF TABLES

Table 3.1: Comparison of Nigerian law (Land Use Act) with World Bank PoliciES'

Table 4.1: Resettlement Activities and Responsible Party~---------------------------·

Table 6.1: Type of Loss and Eligible Persons----------~-------------------------------

Table 6.2: Entitlement Matrix-----------------------------------------------------------.

Table 7.1: Physical Loss of Assets-----------------------------------------------------. -..

Table 7.2: Loss of Income and Livelihood-------------------------------------------····

Table 7.3: Impacts arising from Disturbance/Disruptions-------------------------·..-·

Table 7.4: Method of Valuation----------------------------------------------------------

Table B.l: Preliminary Budget for Resettlement/Rehabilitation Operations-------

Table B.2: Resettlement Cost Estimation-----------------------------------------------..

iii

Table of Contents RPF Report for LUTP II

LIST OF FIGURES

Figure 4.1: Resettlement Implementation Structure-----------------------------------------18

Figure 4.2: Flowchart of RPF and RAP Implementation---------------------------------------27

iv July 2009

00

Table of Contents RPF Report f"

LIST OF ACRONYMS

BRT Bus Rapid Transit

DRN Declared Road Network

FMEnv Federal Ministry of Environment

HSE Health, Safety and Environment

KAI Kick Against Indiscipline

Km Kilometre

LAMATA Lagos Metropolitan Area Transport Authority

LASEPA Lagos State Environmental Protection Agency

LASTMA Lagos State Transport Management Authority

LGA Local Government Area

LSMOE Lagos State Ministry of Environment

LSWC Lagos State Water Corporation

LUA Land Use Act

LUTP II Lagos Urban Transport Project Phase 2

LUTP Lagos Urban Transport Project

NGO Non Governmental Organisation

NRC National Railway Corporation

NURTW National Union of Road Transport workers

Operational Directive

OP Operational Policy

PAPs Project Affected Persons

PHCN Power Holding Company of Nigeria

RAG Resettlement Advisory Group

RAP Resettlement Action Plan

RPF Resettlement Policy Framework

ROW Right of Way

SIA Social Impact Assessment

TSM Traffic System Management

v

Executive Summary RPF Report for LUTP II

EXECUTIVE SUMMARY

1.0 Background and Objectives

The main objective of the RPF is to describe and clarify the policies, principles and

procedures that will be followed in minimizing and mitigating negative social and

economic impacts caused by Lagos Urban Transport Projects phase II (LUTP II)

operations. The rationale for preparing the RPF is that: a) detailed SIA of the projects

are yet to be carried out, consequently, a number of the impacts are not known. b) The

bulk transport projects to be financed under LUTP II have yet to be fully identified. c)

The Lagos State Metropolitan Area Transport Authority (LAMATA) found it useful to have

a policy document establishing principles and procedures that will be followed in

minimizing and mitigating negative social and economic impacts caused by the LUTP II

operations, to share with various stakeholders in the transport sector. The main project

components under the LUTP II include; capacity building, road network efficiency

improvement and bus services enhancement.

2.0 Operational Procedures

In order to ensure that best practices in involuntary resettlement are adopted for the

LUTP II projects, LAMATA will adopt procedures, which are consistent with the World

Bank operational policies OP 4.12 throughout the implementation of the sub projects.

This implies that among others, baseline surveys and a social impact assessment will be

carried out based on which a resettlement action plan (RAP) will be prepared and sent

for approval by the World Bank.

In accordance with World Bank policy (OP 4.12 paragraph 2), stated below, project

designs will be reviewed to avoid or minimize involuntary resettlement where feasible.

Project affected persons will be consulted and enabled to partiCipate in the planning,

implementation and monitoring of the resettlement.

The World Bank operational policies OP 4.12 states in paragraph 2:

vi July 2009

Executive Summary RPF Report f

(a) Involuntary resettlement should be avoided where feasible, or minimized,

all viable alternative project designs. 2

(b) Where it is not feasible to avoid resettlement, resettlement activities

conceived and executed as sustainable development programs, providing,

investment resources to enable the persons displaced by the project to sharr;

benefits. Displaced persons 3. should be meaningfully consulted and S110~ r

opportunities to participate in planning and implementing resettlement progrcm~'

(c) Displaced persons should be assisted in their efforts to improve their live.'ihrl

standards of living or at least to restore them, in real terms, to pre-displace.771'1

or to levels prevailing prior to the beginning of project implementation, ill/hI"

higher.l

3.0 Legal Frameworks The legal framework for land acquisition and resettlement in Nigeria is the LaM

(LUA) of 1978, reviewed under Cap 202, 1990. The relevant World Bank OPI'~

policy (OP 4.12), which addresses land acquisition and resettlement was ad":

2001. The differences between the Land Use Act and the Bank's OP 4.12 mostly

rehabilitation measures, which are neither proscribed nor mandated in the Act.

where there are conflicts between the national law (Land Use Act) and the WOl

policy (OP 4.12), the World Bank OP 4.12 will prevail for all sub projects undEr

II.

4.0 Institutional Frameworks

This section addresses the available institutional arrangements to imp"~rr"

resettlement activities associated with the LUTP II. Such institutions include the '

Ministry of Environment, Lagos State Ministry of Transport, Lagos State Metre

Area Transport Authority (LAMATA), Lagos State Transport Management i~'

(LASTMA), Local Government Councils and the NURTW. The aforementioned jm;~

including Ministry of Land, Ministry of Housing, PhYSical Planning and

Development, Ministry of Environment, have been identified as some of then';::

vii

Executive Summary RPF Report for LUTP II

for resettlement under the LUTP II. Most of the institutions are related in function and in

some cases have overlapping functions which are duly recognised by law or customary

norms of Lagos state. While most of them do not have direct links with resettlement,

some of them, by operation or functions, have related responsibilities with resettlement.

However, the ultimate responsibility will rest with LAMATA and the RAP implementing

agencies (Ministry of finance, Ministry of Justice, Ministry of Women Affairs and Poverty

Alleviation, Ministry of Transport, Lands/Assets Valuation Committee).

5.0 Assessment of Project Affected Persons

It is estimated that the implementation of the projects under the LUTP II would affect

traders, artisans etc. From the experience of LUTP, it is expected that not less than 2000

persons will be affected in LUTP II in the following categories:

• Sidewalk traders - 1100

• Artisans - 500

• Itinerant - 400

It is expected that these estimates will be reviewed when all the specific sub projects

are fully identified.

6.0 Organisational Procedures for Delivery of Entitlements This section of the RPF defines the eligibility criteria required to effectively implement the

resettlement. The criteria will be specified in each RAP and cover any person who

suffers loss of or damage to an asset or loss of access to productive resources, as a

result of carrying out of any of the projects under the LUTP II. Eligibility criteria will be

informed by the three criteria given in Clause 15 of the World Bank's Operational Policy

4.12:

o Those who have formal legal rights to land (including customary and traditional

rights recognized under the laws of the country);

o Those who do not have formal legal rights to land at the time the census begins

but have a claim to such land or assets - provided that such claims are

recognized under the laws of the country or become recognized through a

process identified in the resettlement plan;

viii July 2009

Executive Summary RPF Repor: f:'i

o Those who have no recognizable legal rights or claim to the land

occupying.

7.0 Valuation Procedures

This section highlights the valuation procedures of all assets that will be affect

result of the implementation of the programmes under the LUTP II. Valuation n

affected by the LUTP II projects will be conducted by a qualified surveyor. In ..

with the LAMATA Resettlement principles and World Bank operational

involuntary resettlement, OP 4.12., a general principle that will be adopted

formulation of the compensation valuation is that lost income and assets wi!' b~?

at their full replacement cost such that the project affected populations will exr

no net loss. In line with the above principle, LAMATA will conduct an all-enc:om

survey and valuation of the assets and loss of income by the project affect~d

(PAPs).

s.o Sources of Funding The LUTP II is planned to require little or no land acquisition for the rehabilitatim

transport system. Therefore, there may be no immediate requirement for the l..P~d

establish a special account for the compensation of displaced persons bee;:

involuntary land acquisition. However, LAMATA will establish a resettlement

facilitate, when necessary, relocation of affected persons to other suitable

Funds for resettlement/rehabilitation will be provided by LAMATA. A preliminar;

estimate of about US$2 million has been earmarked for resettlement/rehabilitatin

the LUTP II.

9.0 Consultation and Participation

This section addresses the consultation and participation of PAPs in reSEh

planning and implementation. Project affected persons, communities, NGOs

relevant stakeholders will be given opportunity to participate

resettlement/rehabilitation process. The specific plans/mechanisms for consultali

ix

Executive Summary RPF Report for LUTP II

participation will be detailed in the RAP and will include resettlement committees for

PAPs and communities and interagency committees for participating stakeholders.

10.0 Monitoring and Evaluation

The RPF underscores the importance of monitoring and evaluation of the sub projects

under the LUTP II. It also highlights mechanisms for internal and external monitoring.

The social safeguard unit of LAMATA will undertake the internal monitoring of the

resettlement/rehabilitation process following schedules itemized in the RAP, while an

independent 'firm or organization will be engaged by LAMATA to conduct periodic

external assessments of resettlement progress.

11.0 Disclosure of Social Safeguard Instruments

This section of the report addresses the issue of disclosure of the RPF and RAPS.

LAMATA will disclose this RPF and the individual RAPs by making copies available at its

office, relevant local government council, the Lagos state Ministry of Environment and

other stakeholders of the Lagos state transport sector. The Lagos state government will

also authorize the World Bank to disclose this RPF and the individual RAPs electronically

through its InfoShop.

x July 2009

Background and Objectives RPF Report'

1.0 BACKGROUND AND OBJECTIVES

This Resettlement Policy Framework (RPF) is an update of the Resettlenen

Framework for the phase I of the Lagos Urban Transport Project conducted in 2

main objective of the RPF is to describe and clarity the policies, princb

procedures that will be followed in minimizing and mitigating negative so'

economic impacts caused by Lagos Urban Transport Projects phase II (' i

operations.

The rationale for preparing the RPF is that: a) detailed designs of transport 0:'

are yet to be carried out, consequently, the impacts are not known. b) T

transport projects to be financed under LUTP II have yet to be fully identified,

Lagos State Metropolitan Area Transport Authority (LAMATA) found it usefu tel

policy document establishing principles and procedures that will be fJlln

minimizing and mitigating negative social and economic impacts caused by thE

operations, to share with various stakeholders in the transport sector.

1.1 The Lagos Urban Transport Project

Lagos Urban Transport Project (LUTP) is the first five-year investment in a ;'

multi-phased program designed to improve the transport infrastructure,

patterns, and the flow of traffic in metropolitan Lagos, Nigeria over the coming d

LUTP consists of five components: capacity building for Lagos Metropolitar

Authority (LAMATA), a coordinating agency that will prepare phase II

activities; maintenance and rehabilitation of 625 kms of 'declared' road,

overpasses and bridges; bus service enhancement; water transport promoticn:

mass transit planning.

The basic aim of LUTP is to rehabilitate a deteriorated system of main roads that

exists. About 40 percent of the road network under LAMATA is in good condit,

requires only routine maintenance. Most of the rest of the road network undl~r

supervision requires repaving and improvements for easier traffic flow (e.g.:

lights, lane markings, lay byes etc). As planned, no land acquisition and no reser'

1

Background and Objectives RPF Report for LUTP II

will be required at the initial stage because road maintenance takes place entirely within

the existing road corridor of the major arteries selected for upgrading. However, land

acquisition may be necessary in later years, and resettlement of increasing numbers of

traders and transporter will certainly be necessary over the life of the project.

Rehabilitation and judicious addition to existing ferry terminals might entail land

acquisition for small ferry landings.

1.2 Objectives of Lagos Urban Transport Project (LUTP)

The objective of the Lagos Urban Transport Project is to improve the capacity to

manage the transport sector in the Lagos Metropolitan Area and to enhance the

efficiency of the public transport network.

1.3 Components of Lagos Urban Transport Project Phase II

(LUTP II)

The main project components of the LUTP II are:

• Capacity building;

• Road network efficiency improvement; and

• Bus services enhancement;

However, water transport promotion and rail mass transit planning are some of the

activities under the LUTP II

There are various transport projects covered under the LUTP II. Broadly, they range

from road to rail to ferry. While some of these projects have been identified, others are

yet to be identified. The following projects have been identified:

a) Capacity Building. 1) capacity strengthening of LAMATA for continuing to

provide an overall vision and a strategic planning basiS for transport planning,

regulation, and monitoring for administering and coordinating sector-wide

management; 2) Develop activity-based demand modelling, and baseline studies.

2 July 2009

Background and Objectives RPF Repo'1

b) Improvements in Public Transport. 1) BRT Lite infrastructure develop''Tlf?f

Oshodi-Obalende-Oshodi (55km), including segregated bus ways, inti"

facilities, terminals and facilities for pedestrians & ticketing to eXpan(1

BRT scheme to the west of Lagos. The BRT system is expected to

200/000 passengers movements per day 2) Procurement of high I

environmentally buses, namely a fleet of 100 Low carbon emission

potentially articulated, and associated infrastructure as a demonstration

3). Conduct of feasibility studies for the implementation of 5 identific(

railway corridors planned to complement on-going development of Red a

Line corridors in Lagos. 4). Establishment of Traffic Control Centre for

management of traffic and BRT operations. 5). Establishment of

Management Units in Eti-Osa (The BRT Terminus at Obalende will

there), Ikeja (Planning work for this TMU completed during LUTP1) a'1C

(site of water/BRT interchange) Local Governments.

c) Road Network Efficiency improvement. Overlay and upgrading of

strategic roads not covered under Lagos Urban Transport Project. Conti

of the Routine Maintenance of 532 km of the Declared Road Network (Dm

d) Project Management. Support management of the project (audit:, "

management, etc) and outcome monitoring of 1) transport and sod?'

indicators; 2) environmental impact indicators; and 3) capacity dfvp! C

indicators.

These projects include multiple sub-projects to be identified and assessed late'

detailed design. Preparatory activities of these projects have highlighted amo-'

things the need for the preparation of RPF as safeguard issues will emerge tim)!

need for land acquisition and subsequent threat to the standards of living 0"

affected persons. Also, lessons from LUTP I suggest that, whenever transport ..

are undertaken, there may be some kind of resettlement and rehabilitation iSSUES

trigger the World Bank's safeguard policy (OP 4.12) on involuntary resettlement

3

Background and Objectives RPF Report for LUTP II

It has therefore become necessary to review the existing Expanded Resettlement Policy

Framework prepared for the LUTP in 2005, to serve as a social safeguards instrument

for the implementation of the LUTP II.

The Resettlement Policy Framework (RPF) covers the following themes:

• Operational Procedures

• Legal Framework

• Institutional Framework

• Assessment of Project Affected Persons

• EligIbility Criteria and Establishing of entitlements

• Valuation Procedures

• Sources of Funding

• Consultation and Participation

• Monitoring and Evaluation and

• Disclosure of Social Safeguards Instruments

4 July 2009

Operational Procedures RPF Report

2.0 OPERATIONAL PROCEDURES

Operational procedures to be followed during project identification, preparCl+

implementation will all be routed in World Bank's operational procedures OP "'.1

At project identification and preparation, a social impact assessments (SIAl

transport project will be conducted to determine, whether or not, a transport pr

would require a Resettlement Action Plan (RAP) as specified in World Bank po::

principles of compensation! rehabilitation will be triggered wherever there will .

acquisition and adverse social impacts. In the event that the SIA findings rev'

more than 200 persons are affected by a subproject a RAP will have to be prepE,r

The World Bank operational policies OP 4.12 states in paragraph 2:

(a) Involuntary resettlement should be avoided where feasible, or minimizec& .l!

all viable alternative project designs. Z

(b) Where it is not feasible to avoid resettlement, resettlement activities Sh

conceived and executed as sustainable development programs, providinf7

Operational Procedures RPF Report for LUTP II

LAMATA will ensure that no civil works will start until the RAPs are reviewed and

approved by the Bank. In addition, it will also ensure that no displacements are made

until affected persons receive their entitlements.

As stated in Bank Policy OP 4.12 paragraph 24:

The borrower is responsible for adequate monitoring and evaluation of the activities set

forth in the resettlement instrument. The Bank regularly supervises resettlement

implementation to determine compliance with the resettlement instrument. Upon

completion of the project, the borrower undertakes an assessment to determine

whether the objectives of the resettlement instrument have been achieved. The

assessment takes into account the baseline conditions and the results of resettlement

monitoring. If the assessment reveals that these objectives may not be realized, the

borrower should propose follow-up measures that may serve as the basis for continued

Bank supervision, as the Bank deems appropriate (see also BP 4.12, para. 16).

2.1 Principles Governing the Resettlement Policy Framework

From the procedure discussed above, the prinCiples underlying this Resettlement Policy

Framework are summed up below:

1. Involuntary resettlement would be avoided where possible and where

population displacement is unaVOidable, it would be minimized by exploring

all viable project options.

2. Persons affected by land acquisition should be adequately compensated. Loss

of incomes associated with change in land use due to the project would be

given compensation to enable the affected persons improve or at the least

maintain their former standard of living.

3. The estimation of the compensation cost and/or benefit would be based on

the appropriate method so that the cost of land and other properties taken

and demolished are accounted for. This will ensure that the living standards

of the project affected persons are maintained or raised to a substantial

level.

6 July 2009

Operational Procedures RPF Report tt

4. Project Affected Persons would be given full information on the quai

(eligibility), mode of compensation, the restoring plan of production

and the project's progress and be involved in the enforcefT

resettlement arrangements (community participation).

5. The land and/or property affected would be taken only when th~

Affected Persons (PAPs) are satisfied with the compensation arrange",

6. The implementing agency (LAMATA) would supervise the reset'

activities including the payment of compensation as well as monitor

evaluation.

2.2 Objectives of the Resettlement Policy Framework

The main objective of the Resettlement Policy Framework is to clarify the i

prinCiples and procedures that will govern the mitigation of adverse social

induced by the LUTP II project operations. Specifically, the RPF is designed to en:

• All types of losses are identified, clearly defined and properly categ:v

reflect the nature of the loss.

• A standard or measure for defining eligibility and entitlement in order

a fair basis for assessing compensation for the loss or impact suffered.

• Compliance with provisions under the World Bank Operational PoUe:

4.12, paragraph 2(b»): That resettlement activity would be conc:ej\ji

executed as development programs, providing sufficient 'nw

resources to enable the PAPs to share in project benefits.

• Displaced persons will be compensated for their losses at full repla

cost and provided assistance for disturbance prior to the beginnln~:

works.

• A comprehensive database, based on which values will be as'

validated in the event of disputes and more importantly serle

database for monitoring and evaluation of the resettlement instrumer1'

• The project affected persons would be consulted and given the CPpr'

to participate in the design, implementation and monitoring

resettlement.

7

Legal Framework RPF Report for LUTP II

3.0 LEGAL FRAMEWORKS

Transport projects under the LUTP II are land based. To this end, various interests and

titles to particular pieces of land may be impacted. Therefore an analysis of the lega'·

framework for the project will be carried out in the RAP and this will consider the various

land holding arrangements in the assessment of entitlements and compensations for the

various interests for lands acquired.

Land ownership in Nigeria is subject to a range of diverse cultural and traditional

practices and customs. Land can be classified according to the following broad

categories:

Community land: or land commonly referred to as ancestral land, is owned by all the

people.

Communal land: consists mostly of under-developed forests and is owned by nobody.

Those who clear it first claim ownership.

Clan or family land: is owned by clans and families, as the name suggests.

Institutional land: land allocated to traditional institutions such as traditional authorities

and chiefs.

Individual land: land acquired by an individual, which may be inherited by the immediate

family, depending on customary practices

The legal framework for land acquisition and resettlement in Nigeria is the Land Use Act

(LUA) of 1978, reviewed under Cap 202, 1990. The relevant Bank policy (OP) 4.12,

which addresses land acquisition and resettlement, was adopted in 2001. The

differences between the Land Use Act and the Bank's OP 4.12 mostly concern

rehabilitation measures, which are neither proscribed nor mandated in the Act.

3.1 Land Use Act of 1978 and Resettlement Procedures

The Land Use Act Cap 202, 1990 Laws of the Federation of Nigeria is the key legislation

that has direct relevance to resettlement and compensation in Nigeria. Relevant Sections

8 July 2009

Legal Framework RPF Report r·

of these laws with respect to land ownership and property rights, resettlerr

compensation are summarised in this section.

The Land Use Act is the applicable law regarding ownership, transfer, acquisiticr

such dealings on Land. The provisions of the Act vest every Parcel of Land inev;:

of the Federation in the Executive Governor of the State. He holds such parcel

trust for the people and government of the State. The Act categorized the I;:;:

state to urban and non-urban or local areas. The administration of the urba rc,

vested in the Governor, while the latter is vested in the Local Government Cou

any rate, all lands irrespective of the category belongs to the State while individ!l

enjoy a right of occupancy as contained in the certificate of occupancy, or VIC'

grants are "deemed".

The concept of ownership of land as known in the western context is varied by;

The Governor administers the land for the common good and benefits of all Nic

The law makes it lawful for the Governor to grant statutory rights of occupan(i·

purposes; grant easements appurtenant to statutory rights of occupancy and to ri

rent. The Statutory rights of Occupancy are for a definite time (the limit is 99 yeci

may be granted subject to the terms of any contract made between the state

and the Holder.

The Local Government Councils may grant customary rights of Occup

legal Framework RPF Report for lUTP II

Use Act provides for the establishment of a Land Use and Allocation Committee in each

State that determines disputes as to compensation payable for improvements on the

land. (Section 2 (2) (c).

In addition, each State is required to set up a Land Allocation Advisory Committee, to

advise the Local Government on matters related to the management of land. The holder

or occupier of such revoked land is to be entitled to the value of the unexhausted

development as at the date of revocation. (Section 6) (5). Where land subject to

customary right of Occupancy and used for agricultural purposes is revoked under the

Land Use Act, the local government can allocate alternative land for the same purpose

(section 6) (6).

If local government refuses or neglects within a reasonable time to pay compensation to

a holder or occupier, the Governor may proceed to effect assessment under section 29

and direct the Local Government to pay the amount of such compensation to the holder

or occupier. (Section 6) (7).

Where a right of occupancy is revoked on the ground either that the land is required by

the Local, State or Federal Government for public purpose or for the extraction of

building materials, the holder and the occupier shall be entitled to compensation for the

value at the date of revocation of their unexhausted improvements. Unexhausted

improvement has been defined by the Act as:

anything of any quality permanently attached to the land directly resulting from the

expenditure ofcapital or labour by any occupier or any person acting on his behalf, and

increasing the productive capadty the utility or the amenity thereof and includes

buildings plantations of long-lived crops or trees, fencing walls, roads and irrigation or

reclamation works, but does not include the result of ordinary cultivation other than

growing produce.

10 July 2009

Legal Framework RPF Repo't".:

Developed Land is also defined in the generous manner under Section 5f

follows: land where there exists any physical improvement in the nature

development services, water, electricity, drainage, building, structure:

improvements that may enhance the value of the land for industrial, agdcu/

residential purposes.

It follows from the foregoing that compensation is not payable on vacant land

there exist no physical improvements resulting from the expenditure of capital or

The compensation payable is the estimated value of the unexhausted improve rv

the date of revocation.

Payment of such compensation to the holder and the occupier as suggested bIt

is confusing. Does it refer to holder in physical occupation of the land or two

persons entitled to compensation perhaps in equal shares? The correct view ap~'

follow from the general tenor of the Act. First, the presumption is more likely to

owner of such unexhausted improvements. Secondly, the provision of section If

the Act, which makes compensation payable to the holder and the occupier aCCD!.

their respective interests, gives a pre-emptory directive as to who shall be en"

what.

Again the Act provides in section 30 that where there arises any dispute as

amount of compensation calculated in accordance with the provisions of sectir

such dispute shall be referred to the appropriate Land Use and Allocation Comr'1

is clear from section 47 (2) of the Act that no further appeal will lie from the ('

of such a committee. If this is so, then the provision is not only retrospective

conflicts with the fundamental principle of natural justice, which requires that i3

shall not be a judge in his own cause. The Act must, in making this provisior

proceeded on the basis that the committee is a distinct body quite different fr'

Governor or the Local Government. It is submitted, however, that it will be diff

persuade the public that this is so since the members of the committf~e

appOintees of the Governor.

11

Legal Framework RPF Report for LUTP II

Where a right of occupancy is revoked for public purposes within the state of the

Federation; or on the ground of requirement of the land for the extraction of building

materials, the quantum of compensation shall be as follows:

• In respect of the lane/, an amount equal to the rent, ifany, paid by the occupier

during the year in which the right ofoccupancy was revoked.

• in respect of the building, installation or improvements therein, for the amount

of the replacement cost of the building, installation or improvements to be

assessed on the basis ofprescribed method ofassessment as determined by the

appropriate officer less any depreciation, together with interest at the bank rate

for delayed payment of compensation. With regards to reclamation works, the

quantum ofcompensation is such cost as may be substantiated by documentary

evidence and proof to the satisfaction ofthe appropriate officer.

• in respect ofcrops on lane/, the quantum ofcompensation is an amount equal to

the value as prescribed and determined by the appropriate officer.

Where the right of occupancy revoked is in respect of a part of a larger portion of land,

compensation shall be computed in respect of the whole land for an amount equal in

rent, if any, paid by the occupier during the year in which the right of occupancy was

revoked less a proportionate amount calculated in relation to the area not affected by

the revocation; and any interest payable shall be assessed and computed in the like

manner. Where there is any building installation or improvement or crops on the portion

revoked, the quantum of compensation shall follow that outlined in paragraph Oi) above

and any interest payable shall be computed in like manner.

3.2 World Bank Policy on Involuntary Resettlement (OP

4.12) The World Bank's policy on involuntary resettlement will be applied in any sub·project of

the LUTP II that displaces people from land or productive resources and which results in

relocation, the loss of shelter, loss of assets or access to assets important to production,

the loss of income sources or means of livelihood. For such projects the World Bank

requires the preparation of a resettlement policy framework to guide the project as sub·

12 July 2009

Legal Framework RPF Report f:

projects are selected and specific resettlement action plans (RAPs) for each su.:

are prepared. The RPF must be ready, accepted and publicly disclosed before

will appraise the project and it is expected to define the principles and proced

resettlement operations: land acquisition; valuation; compensation and report:

the LUTP II investment; in accordance with National and World Bank safeguar,::

related to involuntary resettlement; (OP4. 12 and BP12).

The Bank's policy (in paragraph 2) therefore advocates that where feasible, invf

resettlement should be avoided or minimized, the resettlement must be conCE'"

executed as a sustainable development program, providing sufficient inv·

resources to enable persons displaced by the project share in project benefit

displaced must be:

(i) Duly consulted and should have opportunity to participate in the r

and execution of the resettlement;

(ii) Compensated for their losses at full replacement cost prior to civil W'

(iii) Assisted with the move and supported during the transitional peri,')!

resettlement site; and

(iv) Assisted in their effort to improve their former living standards.

earning capacity and production levels or at least to restore them.

3.4 Comparison of the Land Use Act (LUA) with the wo~

BankOP 4.12

The World Bank Operational Policy explicitly makes adequate provision ':01

affected persons who are either displaced or suffer other losses, as a result of p'

to be adequately catered for. Livelihoods of persons to be affected must be pre

but in cases when this is inevitable, minimal displacements should occur. In

where displacement is unavoidable, compensation should be paid to PAPs to hi"!'

to restore their SOCial, economic and environmental livelihoods.

The Land Use Act makes provision for compensation to be paid to only persc'"

have suffered any loss and can produce any form of title that is legal in the form .

of occupancyl ownership or legally binding tenancy agreement to the land in q'.

13

Legal Framework RPF Report for LUTP II

However the Operational Directive expects all forms of losses without exception to be

catered for.

The Operational Policy advice that project affected persons be aSSisted during their

transition period in the resettlement site and efforts made to restore their livelihoods

whereas the Land Use Act is silent on that. Table 3.1 highlights some comparison

between the Land Use Act, 1978 and the World Bank policy on involuntary resettlement.

To operate within the directives of the Bank, the RAP is being developed in line with the

OP 4.12, 00 4.30 with the involvement of affected persons through consultations and

compensation paid based on full replacement cost, disturbance and restoration of

livelihood.

Table 3.1: Comparison of Nigerian law (Land Use Act) with World Bank Policies

Topic Land Use Act World Bank Policy Requirement

ThTling .. of ·compenSation payment ,{

Within r~a?onable time Prior to displacement arid relocation

Calculation of compensation

Cash compensation based upon market value.

Recommends land-for-Iand compensation. Other compensation is at replacement cost.

SquatterS' ....

.,., , .. ."bb'; ,C)~~

>NOt eligible for any furm ·of Li·. ."", >

'"Vii,,,,. .~.'; ,. '.'

cAre~ 'to· be prQvlded .. 'supplementary assistance ;i"'~/>, .... ! ...

Resettlement Where a right of occupancy in respect of any developed land on which a residential building has been erected is revoked, the Governor or the Local Government, may in his or its discretion offer in lieu of compensation payable in accordance with the provisions of this Act resettlement in any other place or area by way of a reasonable alternative

Affected persons who are physically displaced are to be provided with residential housing, or housing sites, or as required, agricultural sites...at least equivalent to old site. Preference to be given to land-based resettlement for displaced persons whose livelihoods are land-based.

14 July 2009

Legal Framework RPF Repo"t :

TOpic

Information

Land Use Act World Bank Policy Requir accommodation (if appropriate in the circumstances) .

.,.,...-,.~-:

No formal notification. The Displaced persons and their· and consultation'

Governor or any public officer duly authorised by the Governor in that behalf shall have the power to enter upon and inspect the land in the day time and the occupier shall permit and give free access to the Governor or any such officer so to enter and inspect.

...are provided timely 0' information, consulted on options, and offered OppC participate in planning, im r and monitoring of resetth:rn:

The above highlights constitute the basis for the compensation procedures esta

by LAMATA and are likewise, the national legal framework for the present reset!

policy framework.

Furthermore, by signing the credit agreements for the LUTP II projects with thr

the Lagos State Government will commit itself to abide by the involuntary resett

policy of the World Bank. Thus, the legal frameworks of the LUTP II are: The La'

Act of 1978 and the World Bank Operational Policy (OP) 4.12 on invfJ!

resettlement. As OP 4.12 paragraph 23 states: The borrower's obligations to eel

the resettlement instrument and to keep the Bank informed of implementatio'1

are provided for in the legal agreements for the project.

However, where there are conflicts between the national law (Land Use Ad:) a

World Bank policy (OP 4.12), the World Bank OP 4.12 will prevail for all sub

under the LUTP II.

15

Institutional Framework RPF Report for LUTP II

4.0 INSTITUTIONAL FRAMEWORKS

4.1 Introduction

There are various institutions that will participate in the implementation of resettlement

process of the LUTP II. Such institutions include the Federal Ministry of Environment,

Lagos State Ministry of Transport, Lagos State Metropolitan Area Transport Authority

(LAMATA), Lagos State Transport Management Authority (LASTMA), Local Government

Councils and the NURlW. The aforementioned institutions including Lagos State Ministry

of Land, Lagos State Ministry of Housing, Physical Planning and Urban Development,

Lagos State Ministry of Environment, have been identified as some of the institutions for

resettlement. Most of the institutions are related in function and some other cases have

overlapping functions but are duly recognised by law or customary norms of lagos

state. While most of them do not have direct links with resettlement, some of them, by

operation or functions, have related responsibilities with resettlement. However, the

ultimate responsibility rests with LAMATA and its implementing agencies {(Ministry of

finance, Ministry of Justice, Ministry of Women Affairs and Poverty Alleviation, Ministry of

Transport, Lands/Assets Valuation Committee). For the purpose of this RPF, the

activities of the major institutions are highlighted below.

4.2 Lagos State Metropolitan Area Transport Authority (LAMATA)

This Agency was established by law in 2002 as Lagos Metropolitan Area Transport

Authority. Statutorily, the functions of the agency include:

• Coordinate the transport policies programmes and actions of all transport

related agencies in Lagos State.

• Plan and coordinate the supply of adequate and effective public transport within

metropolitan Lagos.

In the discharge of its functions, the authority has the power to construct, re-construct,

maintain and manage transport infrastructure and facilities and all other buildings and

works necessary for the discharge of the functions of the Authority.

16 July 2009

Institutional Framework RPF Report-:::

Responsibilities for commitments proposed in the RAP exist within LAMATA i'!

delegated internally to other units in the agency as well as other government (lr' Perfect understanding of the proposed project exists in the agency as all units ~r

assigned to specific roles associated with resettlement, including impact minirr

inventory preparation and confirmation, consultation and feedback, compe,-,'

monitoring and reporting.

All the identified agencies (Figure 4.1) will be involved in any resettlement un

overall direction of the project director (shaded green) who reports direct/v

Resettlement Advisory Group (RAG), which is headed by the Managing Din

!AMArA. A special unit referred to as the Resettlement Implementation CO!

(shaded pink) will work with the project director to ensure Resettlement implemf;

and monitoring. The core responsibilities for resettlement implementation will rf.:'

the social safeguard unit ofLAMArA (Project Director). Specific roles ofimplem~

units in LAMArA will include:

• Environmental and Safeguard Unit is responsible for facilitating liais(

communities as well as government agencies and local government depar':(

facilitate stakeholder consultations. This unit reports directly to the Managing r of LAMATA on the process of resettlement of affected people. This unit alsc

with the trade and market women unions in ensuring that members of thE" ur,

appropriately informed on the resettlement plan. It is the responsibility of the

adequately implement the resettlement and provide all information to the Wort

as and when required~ The unit is also responsible for the identific'?:

enVironmentally sensitive areas that are likely to be affected by the project.

• Transport Unit is responsible for supervising the contractors enga(

construction of facilities and ensure strict adherence to project design specifi '

and land acquisition. They also identify alternative project sites that will have 7"

impacts on socio-economic variables in affected project areas.

• Legal unit oversee all legal functions including resolution of grievancf$.

provides advice to the Resettlement implementation manager, induding 'Ie"

17

Institutional Framework RPF Report for LUTP II

of compensation and drafting of legal agreements with affected parties, local

government authorities etc.

• Accounts processes payments to the affected people and ensure proper

accountability throughout the project circle.

LAMATA

Safeguard:,

RAG

(Project "rector)

AdviSOry and

Allocation Committee

from

.KMjrn~Of"

Town Representativ e of Transport

HSE and KAI

Source: Triple 'E'RAP for fyana-fpaja to fkotun Bus Franchise Scheme, 2006

Figure 4.1: Resettlement Implementation Structure

LASTMA Representativ es of the

18 July 2009

Institutional Framework RPF Report f,'

4.3 Federal Ministry of Environment

The Federal Ministry of Environment (FMEnv) formerly Federal Environmental p"

Agency (FEPA) is the federal regulatory ministry responsible for the formulati

implementation of environmental policies in Nigeria. As contained in Act 58 of ), C

59 of 1992, FMEnv, from inception/ had put in place statutory documents to

monitoring, control and abatement of all environmental wastes inclucli

indiscriminate pollution of the environment.

FMEnv has the mandate to implement all statutory national regulations on the p

of the environment, ranging from water/ air, land, etc. Among the implerm

strategies used to check unwarranted pollution of the environment in Nigeri2

constant monitoring of wastes and other pollutants discharged into the envirc

Apart from the mandatory Environmental Impact Assessment for new projec

equally mandatory for all industries in the country to carry out EnVironmental /ll

monitoring of their facilities and processes within stipulated periods as prescriber:'

regulators. This is to ensure that stipulated limits are not exceeded by the indusr~

therefore prevent avoidable pollutions of the environment.

FMEnv itemized the following types of environmental studies.

•:. Environmental Impact Assessment.

.:. Impact Mitigation Monitoring.

•:. Environmental Baseline Study.

•:. Environmental Audit etc.

The scope of these studies varies. But for Impact Mitigation monitoring which aD;

the resettlement, it is expected to be carried out periodically throughout the const

phase and the early part of the operation phase. Relevant documents within the

that apply to the LUTP II projects include:

1. National Policy on Environment.

2. Laws (Ff'JIEnv Act 59, Harmful Waste Act 42).

3. Regulations (S. 1.8, S. 1.9/ S. 1.15 of 1991).

19

Institutional Framework RPF Report for LUTP II

i) 5.1.8 - National Environmental Protection (Effluent Limitations)

Regulations of 1991.

(ii) 5.1.9 - National Environmental Protection (Pollution Abatement in

Industries and Facilities Generating Wastes).

(iii) S.1.1S-National Environmental Protection (Management of Solid

and Hazardous Wastes) Regulations of 1991.

These statutory documents spell out clearly the restrictions imposed on the release of toxic

substances into the environment and the responsibilities of likely polluters. Such

responsibilities include provision of anti-pollution eqUipment, adequate treatment of

effluent before being discharged into the enVironment, etc. (5.1.8 & 9). For example,

paragraph 1S(2) of 5.1.9 states that "no oil in any form shall be discharged into public

drain, rivers, lakes, seas, atmosphere or underground injection without the permit issued

by FMEnv or any organization designated by the Ministry". Also paragraph 17 states that

"an industry or a facility which is likely to release gaseous, particulate, liquid or solid

untreated discharges shall install into its system, appropriate abatement equipment in such

a manner as may be determined by the Ministry".

SpeCifically, 5.1.15 provides a comprehensive list of wastes that are classified as being

dangerous to the environment. It also gives detail on the contingency planning and

emergency procedure to be followed in case of sudden release of any of these hazardous

wastes into the environment.

Section 20 (1) of FMEnv Act states that the discharge of any quantities of hazardous

substance into the air or upon land and the waters of Nigeria or the adjoining shorelines

without due permission will attract a fine of =N=1,000,OOO.00k or 10 years imprisonment

or both.

4.4 Lagos State Ministry of Physical Planning

The Lagos State Ministry of Physical Planning and Urban Development Law came into

force in 2005. It provides for the administration of Physical Planning, Urban and

20 July 2009

Institutional Framework RPF Report

Regional Development Agencies and for connected purposes. The Ministry of

Planning is given the ministerial responsibility for initiation, formulatk

implementation of policies and coordination of programmes on all aspects of

planning and urban development in Lagos State. It coordinates other ager t '

Urban Renewal Authority.

In section 51(i) of the law, a development permit may be revoked, however witl

which shall state the reason for the revocation. Part of the reasons coulc

overriding public interest pursuant to sections 28 (2) (3) of the Land Use Act. 517'(

states conditions for the payment of compensation for developments on the la'

the assessment as stated in section 55, which should be paid within 90 days /

56). There is also the Appeal Committee, which disputes on same where gril'

could be addressed. Requirements for enforcement are stated in section 61-6·t

The Ministry has the power to acquire any land in connection with planned u

rural development, and any right of occupancy on such land can be re'fC

accordance with the provisions of the Land Use Act. Payment of compensation (Jt:

under this law shall be in accordance with the provisions of the Land Use Act:

80-81).

Provision of alternative accommodation for a person likely to be displaced is avai :

section 90 of the Law. The assistance includes Planning, or building alt.r

accommodation or even financial assistance. There is also an appeal aqai"

decision and the procedure as established in section 105 of the law.

The roles of this ministry in resettlement will among others include:

• Verification of selected sites for resettlement and ensuring that such

ideally suitable for affected people.

• Invoke the physical planning and urban development law at the project

• Ensuring that LAMATA meets with the requirements of resettlement.

• Make appropriate recommendation and input in the resettlement pro(es~;

• Ensuring that affected people are adequately compensated and

21

Institutional Framework RPF Report for LUTP II

• Carry out functions as may be directed by the honourable commissioner for

physical planning.

4.5 Lagos State Ministry of Transport

The Ministry formulates policies and oversees other agencies. It also. sees to the

implementation of policy decisions and coordinates various transport laws and policies.

Statutorily, the ministry is mandated to: provide road infrastructures, enforce traffic

regulations, carry out public education and enlightenment and issuing guidelines for

allocation of routes and prohibition of use of Bus Stops and lay-bys as terminals and

trading locations.

4.5.1 Lagos State Traffic Management Authority Law 2004

The Lagos State Traffic Management Authority (LASTMA) is an agency under the

ministry of transport in Lagos state. It has the power to regulate, control and manage

traffic and other related matters. Parts of the functions of the authority include:

• Conducting high visible day and night traffic patrols to enforce traffic rule and

regulations and clear the highways of obstruction.

• Reducing the incidence and severity of road traffic accidents.

• Enforcing the use of bus- stops and bus terminals.

• Safeguarding highways from encroachment from the activities of markets, road

Side trading street hawking and alms begging.

• Safeguarding motor vehicles, motor cyclists, cyclists and pedestrians at railway

level crossing.

The ministry shall mandate LASTMA to enforce traffic regulations on the roads and

junctions during construction and implementation phases of the project. Specifically they

shall work with the project director to ensure that affected people are resettled in areas

that will not impede traffic and also liaise with the National Union of Road Transport

Workers (NURTW) to enforce traffic policies of Lagos state. They report directly to the

project director.

22 July 2009

Institutional Framework RPF Report in

4.6 Lagos State Ministry of Environment

The Ministry is responsible for the overall environmental policy of Lagos state. P

to the fulfilment of its responsibilities, the government enacted the Envirop

Sanitation Law 2000. The law provide for environmental sanitation in Lagos Sta

establishment of/environmental Sanitation Corps and for connected purpc

imposes responsibility on all facets of environmental media, and prohibition cf

acts and conducts.

Section 9(1) prohibits,

• People or person from constructing or putting any structure on roads, rail

• People or persons from using any road, street or other setback as c rr'

workshop

• People or person from display, selling or buying goods on roads, "a

bridges and road setbacks.

The law further empowers the Ministry to create environmental sanitation corps

has, as part of its functions, the mandate to enforce state sanitation laws ant:

trading. It is also to assist the State Ministry of Physical Planning, Local Goverr

Lagos State Waste Management Authority and Law Enforcement Agencies in '-nor

matters affecting environmental sanitation.

The roles and responsibilities of the ministry is to direct the Health, Sat!';'

Environment (HSE) Department to work with the project director to implement H~

for contractors engaged in construction. In the same vein, the environmental s,~1'

corps "Kick against Indiscipline" (KAI) will assist the project director in the resetl!

of affected persons to allocated areas and enforce sanitations policy of the gove·r

in those locations. During the implementation phase, it is the responsibility of

ensure that people whom have been relocated do not return to their previous 10::

The HSE and KAI report directly to the project director.

23

Institutional Framework RPF Report for LUTP "

4.7 Lagos State Ministry of Lands

The ministry has the responsibility for the formulation of policies and implementation

pursuant to the provisions of the Land Use Act, 1978 as amended under the 1990 Laws

of the Federation of Federal Republic of Nigeria. It also has the primary responsibility for

land management in the state. Part of its agencies includes the Land Use Advisory and

Allocation Committee. Its functions and power includes payment of compensation for

the revocation of a right of occupancy.

Although LAMATA is not acquiring new lands for the transport projects, since the

ministry is statutorily mandated to implement compensation for acquired lands, the

advisory and allocation committee shall work with the project director to ensure that

affected people are compensated as stated in the RAP. They will also ensure LAMATA's

compensation and assistance programme are in conformity with the provisions of the

Land Use Act.

4.8 Local Government Authority

The constitution of the Federal Republic of Nigeria approves the creation of Local

Government Councils in each of the 36 States of the federation. Local governments

council were created by the federal government to carry out their functions as stated in

the constitution. The local governments are directly involved in the allocation of bus

terminus and markets. Since the local governments are directly involved in the

allocation of bus terminus and markets, it is imperative that they are part of the

resettlement plan. Therefore, the roles and responsibilities of the local authorities

(physical planning or works department) in the resettlement plan shall not be limited to

the following.

1. Liaising with the project director to verify adequacy of resettlement location and

provide approval for such sites.

2. Providing additional resettlement area if the deSignated locations are not

adequate.

24 July 2009

Institutional Framework RPF Repolt

3. Ensure that traders on setbacks and who have approved shops are requ(

move back to their respective shops previously allocated to them by

government

4. Ensure all facility areas are not encroached by the traders after relocatin

5. Provide necessary infrastructures in relocated areas.

6. Implement policies developed by LAMATA for project sustainability.

7. Liaise with LAMATA and participate in consultations with NURlW and tmr!

4.9 National Union of Road Transport Workers (NURTVtP

The NURlW was established by an Act, to participate in public transportati'

haulage activities. The union has branches and affiliations throughout Nigeria

recognised by federal, state and local governments. LAMATA had several con!:!,

with the union on the objectives of this project. The executive of the NURlW sbl

with the project director to:

1. ensure that activities of their members do not contravene th~'

management policy of LAMATA

2. provide resettlement assistance in areas where necessary

3. participate in consultations and enlightenment of members and other

people

4. enforce policies of LAMATA in bus terminal and bus stops controlled

union

5. enforce traffic regulations along the corridors

4.10 Measures for Strengthening Organizational Capabn~

The safeguard unit of LAMATA has well trained personnel in resettlement.

responsibility of this unit to ensure that all identified members of the implerr'E'

team are trained prior to implementation of resettlement and compens~tjrl

training will not be limited to the following.

25

Institutional Framework RPF Report for LUTP II

1. The OP 4.12 of the World Bank and other World Bank operational policies on

environment,

2. Relevant Nigerian laws and policies relating to land a~quisitions and

resettlement,

3. Brief on the socio-economic survey report of the transport project,

4. Compensation and supplementary assistance,

5. Discuss implementation plan and adopt the implementation plan in the RAP

report,

6. Designate specific roles and responsibilities for all members.

The safeguard unit will ensure that over zealousness of implementation team is curtailed

through adequate monitoring and any officer found wanting in his responsibility should

be replaced. It is the responsibility of the project director therefore to:

1. Provide adequate logistics for the RAP implementation team.

2. Keep accurate records of resettlement and compensation data and ensure

consistent update of the information.

3. Strengthen report system and internal monitoring and solve the problems

promptly.

4. Strengthen the independent monitoring and evaluation. The independent

monitoring and evaluation institution should report promptly to project director

about the problems and provide suggestions to solve them.

4.11 Utilities Agencies

The utility companies that may play some roles in the resettlement schemes under the

LlJrP II are: the Power Holding Company of Nigeria (PHCN) and the Lagos state water

Corporation (LSWC).

These agencies at the appropriate times disconnect and reconnect PAPs to their power

and water supply services before and after relocation as the case may be. Thus special

consideration is given to PAPs so that they are not treated as normal applicants for

26 July 2009

Institutional Framework RPF Report fq·

services to their new places. A utilities committee would be put in place to en:~!

PAPs have access to utility services without difficulty and added cost.

Table 4.1 presents the various resettlement activities and its corresponding ,.e~;::

partyl while Figure 4.2 shows the flowchart of a resettlement implementation.

Table 4.1 Resettlement Activities and Responsible Party

27

Institutional Framework RPF Report for LUTP II

28 July 2009

lWTV

Institutional Framework RPF Report f<

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AUaNMlNTO" ROW fO.~

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laSTAtlLJ$tllNG ()()Nt,IJT1"iES ·lJTIIJTIIiJ Q06.!t.4I1'TEE • Gm£VANCE COt.WITTEIi! • PAYMENT OOMUITTEE

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Figure 4.2: Flowchart of RPF and RAP Implementation

29

http:G$CHea.te

Assessment of Project Affected Persons RPF Report for LUTP II

5.0 ASSESSMENT OF PROJECT AFFECTED PERSONS

Project Affected Persons (PAPs) according to the World Bank policy refers to people who

are directly affected socially, economically and spiritually by bank-assisted investment

project. Put in another way, Project affected persons are those affected by the land use

or acquisition needs of government supported activities that lead to these person(s)

being required to (or not necessarily required to) be physically displaced or relocated

due to loss of shelter and or lose, denied or restricted access and or to economic assets,

or lose income sources or means of livelihood, whether or not the person(s) must move

to another location. A good knowledge of the affected population, their categories and

special needs early in the planning process of a project is critical to a successful

resettlement operation.

Though the sub-projects are yet to be selected and experience with the LUTP has shown

that there may not be any land acquisition, the likelihood of adverse impact should all

the same be expected and mitigation measures planned. The implementation of the

projects under the LUTP II would affect traders, artisans etc. From the experience of

LUTP, it is expected that not less than 1000 persons will be affected in LUTP II in the

following categories:

• Sidewalk traders food vendors, newspaper vendors etc.- 800

• Artisans i.e. vulcanisers, shoe-makers etc.- 200

This is an estimate and will be reviewed when the specific sub projects have been

identified. A census/socioeconomic survey will be undertaken to obtain the total number,

categories and needs and preferences of PAPs as part of the RAP preparations. This will

inform the choice of resettlement/compensation options and help estimate

compensation cost.

The size of the population affected is determined by the project design which would be

concluded early. In a situation where the design is reViewed, the data on PAPs will be

updated to correspond to the current design. There will also be verification of the

occupancy status of each displaced person in each project area. To this end, there will

be determination of the number of displaced persons and their occupancy status. The

date of the census determines the cut-off date for eligibility: those persons customarily

30 July 2009

Assessment of Project Affected Persons RPF Report 1"

occupying the site on the day of census qualify for resettlement assistance if t:"'1,

established occupancy rights formally or informally. The census will be done as ('ii

fast as possible to avoid the inflow of other individuals into the affected right,·

(ROWs) and project areas. The census of people affected by the project is a ~;?

stage in the preparation of the RAP. The census serves five important and intr'·

functions:

~ enumerating and collecting basic information on the affected population;

~ registering the affected population by residence or locality;

~ establishing a list of legitimate beneficiaries before the project's or!,,;·

counters spurious claims from those moving into the project area

anticipation of benefits;

~ laying a framework for subsequent socio-economic research needed to e

fair compensation rates and to deSign, monitor; and evaluate sustainabk

restoration or development interventions; and

~ providing a baseline for monitoring and evaluation.

The likely displaced persons will be categorized using identifiable groupi

demographics (such as occupational groups, gender) and their standards of livi

specific needs identified, described and assessed. The socioeconomic sunl

constitute the basiS for evaluating the success of the resettlement operations in t,

whether the PAPs have been able to restore their incomes and improve their st,:

of living. Resettlement planners must give particular attention to vulnerable grov'

in the project area. These groups include:

1. traders that are pregnant,

2. people with disabilities,

3. traders falling under the generally accepted indicator for poverty,

4. traders that are elderly, and

5. groups that suffer social and economic discrimination.

31

Organisational Procedures for Delivery of Entitlement RPF Report for LUTP II

6.0 ORGANISATIONAL PROCEDURES FOR DELIVERY OF ENTITLEMENT

The implementing agencies will follow appropriate procedures for assessing and

delivering entitlements to affected persons. These procedures will be specified in the

RAPs and will cover: Eligibility criteria and Entitlements.

6.1 Eligibility Criteria Any person who suffers loss of or damage to an asset or loss of access to productive

resources, as a result of the carrying out of any of the transport sector projects under

the LUTP II will be considered eligible for compensation and/or resettlement assistance,

provided the damage or loss is induced by the project and satisfies the conditions of the

cut-off date (which will be set and enforced during the socio-economic survey). This is

consistent with OP 4.12 of the World Bank. For instance, provisions under Clause 15 of

the World Bank's Operational Policy 4.12 suggest the following three criteria for

eligibility which will be followed in the LUTP II:

o Those who have formal legal rights to land (including customary and traditional

rights recognized under the laws ofthe country);

o Those who do not have formal legal rights to land at the time the census begins

but have a claim to such land or assets - provided that such claims are

recognized under the laws of the country or become recognized through a

process identified in the resettlement plan;

o Those who have no recognizable legal rights or claim to the land they are

occupying.

The eligibility will be based on the category of losses at the cut-off date identified

through the various interest and rights derived from customary laws, common law and

international conventions and in specific cases as agreed with affected community.

Eligible persons would include, but not be limited to those listed in Table 6.1.

32 July 2009

Organisational Procedures for Delivery of Entitlement RPF Repor

Table 6.1: Type of Loss and Eligible Persons

Loss of Business, Residential or Industrial ~ Residential/Commercial/Industrial

Accommodation or Room ~ Owner of building during the re

period

Source: Triple 'E', 2009

6.2 Proof of Eligibility

LAMATA will consider various forms of evidence as proof of eligibility to cover:

o Affected persons with legal/formal legal rights, documented in

of certi'ficates of occupancy, tenancy agreements, rent receipts,

and planning permits, business operating licenses, utility bills

others. Unprocessed/unregistered formal legal documents wll

eligibility and procedures for confirming authenticity of such dol"

will be established in the RAP.

o Affected persons with no formal or recognized legal rights

33

Organisational Procedures for Delivery of Entitlement RPF Report for LUTP II

Criteria for establishing non-formal, undocumented or unrecognised claims to eligibility

shall be established paying particular attention to each situation and its peculiarities.

Alternative means of proof of eligibility will include:

Affidavit signed by landlords and tenants;

Witnessing or evidence by recognized trade union heads, traditional authority,

customary heads, community elders, family heads and elders and the general

community.

6.3 Defining Entitlements and Preparing an Entitlement Matrix

The basis of what is to be paid as compensation will be determined by identifying the

most appropriate entitlement for each loss. Based on the entitlements, options for

resettlement would be selected in accordance with Bank Policy OP 4.12 (6a (ii» and the

merits of the option.

The RAP planner will prepare an entitlement matrix with respect to both temporary and

permanent displacement. This matrix will set the measure for the payment for all losses

or impacts. It will also list the type of loss, criteria for eligibility and define entitlements

as presented in Table 6.2.

34 July 2009

Organisational Procedures for Delivery of Entitlement RPF Report for LUTP II

Table 6.2: Entitlement Matrix

at full replacement value for relocation of structure to resettlement site, with payment of site

Loss of Business, Residential Supplementary Assistance based:Accommodation or Room comparable open market rent for alternative

accommodation based on specific period (reinstatement period); and

- transportation rates for the transfer of chattels or movable n,.r,nol"f"i£>c.________.'-___~_~ _____________________._____c--1...-...____ __..,_.____ ..______

'Jnno

Valuation Procedures RPF Report for LlJTP II

7.0 VALUATION PROCEDURES

7.1 Identification and Categorization of Loss and Impact

Project affected persons will be identified by the types of losses they suffer or the impact of

the project on them. Project personnel will:

i. Ensure that identification and categorization of the likely loss or impact is

undertaken during the planning and design stages of each sub-project;

ii. Establish the magnitude and coverage of impacts early in the project planning

in order to justify the resettlement instrument to adopt. General

categorization of losses will be done to reflect extent of loss in terms of the

following:

Permanent or Temporary Loss;

Full or Partial LosSi

Minimal or Significant Loss.

iii. Determine specific losses or impacts to reflect the exact nature of loss

whether viSible and tangible or intangible and categorize into the following

losses:

Physical loss of assets which will be determined by assessing the

interest or right to ownership, occupation and possessioni

Loss of income, loss of livelihood and opportunities to employment;

Impacts arising from disturbance/disruptions.

categories of losses will be as indicated in Tables 7.1 and 7.2, while categories of

impacts arising from disturbance/disruptions will be as indicated in Table 7.3 below:

Table 7.1: Physical Loss of Assets

Category Type of Loss

Land - LOss of land for residential, commercial. or Industrial use

Structures - Main Buildings - Ancillary Buildings

- Fence walls - Shops, kiosks etc

34 July 2009

I

Valuation Procedures RPF Repor": fn

category IType of Loss ---.. _.. _._-=_.=---=._...=... ====1= -- . _.. .. . ... . _ ..~ - Other Civil works - pavements, concrete kerbs, concrete \.\

! or reservoirs Source: Resettlement Handbook and Triple IE'

Table 7.2: Loss of Income and Livelihood

,...------------.,------------_._-_.. _..... Category Type of Loss

- ·1.0ss Qf~Wa9.~:;~'·" .- LossqffeE!$ilOOltrain~-or apprentices

Impact on accommodation - Loss of Business, Residential or Indr)'

Accommodation or Room

Plants &Crops TLoSS of economic or perennial trees

.. - Loss of food crops

1- Loss of grazing land

Source: Resettlement Handbook and Triple 'E'

Table 7.3: Impacts arising from Disturbance/Disruptions

Category Type of Loss

- Disconnection of utility services

IVln1.,;;on,Q

ucture

Disturbance assets - incurring removal expenses

of peaceful enjoyment of property

Loss of customers and companions

7.2 Method of Valuation

This involves the methodology to be used in valuing losses to determine their repl.;!

cost; and a description of the proposed types and levels of compensation unde"

and such supplementary measures as are necessary to achieve replacement cost r

35

Valuation Procedures RPF Report for LUTP II

assets. Valuation of assets affected by the LUTP II projects will be conducted by a qualified

surveyor.

In Nigerial the Land Use Act establishes the general principle for the calculation of the value

of assets to be taken when occupancy rights are revoked. Compensation is paid for future

rents paid, crops, and buildings and installations. The appropriate officials refund rents

already paid for use after revocation of, the occupancy certificate. For structural

improvements on the land, the amount of the replacement cost of the building" installation

or improvement that is to say, such cost as may be assessed on the basis of the prescribed

method of assessment as determined by the appropriate officer less any depreciation"

together with interest at the bank rate for delayed payment ofcompensation. .. (Section 29

4(b).

These principles are complemented by implementation regulations that provide detailed

compensation rates determined by the State Government. Such rates are adjusted

periodically by the State to reflect changing construction costs.

A general principle that will be adopted in the formulation of the compensation valuation is

that lost income and assets will be valued at their full replacement cost such that the project

affected populations will experience no net loss. This is in accordance with the LAMATA

Resettlement principles and World Bank operational policy on involuntary resettlement, OP

4.12. In line with the above prinCiple, LAMATA will conduct an all-encompassing survey and

valuation of the assets and loss of income by the Project affected persons (PAPs).

7.3 Basis of Valuation

In order to ensure that during the project implementation any person displaced by land

acquisition will be provided full replacement cost of lost structures and are able to rebuild or

replace their structures without difficulties. The valuation will estimate building/structure

compensation rates based on full replacement cost without depreciation. Key points which

the valuation will take care of are as follows:

i. Collection of all relevant primary and secondary data on the affected property

during final detailed valuation inspection and referencing to serve as basis for

assessment of loss;

36 June 2009

Valuation Procedures RPF Repol"': fo!'

ii. A comprehensive primary database for monitoring, evaluation and3url

Some relevant data to be captured by the valuers will be:

Capture location details of the land

Identify the boundaries of the area/section of the land to be aff

Take detailed measurement of the land area to be affected

affected boundaries.

2. Buildings (Immovable Structures)

Photograph all affected immovable properties - Detailed

measurement of buildings, shops and structures will be done.

Collate property details which will include noting

accommodation details, constructional details of affected p::l'

external works (fence walls, gates, pavements) affected l

details etc where relevant.

3. Temooraa Structures {Movable Properties}

Collate data on temporary structures by categorizing temporary stn

based on constructional details (wall materials, affixed to concrete

Valuation Procedures RPF Report for LUTP II

Table 7.4: Method of Valuation

Type of Loss Method of Valuation Basis - Loss of Land Comparative Sales Method Based on the open market

value ofcomparable recent land transactions

- Loss of Buildings, structures and other civil works

Replacement Cost Method or

Comparative Sales Method (which ever gives a commensurate value)

Full replacement cost value as if new - recent construction cost rates

- Loss of Business Income and Loss of Business Goodwill

Comparative Method Based on the average monthly net profit

. Loss of Income from Rent and Expenditure Incurred for Alternative Accommodation during reinstatement period

i

Comparative Sales Method Based on the comparable rentpas$ng, rentadvanre paid

- Expenditure incurred for Transfer of movable properties and temporary structures

Comparative Method Based on truck/transport I hiring charges

- Lo