oron gas pipeline, akwa ibom state, nigeria · 2016. 7. 12. · oron gas pipeline resettlement...

Delivering sustainable solutions in a more competitive world

Oron Gas Pipeline

Resettlement Action Plan:

Oron Gas Pipeline, Akwa Ibom

State, Nigeria

28 March 2014

www.erm.com

SEPTA ENERGYSM

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

wb371432

Typewritten Text

RP728 V2

wb371432

Typewritten Text

FINAL REPORT

Septa Energy Nigeria Limited

Oron Gas Pipeline

Resettlement Action Plan:

Oron Gas Pipeline, Akwa Ibom

State, Nigeria

28 March 2014

For and on behalf of

Environmental Resources Management

Approved by: Piers Touzel Signed: Position: Partner Date: 18 July 2012 Authors: Elisa Xiao Kai Shang

Piers Touzel

TABLE OF CONTENTS

EXECUTIVE SUMMARY I

1 INTRODUCTION 1

1.1 BACKGROUND 1

1.2 POLICIES AND OBJECTIVES OF RAP PREPARATION 1

1.3 PROJECT DESCRIPTION 2

1.4 SUMMARY OF PROJECT LAND TAKE 3

1.5 MINIMIZING RESETTLEMENT 3

1.5.1 Project Alternatives 3

1.6 LIMITATIONS 5

2 SOCIO-ECONOMIC BASELINE 6

2.1 ADMINISTRATIVE STRUCTURE 6

2.1.1 Government Institutions 6

2.2 COMMUNITY LEADERSHIP STRUCTURE 8

2.2.1 Village Networks and Linkages 8

2.3 PROFILE OF AFFECTED COMMUNITIES 9

2.3.2 Ethnicity, Religion and Language 10

2.3.3 Land 11

2.3.4 Communal Resources 12

2.3.5 Housing 12

2.3.6 Infrastructure 12

2.4 DEMOGRAPHICS OF AFFECTED HOUSEHOLDS 14

2.4.1 Household Income and Expense 14

2.4.2 Food and Nutrition 17

3 PROJECT IMPACTS 18

3.1 PROJECT AFFECTED LAND 18

3.1.1 Affected Cultivated Land 20

3.2 LOSS OF STANDING CROPS/TREES 20

3.3 AFFECTED SHRINES 21

3.4 CATEGORIES OF PROJECT AFFECTED PEOPLE 21

3.4.1 Agricultural Land Occupier: Customary Right of Land Occupancy 22

3.4.2 Crop / Tree Cultivator 22

3.4.3 Owner of Structures / Assets 22

3.4.4 Individuals Dependent on Communally Held Lands Resources / Assets 22

3.4.5 Vulnerable Groups 22

4 LEAGAL AND ADMINISTRATIVE FRAMEWORK 24

4.1 INTRODUCTION 24

4.2 LAND USE ACT, 1978 24

4.2.1 Background 24

4.2.2 Land Ownership and Use 25

4.2.3 Compensation Provisions 25

4.3 OIL PIPELINE ACT (1956) 26

4.3.1 Permit to Survey 26

4.3.2 Oil Pipeline License 26

4.3.3 Compensation 27

4.4 IFC PERFORMANCE STANDARD 5 27

4.4.1 Key Elements of IFC PS5 28

4.4.2 Gaps Between Nigerian Practice and International Standards 29

4.5 PROJECT LAND ACQUISITION STRATEGIES 34

5 INSTITUTIONAL ARRANGEMENTS 35

5.1 OVERVIEW OF THE LAND ACQUISITION, COMPENSATION AND LIVELIHOOD

RESTORATION PROCESS 35

5.2 ORGANIZATION STRUCTURE 35

5.3 RAP HANDOVER 38

5.4 GRIEVANCE MECHANISM 39

5.4.1 Potential Grievances and Disputes 39

5.4.2 Procedure for Grievance Redress 39

6 PARTICIPATION AND CONSULTAITON 41

6.1 INTRODUCTION 41

6.1.1 Objectives 41

6.1.2 Stakeholder Identification 41

6.1.3 Methodology 41

6.2 PARTICIPATION AND CONSULTATION UNDERTAKEN TO DATE 43

6.2.1 Concerns of PAPs 45

6.3 INCORPORATING CONSULTATION INTO LAND ACQUISITION PLANNING 46

6.4 FUTURE PARTICIPATION AND CONSULTATION PLAN 47

7 COMPENSATION AND INCOME RESTORATION 49

7.1 INTRODUCTION 49

7.2 ELIGIBILITY AND ENTITLEMENT CRITERIA 49

7.2.1 Nigerian Legal Requirements 49

7.2.2 International Standards 49

7.2.3 Summary 49

7.3 COMPENSATION REQUIREMENTS 50

7.3.1 Local Requirements 50

7.3.2 International Requirements 51

7.3.3 Project Approach to Compensation 51

7.3.4 Valuation Method 52

7.4 LIVELIHOOD RESTORATION STRATEGIES 53

7.5 ENTITLEMENT MATRIX 54

8 MONITORING AND EVALUATION 58

8.1 INTRODUCTION 58

8.1.1 Objectives 58

8.2 MONITORING AND EVALUATION PLAN 58

8.2.1 Progress Monitoring 59

8.2.2 Outcome Evaluation 59

8.2.3 External Monitoring and Completion Audit 60

8.3 M&E ROLES AND RESPONSIBILITIES 60

8.4 SCHEDULE AND REPORTING 61

8.4.1 Internal Monitoring 61

8.4.2 External Monitoring 62

8.4.3 Completion Audit 62

8.5 OVERALL MONITORING SCHEDULE 62

9 SCHEDULE OF IMPLEMENTATION 63

9.1 SCHEDULE OF IMPLEMENTATION 63

10 BUDGET 64

ANNEX

ANNEX A VULNERABLE GROUP LIST

ANNEX B SEPTA GAS PIPELINE LICENSE

ANNEX C INDIVIDUAL COMPENSATION MATRIX

ANNEX D COMPENSATION RATES

ANNEX E COMMUNITY CONSULTATION RECORDS

LIST OF TABLES

Table 1.1 Project Land/Water Use 3

Table 1.2 Land Affected by the Project 3

Table 2.1 Project Affected Villages 6

Table 2.1 Population and Gender 9

Table 2.2 Age Profile 9

Table 3.1 Project Land Use 18

Table 3.2 Affected Cultivated Land 20

Table 3.3 Project Affected Crops and Swamp 20

Table 3.4 Project Affected Trees 20

Table 4.1 Pipeline Land Right 26

Table 4.2 Gap Analysis: IFC PS 5 and Local Requirements 30

Table 5.1 Roles and Responsibilities of Land Acquisition Committee 36

Table 6.1 Participation and Consultation Methodology 42

Table 6.2 Consultation Activity Conducted to Date 43

Table 6.3 Future Participation and Consultation Plan 47

Table 7.1 Comparison of Eligibility and Entitlement Criteria 50

Table 7.2 Compensation Provision 53

Table 7.3 Entitlement Matrix 55

Table 8.1 Tentative Monitoring Schedule 62

Table 9.1 Land Acquisition and Livelihood Restoration Schedule 63

Table 10.1 Budget for Project Compensation 64

LIST OF FIGURES

Figure 1.1 Alignment of the Oron Pipeline 2

Figure 1.2 Evaluation of Alternative pipeline Routes 4

Figure 2.1 Project Layout Map and Affected Communities 6

Figure 2.2 Monthly Income Distribution 14

Figure 2.3 Monthly Expenditure Distribution 14

Figure 2.4 Monthly Income Sources 15

Figure 2.5 Monthly Household Income Distribution 16

Figure 2.6 Monthly Household Expenditure 16

Figure 2.7 Money Usage of the Project Affected Households 17

Figure 3.1 Land Use Diagram 18

Figure 3.2 Project Affected Shrines 21

Figure 5.1 Land Acquisition, Compensation and Livelihood Restoration Process 35

Figure 5.2 Organisation Structure of Land Acquisition Committee 36

Figure 5.3 Septa Grievance Redress Procedure 40

Figure 6.1 Community Consultation and Participation, April-May 2012 44

DEFINITIONS

Term Definition

Affected Area The land/water area affected by permanent acquisition and temporary use

of land/water in connection with the Project.

Asset Inventory A complete count, measurement and description of all affected assets

including structures, crops, trees and other land attachments to be acquired.

Census A field survey carried out to identify and determine the number of Project

Affected Persons (PAPs) in a unit of Household.

Cut-off date A day on and beyond which any person who improves land or constructs

assets on land, required for project use, will not be eligible for

compensation. According to Nigeria practice, this date is likely to be set

following the completion of the census and land survey and asset

inventory.

Communal land Land that is in public use that is recognized under traditional or customary

right to occupy. Such land is communally owned and under the control of

village council of chiefs or village head, acting as a representative of the

community.

Compensation Payment in cash or payment in kind of the replacement value of the

acquired property and/ or impacted assets.

Displaced

Persons

Persons who have formal legal rights and/or customary rights of

occupation to the land they occupy within the Affected Area.

Economic

Displacement

Loss of assets or access to assets that leads to loss of income sources or other means of livelihood.

Entitlements Entitlements with respect to a particular eligibility category are the

compensation and other forms of assistance provided to impacted persons

in the respective eligibility category.

Grievance

Procedure

The processes established to enable property owners and other impacted

persons to redress issues related to acquisition, compensation, or other

aspects of resettlement.

Involuntary

Resettlement

Involuntary taking of land or impact on land or assets, resulting in direct or

indirect economic and social impacts, whether or not the PAP must

physically relocate , caused by:

Loss of benefits from use of such land;

Relocation or loss of shelter;

Loss of, impact on, assets or access to assets; and

Loss of income sources or means of livelihood, whether or not the

project affected person has moved to another location.

Land Acquisition Taking of or alienation of land, buildings or other assets thereon for the

purpose of the project.

Livelihood

Restoration Plan

Livelihood Restoration Plan prepared for the project. It will include details

of project impacts, categories of PAPs, compensation entitlement and

eligibility, and how livelihood restoration will be implemented.

Market Value Most probable selling price or the value most often sought by buyers and

sellers. It assumes buyers and sellers have reasonable knowledge, act

competitively and rationally are motivated by self interests to maximize

satisfaction and both act independently and without collusion, fraud or

misrepresentation.

Project Affected

Person (s) (PAPs)

A person that loses assets and/or usage rights and/or income generation

capacities (e.g. land, crops) because these assets/rights/capacities are

located in the land to be acquired or used, for needs of the project.

Livelihood

Restoration

Assistance

Provision of development assistance in addition to compensation such as

agricultural intensification, training, or job opportunities, needed to enable

PAPs to maintain their living standards, income earning capacity and

production levels.

Replacement

value

The amount that will be paid to replace the value for the land and all assets

on it, without any deductions for depreciation.

Term Definition

Vulnerable

Groups

People who, by virtue of gender, ethnicity, age, physical or mental

disability, economic disadvantage or social status, may be more adversely

affected by resettlement than others; and who may have limited ability to

claim or take advantage of resettlement assistance and related development

benefits. These include:

Women headed households without one or more family members of

working age in the household. Situated within a patriarchal society,

women tend to be prevented from participating in local decision-

making. They also tend to lack access to independent means of income

generation.

Households headed by disabled and/or elderly people (>60 years)

without one or more family members of working age in the household.

Those with physical or mental disability and /or old age are typically

unable to access an independent means of income generation.

Households living in poverty. Those with a combined household

income of less than 4,800 naira per month.

ABBREVIATIONS & ACRONYMS

CLO Community Liaison Officer

ERM Environmental Resources Management

GSA Gas Sales Agreement

IFC International Financial Corporation

Ha Hectare (1 ha = 10,000 m2)

HH Household

LA Land Acquisition on 15 m ROW

LAC Land Acquisition Committee

LGA Local Government Area

LR Livelihood Restoration

LRP Livelihood Restoration Plan

M&E Monitoring and Evaluation

N Naira (Nigerian currency)

NGO Non-governmental Organisation

NPC National Population Commission

NIPP Nigerian Integrated Power Plant

OPTS Oil Producers Trade Section

PS Performance Standard

RAP Resettlement Action Plan

ROW Right of Way

PAP Project Affected Person

TLU Temporary Land Use on 10 m ROW

ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED

I

EXECUTIVE SUMMARY

This Resettlement Action Plan (RAP) is applicable to land acquisition for

Septa’s Energy’s Oron Pipeline Project (hereafter “the Project”). Located

between Uquo and Usung near Oron in Akwa Ibom State, Nigeria, the Project

will affect a 25m Right of Way (ROW) along a 37.33km pipeline corridor,

traversing 64 villages in four Local Government Areas (LGA), namely Esit–

Eket, Urue Offong Oruko, Mbo and Udung Uko LGAs.

Project land take comprises permanent acquisition of a 15m ROW to

accommodate the pipeline and a further 10m for temporary use during an

anticipated 18 month construction period. The primary land use along the

proposed ROW is forestry and farmland and consequently the Project will

result in economic displacement of land owners/users. The project will not

require physical displacement of dwelling houses. A census, land survey and

asset inventory of the project footprint was conducted in April – May 2012.

In total, the project will affect 50 villages which have land and 14 villages

which have no land but shared assets on the ROW. The project will affect

737 households who individually own land and assets on the ROW within 34

villages, along with 16 villages that land and assets are collectively owned.

The Project will be implemented in accordance with applicable national and

Akwa Ibom State laws and regulations, and with the IFC Performance Standard

(PS) 5: Land Acquisition and Involuntary Resettlement (2012). The following

underlying principles will guide planning and implementation for all Project

land acquisition and associated activities:

1. The Project will comply with the Land Use Act (1978) and the Oil Pipeline

Act (1990) and all other applicable Nigerian laws and regulations.

2. The Project will compensate affected persons for loss of assets at full

replacement cost.

3. The Project will treat occupancy rights as ownership rights for the

purposes of compensation and will compensate accordingly. The Project

will compensate the replacement cost for permanently acquired land.

4. Encroachers will be eligible for compensation of affected assets.

5. The Project will pay compensation in full prior to the occupation of land or

removal of assets.

6. The Project will implement livelihood restoration measures in order to

assist PAPs to restore incomes to pre-displacement levels.

7. Vulnerable groups will be identified, registered and their livelihood

monitored. Specific measures for compensation and livelihood assistance

will be developed and funded by the Project.

8. A grievance procedure will be accessible to all those affected by the

project.

9. The Project will establish systems for monitoring and evaluation

(including a completion audit) as proposed in this RAP.

The Project compensation entitlements are summarised below:


II

Compensation for Permanent Land Acquisition

For permanent land acquisition, compensation for the land will be paid at full

replacement cost. For cultivated land, this includes:

Market value of the land;

Improvements to the land as defined by Nigerian law;

Clearance allowance to prepare the land for farming; and

Transitional support for loss of income during the period before

replacement land is available.

For non-cultivated land, compensation will be paid at the market value of the

land only.

Compensation for Temporary Occupation of Cultivated Land

For temporary occupation of cultivated land, compensation will include:

Land rental for 18 months when the land is required for construction;

Improvement of the land as defined by Nigerian law;


Transitional support for loss of income.

For non-cultivated land, compensation will be paid for 18 months’ rental only.

Compensation Rate for Standing Crops, Trees and Assets

The Project will adopt the highest compensation rates among Akwa Ibom

State government rates, Oil Producers Trade Section (OPTS) rates and market

prices for each affected asset. The compensation rates will be applied

consistently across the four LGAs.

Compensation for Shrines

Cash compensation will be paid to the families and priests are to conduct

required ceremonies to relocate the shrines, in addition to government

compensation rates.

Compensation for Swamp

Cash compensation will be provided for:

1) Unmovable fishing traps and nets at market value; and

2) Transitional allowance for loss of income from swamps.

Vulnerable Groups

Particular attention is being given to the needs of vulnerable groups in the

context of compensation. Based on consultation with those households

identified as vulnerable, an appropriate additional transitional allowance will

be determined, and distributed to these households, in monthly instalments,

over a six month period. Vulnerable groups will be given preferential

provision of: (i) skills training; and (ii) Project employment.


III

In addition, livelihood restoration measures will be developed based

consultation with PAPs, including:

1) land-based schemes, including agricultural training, agricultural

intensification, better storage techniques and adding value to agricultural

produce;

2) Wage-based schemes to provide permanent or temporary employment

opportunities to affected communities; and

3) Village infrastructure schemes to assist community access to better road.

A Land Acquisition Committee will be formed to manage the compensation

and livelihood restoration (LR) processes. Responsibilities of key members are

listed below:

Positions Roles and Responsibilities

Livelihood Restoration

Manager

Management oversight and primary responsibility for the entire

process and project

Legal Manager Legal advice, produce all agreements and routinely vet process


Officer

Coordinate and oversee the project in the field, ensuring practical

application of the principles of sustainability.

Finance representative Oversee financial details

Community Liaison

Officers

Link between land acquisition and community development

programme, lead grievance process;

NGO/Consulting Firm Facilitators, trainers, and coordinator of external monitoring

Government

representatives

Observers, countersign payment and participate grievance

redressing process as needed.

A project grievance process has been developed and will be communicated to

affected communities throughout the land acquisition planning process,

including final RAP disclosure town hall meetings.

To ensure that the land acquisition (including associated compensation and

livelihood restoration) is carried out as planned, internal and external

monitoring will be undertaken throughout the process. It will consist of two

components, namely progress monitoring and outcome evaluation.

Monitoring will be initiated at an early stage in the land acquisition process

and will continue for approximately two years. In addition, a completion

audit will be conducted by a third party monitor to be appointed by Septa

Energy, upon the completion of pipeline installation and all associated

measures in this RAP.


1

1 INTRODUCTION

1.1 BACKGROUND

Environmental Resources Management (ERM) was commissioned by Septa Energy

Nigeria Limited (the Client) to prepare a Resettlement Action Plan (RAP) for the

proposed Oron Pipeline, a 38km gas pipeline between Uquo and Usung near

Oron in Akwa Ibom State, Nigeria (The Project).

The Project will be implemented in accordance with applicable national and

Akwa Ibom State laws and regulations, and by the IFC Performance Standard

(PS) 5: Land Acquisition and Involuntary Resettlement (2012).

The area affected by the Project will be the pipeline Right of Way (ROW),

which is 25m wide along the 37.33km corridor. The pipeline will cross four

Local Government Areas, namely Esit–Eket, Urue Offong Oruko, Mbo and

Udung Uko in Akwa Ibom State. The primary land use along the proposed

ROW is forestry and farmland. The Project will trigger economic displacement

of land owners/users. However the project does not require any physical

displacement (eg relocation of dwelling houses).

1.2 POLICIES AND OBJECTIVES OF RAP PREPARATION

The objectives of the RAP are to:

Avoid or at least minimize involuntary resettlement wherever feasible by

exploring alternative project route designs;

Mitigate adverse social and economic impacts from land acquisition or

restrictions on affected persons’ use of land by:

providing compensation for loss of assets at replacement cost; and

ensuring that resettlement activities are implemented with

appropriate disclosure of information, consultation, and the informed

participation of those affected and;

Improve or at least restore the livelihoods and standard of living of

displaced persons.

The Project is committed to providing economic benefits to those affected by

Project activities, and as such commits to the following enhancement

measures (1):

Use local procurement and employment, where possible, to enhance local

benefits; and

Support development projects (including shared infrastructure), based on

community needs and consultation.

In addition to setting out the procedures and actions that will be taken to

achieve these objectives, the implementation arrangements, estimated costs

(1) Septa Community MoUs to Enhance Local Benefits


2

and provisional schedule associated with RAP implementation are provided,

as are plans for grievance management and monitoring and evaluation.

1.3 PROJECT DESCRIPTION

Septa Energy Nigeria Limited and Frontier Oil Limited recently executed a

Gas Sales Agreement (GSA) with the Nigerian Integrated Power Plant (NIPP)

to deliver natural gas to the Calabar NIPP Plant. The Project involves the

installation of an 18” gas pipeline from Uquo to Usung near Oron to supply

approximately 130 MMScfd of natural gas to the NIPP. The proposed pipeline

will be constructed starting from the Ekid Gas Plant at Edor in Esit – Eket

Local Government Area, in the Uquo Marginal field to Usung in Udung Uko

Local Government Area of Akwa Ibom State.

The pipeline route (see Figure 1.1) traverses 51 villages in four Local

Government Areas namely Esit–Eket, Urue Offong Oruko, Mbo and Udung

Uko Local Government Areas of Akwa Ibom State. The route lies within co-

ordinates 616916.02 – 647807.40 E and 66675.55 – 84270.85 N in the lower

rainforest region of the Niger Delta.

A metering and regulating station (not within the scope of this RAP) will be

installed at the Tie-in station at Usung near Oron on an existing 24” gas

Pipeline originating from the Calabar NIPP. The 24’’ Pipeline is owned by the

Niger Delta Power Holding Company and has a total length of about 107Km.

Figure 1.1 Alignment of the Oron Pipeline


3

1.4 SUMMARY OF PROJECT LAND TAKE


accommodate the pipeline and a further 10m for temporary use during

construction.

Table 1.1 Project Land/Water Use

Width

of ROW

(m)

Total

Area

(hectare)

Total No.

of

Affected

Villages

No. of

Villages

that

land/water

is affected

No. of

Village

land/water

collectively

owned

No. of

Affected

Individual

Household

No. of

Affected

People*

Permanent

Land

Acquisition

15 58.55 64 50 16 624

~4,400

Temporary

Land Use

10 38.91 64 50 16 622 ~4,300

Water

Areas

25 1.14 19 16 3 37 ~300

Note: * the number of affected people does not include population in villages that land/water is

collectively owned by the community.

In addition to 50 villages which land and water will be affected, 14 villages do

not have land/water right but have shared assets on the ROW.

In total, 737 households with a population of approximately 5,100 people will

be affected by project land/water use.

Details of land affected by the project are presented in Table 1.2.

Table 1.2 Land Affected by the Project

Local

Government

Area (LGA)

Pipeline

Length (km)*

Land Area

Affected by

Permanent

Use (ha)

Land Area

Affected by

Temporary

Use (ha)

Affected

Water Area

(ha)

Land/water

Area

Affected (%

of total

affected area)

Esit Eket 18.66 27.88 18.66 0.92 48.1%

Udung Uko 7.87 11.80 7.87 0.00 20.0%

Urue Offong 8.44 12.66 8.37 0.21 21.6%

Mbo 4.13 6.20 4.00 0.00 10.3%

TOTAL 39.11 58.55 38.91 1.14 100%

Note: the pipeline length in each LGA area is calculated based on the area of affected land.

1.5 MINIMIZING RESETTLEMENT

1.5.1 Project Alternatives

Four alternative pipeline routing options were evaluated before selecting the

current routing.


4

Figure 1.2 Evaluation of Alternative pipeline Routes


5

In considering all four project options, the Project developers took into

consideration the resettlement implications of each via the following criteria:

Amount of physical displacement of people living along the route;

Impacts on livelihoods;

Length of pipeline; and

Number of Local Government Areas traversed.

Alternative 2 was selected since it does not require physical displacement of

dwelling houses.

1.6 LIMITATIONS

The report is based on information provided by Septa Energy and by field

surveys between March and May 2012. The information and statements

provided in this report are not to be construed as legal advice.

This report, including annexes, supplements and related documents, has been

prepared solely and exclusively for the use of the Client, for the purpose of the

Project. ERM disclaims any responsibility to the Client or any other person for

the transfer or the use of the report for any purpose other than that for which

it was originally prepared.

The report is confidential to the Client and the specified recipients. Other

parties may only rely on this report pursuant to a written Reliance Letter with

ERM and subject to the same contractual conditions as the Client.


6

2 SOCIO-ECONOMIC BASELINE

2.1 ADMINISTRATIVE STRUCTURE

2.1.1 Government Institutions

The Federal Republic of Nigeria is made up of 36 states and one federal capital

territory and has a mixed legal system of English common law, Religious laws

and traditional law.

Uyo is the capital of Akwa Ibom State, which comprises 31 Local Government

Authorities. The Project will pass through 64 villages in four Local

Government Areas (LGAs) namely Esit–Eket, Urue Offong Oruko, Mbo and

Udung Uko LGAs, in Akwa Ibom State (refer to Figure 2.1). In total 64

villages are affected, including 14 villages that have share assets on the ROW

(see Table 2.1).

Figure 2.1 Project Layout Map and Affected Communities


7

Table 2.1 Project Affected Villages

LGA No. Village Name Gazette

(Y/N)

Esit Eket

1 Adahafriyo Y

2 Afia Ekpene Akpautong Y

3 Akpautong Y

4 Edida Edo Y

5 Edo Atai Y

6 Etebi Akwata Y

7 Idua Edo N

8 Idung Abidiang Y

9 Idung Akpe Atuadim N

10 Idung Asua -Etebi Y

11 Idung Ataudim Y

12 Idung Imossan Etebi Y

13 Idung Ita Etebi Y

14 Idung Ntia N

15 Idung Obong N

16 Idung Okpokpo N

17 Idung Okpudo Y

18 Idung Udo Etti N

19 Idung Udonsak Y

20 Idung Ukok Y

21 IdungAssan Etebi Y

22 Ikot Eyo Edo N

23 Inne Akpautong Y

24 Mbakuyo-Etebi Y

25 Odoro Nkit Y

26 Odoro Ukuk N

27 Oniok Edo Y

28 Uqua Isi Edoho Y

29 Urua Okok Y

Udung Uko 30 Eniongo Y

31 Eyo Fin Y

32 Eyo Nsek Y

33 Eyo Ukpe Y

34 Eyo Uliong Y

35 Eyo Uwe Y

36 EyoAting Y

37 Eyoebieme N

38 Udung Esio Y

39 Udung Otok Y

40 Edikor Eyibia Y

41 Edikor Eyobiosio Y

42 Edikor Eyokpo Y

43 Eyo Esio Osung Y

44 Eyobisung Y

45 Eyoko Y

46 Eyotai Y

47 Itak Ibang N

48 Udung Adatang Y

49 Usung Y

Urue Offong

/Oruko

50 Edok-Oruko Y

51 Eyobiassang Y

52 Eyokwong Y

53 Oduonim Isong Inyang Y

54 Oduonim Oro Y


8

LGA No. Village Name Gazette

(Y/N)

Urue Offong

/Oruko

55 Ubodong Y

56 Udung Ukpor N

57 Udung Uwe Y

Mbo

58 Akai-Owu Y

59 Isong-Inyang Udesi Y

60 Osu-Udesi Y

61 Ubokpo-Udesi Y

62 Udung Ikpang Y

63 Ukoitak Eyokpo Y

64 Ukoitak Eyulor Y

Note: 1. Village No 30-39, ie Eniongo, Eyo Fin, Eyo Nsek, Eyo Ukpe, Eyo Uliong, Eyo Uwe,

EyoAting, Eyoebieme, Udung Esio, Udung Otok belong to a Village Group called Ukukim. 2. Villages highlighted with shadows are the 14 villages that have no land but shared assets

with other villages on the ROW.

Information provided in the following sections of this chapter was obtained

through a census and socio-economic survey of all affected persons in the

project area in April-May 2012. The census included a face to face survey to

identify the number of PAPs. The socio-economic survey covered

demographics, income and living conditions. Village information such as

leadership structures and infrastructure were obtained through village

consultation and focus group consultation. Unless otherwise stated, all

information presented in this chapter is obtained through primary field

surveys.

2.2 COMMUNITY LEADERSHIP STRUCTURE

Council of Chiefs and Village Heads

The council of chiefs, led by the village head, is the most powerful

administrative institution at the community level. The village head (usually

certified by the Government) represents the Government at the village level in

relation to law and order, as well as in decision-making activities.

Village Council

Each village has a village council, headed by a council chairman. It usually

consists of a chairman, a vice chairman, a secretary, a treasurer and a financial

secretary. In some villages, the women’s leader and community head’s wife

are also members of the community council, as representatives of women.

2.2.1 Village Networks and Linkages

There are a number of organisations at the village level. These include

council of chiefs, village council, women’s associations (forums), youth

associations, fishermen cooperatives etc. These groups often play a role in

the socio-economic development of the communities.


9

2.3 PROFILE OF AFFECTED COMMUNITIES

Population and Gender

The population of the four affected Local Government Areas through which

the pipeline will pass is shown in Table 2.2.

Table 2.2 Population and Gender

Esit–Eket Urue Offong Oruko Mbo Udung Uko

Total 63,701 71,199 104,012 53,278

Male 33,942 38,105 55,395 28,486

Female 29,759 33,054 48,617 24,792

Male (%) 53.25 53.52 53.26 53.47

Female (%) 46.72 46.42 46.74 46.53

Source: National Population Commission (NPC, 2006)

The census identified 737 project affected households and 5,100 affected

individuals.

This census indicated that approximately 45.8% of the individuals from the

affected households were female, slightly below the regional average of 46.6%.

Household Size

The average household size for the affected households is seven persons.

Approximately 60% of households have 5-10 members in one family. Large

family are common within the project affected area, and multiple generations

often constitute one household. Among the households covered by the census,

14.4% households consist of more than 10 members.

Age

In keeping with age trends at the national and state levels, the affected

community population is quite young. Approximately one-third (32%of the

PAPs are between the ages of 6-18 years, with a further 12.9% below the age of

five. The working age population (19-50 years) constitutes 47.8%of the affected

population, among them 40.5% are below 40 years.

The high number of youths in the project area carries particular socio-

economic implications. In addition to pressures on social infrastructure, such

as education and housing, this young population also increases competition

for employment opportunities. It may also exacerbate existing pressure on

available land for cultivation, which has traditionally been a fall back option

in the absence of other viable employment. Accordingly, the youth are

suffering from lack of opportunity to establish a steady income.

Table 2.3 Age Profile

Males

(Frequency)

Females

(Frequency)

Sub-total

(Frequency) (Percentage)

0-5 years 359 278 637 12.9%


10

Males

(Frequency)

Females

(Frequency)

Sub-total

(Frequency) (Percentage)

6-18 years 832 747 1,579 32.0%

19-30 years 698 666 1,364 27.6%

31-40 years 331 308 639 12.9%

41-50 years 191 168 359 7.3%

51-60 years 111 74 185 3.7%

>60 years 136 39 175 3.5%

Total 2,658 2,280 4,938 100%

* Age of 138 persons (including 93 males and 45 females) is not available during the census.

Education Level

Within the project affected area, around 20% of the adults are illiterate, and

one quarter has been educated only to primary school level. Over 40% of

adults received secondary school. Less than 10% of the family adult members

have educated to higher national diploma or above, including about 3%

bachelor and 2% master or above.

Professional or technical training levels in the project affected area are low.

This is due in part to the lack of training opportunities available in this area,

along with a lack of work opportunities where professional training could be

applied.

2.3.2 Ethnicity, Religion and Language

Ethnicity

The main ethnic groups in the project affected area include Ekid (72.5%), Oro

(18.8%) and Ibibio (8.7%). On-site observation revealed that customs, diets and

traditional modes of dress tend to be similar throughout the project area,

although there different ethnic groups. The ethnicity status of PAPs is not

considered to make any ethnic groups particularly vulnerable.

Religion

The majority of PAPs are practicing Christians, with over 97% attending

church on a regular basis.

Despite the influence of Christianity, cultural and traditional festivals

associated with fishing and farming are still widely recognized and celebrated

in the project affected area. Observance includes visiting and presenting

sacrifices at sacred sites (eg shrines) in and around their communities.

Approximately 1.7% report that they visit traditional shrines on a regular

basis. This low level of traditional religious observance could be due to the

fact that many residents do not visit a shrine on a regular basis, but instead do

this on special occasions or when considered necessary. In some of sacred

forests/shrines, members of the community are not allowed to harvest trees

for any purpose or hunt animals in them, as such activities are forbidden and

entry into these sacred places is usually followed with some definite steps.


11

Language

The main languages spoken in the project area are Ekid, Oro and Ibibio.

However, English is common across the project-affected communities.

Approximately 70% of PAPs are able to read and write English, and 76% can

speak English.

2.3.3 Land

Land Tenure and Ownership

In most of the Project-affected area, men inherit land from their fathers.

Although, legally, women have a legal right to inheritance in Nigeria, in

practice men rarely pass on land to their female children and as a

consequence, few women own land in the community. After the death of a

man, land and property is usually passed on to sons, if they are old enough, or

to other male relatives, such as brothers or uncles. This allows land to remain

within the family. Women can own land in the community through outright

purchase and by inheritance (although this is rare). Women can also

temporarily own land by leasing- women buy land use for specific number of

years specifically for farming, once the agreed number years expire, their

ownership of the plot expire. Women can also own land through pledge – a

situation where a landowner uses a parcel of land for collateral against a loan

for a specific period of time. Once the landowner pays the debt, he reclaims

the land.

Land Cultivation

The most common type of arable crop within the affected communities is

cassava, followed by bitter leaf, maize, melon, cucumber, native apple, guava,

pepper, banana, yams and plantain. Cassava is the most important crop

grown for household subsistence, reported by almost all PAPs.

Box 2.1 is the seasonal calendar which shows key agricultural activities

throughout the year.

Box 2.1 Seasonal Calendar

Farming activities undertaken by men include land clearing, making mounds

for yam and cassava, cutting palm fruits, harvesting yam, (some harvest

cassava also) and cutting of firewood. In contrast, women plant cassava,

vegetables, maize and legumes such as melon, cumber, and cocoyams. They

also weed and harvest their crops.

November –January: farm clearing; planting of cucumber and melon at the swamps during

the dry season, mainly conducted by men.

January – March: planting of cassava, maize, cucumber, melon, mainly by women.

April – May: weeding, carried out by women.

April to September: rainy season; women crack palm kernels, transport firewood from the

farm/forest to the house while the men fish with hook and line in the stream and swamps

January – December: Harvest of cassava done all year round, mainly by women.


12

2.3.4 Communal Resources

Forest

The presence of forests in the project affected area provides an area for

hunting of mammals, birds, and reptiles for consumption and sale. It forms an

important component of food security for some households in the affected

communities. 56% of affected people own a rifle for hunting. The forest in the

project-affected area is also exploited for timber and/or non-timber products

(eg palm fruits, snails and medicinal plants), for use or sale by the local

communities.

Water Resources

The steams and creaks in the affected communities are important fisheries. On

average, each household own at least three fishing nets. 44% of the PAPs

reported that they own a canoe for fishing and 15% indicated that they own a

motorised boat.

2.3.5 Housing

Local dwelling houses include the following major types:

Brick - Concrete Structure (35.4%).

Mud with Corrugated Iron (Zinc) (25.9%)

Mud with Thatch Roof (24.4%); and

Brick-wood House with Steel Roof (14.3%).

No residential structures or shelters will be affected by the pipeline

installation.

2.3.6 Infrastructure

The quality of infrastructure is poor in the project affected communities.

Affected communities have reported that this is an impediment to economic

growth.

Electricity

In the project affected areas, local communities have access to electricity.

However, the supply is unreliable and nearly all affected residents complain

about its irregularity. Part of the reason for this poor supply is that the local

transformers are small, which leads to low supply for frequent cut-offs. This is

evidenced by the fact that kerosene is used by 79%of PAPs for lighting. In

addition, electricity generators are popular within the affected communities.

82% of the households own at least one generator.

Telecommunications

Residents in the affected communities have access to mobile phones and all

national networks are available for use. Mobile communications are affordable


13

to most residents. This is evidenced by the fact that each household owns an

average of 2.62 mobile phones. Given the average household size is about

seven members, it indicates that around one-third (37%) of residents own a

mobile phone.

Radio is a common method of communication in the affected communities

and each household own 1.8 radios. On average, all households own a

television (1.3 per household).

Road and Communication Network

Except for Eyotai and Uti Villages that can be accessed only by boat, other 61

villages can be accessible by land. Communities in the project affected area are

served by unpaved roads that link them to main roads to LGAs. The condition

of roads within the affected communities is generally considered by PAPs to

be ‘poor’, or ‘unsatisfactory’. Since commercial buses do not service the local

area, transport of goods and people out of the communities is either by private

cars, motorcycles, bicycles or wheelbarrows.

Motorcycles are the most common form of transportation used by local

residents and nearly each household (98%) owns at least one. Motorbikes are

used by local residents to access the main roads to LGAs, particularly when

the roads become impassable for cars. Wheelbarrows are used by the local

residents to carry goods within the local community. Bicycles are owned by

72% of households on average. Due to the poor condition of local roads, cars

and trucks are less common, owned by 16% of PAPs within the project-

affected area.

Water supply

The main sources of drinking water for affected households are streams

(96.4%) and boreholes (53.6%), supplemented by rain harvesting (46.4%) and

rivers (10%). Given that boreholes are located within village residential area,

from where the distance to the Project ROW is about 1km on average, the

pipeline installation may not affect community boreholes. None was

observed to be affected during the survey.

Approximately three-quarters (74.2%) of PAPs within the affected

communities indicated that there is a shortage of potable drinking water.

16.4% PAPs reported that the water is abundant as they have drinking water

sources in or near their homes (normally from boreholes). The average

distance to the drinking water sources is 944m, an estimated 30 minute round

trip to and from the water source.

Recreational Facilities

Communal places for recreational activities and meetings include town halls

and other structures, in many cases financed by oil and gas companies.

Almost all the affected communities have town halls or other structures for

holding meeting and recreational activities.


14

Educational Institutions

Nearly half (43%) of the consulted villages in the project affected area have a

primary school, while one quarter of villages have a secondary school and

kindergarten. There is no technical training school in the Project- affected area.

That may explain why professional or technical training levels in the project

affected area are low in the Project Area (see Section 2.3).

2.4 DEMOGRAPHICS OF AFFECTED HOUSEHOLDS

2.4.1 Household Income and Expense

Overview

This section presents details of the livelihood patterns of the 323 PAPs who

provided data during the socio-economic survey in April-May 2012. The

monthly income of PAPs ranges from N2,500 to N1,190,250 (see Figure 2.2)

while the monthly expense ranges from N1,900 to N795,000 (see Figure 2.3).

The mean monthly net income of the affected communities is N37,990 per

household.

Figure 2.2 Monthly Income Distribution (Unit: Naira, 2012)

Figure 2.3 Monthly Expenditure Distribution (Unit: Naira, 2012)

0%

20%

40%

60%

80%

100%

- 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Monthly Household Income

Per

cen

tag

es

Probability Distribution

Commulative Distribution

0%

20%

40%

60%

80%

100%

- 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

Monthly Household Expenditure

Per

cen

tag

es

Commulative Distribution

Probability Distribution


15

Income

Across the project affected area, major income of PAPs is land-based,

including farming, gardening, livestock and poultry breeding, fishing and

hunting, which accounts for 60.9% of total income. Although 65% of the

PAPs engage in some form of small business, however it only accounts for

29.1% of the total income.

Figure 2.4 Monthly Income Sources

Note: Financial subsistence includes government allowances and financial assistance from

family members or relatives.

Most households reported having a combined monthly income of over

N90,000 (USD564)(1). However 2.2% of affected households, with an income

below the national poverty line (N4,800 per month per household), are

considered to be impoverished under Nigerian standards(2). Using the World

Bank Poverty Line of (USD 1.25 a day per capita) (3), the proportion of affected

households living in poverty rises to 26.2%. Considering 70% of Nigerian

population are under World Bank Poverty Line (2007)(4), the affected people in

the Project-affected area have a higher average income than the national

average.

(1) Based on a currency exchange USD 1= Naira 159.6 as of 28 May 2012. (2) This equates the official poverty line in Nigeria. (3) The World Bank default poverty line of $38.00 per month at 2005 Purchasing Power Parity is the ’USD1.25 a day" line. (4) https://www.cia.gov/library/publications/the-world-factbook/fields/2046.html

23.5%

11.6%

8.0%

10.6%5.7%

29.1%

1.4%

6.3%

2.0%1.7%Farming

Gardening

Livestock breeding

Non-timber forest product

Fishing

Hunting

Wages

Small Business

Rental

Financial subsistence


16

Figure 2.5 Monthly Household Income Distribution

Note: The census indicated the average household size is seven members. In the context of the

affected communities, the World Bank poverty line is at N 41,895 per household, i.e. USD1.25

per person*7 persons per household *30 days per month* N159.6 / USD (exchange rate) =

N41,895 per household per month.

Expenditure

The largest average monthly spend of PAPs was reported to be food (23.7% of

total expenditure), production costs/agricultural inputs (15.5%) and education

(13.3%). Based on a sum of the items reported, the average total monthly

expenditure was N123,198 (USD 772) per household. Given there are seven

persons a household, the per capita daily expenditure is about USD 3. It

should be noted that there is evidence that incomes may have been

exaggerated during the process of socio-economic survey.

Figure 2.6 Monthly Household Expenditure

2.2%9.6%

14.4%

25.6%

48.1%

Below N 4,800

N 4,801 - N 20,000

N20,001 - N 41,895

N 41,896 - N 90,000

N 90,000+

18.5%

5.3%

21.3%

3.3%7.0%

8.3%

6.6%

6.7%

6.3%

12.5%

4.2% Production cost

Housing

Food

Energy

Civil affairs

Transportation

Telecommunication

Medical

Clothing

Education

Others


17

How to Use the Compensation

When asked how additional family money (eg. cash compensation from Septa

land use) is spent, almost half (45.9%) of PAPs want to build a house. The

other three proposed usages of the money include small businesses (19.9%),

family consumption (17.3%) and investment on agricultural production

(16.1%).

Figure 2.7 Money Usage of the Project Affected Households

2.4.2 Food and Nutrition

On average, PAPs eat fish 27 times per month, almost once per day. Meat is

consumed 15 times per month, or once every other day. Fish is common since

it can be caught from the rivers and streams in the local area. While the meat

is mainly pork brought form the market.

45.9%

16.1%

19.9%

17.3%

0.6%0.3%

Build a house

Invest in agricultural

production

Start a small business

Use it for family consumption

Debets

Medical treatment


18

3 PROJECT IMPACTS

3.1 PROJECT AFFECTED LAND


accommodate the pipeline and a further 10m for temporary use during

construction as shown in Figure 3.1.

Figure 3.1 Land Use Diagram

All information presented in this chapter was obtained through primary land

survey and asset inventory conducted in April-May 2012.

Table 3.1 presents details of affected land/water and number of affected

households. Acronyms used in the table include:

LGA: Local Government Area;

LA: Land Acquisition;

TLU: Temporary Land Use;

HH: Household

Table 3.1 Project Land Use

LGAs Villages LA

(ha)

No. of HHs

Affected by

LA

TLU

(ha)

No. of HHs

Affected by

TLU

Area of

Swamp

(ha)

No. of HHs

Affected

by Swamp

Esit

Eket

Akpautong 5.04 149 3.36 150 0.0040 5

Edida Edo 0.58 9 0.39 9

Edo Atai 0.63 6 0.42 6 0.0015 1

Etebi Akwata 1.54 5 1.03 5

Idung Assan Etebi 0.77 0.51

Idung Ita Etebi 0.75 16 0.50 16

TEMPORARY USE (10m)

NOT USED (5m)

PERMANENT RIGHT OF WAY (15m)

South Side of Survey Line

GAS PIPELINE

10

m1

5m

5m

North Side of Survey Line

Survey Marker

(cast concrete

20cm x 20cm

with center pole)

250m between

markers along

survey route


19

LGAs Villages LA

(ha)

No. of HHs

Affected by

LA

TLU

(ha)

No. of HHs

Affected by

TLU

Area of

Swamp

(ha)

No. of HHs

Affected

by Swamp

Esit

Eket

Idua Edo 0.35 3 0.23 2 0.0006 2

Idung Okpudo 1.81 6 1.20 6 0.0310 6

Idung Asua - Etebi 2.89 28 1.92 28 0.0048 4

Idung Ntia 0.17 2 0.11 2

Idung Udonsak 1.43 36 0.97 36 0.3585 2

Ikot Eyo Edo 0.43 12 0.26 11 0.1325 2

Mbakuyo-Etebi 3.08 38 2.20 43 0.0155 6

Odoro Ukuk 1.24 44 0.83 43

Odoro Nkit 1.32 20 0.93 21 0.0003 1

Oniok Edo 2.02 31 1.35 31 0.3750 5

Uqua Isi Edoho 0.78 28 0.52 28

Urua Okok 3.05 32 1.93 30 0.0003

Udung

Uko

Itak Ibang 0.45 0.30

Edikor Eyibia 2.14 1 1.43 1

Eniongo 2.01 28 1.35 29

Eyoebieme 0.23 0.15

Edikor Eyibia 1.28 1 0.85 1

Eyobisung 0.44 1 0.30 1

Eyoko 0.44 0.30

Edikor Eyokpo 0.53 1 0.35 1

Eyo Nsek 0.38 2 0.25 2

Eyotai 0.45 0.30

Eyo Ating 0.44 1 0.30 1

Eyo Ukpe 0.30 0.20

Eyo Uliong 0.38 0.25

Udung Adatang 0.45 1 0.30 1

Udung Otok 0.30 0.20

Udung Esio 0.30 0.20

Ukukim** 0.84 0.56

Usung 0.45 0.30

Urue

Offong

Edok 1.77 27 1.24 30 0.0010 1

Eyokwong 0.35 0.23

Eyobiassang 0.38 1 0.25 1

Oduonim Isong

Inyang 2.48 1.65 0.0800

Oduonim Oro 0.34 0.23

Ubodong 2.43 1.62 0.0450

Udung Ukpor 2.01 9 1.34 9

Udung Uwe 2.90 49 1.81 45 0.0875 1

Mbo

Akia Owu 0.94 30 0.60 26

Idung Ikpang 0.84 1 0.57 1 0.0002 1

Osu Udesi 1.21 0.69

Ubokpor Udesi 0.41 1 0.27 1

Isong Inyang

Udesi 0.45 2 0.30 2

Uko Itak Eyulor 2.33 2 1.55 2

Uko Itak Eyokpo 0.03 1 0.02 1

TOTAL 58.55 624 38.91 622 1.14 37

* The shaded area indicates villages which land/water are collectively owned by the

community.

** The asset inventory for the Ukukim Village Group refers to the communal assets shared by

the ten villages, i.e. Eniongo, Eyo Fin, Eyo Nsek, Eyo Ukpe, Eyo Uliong, Eyo Uwe, EyoAting.

Eyoebieme, Udung Esio, Udung Otok.


20

In total, 50 villages will be affected by permanent land acquisition within the

15m ROW; among them 16 villages collectively own the land (i.e. number of

affected household is not shown in Table 3.1). In addition 624 households

within 34 villages who individually own land will be affected.

50 villages will be affected by temporary land use by a 10m ROW, among

them 16 villages collectively own the land. In addition 622 households who

individually own land within 34 villages are affected.

Sixteen villages will be affected by loss of water area (swamps). Three villages

collectively own the swamp. In addition, 37 households in 13 villages will be

affected by the water use.

3.1.1 Affected Cultivated Land

Among affected project land, 21.91 ha is cultivated land with standing

crops/trees on top of it. Loss of cultivated land is presented as below.

Table 3.2 Affected Cultivated Land

LGAs Community Owned Individual Owned Total

Esit Eket 1.46 11.23 12.69

Udung Uko 0.42 1.59 2.00

Urue Offong 1.97 3.13 5.10

Mbo 1.38 0.74 2.12

Total 5.23 16.69 21.91

3.2 LOSS OF STANDING CROPS/TREES

Loss of standing crops and trees are presented in Table 3.3 and Table 3.4.

Table 3.3 Project Affected Crops and Swamp

No. Category Unit Affected Area

(ha)

1 Cassava ha 19.20

2 Coco Yam ha 0.11

3 Corn (Maize) ha 2.45

4 Melon ha 2.07

5 Pineapples Unit 545

6 Vegetables ha 0.58

7 Yam ha 0.26

Table 3.4 Project Affected Trees (Unit: Unit)

Economic Trees Category

Total Mature Immature Seedling

Hard Wood 5,342 7,907 13,249

Soft Wood 1,026 1,484 2,510

Palm Tree 10,679 12,264 206 23,149

Stakes 2,154 586 2,740

Mango Tree 130 36 166

Medicine Tree 2,653 460 3,113

Pear Tree 290 21 311


21

Economic Trees Category

Total Mature Immature Seedling

Banana (Plantain) 43 5 48

Total 22,317 22,763 206 45,286

3.3 AFFECTED SHRINES

In total 10 personal shrines, 20 family shrines and 87 village shrines will be

affected by the pipeline installation (see Figure 3.2).

Figure 3.2 Project Affected Shrines

3.4 LOSS OF OTHER ASSETS

Other assets affected by the ROW include 70m2 fish ponds, 12 fishing traps,

93 m2 temporary structure, two boreholes and one well.

3.5 CATEGORIES OF PROJECT AFFECTED PEOPLE

The socio-economic surveys conducted for the preparation of this RAP

established that there are five categories of affected people who will be

exposed to losses as a consequence of the Project’s land occupation, and who

will thus be eligible for some form of compensation and/or other assistance.

These categories are as follows:

1. Agricultural land occupier: customary right of land occupancy,

2. Crop / Tree Cultivator,


22

3. Owner of Structures / Assets

4. Individuals Dependent on Communally Held Lands Resources /

Assets

Note: In many cases, individuals may fall into more than one category.

For instance an individual may: (i) hold a customary right of occupancy over

agricultural land; and (ii) cultivate crops on that land. Accordingly, they would fall

into two categories: (i) agricultural land occupier: customary right of land occupancy;

and (ii) crop / tree cultivator.

3.5.1 Agricultural Land Occupier: Customary Right of Land Occupancy

Members of this group are formally recognised as holding a customary right

of occupancy over agricultural land within the ROW. The land that this group

occupies is largely arable, and is used to cultivate a range of crops for both

subsistence use and for sale.

3.5.2 Crop / Tree Cultivator

Members of this group cultivate crops / trees on the ROW, including yam,

cassava, plantain, maize, coco yams etc. This group may either be farmers who

work on the land to which they hold a customary right of occupancy, or they

may be sharecroppers who work land over which another individual owns

the customary right of occupancy. These sharecroppers typically work the

land according to an agreement under which they are able to retain a certain

percentage of the crops harvested.

3.5.3 Owner of Structures / Assets

Members of this group either occupy, or depend on an area of the land within

the ROW, and in turn own structures / assets there that will need to be

relocated. Such structures include shrines, chicken coops, etc.

3.5.4 Individuals Dependent on Communally Held Lands Resources / Assets

Sixteen villages claimed that land/water/assets were community owned.

These include 5.23 ha communal cultivated land, and 0.13 ha communal

swamps and 87 village shrines. Accordingly, the entire affected communities

are eligible for compensation entitlements.

3.5.5 Vulnerable Groups

Vulnerable groups are defined as those who, by virtue of gender, ethnicity,

age, physical or mental disability, economic disadvantage, or social status may

be more adversely affected by land acquisition than others, and who may be

limited in their ability to claim or take advantage of assistance provided by eth

project and related development benefits.

The socio-economic surveys identified the following vulnerable groups:


23

Women headed households without one or more family members of

working age in the household. Situated within a patriarchal society,

women tend to be prevented from participating in local decision-making.

They also tend to lack access to independent means of income generation.

The household survey identified 12 households within the group.

Households headed by disabled and/or elderly people (>60 years(1) )

without one or more family members of working age in the household.

Those with physical or mental disability and /or old age are typically

unable to access an independent means of income generation. 13

households were identified in this group.

Households living in poverty. Those with a combined household income

of less than 4,800 naira per month(2). 7 households were identified.

In total, 32 vulnerable households were identified, representing some 4.4% of

the total number of households affected by the Project. The vulnerable

household is listed in Annex A.

(1) This is the official retirement age in Nigeria. (2) This equates to the official poverty line in Nigeria.


24

4 LEGAL AND ADMINISTRATIVE FRAMEWORK

4.1 INTRODUCTION

This section provides a review of two Nigerian laws most relevant to land

acquisition of the gas pipeline, namely the Land Use Act (1978) and the Oil

Pipeline Act (1990), as well as a comparison between the Nigerian legal regime

for land acquisition and IFC PS 5.

4.2 LAND USE ACT, 1978

4.2.1 Background

Land use and ownership in Nigeria is governed by the Land Use Act of 1978.

Prior to the promulgation of the Act, there was a multiplicity of land tenure

systems in Nigeria with the Maliki Law system dominant in pre-colonial

northern Nigeria until 1910 when an Ordinance conferred on the colonial

governor control of all lands in that part of the country. In the remaining areas

of Nigeria, land was owned by extended families, lineages or whole

communities with the head of the families or communities having custodial

rights over land (1).

Under the differing land tenure systems existing before the Land Use Act,

particularly in southern Nigeria, individuals typically only had a right to use

communal or family land, either for a definite or an indefinite period. Such

usufruct rights could not translate into personal ownership of the land (2).

The land tenure system in existence before the Land Use Act encouraged

multiple sales of the same parcel of land to different people because of the

absence of a titling system or public record of extant land holdings. The land

tenure system in existence before the Land Use Act also made it difficult for

non indigenes and governments to acquire land for public infrastructure

projects, due to the customary reluctance of communities to cede ownership of

land to non natives.

With the promulgation of the Land Use Act, the ultimate title of all lands

situated in Nigeria now vests in the Governor of each State, in trust and for

the common benefit of all Nigerians. Ultimately, the Land Use Act was

promulgated to support fair and equitable access to land, and to encourage its

productive use through: (i) a system of registration of titles; (ii) placing a cap

on tenure of rights over land; (iii) the issuance of paper titles (Certificates of

Occupancy); and (iv) the institution of a regime of rents, fees and taxes (3).

(1) “Land Reforms in Nigeria: Progress, Problems & Prospects” A paper presented by Professor Akin Mabogunje,

Chairman Presidential Technical Committee for Land Reforms set up in April 2009.

(2) So held the Nigerian Supreme Court in the case of Ogboni V. Ojah (2003) 2NLLC pp 713-4.

(3) US AID. Nigeria Country Profile. 17 November 2010. Available at:

http://usaidlandtenure.net/usaidltprproducts/country-profiles/nigeria [Accessed 25.08.11].


25

4.2.2 Land Ownership and Use

The Land Use Act came into force on 29 March 1978 and replaced all pre-

existing land tenure systems throughout Nigeria. The Act essentially does

three things:

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.

It should be noted however that the effect of the Act was merely to put the

control and management of lands in to the hands of Government. This is

because the vesting of the ultimate title in the Governor in reality does not

completely obliterate the underlying interests in, and “native title” to, the

land, which still depends to a significant extent on customary practices (1).

Therefore, although section 1 of the Act vests legal title of all lands in the

territory of a state in the Governor, and section 5(1)(a) and 6(1)(a) empower

the Governor / Local Councils to issue statutory or customary rights of

occupancy, rights of land owning families and communities existing before

the promulgation of the Act were not abrogated. Section 34(2) and (5)(a) and

section 36(2) and (4) preserved these rights, albeit under a new nomenclature,

ie deemed statutory or deemed customary rights of occupancy. Therefore,

persons, families and communities owning or occupying land prior to the Act

automatically enjoy the status of deemed statutory or deemed customary

occupancy rights holders, and may or may not apply for the issuance of a

paper Certificate of Occupancy, or otherwise “perfect” / register their land

holding (see section 34 (3) and 36(2)).

In the purposes of this RAP, for simplicity, the occupancy right held by the

community and those receiving title from the community will be termed a

“customary right of occupancy”.

4.2.3 Compensation Provisions

When rights of occupancy are subject to revocation by “overriding public

interest”, holders of rights of occupancy are, under the Land Use Act, entitled

to compensation for the value at the date of revocation of their unexhausted

improvements (section 29). In other words, they are not entitled to

compensation for the land itself, but rather only to compensation for

(1) As acknowledged by the Nigerian Supreme Court in the case of Ogunola vs. Eiyekolo (1990) 4 N.W.L.R. (Pt.146) 632 at

632 per Karibi – Whyte, JSC.


26

improvements made to the land, such as standing crops, buildings, fences etc.

In addition, depreciation is taken into account in assessing the value of these

improvements. For individually-held land, the Act states that compensation

should be paid to the individual who holds the occupancy right. For

communally-held community land, 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)).

4.3 OIL PIPELINE ACT (1990)

The Oil Pipeline Act (1990) allows for licences to be granted for the

establishment and maintenance of pipelines incidental and supplementary to

oilfields and for purposes ancillary to such pipelines.

4.3.1 Permit to Survey

Section 4 (1) stipulates an application should be made to the Minister of

Petroleum Resources for the grant of a permit to survey the route for a gas

pipeline. Septa obtained the survey permit in January 2012 and completed the

survey in March 2011.

4.3.2 Oil Pipeline License

Following the survey, the project developer can apply to the Ministry of

Petroleum Resources for the Oil Pipeline License and such application should

be publicised in the State Gazette of each State, newspapers, posters and/or

other means along the proposed pipeline ROW.

A licence shall entitle the project developer to acquire or use temporarily a

ROW of a width not exceeding two hundred feet in order to construct,

maintain and operate an oil pipeline and ancillary installations.

Septa Energy completed the application for the oil pipeline license in line with

the Oil Pipeline Act and obtained the corresponding License on August 1st 2011

(see Table 4.1 and Annex B).

Table 4.1 Pipeline Land Right

Name of Document Date of Issue Government

Department Permit No.

Two year survey permit 12 January 2011 Department of

Petroleum

Resources, Lagos

Permit to Survey

No. 2714

Application for an Oil Pipeline

License

February, 2011 Minister of

Petroleum

Resources

Government Notice

No 464

No. 63, Volume 95,

23


27

Name of Document Date of Issue Government

Department Permit No.

Septa Energy Nigeria Limited

Application for an Oil Pipeline

License

March 2011 Ministry of

Petroleum

Resources

Akwa Ibom State

Notice No 56, No. 9,

Volume 25, 3

Submission of Preliminary Route

Survey and Request for Estimate

for Acquisition of Pipeline ROW

for Uquo-Usun (Near Oron)

14 April 2011 Septa

Public Hearing for the

Application of Pipeline Licence

11 May 2011 Ministry of Lands

and Town Planning,

Akwa Ibom State

Oil Pipeline Licence 1 August 2011 Minister of

Petroleum

Resources

Oil Pipeline Licence

No. 1429

4.3.3 Compensation

The Oil Pipeline Act requires the holder of a pipeline licence to pay

compensation to those affected. In summary:

Compensation is payable for damage to any buildings, crops or

plantations.

Compensation is payable for the loss in value of land.

No compensation is payable in respect of unoccupied land.

The loss in value of the land is equal to the difference between the value of the

land at the date immediately before the licence is granted and the residual

value of the same land at the date of the grant of the licence, if such residual

value is a lesser sum.

The provisions of the Land Use Act shall be applied in determining

compensation as far as they are applicable and not in conflict with any of the

requirements of the Oil Pipeline Act, as if the land were acquired by the

President for a public purpose.

Where the land affected is held by a local community, the compensation may

be paid to any chief, headman or member of that community on behalf of such

community, or paid in accordance with a scheme of distribution approved by

the court, or paid into a fund to be administered by a person approved by the

court on trust for application to the general, social or educational benefit and

advancement of that community or any section thereof.

4.4 IFC PERFORMANCE STANDARD 5

In addition to the need to adhere to Nigerian legislative requirements, the

Project will also seek to align with IFC PS 5: Land Acquisition and Involuntary

Resettlement (2012). The IFC PS5 provides a comprehensive framework for

resettlement planning and implementation, and is generally recognised as an

international benchmark for responsible land acquisition by the private sector.


28

4.4.1 Key Elements of IFC PS5

Full Replacement Cost

The principle of full replacement cost should be adhered to in assessing losses

and providing appropriate compensation measures. This principle can be

defined as the market value of the land / assets plus transaction costs. When

employing this method of valuation, depreciation should not be taken into

account.

Transitional Costs

In addition to providing compensation for loss of land and other assets, the

costs associated with the transition from one livelihood activity to another, or

any other income loss associated with the displacement process, should be

compensated. The provision of assistance with the relocation process itself,

or a cash amount to cover the costs of the physical move, should also be

allocated where necessary.

Eligibility

A broad approach to eligibility should be adopted. Those who have formal

legal rights to affected land or other assets and those who have customary and

traditional rights to the use of affected land or other assets should be eligible

for compensation, livelihood restoration and other assistance. In other

words, the absence of legal title to land or other assets is not, in itself, a bar to

compensation. In addition, encroachers, “squatters” or people who are

residing on or otherwise occupying land in violation of local or national laws

are also deemed as an eligible group in the context of compensation

provision(1) . While people who belong to this group should not be entitled

to compensation for loss of land, they should be provided with compensation

for any improvements made to the land (such as structures, crops and trees),

as well as to other assistance.

In-Kind Compensation

In-kind compensation (together with security of tenure for replacement

houses and land) should be provided in lieu of cash compensation where

feasible, and particularly for those who may lack experience with using cash

sustainably and productively. In-kind provisions should also be prioritised

in the context of replacing affected common property resources.

Livelihood Restoration (LR)

Means of income earning capacity, productivity levels and associated

livelihoods and standards of living should be at least restored to, and

preferably improved beyond, pre-Project levels. Indeed, the land acquisition

(1) IFC PS5 specifically states that “while some people do not have rights over the land they occupy, this Performance

Standard requires that non-land assets be retained, replaced, or compensated for; relocation take place with security of

tenure; and lost livelihoods be restored.” (Article No. 5, Footnote 8)


29

process should be managed as a development initiative, such that affected

communities are ultimately better off after Project implementation.

Disclosure, Consultation, Informed Participation

Land acquisition and compensation activities should be implemented with

appropriate disclosure of information, consultation and the informed

participation of those affected.

Vulnerable Groups

Those populations identified as vulnerable should be provided with extra

assistance to ensure that their vulnerability is not exacerbated.

4.4.2 Gaps between Nigerian Practice and International Standards

The main gaps between the local legal requirements and IFC PS5 regarding

land acquisition and associated activities can be summarised as follows:

Under Nigerian law, there is no requirement for the payment of

compensation for land per se by the acquiring authority because the rights

being revoked are occupancy rather than ownership rights.

Under Nigerian law, there is no requirement for public participation or

consultation during the land acquisition process.

Under Nigerian law, compensation is paid only for land improvements

and depreciation is taken into account, i.e. not provided on the basis of full

replacement cost.

In Nigeria, compensation does not have to be paid prior to the removal of

assets.

Under Nigerian law, there is no requirement for livelihood restoration /

improvement. There is also no requirement to manage land acquisition as

a development initiative.

In Nigeria, there is no requirement to compensate for transition costs

suffered as a result of the land acquisition process (eg temporary loss of

use of resources, title charges, re-connection costs, legal costs or

transactional costs, etc).

Under local law, there is no requirement for the provision of

supplementary assistance for vulnerable individuals and groups.

Table 4.2 provides further details of the gaps between Nigerian laws, IFC PS 5,

together with a description of the Project’s strategies to fill such gaps.

Note: Considering that little guidance exists on the detail of how local legislation

should be implemented and that there is significant variation in the way that local

legislation has been implemented in the past, the gap analysis draws only from what is

known to have been carried out in this particular Project context.


30

Table 4.2 Gap Analysis: IFC PS 5 and Local Requirements

Issue IFC PS5 Nigerian Legislation Project Position Regarding Gap

Project Design Feasible alternative project designs should be

considered to avoid or minimize physical

and/or economic displacement, while

balancing environmental, social, and financial

costs and benefits, paying particular attention

to impacts on the poor and vulnerable.

Local legislation does not mention the need to

avoid / minimise displacement. It requires the

revocation of rights of occupancy if the land is

required for overriding public interest.

Gap: Local law does not require the Project to avoid or

minimise displacement by seeking alternative Project

designs.

Project Position: Project has sought to minimise

displacement and documented this in Section 1.5 of

this RAP.

Livelihood

Restoration

Plan

If economical displacement is involved only, a

Livelihood Restoration Plan should be

prepared to address to compensate affected

persons and/or communities and offer other

assistance that meets the objectives of this

Performance Standard.

Local legislation does not require the

development of a Livelihood Restoration Plan.

Gap: Local law does not require the Project to

prepare a Livelihood Restoration Plan.

Project Position: The Project has prepared a RAP that

addresses both Nigerian standards and international

practice.

Census and

Asset

Inventory

Where involuntary resettlement is

unavoidable, a census will be carried out to

collect appropriate socio -economic baseline

data to identify the persons who will be

displaced by the project, determine who will

be eligible for compensation and assistance,

and discourage ineligible persons, such as

opportunistic settlers, from claiming benefits.

The census will establish the status of the

displaced persons.

A survey is required to record the position and

dimensions of the land parcel to be acquired, the

spatial relation to properties in the area, and a list

of communities on the property.

The enumeration process is asset driven and not

household driven. There is no particular format

which is currently used by the Land Department.

The process mostly comprises of generic

questions that are administered orally, and on the

basis of factual information and observations, the

entitlement for the families is suggested.

Gap: The requirement for a census and asset

inventory under international standards is more

comprehensive than the requirements under local law.

The level of detail of the information required under

international standards is greater than that required

under local law.

Project Position: A comprehensive census of affected

persons, socio-economic baseline survey and asset

inventory has been prepared for the Project.

Consultation

and

Participation

Ensure resettlement activities are implemented with appropriate disclosure of information, consultation, and the informed participation of those affected.

A notice of acquisition is usually prepared by the

Ministry of Lands, in conjunction with the survey

description. The notice is then published in two

newspapers (one national and the other local) and

the government gazette. This disclosure is not

however supplemented by any proactive

consultation or other participatory activities.

Gap: Local law does not require the Project to

undertake formal consultation with affected

communities, or ensure their participation in the land

acquisition process.

Project Position: Consultation with affected

communities has been undertaken regarding key

aspects of the land acquisition process. Consultation


31


for the RAP included scoping, ROW pre-mapping,

community notification letters, community town-hall

meetings, focus group discussion, socio-economic

surveys, and survey result disclosure processes. Key

aspects of the RAP will be disclosed in an appropriate

manner to affected communities.

Vulnerable

Groups

Particular attention will be paid to the needs

of the poor and the vulnerable.

Local law does not specifically address the

concerns of vulnerable groups in relation to land

acquisition activities.

Gap: Local law does not require the Project to pay

particular attention to the needs of vulnerable groups.

Project Position: Vulnerable groups have been

identified and will be registered for future livelihood

restoration monitoring. Specific measures for

compensation and livelihood assistance have been

developed, and specific funds will be allocated for this

purpose.

Compensation

– Full

Replacement

Cost, In-Kind

Provisions

and Security

of Tenure

Compensation for loss of assets at full

replacement cost and other assistance.

No compensation or assistance are required

for those who encroach on the project area

after the cut-off date for eligibility, provided

the cut-off date has been clearly established

and made public.

The compensation required under local legislation

covers only “unexhausted improvements” made

to the affected land in instances where occupancy

rights are subject to removal. Compensation takes

depreciation into account and market rates are not

employed as a basis for valuation.

Local legislation, while permitting in-kind

replacements, remains largely focused on cash-

based compensation.

Gap: The principle of full replacement cost is not

employed under local legislation and there is less of

an emphasis on the need for in-kind replacement.

Security of tenure is also not a local legislative

requirement.

Project Position: The Project has adopted the

principle of full replacement cost as the basis for

compensation for loss of assts.

Eligibility and

Entitlements

Displaced persons may be classified as

persons (i) who have formal legal rights to the

land or assets they occupy or use; (ii) who do

not have formal legal rights to land or assets,

but have a claim to land that is recognized or

recognizable under national law; or (iii) who

have no recognizable legal right or claim to

the land or assets they occupy or use.

All land rights constitute occupancy rights rather

than ownership rights and accordingly eligibility

for compensation for loss of land is non-existent.

Anyone possessing a statutory or customary right

of occupancy to affected land is only entitled to

compensation for “unexhausted improvements”

made to that land. Encroachers are not

recognised as an eligible group, and are thus not

entitled to any compensation provisions.

Gap: Eligibility criteria under local legislation are

narrower than that under international standards. In

particular, while statutory and customary occupancy

rights are recognised, compensation is not payable for

occupancy of the land. Encroachers are not recognised

under local legislation, whereas under international

standards such people are eligible for compensation.

Project Position: The Project will take a broad and


32


comprehensive approach to eligibility, treating

occupancy rights as ownership rights and

compensating accordingly. Other groups such as

encroachers are deemed an eligible group for the

purposes of compensation by the Project.

Cut-Off Date In the absence of host government

procedures, a cut -off date for eligibility

should be established.

Though a cut-off date is not written into local

legislation, discussions with the Ministry of Lands

suggest that there is a six week notice period

given prior to land being acquired by the Project.

This is not however a cut-off date in the formal

sense.

Gap: Under local legislation, there is no requirement

to set a cut-off date. Common practice is for this to be

set at the end of the survey and valuation process.

Project Position: The end of the survey and valuation

process was established as the cut-off date for the

Project.

Timing Possession of acquired land and related assets

should happen only after compensation has

been made available and, where applicable,

resettlement sites and moving allowances

have been provided to the displaced persons

in addition to compensation.

Local legislation suggests that compensation

should be paid within a reasonable time period.

Gap: While there is a suggestion in local legislation

that compensation should be provided in a timely

manner, there is no clarity as to what a timely manner

actually means.

Project Position: The Project will ensure that

compensation is made in full prior to land occupation

and removal of assets.

Grievance

Mechanism /

Redress

A grievance mechanism will be implemented

consistent as early as possible in the project

development phase, to receive and address

specific concerns about compensation and

relocation raised by displaced persons or

members of host communities in a timely

fashion, including a recourse mechanism

designed to resolve disputes in an impartial

manner.

Local legislation has no requirements to establish

a grievance mechanism. Disputes concerning

compensation shall be referred to the appropriate

Land Allocation Advisory Committee. Failing

this, recourse to court is possible.

Project Position: Local law does not require a

grievance mechanism to be established so that issues

regarding the Project or land acquisition can be

reported, recorded and addressed.

Project Position: The Project will implement a

grievance mechanism that will be accessible to PAPs.

Internal

monitoring

Monitoring procedures will be established to

monitor and evaluate the implementation of a

Livelihood Restoration Plan and take

corrective action as necessary.

Local legislation does not specify any monitoring

and evaluation requirements.

Gap: Local law does not require monitoring and

evaluation of livelihood restoration activities.

Project Position: The Project will establish systems for

monitoring and evaluation as proposed in this RAP.


33


Completion

audit

The completion audit should be undertaken

once all mitigation measures have been

substantially completed and once displaced

persons are deemed to have been provided

adequate opportunity and assistance to

sustainably restore their livelihoods. The

completion audit will be undertaken by

competent resettlement professionals once the

agreed monitoring period is concluded.

Local legislation does not require a completion

audit.

Gap: Local law does not require a completion audit.

Project Position: The Project will undertake a

completion audit as proposed in this RAP.


34

4.5 PROJECT LAND ACQUISITION STRATEGIES

The following underlying principles will guide planning and implementation

for all Project land acquisition and associated activities:

1. The Project will comply with the Land Use Act (1978) and the Oil Pipeline

Act (1990) and all other applicable Nigerian laws and regulations.

2. The Project will compensate affected persons for loss of assets at full

replacement cost.

3. The Project will treat occupancy rights as ownership rights for the

purposes of compensation and will compensate accordingly. The Project

will compensate the replacement cost for permanently acquired land.

4. Encroachers will be eligible for compensation of affected assets.

5. The Project will pay compensation in full prior to the occupation of land or

removal of assets.

6. The Project will implement livelihood restoration measures in order to

assist PAPs to restore incomes to pre-displacement levels.

7. Vulnerable groups will be identified, registered and their livelihood

monitored. Specific measures for compensation and livelihood assistance

will be developed and funded by the Project.

8. A grievance procedure will be accessible to all those affected by the

project.

9. The Project will establish systems for monitoring and evaluation

(including a completion audit) as proposed in this RAP.


35

5 INSTITUTIONAL ARRANGEMENTS

5.1 OVERVIEW OF THE LAND ACQUISITION, COMPENSATION AND LIVELIHOOD

RESTORATION PROCESS

Figure 5.1 represents a schematic flowchart of the project land acquisition

planning and implementation procedures.

Figure 5.1 Land Acquisition, Compensation and Livelihood Restoration Process

5.2 ORGANIZATION STRUCTURE

A Land Acquisition Committee will be formed to manage the compensation

and livelihood restoration (LR) processes. The Livelihood Restoration

Manager will head the Land Acquisition Committee. It is the responsibility of

the Land Acquisition Committee to implement the processes and

commitments detailed in this RAP, including the Grievance Procedure. The

Land Acquisition Committee will monitor the implementation of all activities

to ensure that this RAP is being implemented and that the outcomes are

consistent with the objectives of the RAP.

Scoping Land Acquisition Impacts

Community Pre-entry and Notification

Census, Land/Asset Surveys

GR

IE

VA

NC

E

RE

DR

ES

S

PR

OC

ED

UR

E

Griev

ance red

ress pro

cedu

re

PAPs

Project Monitoring and Evaluation

Septa

PAPs

LEGEND

Cut-off Date

Septa

CO

MM

UN

IT

Y

CO

NS

UL

TA

TI

ON

A

ND

P

AR

TI

CI

PA

TI

ON

Livelihood Restoration Plan

Compensation Entitlement


Costs and Budget Land Acquisition

Committee

Orientation of PAPs

Compensation Agreement and Payment

Livelihood Restoration Measures

Project Monitoring and Evaluation

Supplementary Survey of Unregistered Assets

Land Acquisition Committee

LRP Consultant

Completed Activity

Ongoing Activity

To be conducted


36

Figure 5.2 presents organisation structure of the Land Acquisition Committee.

Figure 5.2 Organisation Structure of Land Acquisition Committee

The Land Acquisition Committee will meet once a week for the first three

months of the land acquisition process. After this period, it is advised that

meetings are held on a monthly basis for an additional three months, and then

quarterly depending on the effectiveness of implementation and the scale of

outstanding land acquisition issues. A record of meetings and minutes should

be prepared, held and distributed by the Project RAP Manager.

Detailed Roles and responsibilities of each party are presented in Table 5.1.

Table 5.1 Roles and Responsibilities of Land Acquisition Committee

No. Organisation

Name Roles and Responsibilities

1 Septa Board of

Directors/CEO

Overall control of the implementation of RAP and grievance redress

procedure

Land Acquisition

Committee

Septa Team Government Team NGO

Board of Directors/ CEO

Livelihood Restoration Manager

Legal Manager

Ministry of Land

Financial Member

Livelihood Restoration Officer

Community Liaison Officers

Land Acquisition

Committee

Septa Team Government Team NGO

Board of Directors/ CEO

Livelihood Restoration Manager

Legal Manager

Ministry of Land

Financial Member

Livelihood Restoration Officer

Community Liaison Officers


37

No. Organisation


2 Land

Acquisition

Committee

coordinating and overseeing the land acquisition and compensation

process and all those participating in it;

interfacing with the Project in relation to engineering options, the

timing /phasing of the land acquisition and compensation process

facilitating all consultation and engagement activities with affected

communities;

approving compensation entitlements with affected communities

prior to disbursement;

budget control and formulating and operating compensation

disbursement mechanisms;

approval of dispute resolution brought to the Committee through

the Grievance Procedure;

approval of support and assistance to vulnerable groups;

facilitating livelihood restoration programmes to ensure that local

needs are met;

guiding the monitoring and evaluation process; and

reporting to the Septa Management Team. 3 Septa

Livelihood

Restoration

Manager

overseeing and coordinating all land acquisition and livelihood

restoration (LR) activities;

supervising all stakeholders (including Project staff, government

officials, contractors etc) who contribute to the process;

reporting directly to the Project Management Team;

chairing the Land Acquisition Committee;

evaluating Land Acquisition Committee performance and

providing constructive feedback.

4 Septa

Livelihood

Restoration

Officer

coordinating and overseeing the project in the field;

ensuring information sharing between the land acquisition team

and Project Management Team, as well as wider information

dissemination; and

acting as the “face” of the land acquisition and LR processes, being

perceived to be accessible and promoting trust and confidence as

the “go-to” person for any land acquisition or LR-related issues and

concerns.

5 Septa Legal

Manager

Providing legal advice, producing all agreements and monitoring

LR processes.


38

No. Organisation


6 Septa

Community

Liaison

Officers

Four Septa Community Liaison Officers will be employed by the Project

and will be responsible for direct engagements with the community

regarding land acquisition and compensation, dealing with day-to-day

community issues and for facilitating the grievance redress procedure in

each LGA. Key responsibilities include:

recording grievances, both written and oral, from the affected

people, categorising and prioritising them, and for resolving these

within an agreed timeframe;

reporting to the Land Acquisition Committee at each meeting on: i)

the number of grievances received since the previous Land

Acquisition Committee Meeting; ii) the number resolved since the

previous Land Acquisition Committee Meeting; and iii) The number

of grievances unresolved after 14 days that require intervention by

the Land Acquisition Committee .

informing the RAP Manager of any serious issues (eg security

issues, known or suspected corruption); and

maintaining contact with the aggrieved parties about developments

regarding their grievances and the decisions of the Land Acquisition

Committee.

7 Septa Financial

Representative

reviewing RAP cost and budget;

signing off RAP payment for compensation and livelihood

restoration;

supervising project compensation disbursement compliance; and

reviewing and signing off grievance redress measures.

8 Government

representatives

reviewing and commenting on the Project RAP;

signing off each household compensation matrix;

supervising project compensation; and

supporting project livelihood restoration measures,

9 Non-

governmental

organisation

(NGO)

The NGO will be selected by Septa and will act as an impartial third

party to facilitate the land acquisition and compensation process. Key

responsibilities include:

providing impartiality to the land acquisition and compensation

processes of disclosure, signature of compensation agreements and

compensation disbursement.

supporting the development of project livelihood restoration

measures based on the knowledge of local socioeconomic

conditions;

dispute resolution through the Grievance Procedures; and

supporting internal and/or monitoring and evaluation.

5.3 RAP HANDOVER

Handover of the RAP will be crucial to the effective delivery of the land

acquisition and livelihood restoration process. RAP Handover Training will

need to be provided to all members of the Land Acquisition Committee in

order to ensure that they fully understand the measures committed to in the

RAP, as well as the institutional setup and roles and responsibilities of all of

the stakeholders involved in the process.


39

5.4 GRIEVANCE MECHANISM

5.4.1 Potential Grievances and Disputes

The grievance redress procedure provides a mechanism to mediate conflict

and cut down on lengthy litigation, which often causes delays in

infrastructure projects. There is the possibility that grievances and disputes

may arise during land acquisition and compensation, resulting from the

following:

Disputes or errors made during surveying, census and valuation of assets;

Disputes or errors related to identification of land boundaries;

Disputes or errors related to land ownership and asset valuation;

Family issues resulting in ownership or share disputes;

Disputed ownership of assets by different individuals;

Delays in disbursement of compensation or assistance; and

Community complaints or claims for compensation in relation to pipeline

construction.

5.4.2 Procedure for Grievance Redress

The Grievance Procedure is shown in Figure 5.3.


40

Figure 5.3 Septa Grievance Redress Procedure

Grievances Identification

Lodgement of Grievances

Acknowledging Receipt of Grievance

Development of Response

Communication with Complaint

Is the complaint satisfied with the solution?

Redress through Joint Decision with the Complaint

Redress through Government Mediation

Redress through Legal Arbitration

Closure of Grievance

14 days

No

Yes

Yes

Yes

No

No

Yes

CLO

CLO

CLOSepta Energy

CLO


Septa Energy


CLO

Complaint

Village Head

Complaint

CLO

1 day

1 day

1 day

7 days

1 day

3 days

7 days

7 days

Grievances Identification

Lodgement of Grievances

Acknowledging Receipt of Grievance

Development of Response

Communication with Complaint

Is the complaint satisfied with the solution?

Redress through Joint Decision with the Complaint

Redress through Government Mediation

Redress through Legal Arbitration

Closure of Grievance

14 days

No

Yes

Yes

Yes

No

No

Yes

CLO

CLO

CLOSepta Energy

CLO


Septa Energy


CLO

Complaint

Village Head

Complaint

CLO

1 day

1 day

1 day

7 days

1 day

3 days

7 days

7 days


41

6 PARTICIPATION AND CONSULTAITON

6.1 INTRODUCTION

6.1.1 Objectives

The objectives of consultation with affected communities are to:

Inform affected persons about the project and how it will affect them (1).

Identify the interests, concerns and needs of affected persons.

Seek input from affected persons in the planning process (e.g. regarding

preferred compensation options and livelihood restoration).

Provide feedback to affected persons on how their concerns and needs

have been addressed in the land acquisition and livelihood restoration

(LR) planning process.

6.1.2 Stakeholder Identification

The main stakeholders in the land acquisition process include:

Village organisations, including village chief, village council, youth group,

and women’s group.

Project affected communities and persons in the following categories:

Those to be affected by permanent land acquisition within the 15m

pipeline corridor; and

Those to be affected by temporary land use within the 10m corridor.

6.1.3 Methodology

Consultation with PAPs is conducted via the following mechanisms:

Step 1: Community pre-entry notification;

Step 2: Town hall meetings and focus group discussions at the village

level;

Step 3: Consultation during RAP surveys;

Step 4: RAP disclosure;

Step 5: Disclosure of survey data;

Step 6: Orientation of PAPs;

Step 7: Compensation agreement and disbursement; and

Step 8: Grievance redress.

Major activities of each step are described in Table 6.1.

(1) IFC’s Performance Standard 5 requires that individuals and communities directly affected by land acquisition and resettlement

should have the opportunity to participate in the negotiation of compensation packages and consultations regarding eligibility

requirements, resettlement assistance, suitability of resettlement sites and the timing of resettlement activities.


42

Table 6.1 Participation and Consultation Methodology

Step # Name Activity

Step 1 Pre-entry Notification A Project Briefing Letter is written to the Village Chief of

affected villages and copied to the Village Council, Youth

Union, and Women Union. Four letters in total for each

village. A date for the proposed village town-hall meeting

will be specified in this letter (normally within seven

days).

A Project Briefing Letter is written to LGA Officers,

notifying the LGA of the arrangements for RAP surveys.

Step 2 Village Town-hall

Meeting

Introduce the project to all village members;

Explain the need for and extent of temporary and

permanent land occupation by the Project. Coloured land

acquisition diagrams were used to facilitate the process.

Brief PAPs on the purpose of RAP field surveys;

Request support for clearance of access road and

demarcation of village boundaries;

Agree on a date to carry out the detailed RAP surveys

(normally within three days); and

Conduct village mapping, profiling and consultation

through structured interviews, focus group discussions

and site reconnaissance investigations.

Step 3 RAP Survey Conduct face to face household socio-economic surveys;

Conduct land survey, census and asset inventory; and

Collect interests, concerns and suggestions of affected

persons.

Step 4 RAP Disclosure Publicize draft RAP to the affected community; and

Collect interests, concerns and suggestions from affected

persons.

Step 5 Supplementary

Survey of

Unregistered Assets

Conduct verification survey if questions on the survey

results are raised including claims for unregistered assets

or losses.

Step 6 Orientation of PAPs Provide financial advice to PAPs, including information

on risks (theft, fraud), options for securing funds (e.g. use

of bank accounts), sensible expenditure (purchase of

seeds, fertilizers, agrochemicals) and opportunities for

investment (real estate, trade, agriculture).

Step 7 Compensation

agreement and

payment

Sign compensation agreement with affected communities

and households

Pay compensation to the affected communities and

households based on compensation; and

Conduct livelihood restoration measures as agreed with

the communities.

Step 8 Grievance Redressing Collect, record, administrate and redress grievances raised

from the affected communities throughout the entire land

acquisition and LR process.


43

6.2 PARTICIPATION AND CONSULTATION UNDERTAKEN TO DATE

Consultation with the affected communities that were carried out during the

RAP process are summarised in Table 6.2.

Table 6.2 Consultation Activity Conducted to Date

Date Major Task Major Concerns / Suggestions

Raised by the Affected Community

21-25 February 2012 Scoping to identify project affected

community and confirm the necessity of

physical displacement.

Limited project information has

been disseminated to the affected

community.

15-18 March 2012 RAP Pilot Survey to test survey

methodology and materials in the target

village.

Formal village pre-entry

processes are required prior to

the RAP survey.

There has been no government

process of publicising survey

results to affected community.

27 March – 4 April

2012;

10-14 April 2012

Right of Way (ROW) mapping and mark

up to demarcate pipeline ROW and confirm

the extent of the affected community.

Some villages have boundary

disputes. Caution should be

taken during future consultation

and surveys.

10-14 April 2012 Distribution of village pre-entry letters.

Agree on village town-hall

meeting date.

16-21 April 2012 Conduct village town-hall meetings, village

mapping and focus group discussions.

Some villages have internal

disputes on land/asset

ownership, boundaries, and have

asked for signature of MoU.

23 April – 21 May

2012

Conduct RAP survey including household

socio-economic survey, land survey, census

and asset inventory.

Some villages have retained their

own evaluators to supervise the

survey.

Affected communities expressed

interest in knowing the exact

compensation entitlement and

rates.

12-27 June 2012 Disclosure of RAP, project land

acquisition and livelihood restoration

strategies were disclosed to PAPs

through town hall meetings, including

policies, entitlement, compensation

rates and implementation plan.

State government claimed to

have land ownership on the

Forest Reserve.

Figure 6.1 presents some photos from the consultation process. Sampled

attendant lists of community meetings are presented in Annex E.


44

Figure 6.1 Community Consultation and Participation, April-May 2012

Consultation Meeting in Eyobioasang Village Consultation Meeting in Osu – Edesi Village

Outside of a Consultation Meeting in Udung

Ikpang Village

Explanation of ROW Land Take in Adaha Ofriyo

Village Town Hall Meeting

Idung Asua Village Town Hall Meeting Town Hall Meeting in Eyobioasang – Oruko

Village

Disclosure Town Hall Meeting in Esit Eket LGA Disclosure Town Hall Meeting in Esit Eket LGA


45

6.2.1 Concerns of PAPs

Concerns collected during the consultation process are grouped into three

categories:

Concerns over compensation and payment disbursement;

Expectations for livelihood restoration measures; and

Environmental, health and safety (EHS) concerns over project

construction/operational activities.

Concerns over Compensation and Payment Disbursement

PAPs want to know the exact compensation entitlements and rates, and

when the payments will be made.

Compensation for shrines should include the ceremonies for the

appeasement of deities.

Women in some communities claimed that they were not allowed to enter

the ROW to identify their crops during the survey.

Affected residents expressed distrust with village leadership and

requested Septa to engage them directly during each phase of the land

acquisition and compensation process. In particular they requested that

compensation be disbursed to affected owners directly.

PAPs feared that Septa might use more land beyond the specified 25m

ROW corridor. They complained that another operator did so when

acquiring land at Edo, and did not pay community members for the

additional land take.

PAPs feared that Septa may use land beyond the period of 1.5 years for

which PAPs are eligible for compensation. They requested that the entire

ROW be acquired on a permanent basis (including the 10m ROW that will

be compensated on a temporary basis).

Some PAPs expressed a preference to change permanent land acquisition

to temporary land use hence can obtain compensation on an annual basis.

Some PAPs claimed that there were mistakes made during surveying, e.g.

same survey control number was given to two PAPs.

The Forestry Department in the Akwa Ibom State Ministry of Environment

claimed that the Forest Reserve belonging to the State Government

(stretching from Edo to Mbak Uyo) was wrongly assessed as a community

asset and claimed that compensation should be paid to the Government

and not to claimants/communities.

Expectations on Livelihood Restoration

PAPs expected some local employment of labour during pipeline

construction.

The youth expressed that they wanted technical training in pipeline

welding to enable them acquire employable skills.

Fishing communities feared that Septa activities would damage their

livelihood activities by silting fishing sites, hence they want Septa to

control wastewater discharge to minimise siltation and provide fishing

communities with alternative livelihood options.


46

Women wanted Septa to engage them directly on issues related to their

own welfare, not through the men. They required livelihood support on

vocational training for young girls, adult education, and palm processing

mills.

PAPs were concerned that their children would not benefit from the

development after the land acquisition, citing an example of abandonment

of a coal mine that impoverished the local community that depended on it.

PAPs suggested that CLOs should be recruited from local affected

communities that could represent the interest of local people.

EHS Concerns over Project Construction and Operational Activities

PAPs raised concerns on how Septa intended to dispose the waste, tree,

stumps and silt generated during the pipeline processing.

Udung Ikpang and Idung Assua communities requested Septa to install a

borehole to ease water related challenges.

PAPs were concerned about long term plan for maintenance of the

pipeline in order to avoid leakages and fire.

The farmers wanted to know whether they are safe to continue with their

bush burning method before planting.

Community concerns directly related to the land acquisition and livelihood

restoration process are incorporated into the project compensation and

livelihood planning and those related to EHS issues will be passed to Septa as

community grievances.

6.3 INCORPORATING CONSULTATION INTO LAND ACQUISITION PLANNING

Through the RAP consultation process, the RAP Project Team was able to

refine the land acquisition planning details to address the concerns of local

residents, including:

Refine the project information disclosure and consultation process by

incorporation of an additional process of village pre-entry sensitization(1)

and using printed ROW land acquisition diagram to help affected

communities understand the scope of project land occupation and to

organise resources to assist the subsequent surveys.

Inclusion of the public disclosure of survey results into the RAP process so

that the affected community can verify the survey results and minimise

the potential that land and/or assets of vulnerable groups are claimed by

other persons.

In addition to the disclosure of survey results, project compensation rates,

entitlement, timing and procedures of payment disbursement will be

disclosed to PAPs prior to signature of compensation agreement.

Project construction activities will be confined in the project ROW. Any

land/water use beyond the ROW will be recorded, surveyed and

compensated in line with requirements/procedures defined in this RAP

report. If the temporary land use in the 10m ROW exceeds 1.5 years,

(1) Sensitization activities include introduction of the entry purpose, paying respects to the village head, village

organisations and villagers and obtain preliminary consent for formal entry by subsequent consultation/survey activities.


47

compensation will be paid for the PAPs in line with the entitlements

specified in this RAP.

Ceremony cost of the shrine is included into the compensation entitlement.

At least one Septa CLO will be women to address concerns of women not

being able to enter the ROW during the valuation survey and not being

appropriately represented by men. During livelihood restoration planning,

focus group discussion with women will be held separately to address

women’s need for income restoration.

CLOs should be recruited from local affected community, wherever

possible.

The project may consider compensating PAPs in multiple tranches rather

than a one-off cash payment. Compensation can be paid annually plus

interest. This decision has to be made jointly with the PAPs and affected

communities.

Claims relating to survey mistakes will be addressed through the

grievance procedure. Septa will work with Forestry Department in the

Akwa Ibom State Ministry of Environment to understand the ownership

of the Forest Reserve and make compensation accordingly.

The project will pay compensation directly to individual household

without going through village leadership or local government. This

message will be reinforced to the affected community during the

disclosure of survey results and compensation agreement signature.

The project has developed and will implement a preferential employment

policy for using local labours during the pipeline construction.

According to IFC PS5, some suggestions on livelihood restoration such as

job training are not strictly within project obligations for the land

acquisition and compensation; however the project may include those into

the community MoU to benefit local communities.

Project related EHS concerns will be addressed by Septa EHS department

outside of the RAP process, probably including project EHS information

disclosure.

6.4 FUTURE PARTICIPATION AND CONSULTATION PLAN

Future participation and consultation that are required during RAP

implementation are summarised in Table 6.3.

Table 6.3 Future Participation and Consultation Plan

Date Activity Expected Outcome

June 2012 Septa Energy to pay formal village pre-entry

visits to affected communities.

To pave the way for access to negotiate

land use and compensation

agreements.

July 2012 Septa to conduct supplementary survey of any

unrecorded assets

To verify that survey results are

accurate.


48

Date Activity Expected Outcome

July 2012 Septa to conduct orientation courses for PAPs

to train them on financial management.

To enable the smooth process of

compensation payment.

July-September

2012

Signing compensation agreements with

affected households and villages. The

survey form and entitlement matrix will

form an annex to the contract to verify the

amount for compensation.

Pay compensation to the affected

households and villages at the agreed

rates. Land access for pipeline installation

may commence upon compensation

disbursement.

Compensation agreements with

affected households and villages.

Compensation disbursement to

affected communities.

August 2012 –

December 2013

Implement livelihood restoration measures Restore income of PAPs

June-December

2012

Monthly RAP implementation monitoring. Monitor the land acquisition progress

and outcomes and to propose

corrective actions if necessary.

January-June

2013

Conduct bi-monthly RAP implementation

monitoring.

Monitor the land acquisition progress

and outcomes and to propose

corrective actions if necessary.

December 2013 Conduct RAP implementation M&E. Monitor and evaluate the outcomes of

the LR plan and propose corrective

actions if necessary.

May 2014 Conduct Completion Audit. To close out the Projects

responsibilities to affected persons and

communities under the RAP and to

conclude the land acquisition process.


49

7 COMPENSATION AND INCOME RESTORATION

7.1 INTRODUCTION

The Project compensation entitlements have been developed based on the

project land acquisition principles (refer to Section 4.5) in accordance with the

requirements of local Nigerian Law.

7.2 ELIGIBILITY AND ENTITLEMENT CRITERIA

7.2.1 Nigerian Legal Requirements

Local legislation delineates two forms of land rights: (i) statutory rights of

occupancy; and (ii) customary rights of occupancy, which recognises that both

these rights of occupancy can be held either by individuals or communities. In

other words, both statutory rights of occupancy and customary rights of

occupancy are recognised, but no individual, household or community has the

right to own the land that they occupy. Accordingly, when this land is subject

to removal for “overriding public interest”, compensation is not required for

the loss of the land itself, but rather only for “unexhausted improvements”

made to the land. In addition, other forms of land occupancy, such as

encroachment, are not at all recognised under local legislation, and thus when

encroached land is removed for overriding public interest, no compensation is

provided to the encroacher.

7.2.2 International Standards

PS 5 provides broader eligibility and entitlement criteria than those under

Nigerian legislation. Firstly, statutory and customary rights of occupancy are

understood as ownership rights for the purposes of compensation. In other

words, the absence of statutory or customary ownership rights is not in itself a

bar to the provision of compensation for loss of land, assuming that some

form of occupancy right is held for the land. In addition, under PS 5, and

unlike under local legislation, encroachers, “squatters” or people who are

residing on or otherwise using or occupying land in violation of local or

national laws are also deemed as eligible groups in the context of eligibility for

compensation. They are not entitled to compensation for the loss of the land

itself, but they are entitled to compensation for any improvements made to

that land, as well as assistance if they occupied the ROW prior to the

established cut-off date.

7.2.3 Summary

Table 7.1 provides a summary of the differences in eligibility and entitlement

criteria between local legislation, and IFC PS 5.


50

Table 7.1 Comparison of Eligibility and Entitlement Criteria

Group Nigerian Legislation IFC PS5

Holder of a statutory right of Occupancy

Eligible for compensation as a

land occupier but not as a land

owner

Eligible for compensation as

for land owners

Holder of a customary right of occupancy

Eligible for compensation as a

land occupier but not as a land

owner

Eligible for compensation as

for land owners

Encroacher

Not eligible for compensation Eligible for compensation as

for land occupier but not as a

land owner

The Project has agreed to adhere to both local legislation and the more

comprehensive eligibility and entitlement criteria of IFC PS5, as outlined in

more detail in the following sections.

7.3 COMPENSATION REQUIREMENTS

7.3.1 Local Requirements

According to the Nigerian Land Act and Oil Pipeline Act, the owner and

occupier are not entitled to compensation for the land itself, but rather only to

compensation for improvements made to that land, i.e. the loss of land value.

For individually-held land, the compensation should be paid to the individual

who holds the occupancy right. For communally-held community land, where

occupancy rights are not claimed by any one individual, 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.

For gas pipeline projects, the value of unexhausted improvements is

compensated according to a schedule of rates issued by the Oil Producers

Trade Section (OPTS). The OPTS was developed in the wake of differences in

the rates applied by the States within the South-South Geopolitical Zone and

other oil producing states of Nigeria (comprising Edo, Rivers, Bayelsa, Cross

River, Ondo, Imo, Akwa Ibom and Delta States). The objective of applying

OPTS rate is to harmonise compensation rates for these areas, even though

some of the States have gone ahead to review their internal rates. The latest

OPTS compensation rates were those published in 2003.

Two years of OPTS rates were developed; Akwa Ibom State updated its

compensation rates for land acquisition in January 1st 2005, probably to meet

its own internal objectives of land governance.

The above compensation provisions (a) take depreciation into account; and (b)

do not employ market rates as a basis for compensation, therefore are lower

than those required by IFC PS 5, as outlined below.


51

7.3.2 International Requirements

IFC PS 5 requires the following:

Compensation for loss of land. For those holding customary rights of

land occupancy, the provision of compensation for improvements made to

the land should be supplemented by the provision of compensation for the

loss of land itself.

Full replacement cost. The principle of full replacement cost should be

adhered to in assessing and compensating for loss of land and assets. This

principle can be defined as the market value of the land /assets plus

transaction costs. When employing this method of valuation, depreciation

should not be taken into account.

Income restoration measures: if land-for-land compensation is not

available, alternative income earning opportunities may be provided, such

as credit facilities, training, cash, or employment opportunities.

7.3.3 Project Approach to Compensation

Compensation for Permanent Land Acquisition

For permanent land acquisition, compensation for the land will be paid at full

replacement cost. For cultivated land, this includes:

Market value of the land;

Improvements to the land as defined by Nigerian law;


Transitional support for loss of income during the period before

replacement land is available. This is to be calculated based on an estimate

of a reasonable time required to restore income earning capacity,

productivity levels and associated livelihoods.

Visual assessment and village consultation prove land is available within the

local area, the cash compensation will allow affected households to purchase

new land for farming.

For non-cultivated land, compensation will be paid at the market value of the

land only.

Compensation for Temporary Occupation of Cultivated Land

For temporary occupation of cultivated land, compensation will include:

Land rental for 18 months when the land is required for construction;

Improvement of the land as defined by Nigerian law;


Transitional support for loss of income before the land is restored to its

previous productivity level and associated livelihood.


52

For non-cultivated land, compensation will be paid for 18 months’ rental only.

Compensation Rate for Assets

The Project will adopt the highest compensation rates among Akwa Ibom

State government rates, OPTS rates and market prices for each affected asset.

The compensation rates will be applied consistently across the four LGAs.

Physical and Cultural Property

Cultural property that will be affected by the Project includes sacred forest

and shrines. Wherever possible, disturbance to sacred sites will be avoided. It

is likely however, that shrines will need to be relocated before pipeline

construction commences. In these cases, cash compensation will be paid to the

families and priests are to conduct required ceremonies to move the shrines.

In addition, a cash amount to cover physical relocation costs of the shrines will

be provided. Construction will not commence until these ceremonies have

been completed.

Compensation for Water Bodies

Cash compensation will be provided for:

1) Unmovable fishing traps and nets at market value; and

2) Transitional allowance for loss of income from swamps.

Vulnerable Groups

Particular attention is being given to the needs of vulnerable groups in the

context of compensation. Based on consultation with those households

identified as vulnerable, an appropriate additional transitional allowance will

be determined, and distributed to these households, in monthly instalments,

over a six month period.

Claims for assistance for vulnerable groups will be approved by the Land

Acquisition Committee.

7.3.4 Valuation Method

The valuation process was as follows:

Each class of tree type was counted individually.

With regards to crops, tape measurements were used to determine the

crop plantation area held by the claimant.

Photographs of both the claimant and the assets were taken.

The GPS coordinates of each asset were recorded.

All survey data was recorded in individual Land/Asset Survey Sheets.

Each Sheet was then individually endorsed by the relevant claimant and

the surveyor. This endorsement was witnessed by the Chief

Representatives.


53

To ascertain the current market value of crops and trees, the “investment”

approach will be used. This method involves the determination of the

opportunity cost of the rights of the claimants to the incomes from their

individual farms and plantations throughout the land acquisition period. To

arrive at the rates for each of the identified crops / trees the following process

will be followed:

Determine the total yield of product per tree / crop type.

Establish the market price of the product.

Establish the market costs of seedlings and add this to the total loss.

Multiply the resulting total by the number of crops / trees assessed for

each claimant.

The survey categorised each crop / tree into mature, immature and seedling.

Mature were those that were about to or had started bearing fruits, while

immature were those that had not started bearing fruits but were older than

seedlings. These categories will then be subject to consideration as follows:

Matured tree: 100% of the market value;

Immature tree: 50% of the market value; and

Seedling: 25% of the market value.

Supplementing the above values, the following entitlements will also be

factored into the final compensation provisions as shown in Table 7.2.

Table 7.2 Compensation Provision

Name Rate / Unit

(N) Amount

Land Improvement

50 / m2

Costs of agricultural inputs including

fertilizers/pesticides/herbicides

Clearance Allowance 30 / m2 Cost of labour involving in clearing land

Land rental for

Temporary Land Use 28/ m2 / year

Averagely 7% as annual return for

agricultural land uses, multiplying land

market value of 400/m2.

Transitional Support for

Loss of Income from

Cultivated Land

80/m2

Loss of income for two farming seasons

within one year, using cassava as a common

crop.

Transitional Support for

Loss of Income from

Swamp

46/m2 Loss of fishing yield from the swamps within

1.5 year.

7.4 LIVELIHOOD RESTORATION STRATEGIES

Given the demand from PAPs for livelihood restoration (see Section 6.2.1), the

Project will endeavour to restore, and preferably improve, the income earning

capacity of PAPs.

Specific livelihood restoration strategies are to be determined in consultation

with affected people. These will include the following:

Land-based schemes to improve agricultural income. An intensive

agricultural development programme including: (i) the provision of crop


54

seeds or tree seedlings to PAPs for free; and (ii) the provision of training

(perhaps through the employment of an Agricultural Extension Officer) to

enhance farming skills and to encourage the use of innovative farming

methods. Other key forms of support will focus on agricultural

intensification, better storage techniques and adding value to agricultural

produce.

Wage-based schemes. The immediate opportunities that can be provided

by Septa Energy include unskilled labour required for pipeline

construction. This will require coordination with the pipeline installation

contractor. The Project will also ensure that local expectations about

Project employment are carefully managed and not raised to an unrealistic

level.

Community transportation infrastructure schemes. Small business

accounts for approximately 30% of local income. The improvement of road

access will assist income and livelihood restoration. The Project will

address transportation infrastructure needs for local communities,

including improvements to roads and access to water. Coordination with

the Local Government Authorities will be important to ensure that these

facilities are staffed and maintained after an initial investment by the

Project.

Particular attention will be given to meeting the livelihood restoration needs

of vulnerable households. In particular, these households will be prioritised in

relation to the provision of: (i) skills training; and (ii) Project employment.

The livelihood restoration compensation for each village will be calculated

based on the compensation to transitional allowance for loss of income

resulted from loss of land/water within the ROW as shown in Table 7.2.

Livelihood restoration will not be paid cash but by carrying out livelihood

restoration measures as shown above to PAPs in each village/community. If

communal land is affected, the livelihood restoration measures will cover the

entire population of the community.

It must be made clear that only those directly affected by project land use are

eligible for compensation for loss of land or assets and livelihood restoration.

However, the Project is considering wider community development

provisions that will be made available to both displaced persons and to the

broader community through Village MoU. In addition, the project

consultation finds out that the youth, fishermen and women of affected

community suggest that they want to undertake certain job training to

improve their employment skills and income level. These requests may be

considered and addressed through village MoU.

7.5 ENTITLEMENT MATRIX

The entitlement matrix for the Project is presented in Table 7.3. Templates of

compensation matrices for community and affected individual households are

presented in Annex C.


55

Table 7.3 Entitlement Matrix

Affected

People

Category

Type of Loss

Nigerian Government

Compensation

Provision

Project Entitlement Eligible Group

Agricultural

land occupier

(customary

right of land

occupancy)

Permanent

Acquisition of

15m ROW

No compensation for

the loss of land itself

Compensation of land at market value, N420/m2.

Land owner

Permanent

Acquisition of

cultivated land

within 15m

ROW

Land improvement only

1) Cash compensation for land improvements (as defined by Nigerian law), N50/m2

based on costs of agricultural inputs (fertilizers/pesticides/herbicides) expressed

per m2.

2) Clearance allowance in cash to prepare replacement land for farming, N30/m2

based on costs of clearing each square meter of land.

3) Transitional support for loss of income for one year, N80/m2, based on the

anticipated loss of income for two farming seasons (cassava adopted as common

crop). This is not paid in cash but through livelihood restoration programmes.

Land user (i.e.

people who are

farming the land, if

different from the

land owner)

Temporary use

of Land of

cultivated land

within 10m

ROW

None 1) Land rental (i.e. loss of income) for an 18 month period to allow construction,

based on local rental value of the land for a period of 1.5 years at N42/m2;

2) Improvement of the land as defined by Nigerian laws, N50/m2 based on costs of

agricultural inputs (fertilizers/pesticides/herbicides) expressed per m2;


based on costs of clearing each square meter of land; and




Land user (i.e.

people who are

farming the land, if

different from land

owner)

Crop/tree

cultivator

Standing

crops/trees

Cash value of the standing crops and trees, as per government or OPTS rates.

Cash compensation paid at the higher value of: i) market price, ii) Government rates;

and iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D.

Crop/tree owner


56

Affected

People

Category

Type of Loss

Nigerian Government

Compensation

Provision


Asset Owner Structures and

asset

Cash value of the asset, as per government or OPTS rates.

Cash compensation paid at the higher value of: i) market price, ii) Government rates;

and iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D.

Asset owner

Shrine Owner Cultural

Property (i.e.

shrines)

Cash value of the shrine, as per the government or OPTS rates

Cash compensation will be paid at full replacement value, including cost for

ceremonies and relocation, N60,000 for personal shrines and N180,000 for family

shrines.

Shrine owner

Water User Water surface

(incl. swamp)

Cash value of unmovable traps and nets only

1) Cash compensation for unmovable traps and nets based on market value, N50,000

per unit.

2) Transitional support for loss of income, N46/m2, based on the anticipated loss of

fish yield from the swamps and water rental for 1.5 years.

Water user

Community

Members

Dependent on

Communally

Held Lands

Resources /

Assets

Permanent

Acquisition of

15m ROW

No compensation for loss

of land

Compensation of land at market value, N420/m2.

Community

Permanent

Acquisition of

cultivated land

within 15m

ROW

Land improvements only

1) Cash compensation for land improvements (as defined by Nigerian law), N50/m2;

2) Clearance allowance in cash to prepare replacement land for farming, N30/m2.




Community

Temporary use

of Land of

cultivated land

within 10m

ROW

None 1) Land rental (i.e. loss of income) for an 18 month period to allow construction,

N42/m2;

2) Improvement of the land as defined by the Nigeria laws, N50/m2;


based on costs of clearing each square meter of land; and




Community


57

Affected

People

Category

Type of Loss

Nigerian Government

Compensation

Provision


Communal

asset, crops and

trees

Cash value of the asset, as per the government or OPTS rates.

Cash compensation paid at the higher value of: i) market price, Government rates; and

iii) OPTS rates applicable at the cut-off date. Compensation Rates see Annex D.

Community

Communal

Cultural

Property (i.e.

shrines)

Cash value of the shrine, as per the government or OPTS rates

Cash compensation will be paid at full replacement value, including cost for

ceremonies and relocation, N 1,440,000 per unit for village shrines.

Community

Water surface

(incl. swamp)

Cash value of unmovable traps and nets only

1) Cash compensation for unmovable traps and nets based on market value, N50,000

per unit.

2) Transitional support for loss of income, N46/m2, based on the anticipated loss of

fish yield from the swamps and water rental.

Community

Access road None Cash compensation for the cost of road construction at replacement value, N1,500,000/km for earth road.

Community

All Loss of income None Livelihood restoration measures include

1. land-based schemes, including agricultural training, agricultural intensification,

better storage techniques and adding value to agricultural produce;

2. Wage-based schemes to provide permanent or temporary employment

opportunities to affected communities; and

3. Village infrastructure schemes to assist community access to better road.

All affected

community

members

Vulnerable

groups

1) An appropriate additional transitional allowance will be provided to vulnerable

households, in monthly instalments, over a six month period; and

2) Preferential provision of: (i) skills training; and (ii) Project employment.

Vulnerable groups


58

8 MONITORING AND EVALUATION

8.1 INTRODUCTION

The IFC PS5 require establishment of procedures to monitor and evaluate all

land acquisition processes. To ensure that the land acquisition (including

associated compensation and livelihood restoration) is carried out as planned,

the process is subject to monitoring both internally and externally during the

construction period of the project.

8.1.1 Objectives

The objectives of the Project’s land acquisition monitoring are as follows:

To provide the Project with feedback on RAP implementation and to

identify problems and successes as early as possible to allow the timely

adjustment of implementation arrangements; and

To enable the Project to demonstrate that the land acquisition process is

being managed in line with the Project’s objectives and desired outcomes,

as well as with the requirements of Project stakeholders.

In short, RAP monitoring activities are integral to the success of the Project’s

land acquisition process and will help to demonstrate this. These monitoring

activities will be integrated into the overall Project management process.

8.2 MONITORING AND EVALUATION PLAN

Monitoring will be initiated at an early stage in the land acquisition process

and will cover all affected households and communities. Monitoring and

evaluation (M&E) will continue for approximately two years, however during

this period, the intensity of the process will vary. For example, before and

immediately after the actual Project land take, M&E will be fairly intense. As

the RAP implementation progresses the frequency of the M&E will reduce.

The Project’s M&E plan will have two key components; namely:

Progress monitoring; and

Outcome evaluation.

There will be both internal and external monitoring of the RAP

implementation, as follows:

Internal monitoring: consisting of progress monitoring and outcome

evaluation, undertaken by the Project; and

External monitoring: of progress and outcome evaluation that will be

carried out by a third party. This will include a completion audit.


59

8.2.1 Progress Monitoring

Progress monitoring allows the Project to track progress against milestones

established in the RAP. Progress will be reported against the implementation

schedule of required actions shown in Table 9.1.

The CLO will report monthly on the progress of activities in Table 9.1 and

action plans identified in each monitoring report. During land acquisition and

pipeline construction, the monitoring will focus on negotiating agreements,

compensation payments, transitional assistance and assistance to vulnerable

groups. Upon pipeline installation, the focus of the monitoring will shift

towards implementation of livelihood restoration plans. Monitoring of

information disclosure, consultation and grievance redress will be ongoing

throughout the Project up until the completion audit.

The CLO will report on the disbursement of compensation against valid

entitlement matrices within the defined timetable. A minimum sample of 30%

of payment records will be inspected to verify that compensation has been

made in full and in a timely manner, ie prior to land access. The CLO will

identify any delayed inputs and reasons for the delay, and work with action

owners to schedule for action completion (e.g. shifting action to next

monitoring period).

8.2.2 Outcome Evaluation

Outcome evaluation, like progress monitoring, is an internal Project task. It

gauges the effectiveness of the RAP and its implementation in meeting the

stated objectives of the Project, ie to compensate for loss of assets at full

replacement cost and to ensure that incomes have not been negatively

affected.

The effects of the RAP will be measured against the baseline conditions of the

affected communities prior to land acquisition. Objective verifiable indicators

will be established for measuring the impact of land acquisition on the socio-

economic welfare of the affected people and the effectiveness of livelihood

restoration measures.

The Project’s evaluation indicators will include:

household income;

agricultural output; and

frequency of meat consumption.

Failure to achieve the desired outcome targets will indicate the need to

determine the cause and whether the measure or delivery methods should be

changed.

Outcome evaluation monitoring will be based upon sample surveys of the

affected communities and will continue until a completion audit is complete.


60

8.2.3 External Monitoring and Completion Audit

An external monitor will be appointed to verify internal M&E processes and

to evaluate livelihood restoration outcomes. The external monitor may

conduct M&E against the progress and outcome indicators developed by the

Project, or other indicators selected independently. The external monitor will

undertake M&E through review of the socio-economic surveys undertaken

during RAP preparation and consultation with Project staff, affected persons,

community representatives and other stakeholders as necessary. The

External Monitor will make recommendations for improving land acquisition

processes and procedures, as well as indicators for monitoring outcomes,

where appropriate.

The External Monitor will conduct the following M&E activities:

Review of internal monitoring reports to verify whether they are being

undertaken in compliance with the RAP.

Review grievance records for compliance with the Grievance Redress

Procedure;

Interview land acquisition and LR staff, a cross section of affected

households, community leaders and other key informants, to ascertain

the effectiveness of resettlement-related activities and the extent to

which living standards and livelihoods are restored or enhanced as

result of the land acquisition process.

Assess overall compliance of the land acquisition and compensation

process with the Project RAP, Nigerian laws and regulations and IFC

PS5 (2012).

A completion audit will be conducted by a third party monitor, who is yet to

be decided, upon the completion of pipeline installation and all associated

measures in this RAP. The completion audit will involve a final outcome

evaluation on completion of the RAP implementation, likely to be in 2013/4.

The completion audit will verify: (a) that all RAP inputs committed to have

been delivered and all services provided, and (b) efforts to restore the

livelihoods of the affected population have been properly conceived and

executed and have had the desired effect. A successful completion audit will

bring to a close liability in the land acquisition process. If the completion audit

demonstrates that livelihood restoration objectives have not yet been

achieved, however, further action will be planned and implemented as

appropriate.

8.3 M&E ROLES AND RESPONSIBILITIES

The Project’s external monitoring and completion audit will be conducted by a

third party, while the progress monitoring and outcome evaluation will be

undertaken by Project staff, as outlined below.


61

The Livelihood Restoration Manager will lead the M&E process, supported by

the CLOs and government representatives, if applicable.

Specifically, the Livelihood Restoration Manager will be responsible for

implementing the progress monitoring and outcome evaluation by:

Proposing relevant progress milestones and outcome evaluation

indicators;

Directing the CLOs to collect necessary data to verify progress against

Project milestones and outcome evaluation indicators;

Recording data and other evidence;

Evaluating outcomes of the basis of the data collected; and

Proposing corrective or additional measures, if necessary.

The Livelihood Restoration Manager will maintain a monitoring database in

which all relevant information will be entered, and will then be responsible for

producing regular M&E reports for submission to the Land Acquisition

Committee . These reports will form the basis upon which specific additional

interventions and associated implementation plans (including deadlines,

responsibilities and resource requirements) will be agreed by the Land

Acquisition Committee and implemented by the Livelihood Restoration

Manager. Such interventions and associated implementation plans will then

be added to the monitoring database, for subsequent regular review.

8.4 SCHEDULE AND REPORTING

8.4.1 Internal Monitoring

The internal monitoring will be conducted as following:

Monthly during the first six months of land acquisition and compensation

in 2012;

Bi-monthly for the first half of 2013; and

Six-monthly from June 2013 until the completion of the RAP.

The results of the internal monitoring will be reported by the Land

Acquisition Committee to the Project Management Team include the

following:

Monthly Internal Monitoring Report during the first six months of

implementation of land acquisition and compensation;

Bi-monthly Internal Monitoring Report for the first half of 2013; and

Six-monthly Internal Monitoring Report from the second half of 2013 until

the completion of the RAP.

The monitoring reports will include qualitative assessment and quantitative

data with emphasis on progress towards achieving the objectives of the land

acquisition and associated activities.


62

8.4.2 External Monitoring

External monitoring will commence in the second half of 2012 and be

conducted every six months until the completion of the RAP implementation

(which is to be verified through a completion audit).

Six-monthly External Monitoring Reports will be prepared and submitted to

the Land Acquisition Committee two weeks after each round of external

monitoring.

8.4.3 Completion Audit

A completion audit will be conducted by an external monitor in 2013/4. The

completion audit report will be submitted one month after the audit.

8.5 OVERALL MONITORING SCHEDULE

Table 8.1 presents the proposed project monitoring plan.

Table 8.1 Tentative Monitoring Schedule

Task Organisation 2012 2013 2014

6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5

Internal Monitoring Septa

External Monitoring Third Party

Completion Audit Third Party


63

9 SCHEDULE OF IMPLEMENTATION

9.1 SCHEDULE OF IMPLEMENTATION

Table 9.1 an outlines implementation plans for land acquisition and associated

activities.

Table 9.1 Land Acquisition and Livelihood Restoration Schedule

Task Responsibility 2012 2013 2014

6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5

Disclose & consult on

draft RAP

Septa/ERM

Revise and finalise

RAP

ERM

Recruit NGO partner Septa

Community

Consultation and

Engagement

Septa/NGO

Grievance Redressing Septa/NGO

Supplementary

Survey

Septa/NGO

Orientation of PAPs Septa/NGO

Plan livelihood

restoration

Septa/NGO

Draft household level

entitlements

Septa/NGO

Household level sign

off on entitlements

Septa/NGO

Compensation

disbursement

Septa/NGO

Implement livelihood

restoration

programme

Septa/NGO

Internal Monitoring Septa

External Monitoring Third Party

Completion Audit Third Party


64

10 BUDGET

Total project compensation is estimated to be N 629,966,658 (USD 3.95

million), including N 612,435,590 (USD 3.84 million) paid in cash and

N 17,531,068 (USD 0.11 million) for livelihood restoration programmes.

Details are shown in Table 10.1.

Table 10.1 Budget for Project Compensation

Item Unit Quantity

Compensation

Rates

(Naira/Unit)

Amount

(Naira)

Land

Permanent acquisition within

15m ROW m2 585,450 420 245,889,168

1.5 year rental on temporary

land within 10m ROW m2/year 389,062 28 16,340,600

Cultivated

Land

Land Improvement m2 219,138 50 10,956,918

Clearance Allowance m2 219,138 30 6,574,151

Allowance for Loss of Temporary Structure Month 6 18,000 108,000

Swamp Fishing Right m2 11,377 46 523,342

Standing

Crops

Cassava m2 192,033 80 15,362,640

Coco Yam m2 1,085 30.74 33,357

Corn (Maize) m2 24,488 11.25 275,491

Melon m2 20,703 8.45 175,033

Pineapples Unit 545 350 190,750

Vegetables m2 5,846 7.5 43,841

Yam m2 2,575 100 257,500

Economic

Trees

Hard Wood Mature Unit 5,342 7,500 40,065,000

Immature Unit 7,907 3,750 29,651,250

Soft Wood Mature Unit 1,026 6,500 6,669,000

Immature Unit 1,484 3,250 4,823,000

Palm Tree

Mature Unit 10,679 5,100 54,462,900

Immature Unit 12,264 2,550 31,273,200

Seedling Unit 206 1,275 262,650

Stakes Mature Unit 2,154 250 538,500

Immature Unit 586 150 87,900

Mango Tree Mature Unit 130 3,300 429,000

Immature Unit 36 1,650 59,400

Medicine Tree Mature Unit 2,653 5,100 13,530,300

Immature Unit 460 2,550 1,173,000

Pear Tree Mature Unit 290 4,400 1,276,000

Immature Unit 21 2,200 46,200

Banana

(Plantain)

Mature Unit 43 1,000 43,000

Immature Unit 5 500 2,500

Shrines

Personally Owned Unit. 10 60,000 600,000

Family Owned Unit 20 18,000 3,600,000

Community Owned Unit 87 1,440,000 125,280,000

Other Assets

Fish Ponds m2 70 4,000 280,000

Fishing Traps Unit 12 50,000 600,000

Temporary Structure m2 93 4,000 372,000

Borehole Unit 2 250,000 500,000

Well Unit 1 80,000 80,000

Subtotal (Compensation) 612,435,590

LR Programme Cultivated Land m2 219,138 80 17,531,068


65

Item Unit Quantity

Compensation

Rates

(Naira/Unit)

Amount

(Naira)

Subtotal (Livelihood Restoration Programme) 17,531,068

Grand Total N 629,966,658

(USD3,947,160)

Costs not included in this estimate include the following:

Costs associated with disclosure and verification of survey results;

Cost of NGO involvement;

Cost of government involvement in land acquisition and compensation;

Monitoring and evaluation; and

Management time.

Annex A

Vulnerable Group List

ENVIRONMENTAL RESOURCES MANAGEMENT SEPTA ENERGY NIGERIA LIMITED SEPTA ENERGY NIGERIA LIMITED

A 1

Vulnerable Group List

No. LGA Village Name of

Household Head Vulnerability

1

ESIT EKET

Adahafriyo Chief Sunday Eyo

Udo

Households headed by disabled

and/or elderly people

2 Akpautong Okon Etim Atti Households living in poverty

3 Akpautong Samuel Monday

Akpama

Households living in poverty

4 Akpautong Nseobong Women headed households

5 Akpautong Mary Asuquo

Nyoho

Women headed households

6 Idung Asua - Etebi Effiong Abia Households headed by disabled


7 Idung Asua - Etebi Anietie Peter eyo Households living in poverty

8 Idung Asua - Etebi Mary Households living in poverty

9 Idung Asua - Etebi Essien Philips Households headed by disabled


10 Idung Ataudim Mfon Francis Ben Women headed households

11 Idung Ita Etebi Mary Eyo Jack Women headed households

12 Idung Okpokpo Chief Friday

Obiofiong



13 Idung Okpudo Ikwo Philip Women headed households

14 Idung Udonsak Adiaha Hanson

Awai


15 Idung Udonsak Adiaha

EdohoUqua


16 Odoro Ukuk Friday Sampson

Eyo


17 Odoro Ukuk Sunday Asuquo

Atara


18 Oniok Edo Enam William Households headed by disabled


19 Oniok Edo Abia Peter Households headed by disabled


20 Oniok Edo Sunday Jimmy

akpanam



21 UDUNG

UKO

Edikor Eyokpo Chief Jerome

Ukpe



22 URUE

OFFIONG/

ORUKO

Edok Affiong Okon Women headed households

23 Eyokwong Chief Edet

Odokwo



24 Udung Uwe chief Edem

Asangansi



25 Mbo

Akai Owu Essang Massodi Households headed by disabled


26 Akai Owu Etim Awana Households headed by disabled



A 2

No. LGA Village Name of

Household Head Vulnerability

27

Mbo

Akai Owu Nkoyo Nyong Women headed households

28 Akai Owu Arit Ben Women headed households

29 Akai Owu Sarah Okon Women headed households

30 Akai Owu Nkoyo Edet Women headed households

31 Udung Ikpang Isaac Jacob Innan Households headed by disabled


32 Ukoitak Eyulor Obisung Uwak Households living in poverty

Annex B

Oron Gas Pipeline License


B 1

Annex C

Template of Entitlement

Form


C 1

Template for Household Compensation Entitlement

Assessment ID Village NameCompensation

Category

S/No

Claimant Personal informationAsset Owned/

Head of Claims:

Mature (M),

Immature (IM),

Seedlings (S)

Unit QuantityCompensation

RateSubtotal

Total Claim

Annex D

Compensation Rates


D 1

Project Compensation Rates

Mature Immatured Seedling Mature Immatured Seedling Matured Immatured Seedling Matured Immatured Seedling

Land Attachments

Hardwood/Unit 5,000.00 2,500.00 1,250.00 1,500.00 750.00 350.00 7,500.00 3,750.00 1,875.00 7,500.00 3,750.00 1,875.00

Softwood/Unit 5,000.00 2,500.00 1,250.00 1,500.00 750.00 350.00 6,500.00 3,250.00 1,625.00 6,500.00 3,250.00 1,625.00

Palmtree/Unit 2,500.00 1,250.00 625.00 600.00 300.00 150.00 5,100.00 2,550.00 1,275.00 5,100.00 2,550.00 1,275.00

Bamboo/Unit 200.00 100.00 50.00 100.00 50.00 25.00 250.00 125.00 62.50 250.00 125.00 62.50

orange/Unit 300.00 150.00 75.00 2,000.00 1,000.00 500.00 2,912.00 1,456.00 728.00 2,912.00 1,456.00 728.00

Mango/Unit 1,000.00 500.00 250.00 2,000.00 1,000.00 500.00 3,300.00 1,650.00 825.00 3,300.00 1,650.00 825.00

Plantain/Unit 1,000.00 500.00 250.00 1,000.00 500.00 250.00 546.00 273.00 136.50 1,000.00 500.00 250.00

Banana/Unit 800.00 400.00 200.00 800.00 400.00 200.00 514.00 257.00 128.50 800.00 400.00 200.00

Stakes/Unit 200.00 150.00 75.00 200.00 100.00 50.00 250.00 125.00 62.50 250.00 150.00 75.00

Pear/Unit 1,000.00 500.00 250.00 1,000.00 500.00 250.00 4,400.00 2,200.00 1,100.00 4,400.00 2,200.00 4,400.00

Medicinal Trees/Unit Not sold in the market but equated with the rates for palmtree as a common asset. 5,100.00 2,550.00 1,275.00

Land User: Crops

Cassava/hectare 50,000.00 25,000.00 12,500.00 800,000.00 650,000.00 450,000.00 215,775.00 107,887.50 53,943.75 800,000.00 650,000.00 450,000.00

Cassava/Unit - - - 200.00 150.00 100.00 137.00 68.50 34.25 200.00 150.00 100.00

Yam/hectare 80,000.00 40,000.00 20,000.00 1,000,000.00 950,000.00 500,200.00 466,578.00 233,289.00 116,644.50 1,000,000.00 950,000.00 500,200.00

Yam/Unit - - - 115.00 79.00 50.00 185.15 92.58 46.29 185.15 92.58 46.29

Pineapple/Unit 200.00 100.00 50.00 - - - 350.00 175.00 87.50 350.00 175.00 87.50

Cocoyam/hectare 30,000.00 15,000.00 7,500.00 56,250.00 30,120.00 22,000.00 307,440.00 153,720.00 76,860.00 307,440.00 153,720.00 76,860.00

Cocoyam/Unit - - - 18.00 14.00 9.00 122.00 61.00 30.50 122.00 61.00 30.50

Corn (Maize)/hectare 20,000.00 10,000.00 5,000.00 112,500.00 100,250.00 81,520.00 32,760.00 16,380.00 8,190.00 112,500.00 100,250.00 81,520.00

Corn (Maize)/Unit - - - 20.00 15.00 11.00 3.12 1.56 0.78 20.00 15.00 11.00

Vegetable/m2 20,000.00 10,000.00 5,000.00 55,000.00 45,000.00 25,125.00 75,000.00 37,500.00 18,750.00 75,000.00 45,000.00 25,125.00

Swamps

Traps

Fishing rights /m2

Asset

Shrines (Personal)/Unit

Shrines (Family)/Unit

Shrines Community)/Unit

Earth roads/Km

Land

Land value (Esit Eket Zone)/m2

Land value (Urue Offong/Mbo

Zones)/m2Land value (Oron Zone)/m2

1,200,000.00

150,000.00 150,000.00

-

50,000.00

- 46.00

-

Asset type

Government Rates

Akwa Ibom State OPTS Rates

-

Recommended Rates

50,000.00

60,000.00

1,440,000.00

46.00

- 50,000.00

50,000.00

Market Value Rates (IFC Requirements)

180,000.00

1,200,000.00

-

420.00

-

-

-

0

0 0

0

-

420.00

1,500,000.00 -

420.00

300.00

300.00

400.00


D 2

D1 Justification for Compensation Rates

Name Rate / Unit

(N) Specification Justification

Land 420/m2

Market value (N 400 per m2)

plus transaction cost of N 20 per

m2.

Market value N 400,000 of

product in Esit Eket for

1,000m2 land. Transaction

cost for government tax is 5%.

Rental for

temporary land

use

28/ m2 /

year

Base on an average 7% annual

return for agricultural land.

Derived from an assumed 7&

rental income on land with a

market value of N400/m2

Land market value is N

400/m2.

Water rental

for temporary

land use

46/ m2 1.5 years of land rental plus loss

of fishing income

Fishing income is N4 per m2

per 1.5 years plus water rental

of N 42/m2.

Land

Improvement

50 / m2

Costs of agricultural inputs

including labour and

fertilisers/pesticides/herbicides

Fertilizer N 8

pesticide/herbicide 12 and

labour N 30, per m2 land.

Labour cost includes hiring

sprayers/sprinklers.

Land Clearance

Allowance 30 / m2 Cost of labour to clear land

Labour cost of N 30,000 for

clearance.

Loss of Income

from

Cultivated

Land

80/m2

Loss of income for one farming

season, using cassava as the

basis.

Market price of cassava

N800,000 per hectare, i.e. N80

per m2.

Shrines

1.2 times

government

rates

20% uplift is applied to

government rates to

compensate for ceremonies

Costs for ceremony include

those requested for Cows,

Crows, Kolanuts, cowries and

gins.

D1.1 LAND TAKE

Land take is categorized into:

Permanent land acquisition: 15m ROW

Temporary land use: 10m ROW

Rate for permanent land acquisition: N420.00/m2

Derived from a direct market comparison of previous land transactions

conducted in areas traversed by the pipeline. Data collected from settlements

within the four Local Government Areas were gathered and analyzed. Esit

Eket has the largest number of settlements and it is observed that the market

value of land for residential and ancillary developments is N400,000-

N450,000/1,000m2. In Urue Offong, Mbo and Udung Uko areas, the market

value of land is N350,000 - N400,000/1,000m2. In some villages, there was no

history of land sales reported.


D 3

The ROW traverses through forests, bushland, swamp and in some cases

farmland. Recognizing that the ROW is, for the most part, distant from

settlements, compensation of N400,000 /1,000m2 which translates to N400 per

square meter (N400,000 divided by 1,000m2) is an appropriate level of

compensation for permanent land take.

The government tax for land transaction is 5%, i.e. N20 per m2. Therefore the

total land compensation is N420 per m2.

Rate for temporary land use: N28.00/m2 /year.

A figure for temporary land use for a period of one and half years was derived

based on an assumed land rental income. The calculation is based on a rate

of return on investment of 7%, equivalent to a premium of 3% above a

nominal risk-free return of 4%. Applying a 7% return on investment to the

market value of N400/m2 for permanent take, produces an annual rental of

N28/m2 (400 multiplied by 7%). For a period of 1.5 years, this rises to

N28/m2 multiplied by 1.5 years = N42/m2 for temporary land use.

D1.2 SWAMP

Water use: N46 per m2

The use of swamp is temporary for the during of the construction phase.

Compensation for swamp makes reference to that of temporary land take

(N42/m2), on the assumption that the land under the water will not be

accessible during the 1.5 year construction period.

It is estimated that the cultivable capacity of the swamp per 10,000m2 is

N1,000 per fortnight. Therefore, the loss of income for one year is N26,000

per 10,000m2, i.e. N2.6/m2 per year. For loss of income of 1.5 years during

the construction phase, the compensation is therefore N4/m2.

The total compensation for swamp is therefore N46/m2.

D1.3 LAND IMPROVEMENT

Land Improvement Rate: N50 per m2

Assumes that the land user needs to improve the soil fertility of the land

he/she will relocate to in order to ensure a reasonable yield. Compensation

has been derived on the basis that the following is needed per 1,000m2: 1 bag

of fertilizer (cost N8,000); herbicides/pesticides (cost N12,000) and labour for

spraying including hiring of sprinklers/sprayers (cost N30,000). The total cost

of improving 1,000m2 is therefore N50,000, equivalent to N50,00/m2.


D 4

D1.4 LAND CLEARANCE ALLOWANCE

Land Clearance allowance: N30 per m2.

Based on the cost of labour for clearing 1,000m2 of land for the purposes of

farming. This labor element includes clearing of grass, scrub and unwanted

trees. It was assessed that N30,000 is required for manual labour to clear

1,000m2, equivalent to N30/m2.

D1.5 LOSS OF INCOME FROM CULTIVATED LAND

Loss of Income from Cultivated Land: N80 per m2

Cassava being the dominant cash crop within the ROW is adopted as the basis

for the computation of income loss arising from loss of agricultural land.

The rate of N80/m2 was derived from the market rate for cassava of N800,000

per hectare, equivalent to N80/m2 (computed as N800,000/10,000m2).

D1.6 SHRINES

Personal Shrine: N 60,000 per unit

Family Shrine: N 180,000 per unit

Communal Shrine: N 144,000 per unit

The ownership of shrines along the ROW is either personal, family or

communal . There is no market basis for valuing or estimating the costs of

relocation of these shrines due to subjective requirements of each shrine

owner, family or community.

We have written demands for payments of sums up to N40,000,000 for

removal of shrines by some communities which appear somewhat high and

unverifiable. However, demands for ceremonial rites and appeasements

using live animals are typical and appear to be reasonable.

Given the cultural bearing of such demands, we are constrained to

recommend the rates being adopted by the governments for each category of

shrine. In addition, a 20% uplift of the government rate is considered

sufficient to be paid to each shrine holder/owner to cover ceremonial costs

and appeasements.


D 5

D1.7 LAND ATTACHMENTS - STANDING CROPS AND TREES

Land attachments include cash crops and trees. Compensation rates have been

derived from three sources: The Akwa Ibom State Government Rate; the OPTS

rates and Market Value. The IFC PS5 requires that loss of assets be

compensated for at full replacement value (in this case market value). It also

requires that compensation should meet local legal standards as a minimum.

For some crops/trees, the market values are lower than government rates or

OPTS rates. Therefore, the highest of the three rates for each category of

affected land attachment will be applied.

The Government rates are fixed by government and the basis of their

calculations are not known to us. Market Value was determined through a

survey of crops and prices within local markets.

To arrive at the value of each tree/crop listed in the schedule, the following

procedures were followed:

1. The unit of measurement of product as sold in the local market was

established. In this case, the local measure was converted to kilogram (kg).

2. The quantity of plants per hectare was estimated by applying spacing

rules for the different crops. Taking palm tree as an example, the spacing

adopted is 1 tree per 22.5m2. An allowance of 20% - 25% is made for void

and unproductive spacing.

3. The quantity of produce per hectare is also established for each tree/crop

expressed in local unit (usually kg).

4. The price per unit for each crop/tree is established based on prices within

the local markets.

Based on the above variables, the values both per hectare and per unit of

crops/trees were established.

D2 LAND SURVEY

D2.1 OBJECTIVES

The objectives of the survey are: 1. To collect data on all assets of the claimants located on the Right of

Way (ROW) with a view to establishing a basis of calculating individual/communal statements of claim;

2. Input the data collected into printed Assessment/Field Inspection

Sheets including data on location coordinates of other assets; and 3. Establish reference points for identification of claimant’s assets and/or

possible resolution of disputes during the RAP implementation process.


D 6

D2.2 LAND/ASSET SURVEY TOOLS

The following tools were used in the survey: 1. Printed copies of Field Inspection/Assessment Sheets; 2. Measurement tapes (Metric and Imperial units); 3. Handheld Global Positioning System (GPS) units – Etrex H navigators; and 4. Digital Cameras.

D2.3 LAND/ASSET SURVEY METHODOLOGY

Estate Surveyors and Valuers used in the survey are licensed to practice in any part of Nigeria by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), No. A1580. Estate Surveyors and Valuers carry out the business of property valuation for all purposes, and when carrying out such exercises they are expected to comply with the ethics and standards of practice entrenched by the Nigerian Institution of Estate Surveyors and Valuers. Estate Surveyors and Valuers operate in four groups and have adopted the following standard methodology. i. Head Counts:

Regarding land attachments consisting mostly of economic trees, Estate Surveyors and Valuers conducted head counts for each class of tree type, tape measurements were used to determine the areas of plantation crop which were recorded into the appropriate spaces in the Assessment/Field Inspection Sheet.

ii. Camera pictures

A picture of each of the respondents/claimants was taken at the site (ROW) and printed onto the Field Inspection Sheets relating to each claim presented.

iii. Land Measurement and GPS Location

The GPS coordinates of the location of each of the claims presented were captured for ease of reference during the RAP implementation and imputed into the Field Sheets. In addition, a freehand sketch of the land area covered by the claim was clearly drawn into the Inspection Sheets showing records of the distances coverage in meters for each claim. The GPS uses Universal Transverse Mercator (UTM),


D 7

and for this project was referenced to Minna Datum and the data was recorded in Degrees and Minutes (DD.MM.SS) format. GPS location coordinates recorded on the Inspection Sheet also included specified assets such as shrines. .

Following collection of information the forms are individually endorsed by the claimants, the assessment officer and/or the Claimant’s Representatives.

Annex E

Example of Consultation

Record


E 3

oron gas pipeline, akwa ibom state, nigeria · 2016. 7. 12. · oron gas pipeline resettlement...

Documents