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Report No: ACS13975 Federal Republic of Nigeria Public Disclosure Authorized Slum upgrading, involuntary resettlement, land and housing Lessons learned from the experience in Lagos and other mega-cities June 23, 2015 Public Disclosure Authorized GSURR AFRICA Public Disclosure Authorized Public Disclosure Authorized Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. ii Table of Contents Table of Contents ..................................................................................................................................................................... iii Abbreviations and Acronyms.............................................................................................................................................. iv Executive Summary ................................................................................................................................................................ vi Part I. Overview.......................................................................................................................................................................... 1 1. Objective of the study ..................................................................................................................................................................... 1 1.1 Background: LMDGP and its involuntary resettlement experiences ............................................................ 1 1.2 Scope and outline of the study ....................................................................................................................................... 1 2. Nigerian context of slums and involuntary resettlement ............................................................................................... 2 2.1 Urbanization trends and urban challenges ............................................................................................................... 3 2.2 Housing deficit ....................................................................................................................................................................... 4 2.3 Dysfunctions in land management ............................................................................................................................... 7 Tenure insecurity ............................................................................................................................................................................. 7 Inefficient land management – High costs of formalization or formal development ......................................... 8 Fragmented metropolitan planning ......................................................................................................................................... 9 2.4 Informality ............................................................................................................................................................................. 10 Part II. Lessons Learned from the Involuntary Resettlement Experience ........................................................ 12 3. Involuntary resettlement processes and outcomes ........................................................................................................ 12 3.1 Processes ................................................................................................................................................................................ 12 Identification/ Preparation till Negotiation/Approval (2002-2007) ..................................................................... 13 Implementation until restructuring (2007-2011) ........................................................................................................... 13 Implementation after restructuring (2011-2013)........................................................................................................... 13 After project closing (2013-2014) .......................................................................................................................................... 14 3.2 Evaluation of the involuntary resettlement outcomes ...................................................................................... 15 Resettlement planning ................................................................................................................................................................. 16 Eligibility criteria ............................................................................................................................................................................ 16 Compensation .................................................................................................................................................................................. 17 Consultation and participation ................................................................................................................................................. 19 4. Analysis of involuntary resettlement challenges in LMDGP ....................................................................................... 19 4.1 Analysis (1): Existing conditions (without the Bank involvement) ............................................................. 20 Legal/Policy framework for involuntary resettlement in Nigeria and Lagos ..................................................... 20 Institutional arrangement and capacity among key policy makers for involuntary resettlement ............ 21 4.2 Analysis (2): Conditions related to the Bank involvement .............................................................................. 22 Legal/policy framework .............................................................................................................................................................. 22 Institutional arrangement with the political economy .................................................................................................. 23 Capacity for involuntary resettlement and capacity building .................................................................................... 24 4.3 Lessons learned................................................................................................................................................................... 24 Integrated approach to slums and involuntary resettlement..................................................................................... 25 Identification of political and technical champions and an appropriate institutional support ................... 25 Upfront dialogue and negotiation on involuntary resettlement ............................................................................... 26 Part III. Policy and Operational Recommendations .................................................................................................. 28 5. Urban sector engagement on slums ....................................................................................................................................... 28 5.1 Reforming land regulations, administration and management .................................................................... 28 5.2 Involuntary resettlement as an integrated part of slum upgrading and broader urban agenda: .. 31 5.3 Comprehensive and integrated urban planning ................................................................................................... 33 References ................................................................................................................................................................................. 37 Annexes ...................................................................................................................................................................................... 40 Annex I. Overview of the LMDGP ...................................................................................................................................................... 40 Annex II. Comments on the Land Use Act .....................................................................................................................................