The development objective of Ibadan Urban Flood Management Project for Nigeria is to improve the capacity of Oyo State to manage livelihood, Bank Policy strongly recommends offering land in compensation for lost land so that the land based economy can be maintained; (ii) where poor people are involved, it is often necessary to provide special assistance to assure that people manage their compensation adequately; (iii) special care should be taken with vulnerable people who lack flood risk and to respond effectively and promptly to flooding in the city of Ibadan. Some of the negative impacts and mitigation measures include: (i) when affected people depend primarily on land for their livelihood, Bank Policy strongly recommends offering land in compensation for lost land so that the land based economy can be maintained; (ii) where poor people are involved, it is often necessary to provide special assistance to assure that people manage their compensation adequately; (iii) special care should be taken with vulnerable people who lack social support necessary to allow them to restore their prior life style; (iv) other forms of compensation involve retraining people for other professions for which there is a demand; (v) cash compensation is acceptable only when there is an active market in land or other assets that people can acquire in order to restore their livelihoods; and (vi) entitlements are goods, services and sometimes cash made available to affected people to offset their losses caused by the taking of land.