Real Estate Crisis in FCT: Developers and Landowners Face Challenges Following Land Revocations
The Federal Capital Territory (FCT) has become a focal point of tension between real estate developers and influential landowners following the revocation of land allocations in Maitama II, Abuja, by FCT Minister Nyesom Wike. This decision, which affected 568 prominent individuals, has led to a scramble among property developers to either protect their investments or comply with financial obligations.
Revocation Deadline Sparks Uncertainty
On January 15, 2025, the deadline for settling outstanding Certificate of Occupancy (C-of-O) fees for plots in Maitama II expired. Those who failed to meet this requirement had their land rights revoked under the Land Use Act of 1978.
The list of affected individuals includes Imo State Governor Hope Uzodimma, Bayelsa State Governor Douye Diri, Senate Leader Opeyemi Bamidele, and Abike Dabiri-Erewa. Others impacted include the Speaker of the House of Representatives, Tajudeen Abbas; former Cross River State Governor Ben Ayade; Senate Minority Leader Abba Moro; and the National Secretary of the Peoples Democratic Party (PDP), Samuel Anyanwu.
As a result, many real estate developers are struggling with disruptions to their projects and investments.
Developers Express Frustration Over Policy Shifts
Speaking on the issue, Abuja-based real estate developer Ameh Daniel revealed that many developers are now prioritizing smaller land acquisitions to mitigate risks.
“Developers today are increasingly avoiding large-scale projects and are opting for plots ranging from two to four hectares instead of extensive land acquisitions. This allows them to operate within manageable budgets while still pursuing profitable ventures,” Daniel explained.
He also highlighted growing concerns in the sector due to recent revocations, which have interrupted several ongoing projects.
“The recent land revocations in Abuja have thrown the real estate sector into turmoil. While property owners are now rushing to develop their lands, developers are facing immense frustration because these government actions are disrupting existing investments. Some developers are even being relocated to alternative sites, leading to conflicts,” he added.
One of the major hurdles for developers, according to Daniel, is the slow process of securing Certificates of Occupancy. This bureaucratic delay clashes with the government’s demand for swift construction.
“Developers are pressured by the government to accelerate their projects, yet the C-of-O process remains sluggish. This disconnect makes it difficult to comply with set deadlines,” he said.
Concerns Over Short Payment Deadline
Another major concern within the real estate sector is the government’s directive requiring developers to clear outstanding debts within just two weeks. Daniel argued that such a short timeframe does not align with the cash flow dynamics of the industry.
“This policy is impacting property sales because prospective buyers are becoming hesitant. Many are questioning the security of their investments, wondering, ‘What if my property gets revoked too?’ This uncertainty is leading to a decline in market confidence,” he noted.
He cited cases of revocations in areas such as Idu Train Station, where developers had to refund clients after their properties were seized for reallocation.
“There are reports of large-scale land revocations in locations like Idu Train Station, where properties were confiscated and reassigned to other individuals. This has left developers in a precarious position, struggling to navigate these abrupt policy changes,” Daniel stated.
Property Owners Seek Relief
It is not only developers who are facing challenges—individual landowners are also feeling the pressure.
Dr. Samson Opaluwah, Chairman of the Council of Registered Builders of Nigeria, acknowledged the financial strain imposed by the government’s enforcement measures.
“We have received numerous complaints from property owners regarding the financial burden these short deadlines are placing on them. Many had outstanding payments for years, and now they are being asked to settle large sums within just two weeks. This is creating immense financial pressure,” Opaluwah explained.
He urged the FCT authorities to consider a more flexible payment structure to ease the burden on landowners.
“While we understand the government’s objective of enforcing land-use regulations, a more reasonable payment timeline would be beneficial. Allowing property owners to spread payments over a longer period would provide much-needed relief,” he suggested.
Calls for a More Balanced Approach
The government’s stance on enforcing accountability in land management has sparked mixed reactions. While some view it as a necessary step to regulate property ownership, others argue that the short notice is impractical.
Opaluwah emphasized the need for constructive dialogue between the authorities and real estate stakeholders.
“We urge the FCTA to extend the payment deadline and introduce more flexible terms. This is not just about enforcing regulations—it is about ensuring the long-term stability of the real estate market, which plays a crucial role in the country’s economic growth,” he stated.
Government Defends Its Decision
Meanwhile, Lere Olayinka, Special Assistant on Media to the FCT Minister, argued that the government’s enforcement actions demonstrate a shift towards greater policy consistency.
“People are starting to recognize that this administration follows through on its commitments. In the past, there was a perception that government policies were not consistently enforced. However, with this administration, when decisions are made, they are implemented without delay,” Olayinka said.
He also pointed out that Minister Wike’s leadership style is based on impartial governance.
“The minister does not allow personal relationships—whether with friends, allies, or political opponents—to influence his decisions. His primary focus is on ensuring compliance with the rules,” he emphasized.
Legislators Advocate for Leniency
In response to the widespread concerns, some lawmakers have called for a more lenient approach.
House of Representatives member Oluwole Oke has urged Minister Wike to extend the deadline for affected landowners to settle their C-of-O payments.
“Many of these land allocations were made in recognition of service rendered to the nation, yet there is no infrastructure in place in these areas. This is why some people delayed their payments. I appeal to the honorable minister to reconsider and grant an extension,” Oke stated.
While acknowledging the legality of the revocations, Oke stressed the need for fairness in implementation.
“The law empowers the minister to take this action, but a more flexible approach would be beneficial to both property owners and the government,” he added.
Conclusion
The revocation of land allocations in Maitama II has triggered widespread debate within the real estate sector. While the government insists that the move is necessary to enforce accountability, developers and property owners argue that the short notice has caused financial strain and uncertainty.
As calls for leniency grow, it remains to be seen whether the FCT authorities will consider an extension or if developers and landowners will have to adapt to the new reality.
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