The Federal Capital Territory Administration (FCTA) is poised to reclaim 4,794 properties across Abuja due to prolonged non-payment of ground rent—a move expected to enhance revenue generation and stimulate Nigeria's real estate and broader economic landscape.
According to the FCTA, enforcement actions will officially commence on Monday, May 26, 2025, targeting properties that have defaulted on ground rent obligations spanning between 10 and 43 years. This sweeping measure aims to address long-standing revenue losses while reinforcing fiscal discipline in the nation’s capital.
Ground rent—an essential statutory levy imposed on property owners—serves as a vital revenue stream for government operations, particularly in urban areas like the Federal Capital Territory. However, widespread non-compliance has significantly impacted the government’s ability to fund infrastructure and public services. The revocation and repossession of these properties send a clear message to defaulters and are expected to foster greater compliance moving forward.
The implications for Nigeria’s economy are notable. With the real estate sector contributing approximately 6.85% to the nation’s GDP in 2020 (as reported by the National Bureau of Statistics), improving regulatory enforcement and revenue collection could unlock greater economic potential. Analysts believe that recovering and monetizing these properties will not only replenish public coffers but also invigorate investment in the Abuja property market.
Amid declining oil revenues and the lingering effects of the COVID-19 pandemic, Nigeria continues to seek diversified revenue sources to stabilize its economy. Real estate, with its high asset value and long-term investment appeal, remains a strategic area for economic revitalization. The FCTA’s decision to act decisively on ground rent defaulters is thus seen as a timely and necessary intervention.
This crackdown underscores the importance of adherence to property laws and the government's commitment to ensuring accountability in land administration. Property owners are now being urged to settle outstanding rents to avoid forfeiture, as the FCTA maintains that these enforcement actions are in line with legal provisions and administrative processes.
The initiative marks a significant shift in property governance within the FCT and reflects broader efforts to optimize state-level revenue systems. By reclaiming these long-defaulted assets, the FCTA aims to channel fresh income into critical sectors, including housing, infrastructure, and social development.