President Bola Tinubu has announced a 14-day grace period, effective until June 9, 2025, for property owners to settle outstanding ground rent payments. This directive comes as a response to the FCT Administration’s (FCTA) aggressive enforcement actions, which saw the sealing of properties due to unpaid ground rents, some dating back as far as 43 years, amounting to over N6 billion in arrears. The intervention reflects Tinubu’s administration’s attempt to balance strict regulatory enforcement with leniency, offering defaulters a final opportunity to comply or face the revocation of 4,794 properties across the FCT.
The ground rent saga has been a contentious issue in Abuja, where the FCTA, under the leadership of Minister Nyesom Wike, has intensified efforts to recover unpaid dues. Ground rent, a statutory fee levied on property owners for the use of government-owned land, is a critical revenue stream for the FCTA to fund infrastructure and urban development. However, non-compliance has been rampant, with some property owners owing sums accumulated over decades. The FCTA’s recent crackdown, which included sealing high-profile properties, sparked public outcry, prompting President Tinubu’s intervention to provide a temporary reprieve.
Details of the Grace Period and Penalties
The 14-day grace period is a lifeline for property owners to clear their debts and avoid losing their titles. The FCTA has outlined specific penalties for defaulters based on the location of their properties, reflecting the varying land values across Abuja’s districts:
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Central Area: Property owners in this prime location face a steep penalty of N5 million in addition to the outstanding ground rent.
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Maitama, Asokoro, Wuse II, and Guzape: Defaulters in these upscale areas are required to pay a N3 million penalty plus the owed ground rent.
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Wuse I, Garki I, and Garki II: A penalty of N2 million, alongside the outstanding ground rent, applies to properties in these districts.
Beyond ground rent, the directive also addresses other compliance issues. Property owners who have purchased properties but failed to register their interests by obtaining the mandatory Minister’s Consent and registering Deeds of Assignment must do so within the same 14-day window. These processes, handled at the FCT Department of Land Administration, are crucial for formalizing property ownership and ensuring legal recognition of titles. Additionally, Minister Wike has mandated that all property holders settle bills related to the Right of Occupancy (R-of-O) or Certificate of Occupancy (C-of-O) within this period, with non-compliance leading to title revocation.
Tinubu’s Intervention: A Balancing Act
President Tinubu’s decision to grant a 14-day grace period is seen as a strategic move to de-escalate tensions while maintaining the government’s commitment to regulatory enforcement. By offering defaulters a final chance to settle their debts, Tinubu aims to project an image of a responsive administration that listens to public concerns. The intervention also underscores the delicate balance between enforcing compliance and addressing the economic realities faced by property owners.
The FCTA, under Wike’s leadership, has emphasized that the grace period is not an exemption but a final opportunity. “The law is the law, and nobody is above it,” Wike reportedly stated, reinforcing that the FCTA will not hesitate to revoke titles of non-compliant owners after June 9, 2025. This firm stance aligns with Wike’s reputation for decisive action, as seen in his previous tenure as Rivers State Governor, where he tackled issues like urban planning and revenue recovery with similar vigor.
What Happens Next?
As the June 9 deadline approaches, the FCTA has urged property owners to act swiftly. The Department of Land Administration is expected to experience a surge in applications for payment processing, title registration, and deed assignments. To facilitate compliance, the FCTA has promised to streamline processes, though past experiences with bureaucratic delays raise concerns about whether the department can handle the anticipated volume within the tight timeframe.
The ground rent crisis also highlights the need for long-term reforms in Nigeria’s land administration system. Experts have called for clearer communication of payment obligations, digitized payment platforms, and flexible payment plans to prevent future accumulations of arrears. Additionally, public awareness campaigns could help property owners understand their responsibilities and avoid punitive measures.
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