FCTA Commences Enforcement of Ground Rent and Land Use Fee Collections
Minister of the Federal Capital Territory, Nyesom Wike
The Federal Capital Territory Administration (FCTA) has announced a rigorous enforcement drive to recover outstanding Ground Rent, Certificate of Occupancy (C of O) charges, and other land-use fees. Minister of the Federal Capital Territory, Nyesom Wike, confirmed the directive on 15 January 2026, stating that the administration will no longer tolerate the non-payment of statutory dues by property owners within the capital city.
The move aims to bolster the FCTA’s Internal Revenue Generation (IRG) to fund critical infrastructure projects across the territory. To facilitate this, the administration has established a dedicated task force to identify defaulting individuals and corporate organisations, with penalties ranging from fines to the potential revocation of titles for persistent non-compliance.
Regulatory Context and Revenue Objectives
This enforcement exercise aligns with the Land Use Act, which mandates property owners to pay annual Ground Rent to the relevant authorities. The FCTA reports that billions of Naira in revenue remain trapped in unpaid fees, a deficit that has historically slowed the pace of urban development. According to the FCTA’s Department of Land Administration, the current drive focuses on ensuring that all land-linked transactions contribute to the ₦1.1 trillion budget target set for the fiscal year.
The administration has simplified the payment process through the Abuja Geographic Information Systems (AGIS), allowing allottees to verify their status and clear arrears electronically. Minister Wike emphasised that the FCTA will publish a list of high-value defaulters in national dailies if payments are not regularised within the stipulated grace period.
Impact on Property Owners and Investors
For real estate investors and homeowners in Abuja, this development necessitates an immediate audit of land documents and payment histories. The FCTA has clarified that the enforcement covers residential, commercial, and industrial plots.
Key areas of focus during this exercise include:
Ground Rent Arrears: Collection of accumulated annual fees for developed and undeveloped plots.
C of O Issuance Fees: Finalisation of payments for those who have received letters of intent but are yet to conclude financial obligations for their certificates.
Land Use Change Fees: Charges applicable to owners who have converted residential properties to commercial use without administrative approval.
Property analysts suggest that while this move may cause short-term liquidity pressure for some owners, it will eventually bring much-needed transparency and legitimacy to the FCT land registry, potentially boosting investor confidence in the long term.
Legal Recourse and Administrative Warnings
The FCTA has warned that the "days of discretionary compliance are over." While the administration has provided a window for reconciliation of accounts, the legal department is prepared to prosecute cases of forgery regarding payment receipts. Furthermore, the FCTA has reiterated that any property whose title is revoked due to non-payment of Ground Rent will be re-allocated to compliant citizens or utilized for public infrastructure.
Stakeholders, including the Real Estate Developers Association of Nigeria (REDAN), have been urged to sensitise their members on the importance of timely payments to avoid the loss of valuable assets.
Conclusion
The FCTA’s decision to enforce land-use fee collections marks a significant shift toward a more aggressive fiscal policy in the capital. By linking land ownership directly to the provision of public services, the administration intends to create a sustainable funding model for the city’s expansion. For property holders, the priority must now shift toward immediate compliance to safeguard their investments against revocation or litigation.
