Presidential Research & Communications Unit

The Federal Executive Council (FEC) on Wednesday February 3 has approved a downward review of land rates in the Federal Capital Territory (FCT) from 100 to 40 per cent.

Briefing the media on the outcome of the week’s Council meeting presided over by Vice President Goodluck Jonathan, the Minister of Information and Communications, Prof. Dora Akunyili announced that government has completely reverted to the old rates for some areas, while for highbrow areas, it has been reduced from the recent 900 per cent to 400 per cent.

She stated that the review which was necessitated by the memo brought to the Council by the FCT Minister, Senator Adamu Aliero becomes imperative in view of the global economic realities, the need to give equal opportunities to allotees towards the development of their plots and that the Federal Government was disturbed by the widespread condemnation that trailed the increment last year coupled with the fact that it had not yielded the expected revenue boost, as the FCT IGR had continued to dwindle.

“The review did not go down well with the public and attracted series of negative comments from the National Assembly and the general public. This is in addition to difficulties allotees experience in settling bills. Other misgivings expressed include but not limited to the fact that the review did not have recourse to the previous land rates in line with Section16 (a) of the Land Use Act of 1978.” She noted.

“Consequently, the percentage increase that reached a ceiling of 900% was not seen as being fair. The rates, rather than accelerate development, became counter-productive as most allottees sold to able buyers instead of developing the plots allotted to them. Since government is encouraging private sector participation in housing provision, the seeming astronomical development levy will have a multiplier effect on the cost of housing delivery and could exacerbate problems already being encountered, thereby working against the ‘Housing for All by 2020’ project.

“This will ultimately translate to higher rental values in the city.” She stated further.

It would be recalled that the Council at meeting presided over by President Umaru Musa Yar’Adua in 2009, approved an upward review of premium payable within the FCT, Abuja.

The decision was justified by the need to increase internally generated revenue with a view to providing infrastructure and social amenities.