FCT imposes N5m fine, 7.5% conversion levy on land use violations

The Federal Capital Territory Administration (FCTA) has announced strict penalties for landowners who breach land use regulations, including a N5 million fine and a 7.5% conversion fee on affected properties.

Nyesom Wike, FCT Minister, on Tuesday, endorsed recommendations from a committee set up to investigate infractions of the Land Use Act within Abuja.

Under the new rules, titleholders found to have breached land use terms will be required to pay a fine of N5 million within 30 days of official notice.

In cases where properties were converted from their approved use, such as from residential to commercial or mixed-use, use without approval from the FCT Administration, a 7 per cent fee will be charged on the assessed capital value of the property.

This fee is also payable within 30 days.

Muktar Galadima, Director of Development Control and chairman of the Committee on Land Use and Purpose Clause, said there was a pattern of unauthorised conversions in areas including Ademola Adetokunbo Street, Aminu Kano Crescent, Yakubu Gowon Street, and Gana Street.

Galadima said, “The committee found that many landowners altered the approved use of their property without seeking formal permission, in clear violation of the Land Use Act.

He said the total capital value of affected properties stands at over N1.03 trillion.

The committee proposed a range of enforcement actions, including fines, revocation of land titles, sealing of non-compliant properties, and demolition of unauthorised structures.

In addition to the 7.5 per cent conversion charge, landowners will be required to pay statutory Right of Occupancy fees applicable to the new land use classification, as well as a 2 per cent fee on the capital value of properties where illegal extensions, mergers, or subdivisions have occurred.

Speaking after receiving the committee’s report, Wike stated that the measures were necessary to restore order to land administration in the FCT and support ongoing capital projects.

He stressed that the administration is not inclined to revoke titles but will do so where owners fail to comply.

“This is not up for negotiation,” the minister said. “Defaulters must pay both the penalties and the conversion fees. If they refuse, we will revoke the titles and sell the properties. Either way, we will raise the funds needed for development.”

Wike warned against the continued abuse of land use regulations, describing it as a longstanding problem. He said many property owners have assumed they can change land use without approval, but that the administration would no longer tolerate such actions.

“We’ve seen people converting residential properties to commercial or vice versa without approval. That ends now,” he said.

The new policy aims at achieving a shift in land governance in Abuja and is expected to tighten regulatory oversight across the territory.

Source: Businessday.ng | Read the Full Story…