FCTA Imposes N5m Fine On Property Owners For Illegal Conversion

The Federal Capital Territory Administration (FCTA) has imposed a N5 million fine on property owners who have unlawfully converted residential plots to commercial use, particularly on Gana, Gimbiya, Aminu Kano, and Ademola Adetokunbo Streets, among others, in the city center.

The decisive action comes on the heels of recommendations made by the Ad-hoc Committee on the Review of Land Use/Purpose Clauses, tasked with addressing properties that have been overtaken by commercial ventures.

Presenting its report to the Minister on Tuesday, the committee observed that a majority of the structures on Gimbiya Street in Garki, Gana Street in Maitama, and the busy Ademola Adetokunbo Street in Wuse II had been converted to offices, hotels, and other businesses without recourse to their original purpose clauses or necessary approval from the FCTA.

The committee, chaired by the Director of Development Control, Mukhtar Galadima, also frowned at illegal extensions, mergers, and subdivisions of properties in the affected areas.

It, therefore, recommended that the purpose clauses of the affected properties be formally converted to commercial or other compatible uses, subject to the payment of new fees.

With this development, title holders of the land and properties affected by the land use conversion are expected to pay a conversion fee of 7.5 per cent of the assessed capital value of their properties. This is in addition to the payment of statutory Right of Occupancy bills applicable for the new land use/purpose clause charged for the districts.

Part of the report reads, “That allottees/title holders of land and properties affected by the land use change/conversion, pay within thirty (30) days from the date of conveyance of approval, Land Use Conversion fee of 7.5 percent of the assessed Capital Value of the properties.

“That allottees/title holders of the land and properties affected by the land use change/conversion, in addition to payment of Land Use Conversion fee, pay statutory Right of Occupancy bills applicable for the new land use/purpose clause and as charged for the District.”

The committee warned that where illegal or unapproved extensions, mergers, or subdivisions had been established, title holders would, in addition, pay an “extension/merger/subdivision fee of the extant 2.0 percent of the assessed Capital Value of the properties within thirty (30) days from the date of conveyance of approval.”

Failure to comply, the report stressed, would attract stiff enforcement. “All plot extensions, mergers and/or subdivisions not considered permissible are to be reversed to their approved state, failing which enforcement actions (sealing of property, removal of buildings / structures, revocation/withdrawal of titles, etc.) will be applied.”

In addition, the committee recommended that existing titles in respect of the affected properties be revoked to pave the way for the issuance of new title documents reflecting the new land use status.

It added: “The title documents to be issued to the allottees/holders of the affected land and properties on the selected streets/locations, be for a fresh lease term of 99 years.”

The committee also called for traffic control, power upgrade, and waste management improvements in the affected neighbourhoods and directed holders of undeveloped plots in the Central Business District and Sector Centres within Phase II to immediately commence development or risk revocation within three months.

Responding after receiving the report, FCT Minister, Nyesom Wike, warned that it would no longer be business as usual for those flouting the capital city’s land use laws.

“I am aware that certain areas are designated for residential and others for commercial, but people believe they can do anything without approval. If you don’t sanction them, it will continue. We must let you know that we have to apply the sanction as required,” he said.

Wike insisted that sanctions would be strictly enforced, including the withdrawal of titles.

“We must let you know that we have to apply the sanction as required, and anybody who does not comply, we have no choice but to revoke the title and withdraw it,” the minister stated.