Firm Wants FCT Minister’s Power To Revoke Land Curbed

Festrut Group of Companies, a leading indigenous real estate and construction firm, has called on the National Assembly of Nigeria (NASS) to enact legislation restricting the powers of the minister of the Federal Capital Territory (FCT) to revoke land allocations in Abuja without legislative approval.

The company’s chief executive officer, Mr. Festus Uwakhemen, made the call during a press briefing yesterday’s in Abuja to mark the firm’s 16th anniversary.

Uwakhemen said such legislation would provide property owners in the nation’s capital with greater assurance that their land titles cannot be arbitrarily revoked by successive administrations.

According to him, the proposed law has become necessary due to the frequent revocation of land allocations by incoming FCT ministers, including those approved by their predecessors — a trend he said has adversely affected individuals and corporate organisations.

“The National Assembly has to pass a law that when a minister has approved any land, in principle or through a Certificate of Occupancy (C of O), no other minister has the power to revoke the land except if the land passes through the National Assembly,” he said.

“With that, we are going to have sanity. But if that is not passed, every minister has the power to revoke. They can come to your house and say your house is on the waterways. That is why people in the FCT keep having issues of revocation. You’ll see a big estate, and they’ll just come and say the land has been removed because the minister seeks to have the gavel.”

He maintained that while the minister should retain the authority to allocate land, the power to revoke such allocations should be subjected to due legislative process.

“When the minister can allocate but cannot revoke arbitrarily, he will think very carefully before granting approval to any allocation, knowing fully well that if that allocation has to be revoked, it must pass through channels that may not be easily influenced,” he added.

Uwakhemen also addressed measures to curb illicit financial flows in the real estate sector, highlighting the role of existing anti-money laundering frameworks.

He noted that many real estate firms in Nigeria comply with anti-money laundering regulations, particularly in ensuring that clients declare the sources of funds used in property transactions.

The realtor explained that the Nigeria Financial Intelligence Unit (NFIU) and the Special Control Unit Against Money Laundering (SCUML) have been active in monitoring businesses and scrutinising financial transactions, although some individuals still find ways to circumvent the system.

SCUML, a unit under the Economic and Financial Crimes Commission (EFCC), requires designated non-financial businesses and professions to register and comply with anti-money laundering regulations before accessing certain financial services or government contracts.

He called for stricter reporting obligations for real estate firms under Nigeria’s anti-money laundering laws, similar to the compliance standards imposed on banks.

Uwakhemen further urged the government to strengthen and empower the Real Estate Developers Association of Nigeria to enhance oversight and curb fraudulent activities within the sector.