The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has confirmed that the long-running dispute over the development of River Park Estate in Lugbe, Abuja, has entered the international arbitration stage, with Ghanaian-owned JonahCapital Nigeria Limited challenging the Federal Capital Development Authority’s (FCDA) termination of its development rights.

Speaking during a recent media parley, Wike disclosed that the dispute is now before the International Chamber of Commerce (ICC) in Paris after JonahCapital invoked the arbitration clause contained in its Development Lease Agreement (DLA) with the FCDA.

“The other party has gone to arbitration, we say okay, until you finish from arbitration,” the minister said, confirming that the Federal Capital Territory Administration (FCTA) would await the outcome of the proceedings.

The arbitration centres on the FCDA’s decision to terminate the Development Lease Agreement for Plot 4, Cadastral Zone E30, Lugbe West, Abuja, on November 5, 2025.

JonahCapital argues that the agreement remained valid until June 2030 and that the termination violated the contractual terms. The company is asking the tribunal to determine the legality of the action and grant appropriate reliefs.

Wike, however, maintained that the FCDA’s contractual relationship was solely with JonahCapital and not with Paulo Homes Limited, which he said the developer later introduced into the project. He insisted that the development lease had expired and that the authority lawfully repossessed the land.

The dispute traces its roots to a Development Lease Agreement executed on May 28, 2007, under the FCT Mass Housing Scheme. Registered on June 5, 2007, the agreement granted JonahCapital development rights over approximately 501 hectares of land in Lugbe West for what became River Park Estate, one of Abuja’s largest planned mixed-use housing developments.

The project was designed to include residential homes, commercial centres, office complexes, healthcare facilities, places of worship and supporting infrastructure.

JonahCapital contends that while implementing the project, individuals and organisations who were neither beneficiaries of the allocation nor parties to the agreement began asserting ownership claims over sections of the estate, triggering years of litigation, administrative disputes and competing claims that slowed development.

The developer also alleges that the FCDA failed to provide primary infrastructure, including roads, electricity and water supply as required under the Development Lease Agreement, forcing the company to finance and construct essential infrastructure at significant cost.

It further argues that although Clause 7.7 of the agreement deferred the payment of building approval fees, the authority allegedly demanded immediate payment contrary to the contractual provisions.

Adding another dimension to the dispute, JonahCapital has accused the FCDA of fencing portions of the disputed property while the arbitration is pending before the ICC, a move the company believes could further escalate tension.

The outcome of the international arbitration is expected to determine the parties’ contractual rights and could have wider implications for investor confidence and the enforcement of development agreements in Nigeria’s real estate sector. (Guardian)

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