The Federal Housing Authority (FHA) has issued a stern warning to the public, particularly those in Festac Town, Lagos, to disregard any land transactions related to the New Festac Property Development Company Ltd, a concessionaire. In a statement released on Tuesday, FHA clarified that the New Festac Property Development Company and its agents are not authorized to conduct land sales on its behalf, urging the public to be cautious.
This warning comes after the emergence of a fraudulent land offer letter from the New Festac Property Development Company Ltd. The offer letter, which demands a payment of N49,151,645 for a plot of land measuring 651.178 square meters, was allegedly signed by Simon Egodigwe, the company’s managing director. FHA, in its statement, has categorically denied any association with this offer letter, deeming it counterfeit and unauthorized.
The Federal Housing Authority made it clear that it owns the entire land in Festac Town, having been granted a Global Certificate of Occupancy (Cof O) by the Federal Government. As the rightful owner of the land, FHA holds the exclusive authority to issue allocation letters for any land transactions within the estate. This includes the allocation of residential plots, which can only be done through formal procedures carried out by FHA’s management.
In its statement, FHA emphasized that it had entered into a partnership with the New Festac Property Development Company Ltd for the development of Festac Phase II. However, this partnership has not yet been finalized. The company’s work on the project has only involved sand filling at the site, and no official agreements have been made regarding the sale of plots or the determination of land prices.
According to FHA, the actions of New Festac Property Development Company Ltd are not only unauthorized but also “preposterous” and ill-timed, given that no concrete agreements have been reached regarding the sale of land. The Authority questioned how the company could have arrived at a specific cost for the land when the total cost of the project has not even been determined.
The fraudulent offer letter in question purportedly claims that New Festac Property Development Company Ltd and FHA would jointly issue the relevant title documents for the land once payments were made. This, according to FHA, is entirely false. The public was reminded that it is only the FHA that has the legal right to issue allocation letters for land in Festac Town.
The offer letter, which asks for a payment of over forty-nine million Naira, directs the funds to be paid into a Wema Bank account in the name of the New Festac Property Development Company Ltd. FHA has expressed grave concern over this development, noting that this is not the first time such fraudulent activities have been brought to light. The public has been advised to disregard this fraudulent offer and refrain from making any payments to the company.
FHA’s statement serves as a critical reminder to potential buyers and investors in Festac Town that any land transaction outside of the official procedures laid down by the Authority could have serious legal and financial consequences. In addition to the potential loss of funds, buyers who fall victim to fraudulent land sales could face lengthy legal battles, as well as difficulties in securing legitimate ownership documents for their properties.
The Federal Housing Authority urged members of the public to report any suspicious land offers or transactions to the appropriate authorities, stressing the importance of exercising caution when dealing with property developers or land agents who do not have the proper credentials or authority.
In light of this recent fraud case, FHA reiterated its commitment to ensuring transparency in all land transactions under its jurisdiction. The Authority assured the public that it remains the sole body authorized to issue letters of allocation and conduct land sales within its estates, including Festac Town.
FHA also announced that it would continue to monitor the activities of fraudulent property developers and take legal action against anyone found to be involved in land scams. The Authority’s focus is to safeguard the rights of genuine buyers and protect them from exploitative practices.
The statement concluded with an urgent call for vigilance among the public, reminding them that only the FHA’s official communications, signed by its Managing Director and Chief Executive, are valid for land transactions in Festac Town.
Festac Town, located in Lagos, is one of Nigeria’s most iconic housing estates, built as part of the country’s efforts to provide affordable housing to its citizens. Over the years, the estate has grown, and various developmental plans have been proposed to further improve the area. The partnership between FHA and New Festac Property Development Company Ltd was intended to help develop Phase II of the estate. However, as previously mentioned, the development is still in its early stages, and there has been no official pricing or sale of land in the area.
