The Federal Capital Territory (FCT) is facing a substantial revenue gap, as a new revelation by the Minister of the Federal Capital Territory, Nyesom Wike, points to over ₦300 billion owed by owners of VIP properties in unpaid fees for Certificates of Occupancy (C of O). The minister disclosed the alarming figure during a media gathering at his official residence in Life Camp, Abuja, on Sunday night.
Wike, who has been in office since August 2023, addressed the growing concerns of revenue shortfalls, stating that this significant debt is among the major challenges hindering the city’s development. Despite these setbacks, he expressed confidence that the FCT administration’s efforts to increase revenue had led to impressive improvements.
Revenue Growth Amidst Financial Challenges
The FCT’s monthly revenue collection has soared from a modest ₦9 billion to an impressive ₦25 billion under Wike’s leadership. December 2024 saw a record-breaking ₦40 billion generated, a substantial leap that the minister attributes to stronger enforcement of ground rent collections and a crackdown on unpaid C of O fees. According to Wike, this aggressive approach has been crucial in ensuring that the capital continues its infrastructural development and sustains the civil service.
“We’ve made considerable progress in revenue generation. When I assumed office, we were generating between ₦9 billion and ₦10 billion. Today, by the grace of God, we are consistently generating at least ₦25 billion each month,” Wike said, his tone firm but optimistic. “Our aggressive revenue efforts have yielded impressive results. Just last month, we generated over ₦40 billion, which is already being reinvested in the city’s infrastructure.”
He emphasized that the sustained increase in revenue generation is vital for meeting the government’s financial obligations, particularly in light of the rising cost of governance. The FCT administration allocates ₦13 billion each month to salaries, a figure that is crucial in supporting the local civil service and keeping the capital running smoothly.
Taxation and Development: A Necessary Trade-Off
The minister also took the opportunity to stress the importance of tax payments for the continued development of the FCT. Wike posed a critical question to property owners and taxpayers alike: “Can you honestly say that the FCT is justifying the revenue or taxes you’re paying?” He added, “Yes, it’s accurate. We are working towards justifying these payments. But it’s still not enough to address all our challenges.”
He highlighted that although the FCT receives less than ₦13 billion monthly from the Federal Government through VAT and the 1% allocation, this amount falls short of covering the increasing financial commitments of the administration, especially considering the recent wage hikes for civil servants.
“It’s a clear fact that we need to supplement our internally generated revenue (IGR). This is the only way we can afford to pay salaries and continue with our infrastructure projects,” Wike remarked. The growing strain on public finances means that the FCT is increasingly relying on its own revenue sources to meet the needs of the people and deliver essential services.
Unpaid C of O Fees: A Roadblock to Development
The revelation of the ₦300 billion owed by VIP property owners in Abuja adds another layer to the financial pressures faced by the administration. The outstanding fees for Certificates of Occupancy represent a critical source of revenue that has not been fully tapped into, depriving the FCT government of funds needed for development projects.
Wike’s statement underscores the long-standing issue of unpaid C of O fees, particularly among owners of high-end properties. While the capital city is home to numerous wealthy individuals and influential figures, their non-compliance with land ownership regulations has created a significant revenue shortfall. This issue is not only a financial burden but also an obstacle to the orderly development of the city.
“We cannot continue to allow this to go unchecked,” Wike stressed. “VIP property owners must pay their dues. It’s essential for the growth and development of the capital.”
The unpaid fees are a significant concern, as they hinder the government’s ability to fund key projects and maintain basic services. The funds owed by property owners in the FCT represent a potential windfall that, if collected, could provide a substantial boost to the region’s coffers.
Increased Enforcement: A Strategy for Progress
Wike’s administration has made it clear that it will leave no stone unturned in collecting unpaid taxes and fees. The minister’s policy of vigorous enforcement has been credited with the notable increase in the city’s revenue generation. Through stricter measures and a renewed focus on landowner compliance, the FCT is working to ensure that everyone—whether wealthy property owners or ordinary citizens—contributes their fair share to the city’s development.
“We’ve been relentless in enforcing the collection of C of O fees and ground rents,” Wike explained. “These are essential sources of revenue for the FCT. If we don’t collect them, it affects our ability to build the infrastructure that is needed to support the city’s growing population.”
The minister further emphasized the crucial role that taxes play in funding development projects. He pointed out that without adequate tax payments, Abuja’s expansion and modernization efforts would be significantly hindered. “How can we achieve development without taxes?” Wike asked rhetorically.
A Call for Unity and Commitment
Despite the financial struggles, Wike remains hopeful that with continued effort, the FCT will overcome its fiscal challenges. He called on both residents and property owners to uphold their civic duties by paying taxes and fees, noting that these payments are not only essential for the administration but also for the future of the capital city.
“We need everyone to play their part. We cannot achieve the Abuja we want without collective effort. Our vision for the city is big, and it requires big sacrifices. Let’s all contribute to building the capital of our dreams,” he urged.
As Abuja continues to grow and develop, the pressure on the government to secure sustainable funding will only increase. With figures like Wike at the helm, however, there is hope that the city can navigate its financial challenges and continue its march toward modernization and growth.
The ongoing efforts to collect C of O fees and taxes will play a pivotal role in shaping the future of the FCT. If successful, these actions could mark a turning point in the city’s economic stability and growth, creating a model for other regions in Nigeria to follow.
