A long-running dispute over Abuja‘s major real estate developments has recently escalated into international mediation. The situation’s intensity increased after Sir Sam Jonah, a Ghanian businessman’s company, JonahCapital Nigeria Limited, challenged the Nigerian authorities regarding control over a property that is 501 hectares.
The dispute mainly centers on Park Estate in Lugbe, Abuja, which is a giant development that is mixed-use. The development, which the planned development aims to provide, will provide over 11,000 housing units, potentially benefiting around 42,000 residents. to provide over 11,000 housing units, which would approximately help 42,000 residents. Shopping centers, offices, places of worship, and healthcare centers were the main focal points of the project.
JonahCapital has initiated proceedings before the International Chamber of Commerce (ICC) in Paris, challenging the Federal Capital Development Authority’s (FCDA) decision to terminate its Development Lease Agreement in November 2025.
The FCDA states clearly that the lease agreement with JonahCapital has expired. This would allow the authority to regain possession of the land. Nyesom Wike, the Federal Capital Territory Minister, has confirmed that arbitration proceedings have officially started and said the government would allow the process to reach its conclusion.
JonahCapital disputes the government’s position, arguing that its lease remains valid until June 2030. The company is seeking a declaration from the arbitration tribunal that the termination was unlawful.
Allegations have been made by the developer, stating that the FCDA has failed to hold up its end of the bargain over the agreement by not providing the necessary infrastructure, such as electricity, water, and roads. According to JonahCapital, it was prompted and forced to finance and build some of these facilities itself.
The company has further accused various individuals and organizations of making claims regarding sections of the estate, which has led to numerous legal disputes and ongoing uncertainty surrounding the property for several years.
The disagreement has a history that stretches a few years into the past. Former Nigerian President Olusegun Obasanjo also has previously rejected claims that concern the allocation of the land during his administration.
The outcome of the Paris arbitration could end up having significant implications for the future ownership as well as development of River Park Estate, which is one of Abuja’s largest planned private housing projects.
