The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has disclosed that Ghanaian investors behind the River Park Estate project have commenced international arbitration proceedings against the Federal Capital Development Authority (FCDA) over the protracted dispute surrounding the estate in Lugbe, Abuja.
Wike made the disclosure during his regular media briefing in Abuja, saying the matter is now before an international arbitral tribunal.
“The other party has gone to arbitration, and we said okay, let them conclude the arbitration process,” the minister said.
He maintained that the FCDA’s contractual relationship was with JonahCapital Nigeria Limited and not with Paulo Homes Limited, which he said was later introduced by the developer.
According to Wike, the Development Lease Agreement (DLA) executed with JonahCapital had expired, prompting the FCDA to reclaim the land.
However, JonahCapital has activated the arbitration clause contained in the DLA, instituting proceedings against the FCDA and the Federal Capital Territory Administration (FCTA) before the International Chamber of Commerce (ICC) in Paris, France.
The company is challenging the legality of the purported termination of the Development Lease Agreement and is seeking appropriate reliefs.
JonahCapital said it resorted to arbitration after unsuccessful attempts to resolve what it described as repeated breaches of the DLA through official and judicial channels. The company is specifically contesting the FCDA’s termination of the lease on November 5, 2025, arguing that the agreement remains valid until June 2030.
The developer also alleged that the FCDA fenced off portions of the disputed property while the arbitration proceedings were pending, a move it said could further escalate tensions surrounding one of Abuja’s largest mass housing developments.
The dispute centres on a Development Lease Agreement executed on May 28, 2007, between the FCT Minister and JonahCapital Nigeria Limited under the FCT Mass Housing Scheme. The agreement, registered on June 5, 2007, as No. FC113 at Page 113 in Volume 20MSC, granted JonahCapital development rights over Plot 4, File No. MISC 105902, Cadastral Zone E30, Lugbe West, Abuja, covering approximately 501 hectares for the development of the River Park Estate.
The project was conceived as a large-scale mixed-use development comprising residential housing, shopping centres, office complexes, healthcare facilities, places of worship and other supporting infrastructure.
According to JonahCapital, while implementing the project, several individuals and entities that were neither allottees nor parties to the Development Lease Agreement began laying claim to portions of the estate, resulting in years of litigation, administrative disputes and competing ownership claims.
The Ghanaian-owned company further alleged that the FCDA failed to provide primary infrastructure, including roads, electricity and water supply, as required under the agreement, forcing it to finance and construct the infrastructure at significant cost.
It also argued that while Clause 7.7 of the Development Lease Agreement provides for the deferment of building approval fees, the FCDA allegedly demanded upfront payment in breach of the contractual terms.