Ground rent revenue is crucial in Abuja infrastructural development -ESV. Felix Alabi

An Estate Surveyor and Valuer ESV. Felix Alabi has explained reasons why ground rent revenue is crucial in Abuja infrastructural development.
He emphasized that the important of ground rent goes beyond fulfilling a legal requirement. It is fundamentally a financial mechanism for development.

ESV Alabi stated this during a chat with Peoples Daily, yesterday in Abuja .

He described Ground rent, as an annual payment made by property owners to the government for the use of land.
“It is thus a statutory obligation as enshrined in the Land Use Act of 1978, now known as the Land Use Act, Cap L5, Laws of the Federation of Nigeria 2004. It should be noted that in Abuja, where all lands are vested in the Federal Government and held in trust by the Minister of the FCT, the collection and payment of ground rent serves as one of the most direct and sustainable sources of internally generated revenue”.

He said Unlike volatile oil receipts or conditional external loans, ground rent provides a steady and locally sourced income stream
. “If efficiently harnessed, it can drive the growth and modernization of the capital city”.
He said that there is no gainsaying the fact that timely and consistent payment of ground rents would strengthen the fiscal capacity of the FCT Administration, enabling it to plan and execute infrastructural projects with minimal reliance on federal allocations.
He stressed that the importance of ground rent give room for provisions of infrastructure and management, such as roads, bridges, schools, hospitals, drainage systems, water supply networks, and public electricity, amongst others all require substantial funding, and ground rent revenue.
He said if efficiently collected, managed and utilized, can directly contribute to the provision and management of these essential amenities.
The Benefits of ground rent collection
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He said it ensures fiscal sustainability by diversifying revenue sources. There is no doubt the fact that as a rapidly growing metropolis, Abuja requires reliable financing to meet the infrastructural demands of its population.
Secondly, ground rent collection fosters urban order and land management. Through accurate maintenance of records of land titles and payments, authorities are able to monitor land use, prevent speculative hoarding, and ensure that land is allocated for productive purposes.
Thirdly, ground rent strengthens social equity. When revenues are expended for public good, citizens enjoy improved access to housing, efficient public transportation, education, and health facilities; thus bridging gaps between developed and developing districts.
“All these, if achieved, would further aid the attainment of the smart city Abuja has long dreamt of becoming”.
Furthermore, ground rent collection has a direct impact on economic productivity. Functional infrastructure lowers the cost of doing business, attracts investment, and enhances the competitiveness of Abuja as a commercial hub. It will provide better road networks reduce travel time and vehicle maintenance costs, while reliable power and water supply support businesses.
In light of this, ground rent is not merely a payment; it is an investment in the prosperity of the city.
He said there are various challenges persist in the collection of ground rent and subsequent impact on infrastructure development.
“Default in payment remains widespread, with billions of naira in unpaid rents limiting the government’s ability to finance projects. Weak enforcement mechanisms, inadequate public awareness, and a lack of transparency in the use of collected funds, which has further eroded public confidence. Many property owners are reluctant to comply when they do not see visible improvements tied to their previous payments. This underscores the importance of accountability”.
He said that ground rent must be administered in a manner that inspires trust and demonstrates that citizens’ obligations translate into tangible development outcomes.
He added that in achieving a smart and resilient city through adequate ground rent collection; major reforms have become necessary.
This implies that a more efficient system of ground rent collection can be achieved through adequate digitization of payment processes, integration of land records, and public sensitization campaigns. Penalties for default must be enforced consistently, but in a fair and transparent manner. He said that at the same time, the government must ensure that public funds are used for projects or activities that directly improve the quality of life.
“A resident who sees better roads, cleaner environments, and functional public amenities is more likely to pay their ground rent without compulsion”.
He concluded by saying that ground rent collection is not simply a bureaucratic exercise; it is a cornerstone of sustainable development in a rapidly growing city like Abuja.
It embodies the principle that those who benefit from the privilege of land ownership have a civic responsibility to contribute to the growth of the community.
“Effective ground rent administration can unlock immense potential for funding, reducing the city’s dependence on external sources, while ensuring that development is driven from within.
“Abuja has the opportunity to boost its revenue base, not by increasing rates but ensuring that all eligible persons pay as and when due. More importantly, there should be optimal transparency and accountability in the way such funds are disbursed. That way, it would be easier to make the capital city a true symbol of modern infrastructure and national pride, as obtained in other parts of the world”.
He maintained that the continues development and financial sustainability of the Federal Capital depend on how efficiently ground rent is collected and how wisely it is invested.

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