Infrastructural challenge is cause of FCT’S land tariff hike

The FCT, as at today, remains the safest land in the country, but this can only be maintained if the various challenges the nation’s capital faces are immediately tackled. Basically, the greatest problem of the FCT is funding, occasioned by the present global financial meltdown (GFM), dwindling revenue from oil and an Internally Generated Revenue […]

The FCT, as at today, remains the safest land in the country, but this can only be maintained if the various challenges the nation’s capital faces are immediately tackled.

Basically, the greatest problem of the FCT is funding, occasioned by the present global financial meltdown (GFM), dwindling revenue from oil and an Internally Generated Revenue (IGR) that is not beyond N25 billion annually, i.e. less than $2 billion.

FCT requires a minimum of N300 billion to breathe new life into, and complete abandoned and ongoing projects within the few districts that have so far been developed or partially developed. Other areas desperately begging attention include, but, not restricted to, the completion of roads and utility projects like water that has exceeding socio-economic value to residents and visitors of the capital city alike as well as infrastructure layouts in districts, engineering and electrical projects, sewage and refuse management facilities.

Also, funding will be required for a functional hard and software infrastructure and structures for the management of the city at a world class level enabling it (FCT) to be a working capital and keep up itself and at the same time provide services to its citizenry; a city that has the capacity to attract tourists and persons, desirous of spending good money in a good and very organized environment.

Senator Aliero has made us to understand the reality on ground, which invariably points to a fact that the FCT has not enough money and its source of funding is limited. Therefore, the FCT has no alternative than to find ways of generating more revenue to enable it meet its urgent growing challenges. At present, the FCT is dependent on the generosity of the federal government, as the states and local governments have long relieved themselves of any responsibility towards the FCT. The truth of the matter is that the capacity of the FCT to develop swiftly so that it becomes the beloved city and pride of the nation is being threatened.

It is on this premise that a cabinet committee was set up by the Federal Executive Council on the 20th of May 2009 to make a report based on its findings on the ongoing Federal Capital Territory Administration projects requiring variations and then make its recommendations to the FEC.

While discharging its assignment, the committee also found out that taking care of infrastructure in the FCT will require a whooping N299 billion. Hence, the committee recommended that the FCTA immediately works out modalities for the increase in the land charges from the present N2,000 per square metre to between N5,000 and N18,000 per square metre as already approved by Mr President and develop an efficient system of revenue collection.

Unlocking the land values is one very attractive option that should be given a pride of place and complemented by borrowing from local financial institutions  and the domestic or possibly, international capital markets, and also generation of funds through the Private Public Partnership Initiative (PPPI).

The generation of funds through these options would require reviewing the current tariff composition and other related charges associated with land development in the FCT. The former payment of N2,000 per square metre is unrealistic. Like any state of the federation, the FCT caters for the socio-economic needs of the residents and visitors of the FCT in addition to service delivery and the maintenance of law and order. The infrastructures of the FCT are aging and need to be maintained.

The Chief of Staff to the FCT Minister, Alhaji Abubakar Saddiq Yelwa, has emphasized that the revenue generated from the increase in land tariff and its related charges will be kept in a non interest-yielding dedicated account, adding that this will strictly be used for the provision of infrastructure, services and the attendant facilities in all the districts of the FCT.

Ibrahim Muhammed is National Coordinator, Freedom and Democracy in Nigeria (FADIN), 12A Democracy Crescent, Gaduwa Estate, Abuja