Wike Defends Ground Rent Revenue, Renaming of Abuja's ICC After Tinubu, Amid Critics

Strategic Insights -

As the commissioning of the Apo to Wassa axis of the Outer Southern Expressway (OSEX) II marked a significant milestone in Abuja's rapid development, Minister Nyesom Wike spotlighted the critical role of ground rent revenue in funding the city's infrastructure projects. Wike emphasized the importance of internally generated revenue from ground rent, especially given Abuja's lack of oil revenue, and highlighted how its enforcement had transformed stalled projects into completed landmarks. He also robustly defended the decision to rename the International Conference Center (ICC) after President Bola Tinubu, dismissing claims of misplaced priorities and political bias.

Key Takeaways:

  • The Federal Capital Territory Administration (FCTA) plans to reclaim nearly 5,000 properties due to long-term ground rent default, aiming to boost revenue for public services and ensure compliance.
  • The Administration has committed to completing all abandoned projects, with the current administration taking office in August 2023.
  • The cost of the OSEX II project initially awarded in 2017 was ?6 billion, but the cost had varied to ?21 billion by 2021.
  • Contractors were delayed in receiving payments from 2017 to 2021, leading to stagnation.
  • Ground Rent revenue has been vital in accelerating infrastructure development in the FCT.
  • Wike praised the contractor's ability to deliver the project within the stipulated time once funds were made available, emphasizing that this was made possible by the government's financial backing.
  • The project involved a significant engineering feat, including blasting through 500 meters of rock to open the road.
  • The road connects communities such as Takushera and Ketti Kabusa to the city center within 10 minutes, reducing the need for residents to live in the congested city.

Statistics:

  • Nearly 15 kilometers of road were opened up by the enforcement of ground rent payments in Abuja.
  • The FCTA plans to reclaim nearly 5,000 properties due to long-term ground rent default.
  • The initial cost of the OSEX II project in 2017 was ?6 billion.
  • The cost of the OSEX II project had varied to ?21 billion by 2021.
  • A total of 500 meters of rock was blasted to open the road.

Sources:

  • "This provision was made by the new administration but Construction began in 2017"

("Nation")