The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has confirmed that the long-running dispute between the Federal Capital Development Authority (FCDA) and JonahCapital Nigeria Limited over the River Park Estate in Lugbe, Abuja, is now before an international arbitration panel.
The case is being heard under the arbitration mechanism of the International Chamber of Commerce (ICC) in Paris after JonahCapital invoked the dispute resolution clause contained in its Development Lease Agreement (DLA) with the FCDA.
JonahCapital Challenges Lease Termination
JonahCapital said it initiated arbitration after exhausting administrative and judicial options over what it described as the unlawful termination of its Development Lease Agreement by the FCDA.
The company is challenging the termination of the lease, which it said was due to expire in June 2030 but was revoked by the FCDA on November 5, 2025.
JonahCapital is also seeking relief over alleged breaches of the agreement, including claims that the FCDA fenced off parts of the disputed property while the arbitration process was ongoing.
Wike Confirms Arbitration
Speaking during a recent media parley, Wike acknowledged that the matter had moved to international arbitration.
“The other party has gone to arbitration; we say okay, until you finish from arbitration,” the minister said.
He maintained that the FCDA’s contractual relationship was solely with JonahCapital and not with Paulo Homes Limited, a company introduced into the project by JonahCapital.
According to Wike, the Development Lease Agreement had expired, prompting the FCDA to reclaim the land.
Background to the Dispute
The River Park Estate project originated from a Development Lease Agreement signed on May 28, 2007, between the FCT Administration and JonahCapital Nigeria Limited under the FCT Mass Housing Scheme.
The agreement granted JonahCapital development rights over approximately 501 hectares of land in Cadastral Zone E30, Lugbe West, Abuja, for the development of the mixed-use River Park Estate.
The project was designed to include residential housing, commercial centres, healthcare facilities, places of worship and other supporting infrastructure.
Company Alleges Multiple Breaches
JonahCapital alleges that the FCDA failed to provide critical infrastructure such as roads, electricity and water supply as stipulated in the agreement, forcing the company to finance and construct the facilities independently.
The firm also claimed the authority violated the lease by demanding upfront payment of building approval fees despite provisions in the agreement allowing for deferred payment.
In addition, JonahCapital said competing ownership claims by third parties over portions of the estate resulted in years of litigation and administrative disputes.
The outcome of the international arbitration is expected to determine the future of one of Abuja’s largest private mass housing developments.
