FG Gives Titled Property Owners Nationwide 60 Days To Pay Ground Rent Or Face C of O Revocation
The Federal Government of Nigeria has issued a crucial 60-day deadline for all federal Certificate of Occupancy (C of O) holders to clear outstanding ground rent and statutory charges. Announced by the Minister of Housing and Urban Development, Arc. Musa Dangiwa, this directive comes as part of a national strategy to enhance compliance and boost revenue for development projects. Dangiwa’s announcement was made at the 29th Conference of Directors of Lands in Ministries, Departments, and Agencies (MDAs), held in Abuja.
An Overhaul in Land Titling: Nigeria’s New e-C of O System
To streamline land administration across the country, Nigeria’s Ministry of Housing and Urban Development has introduced an enhanced Electronic Certificate of Occupancy (e-C of O) system. Developed in partnership with the World Bank, this new system modernizes land titling on federal lands by implementing the Web-based Advanced Workflow System (WNABS) and Electronic Documentation Management System (EDMS).
These integrated systems are set to minimize the bottlenecks historically associated with C of O issuance. For property owners and investors, the e-C of O system not only speeds up the process but also ensures greater transparency, traceability, and accountability. By October 2024, the Ministry had already digitally approved over 600 e-C of O applications, with a target to clear all backlogged applications by December 2024.
Unlocking Trillions in Revenue and $300 Billion in Capital Potential
The Ministry’s broader agenda includes tapping into the $300 billion in potential capital tied up in unregistered land assets across Nigeria. This national land titling initiative, developed alongside the World Bank, aims to unlock immense economic value by transforming unregistered land into recognized, legally titled assets. By enforcing ground rent payments and improving land titling procedures, Nigeria stands to generate trillions of naira, which are critical for national development.
Non-Compliance Warning: Clear Your Ground Rent or Lose Your C of O
As part of its compliance efforts, the Ministry has warned all C of O holders to pay their overdue ground rent within the 60-day window to avoid revocation of their property titles. Minister Dangiwa highlighted the urgency of collecting these statutory fees, as non-compliance has cost Nigeria trillions in lost revenue. These funds are essential to fulfilling the government’s Renewed Hope Agenda under President Bola Tinubu, aimed at driving growth and development across Nigeria.
The government has also issued a caution to residents’ associations in federal estates that obstruct billing and payment enforcement efforts. These associations are required to comply fully with federal regulations and their Certificates of Occupancy (C of O) terms to avoid penalties and sanctions.
Why Compliance Matters for Property Owners and Investors
For both local property owners and Nigerians in the diaspora who own properties in Nigeria, the recent compliance drive underscores the importance of a legally recognized Certificate of Occupancy. A current C of O not only guarantees property ownership but also enhances asset value, enabling landowners to use their assets as collateral or to sell at competitive market rates. Given Nigeria’s high-growth real estate market, timely compliance is essential to secure these advantages.
Key Points at a Glance for Nigerian Property Owners and Investors
- 60-Day Compliance Deadline: All federal C of O holders must pay outstanding ground rent within 60 days or risk revocation.
- Enhanced e-C of O System: The new digital system simplifies the C of O process, allowing faster approvals and improved efficiency.
- $300 Billion Opportunity in Untapped Land Capital: With a vast pool of unregistered land assets, Nigeria’s real estate sector is poised for economic expansion.
- Stronger Investment Appeal: The Ministry’s commitment to transparency and regulatory enforcement strengthens Nigeria’s real estate market, making it more attractive to investors.
With the recent upgrades to the e-C of O system and the government’s strict approach to ground rent compliance, Nigerian real estate is entering a new era of accountability and growth potential. This push to enforce ground rent payments, streamline title issuance, and unlock unregistered land value reflects Nigeria’s commitment to fostering a resilient, investor-friendly property market.
