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Real Estate: FCT Loses N800bn Annually To Fraudulent Developers – National Assembly

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The illegal activities of developers in Abuja, including scamming unsuspecting subscribers and cheating the government out of revenue have been condemned by the House of Representatives’ ad hoc committee investigating the operations of real estate developers in the Federal Capital Territory.

According to the committee, the Federal Capital Territory is losing N800bn annually to the sharp practices by the real estate developers.

The Chairman of the committee, Blessing Onuh, raised the issue in Abuja on Monday at the opening of a two-day workshop on the operations of real estate developers in the FCT.

Onuh said the committee made the discoveries in its preliminary investigation.

She said, “This is necessitated from the hundreds of petitions submitted to this committee by the teeming members of the public who have been short-changed by dubious developers operating freely in the industry.

“A pathetic case is the case of the Petroleum and Natural Gas Senior Staff Association of Nigeria, which paid over N4.2bn to a developer since 2019 and has yet to get even one house delivered to its staff (members)…and there are thousands of similar cases.”

Onuh said the committee hoped to discuss consumer protection laws relating to the real estate sector.

The lawmaker said the committee, within the short period of time it commended the probe, had found out that the level of impunity by developers across the sector was unprecedented.

She said, “To discuss the economy of the real estate industry, we shall clearly articulate the value chain in this multi-trillion naira industry and identify why the FCT has not been getting its fair share from the trillion-naira transactions that have been consummated in the industry since the revolution.

“This committee’s preliminary findings indicated that the FCT has been losing an estimated N800bn annually in revenues accruable to it from the real estate sector.”

Onuh added, “Take, for example, a house or land is sold for N500m; the lawyer gets his legal fees, the agent gets his brokerage fee, the bank gets its transaction charges but the government gets nothing if the transaction is not presented for registration.

“And this kind of transactions go on in volumes every day unregulated, leaving the government with the perennial struggles of meeting up its responsibility of providing decent welfare for its staff and providing modern amenities to its people.

“Many of these transactions are done in cash, making the industry a safe haven for money laundering and illicit financial flows.”

BIG STORY

Trump Hits Nigeria With 15% Tariff In Revised Global Trade Blitz

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Nigeria, along with several other African nations, has been subjected to a 15 percent import tariff following a broad executive directive issued by United States President Donald Trump.

The White House disclosed the updated reciprocal tariff framework on Thursday.

Back in April, Trump had introduced extensive tariffs on various international trade partners, placing a 14 percent duty on Nigeria.

The implementation of these “reciprocal” tariffs was initially delayed for 90 days to allow time for bilateral trade negotiations, with the new deadline set for August 1.

Despite the extensions, most discussions did not lead to any new trade arrangements, prompting the enforcement of higher tariffs as part of Trump’s updated global trade strategy.

Across Africa, the United States was unable to finalize a single trade agreement, despite considerable efforts made by officials from both sides.

While countries explored options to navigate the tariff challenges, Trump also placed travel bans on multiple African nations.

Nigeria was not part of the original list, but was eventually included as the policy developed further.

Yusuf Tuggar, Nigeria’s minister of foreign affairs, mentioned that West African countries had intentions to enhance trade relations with the US but saw the travel bans as a major hindrance.

Here is the breakdown of the revised tariff categories:

10% – Falkland Islands, United Kingdom, and all other nations excluded from the executive order
15% – Afghanistan, Angola, Bolivia, Botswana, Cameroon, Chad, Costa Rica, Côte d’Ivoire, Democratic Republic of the Congo, Ecuador, Equatorial Guinea, Fiji, Ghana, Guyana, Iceland, Israel, Japan, Jordan, Lesotho, Liechtenstein, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nauru, New Zealand, Nigeria, North Macedonia, Norway, Papua New Guinea, South Korea, Trinidad and Tobago, Turkey, Uganda, Vanuatu, Venezuela, Zambia, Zimbabwe
18% – Nicaragua
19% – Cambodia, Indonesia, Malaysia, Pakistan, Philippines
20% – Bangladesh, Sri Lanka, Thailand, Taiwan, Vietnam
25% – Brunei, India, Kazakhstan, Moldova, Tunisia
30% – Algeria, Bosnia and Herzegovina, Libya, South Africa
35% – Iraq, Serbia
39% – Switzerland
40% – Laos, Myanmar (Burma)
41% – Syria

China, which remains in a prolonged trade dispute with the United States, is still actively negotiating with the Trump administration.

Canada received a 35 percent tariff, while Mexico was hit with several levies including 25 percent on fentanyl, 25 percent on automobiles, and 50 percent on steel, aluminum, and copper, all of which will take effect in 90 days.

Brazil was initially given a 10 percent tariff.

However, an additional 40 percent duty was introduced on Thursday, raising Brazil’s total tariff rate to 50 percent.

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BIG STORY

Army Lacks Funds To House 13,000 New Recruits — COAS Oluyede

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Olufemi Oluyede, chief of army staff (COAS), has stated that the Nigerian Army does not have the financial capacity to provide accommodation for incoming recruits.

According to Punch, Oluyede made this known on Thursday in Abuja during a visit by the senate committee on army to the army headquarters.

While expressing appreciation to the committee for their support, he pointed out that the current method of funding, particularly the envelope budgeting system, falls short of meeting the army’s operational demands.

He appealed to the committee to consider allocating special funds outside the envelope budgeting model so the army can effectively deliver combat support and provide necessary welfare infrastructure.

“As we speak, the army is still challenged in terms of operational efficiency. This year alone, we are expecting about 13,000 new personnel, but there are no corresponding resources to provide accommodation for them,” the army chief said.

“We still have soldiers not being accommodated, and that number will continue to grow.

“We are not only looking at maybe insecurity within, but what if someday we are challenged from outside?

“So, I want to pray that you please look at that, and at the same time, look at how we can get special funds to provide accommodation for our soldiers. It’s very critical.”

Abdulaziz Yar’Adua, who chairs the senate committee, acknowledged the financial limitations the army faces and assured that the panel would push for enhanced funding.

“The Nigerian Army and Armed Forces should be removed from the envelope budgeting system so they have more funds to carry out their mandate. We’ve seen the need during our oversight visits,” Yar’Adua said.

“We want to assure the chief of army staff of our continued support and collaboration with the executive to ensure the army is adequately funded.”

He added that the committee had been divided into two teams to inspect army bases in Borno, Katsina, Sokoto, Kebbi, and Lagos states.

He explained that the inspection is in accordance with the constitution and senate procedures to guarantee proper use of approved funds.

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No Region Left Out In Tinubu’s Infrastructure Revolution — Works Minister Dave Umahi

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Dave Umahi, the minister of works, said every part of Nigeria is included in President Bola Tinubu’s infrastructure agenda, and he promised to make public the full list of ongoing projects nationwide.

Umahi made this known in Abuja on Thursday following the weekly federal executive council meeting chaired by Tinubu.

“Mr. President has done extremely, very, very well in both urban and rural infrastructure,” he said.

“I’m going to publish all the projects—over N10 billion—across the entire country. I’m trying to be correct, and that will be next week.”

He explained that 118 km of roads in Abuja cost N286 billion, with N75 billion (30%) already disbursed, and over half the work completed.

The second phase of the project spans 164 km at a cost of N502 billion, with N150 billion (30%) released so far.

For the Abuja–Kano road, covering 72 km and valued at N450 billion, N135 billion (30%) has also been paid to the contractor.

He added that the Abuja County application project, worth $22 billion, had received 30 percent payment for ongoing construction.

Discussing regional infrastructure, Umahi noted that funds were disbursed for all four parts of the Bauchi–Gombe road, and Sukuk bond funding is backing projects in Gombe, which are now underway.

He said the Nembe Bridge project received 30 percent of its N156 billion funding, highlighting that the bridge would eliminate the need for expensive airboat travel to oil rigs.

“I’ve always said that when a road is not connected, you can’t move from one state to the other,” Umahi stated.

“It’s tantamount to being in prison because your movement is restricted… Projects bring down costs; the GDP of states is being improved.”

The minister also mentioned that the Lagos–Calabar coastal highway is 85 percent completed, having positively impacted Lagos’s GDP.

He said the Adamawa project, which was originally awarded in 2020 for 45 km, had now been extended to 61.76 km on the Biu–Newman road.

On the Lagos–Shagamu–Ijebu Ode–Ore road project, which began in 2018 and was revised in 2023, he said it is 25 percent complete and recently received an additional N11.423 billion.

He noted that the Niger State project was adjusted to include a binder crossing and a new bridge, which increased the cost by N8.94 billion.

He stated that the second section of the Sokoto–Badagry corridor was awarded for 228 km of three-lane road construction at N961 billion, with 120 km already completed in Sokoto.

Umahi expressed sorrow over the Keffi Flyover accident, which claimed three lives, saying the government had settled with the victims’ families and reconstruction had started.

He said the bridge remains closed to vehicles and that there are no unresolved legal matters related to the incident.

Umahi reaffirmed that the administration is dedicated to transparency and accountability.

“Anytime, any day, I would like to have a debate with anybody that wants more knowledge in terms of our ongoing infrastructure,” he said.

“That will come next week, and you will be able to see the great things that Mr. President is doing.”

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