FHA's Suspension of Construction Activities in Lugbe, Karu, and Kubwa: What does this mean?

Before we dive into the specifics of the Abuja suspension, it's essential to understand the context. In January 2025, the FHA suspended ongoing developments in its estates in Lagos, affecting estates in FESTAC, Ipaja, Abesan, Isheri, Olofin, and others.

Developers in the affected Lagos estates were directed to report to the FHA office in FESTAC Town, bringing with them letters of allocation, approved building plans, payment receipts, and documents proving ownership, including evidence of change of ownership such as consent letters.

The FHA also granted a three-month amnesty period, from January 23, 2025, for defaulting allottees to regularize their property documents and obtain the necessary approvals. This amnesty period also applied to owners of completed residential and commercial properties without the appropriate FHA approvals.

Fast forward to the present, and the FHA has taken similar action in Abuja, suspending all ongoing construction activities in its estates in Lugbe, Karu, and Kubwa.

Here are the key details you need to know:

1. Immediate Suspension: All construction activities must cease immediately, pending further instruction from the FHA.
2. Documentation Requirements: Developers in the affected estates must report to the FHA Head Office, bringing with them:

• Letters of allocation
• Approved building plans
• Payment receipts
• Documents proving ownership, including evidence of change of ownership such as consent letters

Read more on Title documents here.

3. Amnesty Period: Developers have a three-month window to regularize their property documents and obtain the necessary approvals.

4. Strict Sanctions: Any developer who fails to comply with the directive will face strict sanctions.

Implications for Stakeholders:

So, what does this suspension mean for stakeholders?

1. Developers: The suspension will undoubtedly cause disruptions to developers' projects, potentially leading to delays and cost overruns.
2. Homeowners and Buyers: The suspension may impact the delivery of homes to buyers, potentially leading to disappointment and frustration.
3. Investors: The suspension may affect investor confidence in the real estate market, potentially leading to a decrease in investment.

What should you do next?

If you are a developer, homeowner, or investor affected by the suspension, here are your next steps:

1. Comply with the FHA's directives: Ensure you submit the required documents and comply with the FHA's regulations.
2. Seek clarification: If you're unsure about the suspension or the required documents, seek clarification from the FHA.
3. Explore alternative options: If you're looking to invest in property in Abuja, consider exploring alternative options outside of the affected areas.

Conclusion

The FHA's suspension of construction activities in Lugbe, Karu, and Kubwa is a significant development that affects stakeholders in the real estate industry. By understanding the implications and complying with the FHA's directives, you can minimize disruptions and ensure a successful outcome.

Best Regards,

Joan Obi-Okuhon,

Real Estate Advisor.