ABUJA (Sundiata Post) – The Centenary City Project in Abuja, Nigeria’s federal capital is set to stimulate both foreign and domestic investment to the tune of $18 billion, create about 250,000 jobs, promote world-class urban infrastructure, leisure and entertainment and attract multinational retail chains to Nigeria, among other things, Sundiata Post can reveal.
While this project is primed to support the urban renewal of Abuja and earn outstanding revenue for the Federal Capital authority (FCT), the Centenary City Project which is a heritage programme of the Nigerian Centenary Celebration, is entirely a private sector project that will be completed at no cost to the Government of Nigeria.
Senator Dino Melaye, Senate Committee Chairman on FCT, who made this known to Sundiata Post via a report of the committee regarding the integrity and legal status of the Centenary City project and other matters, disclosed that the Centenary City Plc, a public limited liability company formed by interested Nigerian and foreign investors for the purpose of carrying on the Centenary City Project, has signed a Memorandum of Understanding with Eagle Hills International Properties LLC (Eagle Hills), a United Arab Emirates (UAE)-government supported investment company as the developer of the Project in line with international best practices
Senator Melaye noted that the Centenary City if developed as planned would be an African pride, adding that the developer is ready to move to site if the issue of who regulates the City is resolved. The Senate Chairman on FCT pointed out that the Centenary City site measured in totality about 1,264.78 hectares out of which about 600 hectares is developable and the rest comprise hills, rocks and a river.
“The integration of these features into the City planning have huge cost implications. The FCTA and CCPLC signed a Development Agreement based on which the Certificate of Occupancy was issued over the land to CCPLC by the FCTA. Major high points of the Development Agreement show that since the land was granted under the Land Swap Scheme, the FCTA should have both Supervisory and Regulatory role on the project.
“After the Development Agreement was signed, the President on the recommendation of the Honourable Minister of Industry, Trade and Investment, proclaimed a “Free Zone Status” over the entire Centenary City land mass. This was done almost at the same time with the Eko Atlantic City Project in Lagos,” Melaye stated.
It is understood that with the Free Zone status over the entire project site, that the Nigerian Export Processing Zones Authority (NEPZA) will be the only agency of government that should now exercise regulatory powers over the project. What is left of the Development Agreement with the FCTA, Sundiata Post gathered, will be issues of compensation, resettlement and the enjoyment by the FCTA of their 5% equity in CCPLC.
It was gathered that the following compensations have been duly paid by CCPLC through the FCTA -compensation on the Centenary City site; compensation on the relocation of the 330 KVA transmission line crossing over the Centenary City site; and compensation on the Resettlement land.
However, the 5% equity of the FCTA in CCPLC arose as a result of the fact that by the Land Swap Model, the FCTA would have been entitled to a percentage of the serviced land for its own allocation. Being afraid of distorting the Master Plan, the developer opted for equity.
The 5% equity in CCPLC guarantees the FCTA a seat on the board of CCPLC and the Free Zone Management Company. This will enable the FCTA ensure that all decisions of the company comply with the project purpose and design.
The FCTA’s 5% equity in CCPLC is expected to yield annual revenues for the FCTA that may be more than what the FCTA generates internally for a whole year and 5% equity is a product of a signed agreement between the FCTA and CCPLC.
Work is on-going at the Centenary Resettlement Scheme with the project expected to be ready for commissioning in the next seven months. It was established that all necessary Development Control Regulations (DCR) have been developed after four clarification workshops among the FCTA, CCPLC, the consultants, and Eagle Hills, and that the FCTA has accordingly approved the regulations.
Sundiata Post investigations reveal that due processes were compiled on the issuance of the Certificate of Occupancy; granting of the Free Zone status; payment of all compensation; obtaining of the resettlement land; and developing the Development Control Regulations (DCR).
In response to insinuations of illegality and lack of equity in the establishment of the Centenary City Project, the Senate Committee on the Federal Capital Territory (FCT) invited the Federal Capital Territory Administration (FCTA), the management of Centenary City Plc. (CCPLC) and others to a public hearing to ascertain the truth or lack of it in the issues brought before it.
Participants at the public hearing include the FCTA led by FCT Minister, Mohammed Musa Bello; Federal Capital Development Authority (FCDA) led by the Executive Secretary, Mr. Adamu Ismaila; the management of Centenary City Plc. led by the Managing Director, Dr. Odenigwe Ike Michaels, Jr and 19 land swap investors.