Ghanaian businessman Sam Jonah takes Nigeria to international arbitration over Abuja's River Park Estate dispute

• JonahCapital has taken Nigeria's FCDA to international arbitration in Paris, arguing that its lease over the River Park Estate project remains valid until 2030.

• The FCDA insists the development agreement expired, saying it lawfully repossessed the 501-hectare site, while JonahCapital claims the termination was unlawful.

• The arbitration outcome could determine the future of one of Abuja's biggest housing projects and influence investor confidence in Nigeria's real estate sector.

A major dispute over one of Nigeria's biggest private housing projects has moved to international arbitration, with a company linked to Ghanaian businessman Sir Sam Jonah challenging the Nigerian government's decision to terminate its development agreement for the River Park Estate in Abuja according to reports from Business Insider

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The case, now before the International Chamber of Commerce (ICC) in Paris, stems from a disagreement between JonahCapital Nigeria Limited and Nigeria's Federal Capital Development Authority (FCDA) over who has the legal right to develop the 501-hectare River Park Estate in Lugbe, Abuja.

River Park Estate is one of Abuja's largest planned mixed-use developments. The project was designed to deliver more than 11,000 housing units for about 42,000 residents, together with shopping centres, office buildings, healthcare facilities, schools, places of worship and other supporting infrastructure. The dispute revolves around a Development Lease Agreement (DLA) signed between the FCDA and JonahCapital Nigeria Limited.

According to BI, the Minister of the Federal Capital Territory (FCT), Nyesom Wike noted that the lease agreement expired, prompting the FCDA to repossess the land.

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JonahCapital disputes the FCDA's position and argues that the development lease remains valid until June 2030, making the government's termination unlawful. The company has therefore invoked the arbitration clause in its contract and filed proceedings before the ICC in Paris, asking the tribunal to declare the termination invalid. According to JonahCapital, it turned to international arbitration after efforts to resolve the dispute through Nigerian authorities and local courts failed.

JonahCapital claims the FCDA breached key parts of the development agreement. The company alleges that the government failed to provide essential infrastructure, including roads, electricity and water supply, as required under the contract, forcing the developer to finance and build much of the infrastructure itself.

The BI report informed that JonahCapital also alleges that people and organisations that were not parties to the original agreement later claimed ownership of parts of the estate, leading to years of legal battles and uncertainty.

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The developer further claims the FCDA fenced off sections of the estate even after arbitration proceedings had begun, warning that such actions could complicate the ongoing legal process.

The FCDA maintains that the Development Lease Agreement expired and says it was therefore entitled to recover the land. Wike has also argued that the FCDA has no contractual relationship with Paulo Homes Limited, a company he says later became involved in the project.