Sir Sam Jonah
A long-running dispute over one of Abuja’s major real estate developments has escalated to international arbitration, with Ghanaian businessman Sir Sam Jonah’s company challenging the Nigerian government over the River Park Estate project.
JonahCapital Nigeria Limited, the company behind the 501-hectare mixed-use development in Lugbe, Abuja, has commenced arbitration proceedings against the Federal Capital Development Authority (FCDA) before the International Chamber of Commerce (ICC) in Paris.
The dispute centres on the validity of a Development Lease Agreement (DLA) between JonahCapital and the FCDA.
River Park Estate was designed to provide more than 11,000 housing units for an estimated 42,000 residents, alongside shopping centres, office complexes, healthcare facilities, places of worship and other supporting infrastructure.
The Minister of the Federal Capital Territory, Nyesom Wike, confirmed that the developers had initiated arbitration proceedings against the FCDA.
“The other party has gone to arbitration, and we said okay, let them conclude the arbitration process,” Mr Wike said.
According to him, the FCDA entered into a Development Lease Agreement with JonahCapital Nigeria Limited but subsequently determined that the agreement had expired, leading to the authority’s decision to repossess the land.
Mr Wike also said the FCDA had no contractual relationship with Paulo Homes Limited, which he indicated was later introduced into the project.
JonahCapital, however, strongly disputes the FCDA’s position.
The company has invoked the arbitration clause in the Development Lease Agreement and is challenging the FCDA’s decision to terminate the agreement on November 5, 2025.
JonahCapital maintains that the lease remains valid until June 2030 and is asking the arbitral tribunal to declare the termination unlawful.
The company said it resorted to international arbitration after several attempts to resolve the dispute through official channels and the Nigerian courts failed to produce a settlement.
JonahCapital alleges contractual breaches
JonahCapital has also accused the FCDA of failing to fulfil key obligations under the Development Lease Agreement.
The company alleges that the authority failed to provide essential infrastructure, including roads, electricity and water, which it said were required under the agreement.
According to JonahCapital, it was therefore compelled to finance and construct some of the infrastructure itself.
The company has further alleged that individuals and organisations that were not parties to the original lease subsequently began asserting ownership claims over portions of the estate.
It said those claims contributed to years of litigation and competing claims over the property.
JonahCapital has also accused the FCDA of fencing off portions of the disputed estate while the arbitration process was ongoing, warning that the move could further complicate the dispute.
Dispute dates back several years
The River Park Estate project has been embroiled in controversy for years.
In July 2025, former Nigerian President Olusegun Obasanjo rejected claims by Sir Sam Jonah that his administration had allocated the 501 hectares for the development.
Mr Obasanjo described the claim as “absolutely untrue, fictitious, misleading and libellous.”
The outcome of the arbitration could determine the future of the River Park Estate, including the validity of the lease and control over the 501-hectare development, which is among Abuja’s major private housing projects.
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