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Home Judiciary

Investors Sue FCT Minister Over Alleged Unlawful Interference in Abuja Free Trade Zone

by Amedu Abalaka
1 year ago
in Judiciary
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Investors Sue FCT Minister Over Alleged Unlawful Interference in Abuja Free Trade Zone
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*Seek President’s Intervention to Save $639 Million in Foreign Direct Investment

Abuja, (Nigeria) August 1 – A group of investors operating under the Abuja Technology Village Free Trade Zone has filed a lawsuit at the Federal High Court in Abuja, challenging the legality of recent administrative decisions by the Minister of the Federal Capital Territory (FCT), Mr. Nyesom Wike. The suit centers on the Minister’s alleged interference in the Abuja Free Trade Zone’s activities, culminating in the revocation of land designated for the development of the Abuja Technology Village.

According to a statement issued by the group, which includes both foreign and indigenous investors, the suit (No: FHC/ABJ/CS/1539/2025) seeks to nullify the revocation of land that had been earmarked by Presidential Order and officially gazetted as part of a Free Trade Zone. The investors allege that this land is now being reallocated by the FCT Minister and the Federal Capital Territory Administration (FCTA) without legal authority.

The plaintiffs have also notified the Presidency—through the Nigeria Export Processing Zones Authority (NEPZA)—that the Minister’s actions are endangering over $639 million (approximately ₦978 billion) in both foreign and domestic investments already committed to the project.

Describing the Abuja Free Trade Zone as a “national economic asset” and a symbol of Nigeria’s commitment to an innovation-driven and investor-friendly economy, the group stressed the importance of preserving the zone’s legal status for the sustainability of Free Trade Zones across the country.

The investors noted that the Abuja Technology Village currently hosts 29 licensed enterprises and is the designated site for a major electric vehicle and renewable energy initiative in partnership with three foreign nations.

“The revocation threatens this multi-stakeholder, multi-billion-naira project and undermines Mr. President’s direct efforts to attract foreign investment under the Renewed Hope Agenda,” the statement warned.

Represented by M.J. Numa & Partners LLP, the plaintiffs are urging the court to declare that the executive authority of the President—exercised through NEPZA under federal law—supersedes any conflicting action by the FCT Minister. They cite several constitutional and statutory provisions to support their claim, including Sections 5(1)(a) and (b), 3(a) and (b), and Sections 147, 148(1), 297, and 299(a) and (b) of the 1999 Constitution (as amended), as well as the NEPZA Act (Cap N107, LFN 2004).

The group argues that NEPZA has exclusive legal authority over designated Free Zones, including the Abuja Technology Village, and that the FCTA and the FCT Minister acted ultra vires by revoking land rights and reallocating the land to a third party—without NEPZA’s consent.

They are asking the court to:

Nullify the revocation and reallocation notices;

Issue a perpetual injunction restraining the FCTA and its agents from interfering with their property and operations;

Compel NEPZA and other relevant federal agencies to uphold and protect their rights within the Free Zone.

Background

According to the statement, the plaintiffs—comprising Nigerian and foreign-owned enterprises—are lawfully registered and licensed by NEPZA. Each investor holds a valid sublease or development agreement with the Abuja Technology Village Free Zone Company (the 1st Defendant) and has made substantial capital investments in technology, logistics, and manufacturing infrastructure.

The disputed land, Plot No. 23, Industrial Area II (C17), Abuja, is part of the gazetted Abuja Technology Village Free Zone since 2009 and falls under NEPZA’s regulatory oversight. However, on May 13, 2025, the FCTA issued a revocation letter citing alleged non-payment of ground rent and underdevelopment—without prior notice, warning, or demand for compliance.

The plaintiffs argue that the revocation violates Section 8 of the NEPZA Act, which explicitly exempts Free Zone enterprises from such levies and charges. Despite formal objections from both NEPZA and the Free Zone Company, the FCTA reallocated the land to MAG International Links Limited on July 9, 2025. The new allottees have since begun preparations for demolition, placing billions of naira in investments at risk.

This prompted the filing of multiple court applications on July 29, 2025, including:

Originating summons;

Applications for interlocutory injunctions;

Affidavits of extreme urgency;

Requests for urgent assignment and determination of the suit.

Legal Reliefs Sought

The plaintiffs are seeking:

A declaration that NEPZA, not the FCTA or the FCT Minister, has exclusive authority over Free Zones;

A ruling on the constitutionality of the FCTA’s actions;

A voiding of the revocation and reallocation as unlawful and unconstitutional;

A restraining order to prevent demolition of their infrastructure, which would permanently end their operations.

Investment Concerns

The plaintiffs emphasize that this legal challenge arises amid growing investor anxiety over regulatory uncertainty in Nigeria’s Free Trade Zones. They argue that their investments were made based on the legal assurances provided under the NEPZA framework—assurances now being undermined by unauthorized actions.

One of the plaintiffs, Atlantic Logistics FZE, is a foreign-owned enterprise, highlighting the international implications of the dispute. The group warns that Nigeria’s reputation for honoring foreign investments and legal commitments is at stake.

The statement concludes with a call for legal compliance and restraint:

“All persons, entities, and government agencies are hereby notified of the pendency of this suit. In accordance with legal norms, the status quo must be maintained pending final adjudication by the Federal High Court.
Any action taken to demolish, develop, or interfere with the Plaintiffs’ infrastructure will constitute contempt of court and attract legal consequences.”

The plaintiffs reaffirm their commitment to the rule of law and the integrity of Nigeria’s Free Zone regime, describing it as a critical driver of economic development, innovation, and investor confidence.

Amedu Abalaka

Amedu Abalaka

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