The High Court of the Federal Capital Territory (FCT) sitting in Abuja has annulled a lease agreement granted by the Federal Capital Development Authority (FCDA) in favour of Basic Properties Limited over a disputed parcel of land in Lokogoma District.
Justice Angela Otaluka delivered the judgment, declaring that the lease covering Plot 9, Cadastral Zone C09, Lokogoma District part of Plot 6, Phase III was invalid because it was issued while an earlier and subsisting right of occupancy held by the original claimants remained in force.
The court held that FCDA acted unlawfully by creating a subsequent lease in favour of Basic Properties Limited when an existing lease agreement with the claimants had not been terminated. The judge ruled that this action violated provisions of the Constitution and the Land Use Act.
The case was filed by Mr. Akindeji Akinade and another claimant, who challenged the allocation of the land to Basic Properties Limited and the subsequent sale of portions of the property by Saraha Homes Limited to members of the Lokogoma Basic Estate Owners and Residents Association.
Other defendants in the suit included Saraha Homes Limited, the Minister of the Federal Capital Territory, FCDA, and the Incorporated Trustees of the estate residents’ association.
In her ruling, Justice Otaluka dismissed the counterclaim filed by the estate residents’ association, stating they failed to carry out due diligence before purchasing the property.
She described them as trespassers who lacked a valid root of title.
The court further declared that Saraha Homes Limited unlawfully encroached on the disputed land and that its actions constituted trespass. It also set aside the lease subsequently granted to Basic Properties Limited.
Justice Otaluka emphasized that no legal justification existed for issuing a new lease over land already subject to an existing agreement, describing it as a breach of contract by the relevant authorities.
As part of the judgment, the court awarded the claimants ₦2.5 million in general damages for trespass and an additional ₦5 million to cover legal costs and associated expenses.
