Ground rent: FCTA set to shutdown 34 Embassies in Abuja
No fewer than 34 embassies in Abuja risk being shut down by the Federal Capital Territory Administration (FCTA) for failing to pay ground rents for over a decade.
A document obtained by The PUNCH revealed that the listed diplomatic missions have allegedly defaulted on their land use charges since 2014, accumulating a combined debt of ₦3,662,196.
On May 26, FCT Minister Nyesom Wike ordered enforcement action against 4,794 properties whose titles were revoked due to non-payment of ground rents — with some debts dating as far back as 43 years.
Meanwhile, in the financial markets, the parallel exchange rate is expected to remain under pressure due to persistent FX inflow risks and speculative demand. This could cause the gap between the official and parallel market rates to remain wide in the near term.
In May, the naira experienced a slight appreciation at the Nigerian Foreign Exchange Market, indicating stable FX supply aided by the Central Bank of Nigeria’s continued intervention. However, the naira depreciated month-on-month in the parallel market, expanding the gap between both rates from N1.69/$ in April to N24.25/$ in May.
Meristem, in its latest monthly report, noted that this marked the first significant divergence since March 2025, attributing it to sustained FX demand pressures and speculative trading amid growing global economic uncertainties.
On the corporate front, economist Bismarck Rewane highlighted positive developments, noting strong revenue and profit growth among Nigerian firms. He credited this to increased local borrowing, which has insulated businesses from exchange rate volatility typically associated with foreign-denominated loans.
According to Rewane, local companies now enjoy faster access to domestic credit for short-term financing needs, with an uptick in commercial paper issuances reflecting confidence in local funding sources. This shift has supported business expansion and bridge financing.
As a result, the private sector outlook remains optimistic. Corporations are adapting through pricing strategies, local sourcing, and digital innovation. Investor sentiment is gradually improving, buoyed by forex market reforms, clearer government policies, and early signs of macroeconomic stability.
Rewane added that investor interest is particularly strong in banking, infrastructure, and energy, although many remain cautious, monitoring the policy landscape. Portfolio investors are beginning to return, encouraged by rising yields, a more flexible exchange regime, and improved transparency from the central bank
