Oct 3, 2026Nigeria

New Festac Property Development Company and Festac Phase 2: What Was Promised and What Exists in 2026

In March 2013 Nigeria's Federal Executive Council approved the concession of 1,126 hectares beside Festac Town in Lagos to a private consortium, with a federal agency expecting to earn N25.765 billion in premium and N150 million a year in ground rent over 30 years. The concessionaire was New Festac Property Development Company Limited. Thirteen years later, the public record contains the approval, the consortium, a land dispute that ran to the Court of Appeal, and very little evidence of completed housing on the Egolima site.

That is the honest summary, and for anyone who bought or is considering buying into Festac Phase 2, the detail matters more than the headline.

What was approved, and on what terms

The Federal Executive Council approved the scheme on Wednesday 13 March 2013, at a meeting presided over by President Goodluck Jonathan. Ama Pepple, then Minister of Housing and Urban Development, Labaran Maku as Minister of Information and Abba Moro as Minister of Interior were the officials who presented and briefed on the decision. BusinessDay reported the terms as a 30-year concession with a three-year moratorium, covering 1,126 hectares, against an initial payment of N25.7 billion plus N150 million annually in ground rent.

Vanguard, reporting in October 2017, put the formal concession at September 2014, describing it as a 30-year build-operate-and-transfer lease agreement granted by the Federal Government to New Festac Property Development Company Limited. The same report placed the land in Egolima District beside 7th Avenue, Festac Phase 1, and described a scheme of more than 7,000 plots. Isaac Chuks, vice-chairman of New Festac Property Development Company Limited, was quoted assuring subscribers that the project would commence, and the report described delivery as expected within eight years. Counting from that 2017 statement, that horizon passed in 2025.

Who is behind the consortium

BusinessDay named the development partners as PW Nigeria Ltd, SCC Nigeria Ltd, Enacco Nigeria Ltd and Funtaj.

Fung Tai Engineering Co. Ltd states on its own corporate site that it is "a major shareholder" in the New Festac Properties Development Co. Ltd consortium, and that it "is expected to undertake the dredging and Sand filling of the entire area of 1,126.556 hectares of land space." That is the clearest public statement of ownership in the consortium that we were able to locate, and it comes from the shareholder itself rather than from the concessionaire.

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The counterparty on the government side is the Federal Housing Authority, which holds the Festac estate and entered the public-private partnership with New Festac Property Development Company Limited.

We did not locate a Corporate Affairs Commission filing giving the registration number, incorporation date or current directors of New Festac Property Development Company Limited through public search. That is a gap in what we could verify, not a finding that no such registration exists, and CAC records are routinely difficult to retrieve without a paid search.

The land dispute that stalled it

The most consequential item in the record is litigation over part of the Phase 2 land.

In Suit No. FHC/L/CS/1065/2012 at the Federal High Court in Lagos, Justice Okon Effreti Abang delivered judgment on 29 February 2016 in favour of Oba Isaac Owolabi, the Alamuwo of Kuje Amuwo, and three others, against the Federal Housing Authority. The Guardian reported in March 2016 that the judgment validated the Kuje-Amuwo community's claim to roughly 4.017 hectares within Phase 2, that the FHA described the ruling as "perverse and an abuse of court process" and had appealed, and that community members had begun moving against allottees on the ground.

The FHA won on appeal. The Guardian reported on 14 August 2017 that the Court of Appeal, Lagos Division, through Justice Ugochukwu Anthony Ogakwu, set aside the lower court's decision and struck out the respondents' action, holding that the trial court lacked competence to hear it. Justice Ogakwu was quoted: "If a court or tribunal is not competent to entertain a matter, there is no justice in exercising a jurisdiction where there is none." The appellate court recorded that acquisition procedures, compensation, survey and demarcation had been completed.

So the title question that threatened the scheme in 2016 was resolved in the FHA's favour by 2017. Whatever has held Phase 2 back since then, that particular judgment is not it.

What exists now

Recent reporting on Festac describes work on the existing estate rather than on the Phase 2 concession.

Oyetunde Oladimeji Ojo, managing director and chief executive of the Federal Housing Authority, said in remarks published on 24 May 2026: "Festac came into being in 1977. Since 2003, FHA has not been funded by government; we are self-funding. But we are moving and have already started Phase Two of Festac Town." Vanguard reported on 13 July 2026 on a phased road reconstruction programme in Festac covering 2nd Avenue, sections of 7th Avenue and Agboju Market Road, delivered with the Lagos State Government and Amuwo-Odofin Local Government over an 18-month schedule, with First Gate, 1st Avenue and 5th Avenue already done.

Neither of those accounts mentions New Festac Property Development Company Limited, the 2013 concession, or housing completions at Egolima. The FHA chief executive's phrasing describes Phase Two as something the authority has started, which is a different proposition from a concessionaire delivering 7,000 plots under a build-operate-and-transfer lease.

We are not in a position to say the concession has lapsed, been revoked or been replaced. We did not find a public record either way. What we can say is that a scheme approved in 2013, conceded in 2014 and described in 2017 as an eight-year build has no publicly documented housing delivery under the concessionaire's name as of October 2026.

What a subscriber should ask

If you hold a subscription or an allocation letter tied to Festac Phase 2, the questions that matter are narrow and answerable.

Ask which entity your money went to, and whether that entity is New Festac Property Development Company Limited, the Federal Housing Authority, or a marketing agent selling onward. Ask for the current status of the concession in writing from the FHA, not from a sales office. Ask whether your specific plot falls inside the surveyed and demarcated area the Court of Appeal referred to. Ask for the excision and gazette position on the parcel, since Egolima adjoins land that has been subject to community claims. And ask for a payment schedule tied to construction milestones rather than to calendar dates.

Bektu (https://bektu.com) tracks developer delivery histories so buyers can compare what was announced against what was finished, and the company's own entry is at https://bektu.com/companies/new-festac-property-development-company-ltd.

Sources

- FG approves new Festac town in Lagos, BusinessDay, 14 March 2013

- Promoters of Festac Phase 2 assure investors of project commencement, Vanguard, 17 October 2017

- Court judgment threatens Festac Town Phase II re-development scheme, The Guardian Nigeria, 14 March 2016

- Appeal court verdict revives FHA's N30b FESTAC Phase II project, The Guardian Nigeria, 14 August 2017

- Festac Phase 2 project page, Fungtai Engineering Company Limited

- FHA Moves to Revive Festac, Expand Home Ownership, Housing TV Africa, 24 May 2026

- FHA expands Festac road reconstruction, residents hail progress, Vanguard, 13 July 2026

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Developers referenced

New Festac Property Development Company Ltd. Lagos, Nigeria

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