The Federal Capital Territory Administration (FCTA) has increased its monthly Internally Generated Revenue (IGR) from ₦9 billion in 2023 to about ₦40 billion, marking a significant leap in its revenue profile following its exit from the Treasury Single Account (TSA), the Minister of the Federal Capital Territory, Nyesom Wike, has disclosed.
Wike attributed the sharp increase in revenue to the federal government’s decision to remove the FCT from the Treasury Single Account, a move he said restored the administration’s financial flexibility and enabled it to leverage its revenue base to finance critical infrastructure projects.
Speaking during his media parley in Abuja on Thursday, the minister said the policy, approved by President Bola Tinubu, had transformed the FCT into one of the country’s most active construction sites by unlocking access to commercial financing and accelerating project delivery across the city centre and the area councils.
According to him, prior to the policy change, the FCTA was unable to obtain loans from commercial banks because its funds were domiciled with the Central Bank of Nigeria, a situation he described as a major constraint on infrastructure financing.
The minister said the improved revenue base, coupled with tighter controls against leakages and wasteful spending, has strengthened the FCTA’s financial position, enabling it to increase capital expenditure, clear outstanding obligations to contractors and sustain the ongoing execution of major infrastructure projects across the territory.
“Mr President sees governance as a business, and that is why he pulled us out of the TSA for the development of the FCT. When we had funds with the CBN, we had no access to borrow from commercial banks. That was a major impediment for us. Now, I can go to commercial banks to borrow money for infrastructure projects, using our Internally Generated Revenue (IGR) as collateral. Now the jobs are going on.
“When we came on board, our IGR was a mere N9 billion a month. As I speak to you today, our IGR is about N40 billion. These are the benefits of exiting the TSA,” the minister noted, adding that the administration has also radically restructured the territory’s budget and flipped its spending ratio from 65 per cent recurrent expenditure to a robust 75 per cent capital expenditure.
Noting that this massive injection of capital is directly responsible for the spectacular 31-day commissioning calendar currently underway, the minister also stressed that the reliable cash flow has allowed the FCTA to clear backlogs owed to competent local contractors and foreign contractors, ensuring that both old and new projects are completed on schedule.
He also explained that the administration has strongly prioritised technical capacity and competence, rather than focusing solely on local content in the selection of both local and foreign contractors handling FCTA projects.
Addressing questions on whether the focus of the FCT administration is on road networks, the minister clarified that while road infrastructure remains foundational to establishing hospitals, schools, and markets, development is evenly spread across critical sectors.
He said the FCT Administration has funded critical multi-sector interventions, including the recent commissioning of the Karu Water Scheme by Vice President Kashim Shettima, the upcoming Bwari Water Scheme, the renovation of over 120 schools, and the re-awarding of long-abandoned hospital projects in Gwagwalada and Gwarimpa.
With unprecedented investments being poured into the city’s infrastructure, the minister issued a stern warning that the FCTA will fiercely protect these new assets from abuse. He declared a zero-tolerance policy for indiscipline and announced the deployment of a task force to clear hoodlums and illegal roadside markets.
“The government cannot build roads today, and the next day it’s a market, and you try to justify that they are looking for how to survive. We will not allow that,” he declared.
Additionally, the minister disclosed that the FCTA has reclaimed parks and gardens that violated land use laws by converting green areas into commercial hotels and residential buildings, adding that a strict “develop-or-lose” policy has also been implemented in the mass housing sector to curb land speculation and the unauthorised sale of unallocated land.
“We have taken back all our parks and gardens. If you want to have it, come and apply, and we’ll give you the conditions. Anybody who says he wants parks and gardens must apply appropriately and you will have ministerial approval, not one where the director of parks and gardens will enter into an agreement with you and the government does not know,” the minister explained.
Wike, who also addressed the recent political allegations connecting the Chief of Staff to the President, Rt Hon. Femi Gbajabiamila, to a fictitious government agency, described the claims as “rubbish” and “madness”.
Barr Wike stated that from his knowledge of the personality of Hon. Femi Gbajabiamila, it was very unlikely that he was involved in it. He further revealed that the easiest way to embarrass any government was to target the chief of staff.
“Without prejudice, I know the chief of staff very well. He did not do it. If you want to embarrass any government, these are the targets: the chief of staff and the secretary to the government. Does it make sense that an agency that does not exist will tell him to give him such an amount of money? It’s madness. If the young man (Prince Mathew Adeniyi) knows that it’s correct, why is he running away? How can you come out to make such a statement and then run away?” the minister queried.
Wike also rejected calls from opposition figures demanding to join the independent probe panel set up by President Tinubu, labelling their criticisms as political theatre. He urged the public to disregard the political noise and allow the formal investigation panel to conclude its work.
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