In a decisive step towards enhancing its internally generated revenue (IGR) and fortifying its economic framework, the Federal Capital Territory Administration (FCTA) has officially inaugurated the Kugbo International Market. This significant development is strategically positioned to solidify Abuja’s standing as a prominent commercial hub, providing a well-organized environment for trade while simultaneously bolstering government revenue through various levies, taxes, and regulatory fees.
During the commissioning ceremony for the first phase of the market, the FCT Minister of State, Dr. Mariya Mahmoud, underscored the critical role of robust market infrastructure in driving sustainable economic growth within the territory.
“This market is not just about trade; it is a structured economic model that will generate revenue for the government while providing sustainable business opportunities for thousands of entrepreneurs,” Dr. Mahmoud emphatically stated.
With the completion of Phase I, which boasts over 1,600 shops and business spaces, the Kugbo International Market is projected to make a substantial contribution to Abuja’s IGR. Market analysts predict that well-organized commercial centers of this scale have the potential to inject billions of naira annually into the FCT’s economy through business permits, shop rents, and essential service charges.
Data from the National Bureau of Statistics (NBS) indicates that the FCT generated approximately ₦130 billion in IGR in 2024, with market operations playing a significant role in this revenue generation. The newly established Kugbo International Market is specifically designed to enhance this revenue stream by offering a formalized trading space that effectively reduces the inefficiencies often associated with the informal sector.
Ambassador Maureen Tamuno, the Group Managing Director/CEO of Abuja Investment Company Limited (AICL), further highlighted the broader positive economic impact of this strategic project.
“Structured markets like Kugbo International Market create an enabling environment for businesses to thrive, ensuring compliance with regulations while increasing the government’s fiscal base,” Ambassador Tamuno explained.
Small and Medium Enterprises (SMEs), which constitute over 85% of businesses in Abuja, are poised to benefit immensely from the development of the Kugbo International Market. The provision of modern and well-equipped trading spaces directly addresses key challenges faced by these businesses, including limited access to adequate capital and the inherent operational instability often encountered in informal market settings.
“By offering well-equipped trading spaces, this market helps entrepreneurs expand their businesses, generate more employment, and contribute more significantly to Abuja’s economy,” Ambassador Tamuno added, emphasizing the market’s role in fostering SME growth.
In a move towards economic inclusivity and empowerment, the FCTA has allocated a number of shops within the new market to hardworking traders from across the six area councils. “These shops are more than just commercial spaces; they symbolise renewed hope and financial empowerment for our people,” Dr. Mahmoud noted, highlighting the social impact of the initiative.
The Kugbo International Market was developed under a strategic Build-Operate-Transfer (BOT) arrangement with private sector partner Messrs. Mesotho Group Limited. The market’s design incorporates modern amenities essential for efficient operation, including an administrative block for management, dedicated banking halls to facilitate financial transactions, a fire station to ensure safety, a well-equipped clinic for immediate health needs, and various restaurants to cater to traders and customers. This holistic infrastructure is specifically designed to enhance convenience, ensure long-term sustainability, and attract both local and international investors.
Urban development experts view the establishment of structured markets like Kugbo International Market as a crucial strategy in effectively reducing the prevalence of street trading, significantly improving revenue collection for the government, and promoting a more organized and regulated commercial environment within the FCT. As Abuja continues its trajectory of economic transformation, strategic investments in revenue-generating infrastructure such as the Kugbo International Market will be indispensable in achieving long-term fiscal stability and sustained commercial expansion.
With the FCTA’s renewed and focused approach on leveraging market infrastructure as a key driver for economic growth, industry stakeholders anticipate further investments in similar impactful projects across the capital city. This commitment signals a new benchmark for commercial sustainability and optimized revenue generation within the Federal Capital Territory.
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