The Government has approved a sweeping reform of public land administration, introducing a new policy that requires a minimum premium of 70 percent of the assessed market value for the lease of state lands. The move is aimed at correcting longstanding undervaluation and plugging revenue leakages in the management of public lands.
The decision was announced by the Minister for Lands and Natural Resources, Emmanuel Kofi Armah Buah following Cabinet’s approval of a committee report that reviewed public land allocations nationwide.
Speaking to stakeholders after the Cabinet decision, the Minister described the reform as a necessary intervention to address deep-rooted inconsistencies in land governance. He noted that, for years, premiums charged on public land leases ranged between as little as one percent and about 30 percent of market value a situation he said deprived the state of fair value and weakened public confidence in the system.
According to him, the disparities were particularly glaring in prime urban areas, where similar parcels of land within the same locations were leased at significantly different premium rates. These inconsistencies, he explained, created perceptions of unfairness and left room for potential abuse.
To address the problem, the Ministry, in consultation with the Lands Commission, proposed a new premium framework that has now been endorsed by Cabinet. Under the new policy, a fixed 70 percent of the assessed market value of public land will be paid upfront as a premium. The remaining 30 percent will be structured as ground rent, payable over the duration of the lease.
The reform is expected to standardise the valuation process, promote transparency, and ensure that the state derives appropriate financial returns from its land assets.
