The Government has approved a major reform in public land administration, pegging premiums for the lease of state lands at a minimum of 70 percent of assessed market value, a decisive shift aimed at ending decades of undervaluation and revenue loss.
The policy was announced by the Minister for Lands and Natural Resources, Hon. Emmanuel Armah Kofi Buah, following Cabinet approval of a committee report that reviewed public land allocations nationwide.
Addressing stakeholders after the Cabinet’s decision, the Minister for Lands and Natural Resources described the reform as a critical correction to a long standing anomaly in land governance.
He explained that over the years, premiums charged for public land leases ranged from as low as one percent to about 30 percent of market value, a practice that failed to deliver value for money to the state and undermined public confidence.
According to the Minister, the inconsistencies were most visible in prime urban areas where comparable parcels of land attracted vastly different premiums. He cited examples of similar plots within the same vicinity being leased at sharply contrasting values, creating perceptions of unfairness and opening the system to abuse.
“The ministry, in consultation with the lands commission, has therefore proposed a new premium framework for public land leases.
“Under this new framework, a minimum of 70 percent and not one to 30 percent, a fixed 70 percent of the assessed market value of public land will be payable upfront as a premium, with the remaining 30 percent structured over the turnover of the lease as ground rent”.
Minister for Lands and Natural Resources, Hon. Emmanuel Armah Kofi Buah
Ending Decades of Undervaluation
The Minister emphasised that the assessment will be based on actual market values, not arbitrary estimates, to ensure fairness and transparency. To support this approach, the Ministry is working closely with the Lands Commission to strengthen valuation standards and eliminate discretion that previously allowed wide variations in pricing.
The goal, he said, is to ensure that land values reflect economic realities across different regions and cities. The reform follows the submission of a comprehensive committee report to the Cabinet of Ghana, which reviewed public land transactions across the country.
Cabinet approved the recommendations and issued directives for immediate implementation, signaling strong political backing for the overhaul of public land administration.
Ministerial Oversight of State Lands
Beyond pricing, the Minister used the occasion to reaffirm the legal status of public lands allocated to state institutions. He reminded public agencies and state owned entities that allocations of public land confer only user rights and not ownership.
As such, beneficiary institutions do not have the authority to transact business relating to those lands without prior written approval from the Minister for Lands and Natural Resources.
He explained that over time, some institutions had come to treat public lands allocated to them as private assets, engaging in transactions without the required approvals.
This, he said, contravenes existing law and undermines state oversight. The renewed emphasis on ministerial approval is intended to restore discipline and ensure policy coherence in land management.
Building a National Land Value Database
Another key pillar of the reform is the planned compilation of comprehensive market value data for defined land clusters across the country. The Ministry, working with the Lands Commission, will develop and maintain a national database of land values that reflects prevailing market conditions in specific locations.
These land clusters will cover cities, towns, and defined zones nationwide, allowing valuations to be standardised and publicly verifiable. The Minister announced that the data will be published on the Lands Commission’s website in the spirit of transparency, enabling citizens, investors, and public institutions to know the benchmark values applicable in each area.
“There will be no doubt on the values of properties across every part of this country, every city, every cluster, and this will be publicly known so that transactions, especially public lands, will not be undersold”.
Minister for Lands and Natural Resources, Hon. Emmanuel Armah Kofi Buah
He noted that once the data is publicly available, opportunities for arbitrary valuation will be significantly reduced. Valuers will no longer determine prices based on personal discretion, as reference values for each cluster will already be established and accessible.
This, he said, is critical to safeguarding public lands and ensuring consistency in decision making. The availability of cluster based market values is also expected to improve predictability in public land transactions.
Broader Implications for National Development
Investors and institutions will be able to plan with greater certainty, knowing the financial obligations attached to leasing public land in a particular area. At the same time, the state will be better positioned to assess whether transactions deliver value for money.
The Minister underscored that the reforms are not punitive in nature but are designed to correct systemic weaknesses that have persisted for years. By aligning public land premiums more closely with market realities, the government aims to strengthen public finances while promoting fairness and accountability.
He also highlighted the broader development implications of the new policy. Public land, he said, is a strategic national asset that must be managed to support infrastructure development, urban planning, and economic growth. Undervaluation deprives the state of resources needed to invest in these priorities.
The new premium framework is part of a wider reset agenda in the lands sector, which includes stricter oversight of allocations, standardised application processes, and enhanced public disclosure.
Together, these measures are intended to rebuild trust in land administration and demonstrate the government’s commitment to responsible stewardship of public resources.
As implementation begins, the Ministry plans to engage valuers, public institutions, and other stakeholders to ensure smooth transition to the new system. The Minister expressed confidence that with clear rules, reliable data, and strong oversight, the reforms will bring lasting improvement to public land governance.
He concluded by reaffirming that the government’s objective is simple: to ensure that public lands are managed transparently, priced fairly, and used in ways that advance national development. According to him, pegging premiums at 70 percent of market value marks a decisive step toward ending undervaluation and protecting the public interest.
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