Over the last thirty years, Abuja, the Federal Capital of Nigeria, has seen swift urbanization. The city has grown without a comprehensive plan, leading to extensive construction and a surge in informal settlements due to the increasing population. This has resulted in distinct spatial separation between low and high-income groups, leaving low-income individuals in inadequate informal settlements. Hence, this paper provides a thorough examination of the effects of policy implementation on urban development plans within the urban areas of the Federal Capital Territory (FCT). It assesses the concepts of urbanization, urban development, and the different policies enforced in the FCT and Nigeria as a whole over time. Research information was collected through various literature reviews, using secondary sources such as books, journals, online resources, and historical records to offer comprehensive and pertinent data for analyzing existing urban policies. The findings obtained from the various literature reviewed, discovered that the urbanization strategy for the Federal Capital Territory (FCT) covered all six area councils, but not all of the proposed plans were implemented as originally intended. In addition, the study found that stringent land use regulations have caused a shortage of affordable housing in the FCT, as developers prioritize high-end developments to maximize profits. Finally, the conclusion presents suggestions to tackle these challenges, emphasizing the necessity to address urban planning issues majorly by recommending thorough employment of the Abuja Master Plan to establish an efficient transportation system in the city, which is crucial for attaining Sustainable Development Goal 11(sustainable cities and communities) in the FCT.