Developer seeks legal redress, N10 billion compensation in Kano demolition saga
Private Developer Lamash Properties Limited, the developer of the properties on the old Daula Hotel land, has strongly condemned the state government’s demolition of its properties, citing a flagrant disregard for human dignity.
The company has taken immediate action by initiating legal proceedings against the government, seeking compensation amounting to N10 billion, among other remedies.
In a statement released by Alhaji Aliyu Abubakar, the Company’s Director of Sales, Lamash Properties explained that it was invited, along with other companies, by the Kano State government in late 2020 to participate in a bidding process for the redevelopment of the old Daula Hotel through a Public-Private Partnership (PPP).
“We submitted a bid with three components:
- Residential – consisting of 25 luxury apartments
- Commercial Hub – offering various sizes of rentable commercial spaces
- Daula Boutique Hotel – a 90-room, five-star hotel.”
Abubakar further clarified, “Our bid, like all other submissions, underwent a thorough evaluation process, including review by the State Executive Council, which ultimately led to our successful bid. We were subsequently issued a letter of award and entered into a PPP contract agreement with the Kano State government, signaling the commencement of our work on the project.”
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“The value of the land, which encompassed the equity contribution of the Kano State Government to the project, along with the agreed profit share of the state government, totaled N2,297,016,622.89. This sum was transformed into the hotel, which was then transferred to the Kano State Government as its share in the PPP arrangement.”
Abubakar added, “On May 27, 2023, the former governor of the state, Dr. Abdullahi Umar Ganduje, officiated the commissioning ceremony of the hotel, officially handing it over to the state government.”
“However, to our utmost shock, we received a distressing call around 2 am on Sunday, June 4, 2023, informing us that officials of the state government, led by the new governor Abba Kabir Yusuf, had mobilized to the project site with bulldozers, demolishing all the buildings on the land. This included the already completed 90-room, five-star Daula Boutique Hotel, the 90% completed commercial area, and the ongoing residential apartments.”
Abubakar expressed his dismay, stating, “It is profoundly disheartening that, in an era of limited government funds and high unemployment rates in the country, the state government, under any circumstances, decided to demolish its own property—the Daula Boutique Hotel—which was expected to generate substantial revenue for the government and contribute to the reduction of unemployment in the state, among other benefits.”
“We emphasize that, at no point, did the state government or any of its officials notify or invite us for clarification on the project, disregarding the universally recognized principle of fair hearing.”
He further emphasized, “We want to clarify that we did not purchase the land in question. Instead, it was made available to us to develop various facilities, including the Daula Boutique Hotel, which represented the state government’s equity in the project.”
Abubakar concluded, “This action by the state government is not only detrimental but also sends a negative message, deterring potential investors from considering investments in the state. We have therefore instructed our legal team to pursue legal action against the state government, seeking compensation of N10 billion, which represents our substantial investment in the project, as well as an injunction to prevent the government from taking any further actions that could harm us in accordance with the PPP contract agreement we signed.”
“We appeal to the general public in Kano State and beyond to understand the nature of our business and correct any misconceptions. It is crucial for everyone to recognize that the actions of the new state government towards investors who made significant investments during the previous administration will have a detrimental impact on the perception of potential investors considering Kano State as a viable economic destination. Additionally, it will impede employment opportunities, hinder wealth circulation, and hinder the urban development of the state.
“We remain steadfast in our pursuit of justice through the legal system, and we have faith that the court will serve justice,” Abubakar asserted.
