Firm demands ₦10bn compensation after demolition of Daula Hotel by Kano Government

A private firm, Lamash Property Limited, which entered into a public private partnership (PPP) agreement with the government of Kano State on the redevelopment of Daula Hotel, has demanded a ₦10 billion compensation following the demolition of the property by the state government on Saturday.

Lamash Property Limited, in a statement titled ‘Kano Government Demolition Of Daula Hotel: Our Stand’, and signed by its management on Sunday, said it would institute a legal action to claim the ₦10 billion which it claimed is the amount already invested in the project and to stop the Kano government from further taking actions that will negatively affect its activities.

The firm, which expressed surprise that the new Kano government could go as far as to demolish a multi-billion naira hotel owned by it under any guise, said the project was initiated under the administration of the then governor, Abdullahi Ganduje, through PPP, to create jobs for the people and generate revenue for the state.

Lamash Property Limited further said the move by the Abba Yusuf-led government will send negative signals to investors, adding that it never claimed ownership of the land that Daula hotel was located.

The statement made available to the media read in full:

“Lamash Properties Limited is a property development company that was invited by Kano State government alongside other companies sometimes in the late 2020 to bid for the redevelopment of the old Daula Hotel under a Public Private Partnership (PPP).

“We submitted a bid of three components:

1- Residential – to comprise 25 luxury apartments

2- Commercial Hub – Various sizes of lettable commercial space

3- Daula Boutique Hotel – A 90-room five star hotel

“Our bid like every other bids submitted, went through all the processes including going before the State Executive Council after which we won the bid. We were issued the letter of award and we signed a PPP contract agreement with the Kano state government after which we began work on the project.

“The value of the land being the equity contribution of the Kano State Government into the project plus the agreed profit share of the state government all in the sum of Two Billion Two Hundred and Ninety Seven Million Sixteen Thousand Six Hundred and Twenty Two Naira Eighty Nine Kobo (N2,297,016,622.89) only was converted into the Hotel and its ownership was given to the Kano State Government as its share into the project under the PPP arrangement.

“On May 27, 2023, the immediate past governor of the state, Dr. Abdullahi Umar Ganduje performed commissioning ceremony of the hotel and it was handed over to the state government as its share in the project.

“To our utmost surprise, we received a call around 2am on Sunday June 4, 2023 that officials of the state government led by the new governor Abba Kabir Yusuf have mobilized to the site of the project with bulldozers and were tearing down all the buildings on the land including the already completed 90-room 5-star Daula Boutique Hotel, the 90% completed commercial area (malls) as well as the ongoing residential apartments.

“It was to say the least a development most appalling that in this era of paucity of funds available to government and high rate of unemployment in the country, the state government under whatever guise, decided to demolish a property (the Daula Boutique Hotel) that belongs to it and was supposed to bring in huge revenue to the government and also help reduce unemployment in the state, among others.

“We wish to put it on record that at no point did the state government or any of its officials notified us or invited us for clarification on the project and thus negating the globally acceptable principle of fair hearing.

“We have made it clear on several occasions that we did not purchase the supposed land but that it was made available to us to provide facilities, one of which was the Daula Boutique Hotel which formed the equity of the state government in the project. This action of the state government is a minus and a negative development which will scare away other potential investors willing to invest in the state.

“We have instructed our legal team to institute legal actions against the state government to claim compensation to the tune of N10billion already invested in the project and to stop the state government from further taking actions that will negatively affect us based on the PPP contract agreement we signed with it.

“We appeal to the general public in Kano state and beyond to not only understand the nature of our business as against what is being erroneously portrayed but also to know that the action of the new state government on investors that invested hugely in the state under the previous administration is going to affect the perception of other potential investors coming to put their money into Kano state economy. It will also affect employment generation, wealth circulation and urban development of the state.

“For us, we are resolute in seeking redress in the court of law and we are optimistic that justice would be served.”

In the same vein, another firm, White Nigeria Limited, which has a PPP arrangement with the Kano government to develop the Hajj Camp in the state, said they were taken aback by the action of the Governor Abba Yusuf-led administration.

The managing director of the organisation, Hassan Yusuf Baba said: “The most unfortunate thing is that we were not notified. We only woke up to see on the social media that all structures were demolished. This is a gross injustice which we will not fold our arms to see it happening in our state. We have concluded all arrangements to go to court to seek redress.”

In the same development, a developer Dan Asabe Abubakar, whose shopping complex that houses a gymnasium, medical laboratory and other businesses was pulled down on Saturday before the demolition of Daula Hotel and Hajj Camp, lamented how he expanded over ₦1 billion on the project.

He frowned at the brazen manner the recently inaugurated state government was going about demolishing properties without recourse to the Land Use Act.