Firm demands N10bn compensation from Kano govt for demolishing property

A firm known as Lamash Properties Limited, has demanded N10 billion in compensation from the Kano state government for demolishing its property.

Lamash said it entered into a public private partnership (PPP) with the government of Kano for redevelopment of the Daula Hotel.

On assuming office, Abba Yusuf, governor of Kano, ordered the demolition of “illegal property” built by the former administration of Abdullahi Ganduje.

In a statement on Sunday, Hassan Yusuf Baba, the firm’s executive director, said it is “gross injustice” because they were not notified of the demolition exercise.

“Our bid, like every other bid submitted, went through all the processes including going before the state executive council after which we won the bid,” Baba said.

“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 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, Abdullahi Umar Ganduje, performed the 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 percent completed commercial area (malls) as well as the ongoing residential apartments.

“We have instructed our legal team to institute legal actions against the state government to claim compensation to the tune of N10 billion 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.”