Landmark Group Founder, Onwuanibe begs Lagos State Govt, don’t destroy my business, I’m losing $100m

 

Maureen Aguta

 

Nigerian billionaire businessman and the Chief Executive Officer of Landmark Group, Paul Onwuanibe, has lamented that he will be stuck in debt of over $20 million and may lose his $100 million investment if the Lagos State Government proceeds with the demolition of a section of his Landmark Hotel and Beach Resort.

Onwuanibe sent out the passionate plea after the authorities of the Lagos State Government gave him a seven-day notice to vacate part of the Landmark Africa Lagos resort located in Oniru, Victoria Island, Lagos for the construction of the Lagos-Calabar Coastal Way.

The notice was titled, ‘Removal Notice on Physical Development within the Right of Ways of the Lagos-Calabar Coastal Highway Project in Lagos State’ and dated March 18, 2024, seen by THE WHISTLER.

The Deputy Director of the Development Matters Department, Somolu O, signed the notice.

The State Government said the property “falls by the Right of Ways by 50 metres” including the “beach resort, kids and bay, members area, Lagos Beach Club, Hang-out” among others.

Onwuanibe said in an interview on CNBC Africa that the demolition would affect his investments of $100 million and over 3,500 workers on the Landmark ecosystem.

The Landmark boss said, “Over two weeks ago, I got the message the same day I was announced the ‘Tourism Man of the Year’. We have invested at least $100m both in local and foreign currency on that site. The use of the coastal road is of huge importance.

“I’m having a difficult consultation as you can imagine with very high levels of governments and civil servants in both the federal government and Lagos State. This is the first kilometre of a 700km road. Why will the state destroy the most visited business leisure and tourism platform on the West African coast at the first kilometre of the project?

“I have been assured that there will be no disruptions to our business while consultations are going on. I am sure we will reach something. There are probably three or four options here. There is the option of relocating (the road) where it was. There is the option of moving it farther away. There is the option of starting at a different point. There is the option of delaying

“This thing has to be a win-win. Anything less than a win-win will be unacceptable to me, let alone the government.”

The Federal Executive Council approved N1.06tn to start the construction of the first phase of the Lagos-Calabar coastal road which cuts across eight states.

The first phase is a 47km dual carriageway of five lanes each and a train track.

As the government begins the construction of the 700km Lagos-Calabar corridor, businesses around the areas are counting their losses.

The Landmark boss said that he owes over $20 million to foreign investors, adding that he is expected to pay back 20 folds as a result of the naira depreciation against the dollar.

Onwuanibe said, “It’s very difficult. No, I didn’t see this coming. And I don’t think anybody can honestly say they saw it coming. But I think as we get over it, we will find ways to make sure that this story continues.

“(I) remember seven years ago, when an international company gave us $20 million to add to our portfolio. Most of what was built on this leisure beach came from that $20 million. Now, we had a foreign currency risk, that $20 million at the time was ₦3 billion.

“Today, it’s anything between N20 billion and N25 billion. So, paying back that money today with interest is probably 20 times what it was just seven years ago. That is a big risk. I didn’t see that coming.”