FG Vows to Recover Multi-billion Naira Property in Lagos                      

Ndubuisi Francis in Abuja                  
           

As part of efforts to make good its recent plan to set up a National Assets Registry with a view to taking an inventory and recover all of its assets across the country, the federal government at the weekend vowed to reclaim a multi-billion naira property at 2A, Osborne Road in Ikoyi, Lagos.

A top presidency source who gave the hint in a chat with journalists, insisted that the government would apply all lawful means to reclaim the high-brow property, which is currently a subject of litigation.

The property which sits on a parcel of land measuring about 9,191. 167 square meters was leased to Associated Property Development Company Limited (APDCL) by the federal government in 1983, during the administration of late president Shehu Shagari, with Chief Audu Ogbeh as the then Minister of Communications.

 It was originally allocated to the defunct Department of Post and Telecommunications by the colonial government in 1954. 

The now defunct Nigerian Telecommunications Limited (NITEL) later assumed ownership, when it was created.

The development lease agreement between the federal government represented by the Ministry of Communications and APDCL, a copy of which THISDAY obtained, was signed on September 29, 1983 and was for a lease period of 25 years.

According to the terms of the agreement, the APDCL was to develop a housing complex on the land on a Build, Operate and Transfer (BOT) basis, with the expectation that it would have recouped its investment on the property and made profit in 25 years.

Based on the terms of the agreement, the property should have reverted to the federal government in September 2008.

However, the presidency source regretted that this was not the case, as the lessee claimed to have secured an extension of the lease for another 25-year period and obtained a Certificate of Occupancy on the property from the Federal Ministry of Works and Housing.

The white paper on the Oluwole Rotimi Commission of Inquiry which investigated hundreds of landed property of the federal government across the nation was equally obtained by THISDAY.

The white paper dated August 2001 indicated underhand dealings on the property 2A Osborne Road federal government property.

“The commission notes the alienation of NITEL’s land at Ikoyi, Lagos.  There was no formal reaction of the Ministry of Communications on the matter until the commission wound up its public sittings.

“The commission took a serious view of the deliberate effort made by the Ministry of Communications to conceal information about the property (No 2A Osborn Road, Ikoyi).

” It contends that the attitude confirms the commission’s fears that the whole transaction smacks of corruption.

“The commission found it strange that the lease agreement entered into in 1983 in respect of the property is still subsisting despite disapproval by the council of Ministers.

“It observes that there is no evidence of a new lease agreement.  The commission found it rather curious that the maximum term of its years imposed by the Council Ministers was not only exceeded first by the Ministry of Communications which increased it to 25 years but more ridiculously by the FMW&H (Federal Ministry of Works and Housing) which brought it up to 50 years.

“The Commission was of the view that the Ministry of Communications handled the matter in a most unsatisfactory manner which led to a great deal of confusion and made it difficult to identify the specific culprits in the transaction,” the white paper Oluwole report said.

The source noted that it was strange how a lesser who leased a government property for a period of 25 years not only ended up extending the lease for 50 years but is also parading a Certificate of Occupancy (CofO) on the same property.

However, THISDAY investigations revealed that the Federal Ministry of Works  and Housing had twice  revoked CofO paraded by the APDCL.

First was by a former Minister of State in the ministry, Garba Madaki via a letter dated June 4, 2002 with reference numberLU/C.68/S.27/Vol.1/88.

The revocation letter titled: “Re-Revocation of Certificate of Occupancy No. 90/90/37: No. 2A Osborne Road, Ikoy, Lagos,” was addressed to the Managing Director, Associated Property Development Company Nig. LTD., Foreshore Towers (14th Floor), No. 2A Osborne Road, Ikoyi–Lagos.

The second revocation order was as recent as May 10, 2023, also by the FMW&H.

According to the revocation order, the 25 years lease development agreement between the federal government and the lessee was entered into on September 29, 1983 and had since elapsed on September 28, 2008, with the latter “surreptitiousl” obtaining a CofO  registered as No 90/90/37.

The revocation letter was signed by the Permanent Secretary, FMW&H, Folorunso Esan.

The presidency source noted that rather than adhere to the revocation orders, APDCL rushed to court to stop the federal government which has already moved in to recover the property.

But the source disclosed that it had already applied for a stay of execution of the order of a Federal High Court in Lagos, which directed its agents to vacate the property.

The court had in a ruling delivered by Justice Daniel Osagor, ordered agencies of the government that are within the premises, to within seven days, vacate the choice property.

However, dissatisfied with the decision of the high court, the federal government, through its lawyers led by A.U Mustapha & C, on Friday July 28, 2023, did not only file a Motion on Notice to stay the execution of the order, but also taken the matter before the Court of Appeal.