Afriland Properties, Lagos State, and Falomo Mall

Reading the OFFICIAL STATEMENT from Afriland Properties on the Falomo Shopping Mall redevelopment project with LSDPC, and its alledged cancellation, the air begins to clear on some previously alarming terms as stated by the Secretary to Lagos State.

First off, “alleged cancellation” has to be stressed because one party cannot simply wake up and unilaterally cancel a project planned, approved, and processed over years by 2 parties mutually. They must come together, in order to agree on the termination, and due compensation for the party which has invested all the time and effort.

Afriland Falomo Shopping Plaza Design
Falomo Shopping Plaza

It seems quite fair that an unproductive shopping mall on such a choice property in the state would be converted into a monumental N30 billion investment to generate hundreds of billions of Naira more over the next 50 years Lagos State, gets 35% equity. ¬†This is what the Godfather would call ‘an offer they can’t refuse’.

The fact that this property will eventually be handed over to the Lagos State Government after 50 years is a big plus too. Anyone against this deal is either uninformed, or mischievous.

Lagos Governor Akinwunmi Ambode
Governor Akinwunmi Ambode of Lagos

The current Lagos State Government has passed this off as a N50 million land lease for 50 years, and that is quite alarming. It’s important that Lagosians are now being made aware of the true state of affairs. Nigerians have to understand that the N50 million was paid to the Lagos State Government only as an Expression Of Interest.

The current Lagos administration has to be very cautious of its actions. Moving to demolish Alade Market and Ladipo Market all in the name of Market Re-Development despite massive resistance, while moving against the same Market Re-Development in Falomo, where it has been accepted and commenced.

If we proceed to forcefully revoke a very fair deal agreed upon between Government and a private investor, what do we say to other private investors? How do we building up on the Internally Generated Revenue (IGR) which Governor Ambode himself kept harping on during his campaign? What do say to the Alade Market and Ladipo Market traders to whom Lagos Government is attempting to sell this philosophy of Market Redesign and Re-Development? We must do the right thing.

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