…relocates HQ From Lagos, expand to two African countries
From Rotimi Asher, Lagos
Chief Executive Officer and Founder of Landmark Beach Resort, Paul Onwuanibe said that the federal government has refused to compensate the company nearly nine months after the demolition of his over $200m beach resort in Oniru, Lagos State.
Onwuanibe said the action is enough to scare foreign direct investors from investing their money in Nigeria. The CEO said this in an interview aired on Sunday
The demolition of structures at Landmark Beach Resort in Oniru, Victoria Island, commenced on April 29, 2024 to give way for the 700 kilometer Lagos-Calabar Coastal Highway.
The Minister of Works, David Umahi said the government disbursed the total amount of N2.75bn as the first payment to property owners affected by the demolition.
In a statement released in May 2024, Landmark Group sought compensation for the demolition of the asset.
The CEO said, “Not a penny. To date, we haven’t been compensated”, adding “nobody has written to me and promised ,to compensate”.
Onwunibe lamented the land was acquired from the government for $17m in 2006 and the firm took a facility worth $30m to develop the property.
He said, “We were issued a seven-day notice. I mean, to be fair, it took another two or three months before it came. Till today, nobody picked up the phone, called me or wrote to me personally and said here is the issue we have or here is what is going to happen.
” That site we bought in 2006, 18 years ago and we paid $17m in 2006. We borrowed $30m to develop that beach. The pain and the hurt is that we spent $30m developing the infrastructure on that beach.
“But you know the biggest tragedy of this was the businesses that were affected by the losses of revenue. We had a beach hotel and people were sleeping in the hotel when the demolition started. We didn’t have time to take the TV from the walls, the mattress from the bed, the pictures on the wall, the plates from the kitchen and there were guests in the pool.
“There were over 160,000 members of the beach and someone has decided or a set of people decided that a road infrastructure project is more important than socio-economic activities along that 700 kilometer coastlines. Unfortunately, I was in the first kilometer”.
Meanwhile the CEO has revealed that the company will extend its reach into two other African countries, establish a presence in three Nigerian states, and move its headquarters out of Lagos.
This decision comes in the wake of the April 2024 demolition of the Landmark Beach Resort, which Onwuanibe described as a devastating setback, resulting in an estimated $80 million loss.
In an appearance on The KK Show – Key to Keys podcast, featured on Eden Oasis’ official YouTube channel, Onwuanibe explained that the demolition highlighted the need for geographical diversification to reduce the risks of concentrated investments.
He also shared plans to relocate Landmark Africa’s entire events and tourism platform outside of Nigeria.
“We’re going to have some diversification. We’re going to diversify to two other African countries. We’re going to go into three different states.
“We’re going to move our Nigeria HQ location out of Lagos. And we’re going to move our entire sort of events and tourism platform out of Nigeria”, Onwuanibe said.
Onwuanibe shared that Landmark Africa received interest from governors in 12 states across Nigeria, with three states selected for new ventures after a six-month evaluation. He did not disclose the names of the states or new African countries for expansion.
Onwuanibe detailed the impact of the April 2024 Landmark Beach Resort demolition, revealing the short notice and ongoing financial strain.
“We were issued a seven-day notice”, he said, adding that the demolition was delayed by two to three months.
Despite this, Landmark Africa has yet to receive any compensation, although other affected properties have been paid.
Onwuanibe also questioned the changes to the Coastal Road’s planned route, which was initially meant to run in front of the resort.
“It was meant to be in front of us, not behind”, he said, adding to the confusion surrounding the demolition.
Onwuanibe stressed Landmark Africa’s contribution to the local economy, noting over 10 billion naira in taxes paid the previous year.
“We were the only private business listed on the government’s tourism website”, he said.
Describing the demolition’s chaotic nature, he recalled guests still in the hotel as it began:
“We didn’t have time to remove fridges, TVs, mattresses, or even plates from the kitchen”.
He highlighted that the financial losses are far higher than initially estimated.
“It sounds like a $30 million loss, but it’s more like $60 million to $80 million”, Onwuanibe explained, adding that the broader impact on surrounding investments could reach $200 million to $300 million.
