The hotel in Kano was developed under a PPP arrangement, according to the developer.
Lamash Properties Limited, the developer of Daula Hotel, which was demolished by the Kano State Government, is said it will sue the government and demand N10 billion as compensation for the demolition.
The company's director of sales, Aliyu Abubakar, in a statement to reporters on Sunday, described the demolition of its properties as a flagrant disregard to the globally accepted principle of fair hearing.
Between Saturday and Sunday, the state government demolished at least three properties it claimed were illegally sold by the immediate past administration.
The police commissioner of the state, Muhammed Gumel, supervised the demolition.
On Saturday, a three-storey building with 90 shops on a race course at the Nasarawa GRA was demolished.
On Sunday, the government also demolished Daula Hotel, a three-star hotel reconstructed by the Ganduje administration under a Private Public Partnership arrangement.
The government also demolished another structure, at Hajj Camp, sold to private individuals.
Owner disagrees
Mr Abubakar said their company was invited by the Kano State government alongside other companies sometime in late 2020 to bid for the redevelopment of the old Daula Hotel under a Public Private Partnership (PPP).
"We submitted a bid of three components:
1- Residential - to comprise 25 luxury apartments
2- Commercial Hub - Various sizes of lettable commercial space
3- Daula Boutique Hotel - A 90-room five-star hotel
"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. 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 of Two Billion Two Hundred and Ninety-Seven Million Sixteen Thousand Six Hundred and Twenty-Two Naira Eighty-Nine Kobo (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, Dr 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 2 a.m. 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 per cent completed commercial area (malls) as well as the ongoing residential apartments.
"It was, to say the least, a development most appalling that in this era of the paucity of funds available to government and high rate of unemployment in the country, the state government under whatever guise, decided to demolish a property (the Daula Boutique Hotel) that belongs to it and was supposed to bring in huge revenue to the government and also help reduce unemployment in the state, among others.
"We wish to put it on record that at no point did the state government or any of its officials notify us or invited us for clarification on the project and thus negating the globally accepted principle of fair hearing.
"We have made it clear on several occasions that we did not purchase the supposed land but that it was made available to us to provide facilities, one of which was the Daula Boutique Hotel which formed the equity of the state government in the project. This action of the state government is a minus and a negative development that will scare away other potential investors willing to invest in the state.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"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.
"We appeal to the general public in Kano state and beyond to not only understand the nature of our business as against what is being erroneously portrayed but also to know that the action of the new state government on investors that invested hugely in the state under the previous administration is going to affect the perception of other potential investors coming to put their money into Kano state economy. It will also affect employment generation, wealth circulation, and urban development of the state.
"For us, we are resolute in seeking redress in the court of law and we are optimistic that justice would be served," the property developer said.
