Umo Eno’s plan to build 18-storey in Lagos
I am not surprised that Gov. Umo Eno’s plans to invest in property development in Lagos and a hotel in Abuja have generated some controversy among his people. Few trust their governments in Nigeria, so every action is taken with a high dose of cynicism. The Akwa Ibom government is erecting an 18-story building for commercial use on Bishop Aboyade Cole Street, Victoria Island, while the state’s liaison office in Abuja would be converted into a four-story hotel. The VI building, to be known as Ibom Towers, will consist of one- and two-bedroom flats (31 of them) and some business suites that would be sold to the investing public. Conservative estimates indicate that the government may generate up to N100 billion from this transaction. The VI property is a small bungalow sitting on a large parcel of land acquired over 30 years ago. It served as the governor’s office annex in Lagos, providing the chief executive with ample space for meetings and official business in the nation’s most industrialised city. I actually met Governor Godswill Akpabio there sometime around 2009. He is the last chief executive of the state to use the place.
In 2017, Gov. Udom Emmanuel acquired a more modern property on Coopers Road in Ikoyi for use as an official residence and office. The VI property had long remained largely unused. Similarly, the Abuja property, located in the Central Business District, has also been abandoned for many years now. Converting it to a hotel and handing it over to a successful hotel manager to operate makes business sense. In addition to these two investments, Eno is also building a low-density residential estate in the heart of Uyo. He hopes to sell the residential units to the public. But it is the Lagos development that is kicking off the storm. Many commentators believe that the Akwa Ibom people will benefit more if the funds to be used in developing the property are invested in some economic activities in the state. They have a point, but the government’s decision also has some merit. A commercial property development in VI, Lagos, is not a bad venture.
“Many other investments made by the former governor and located in his hometown, like the coconut factory, the syringe manufacturing plant, the electric metre manufacturing plant, and the flour mill factory, have all floundered.”
The reason the governor is being criticised is because of our recent experience in property investment. In 2021, Gov. Emmanuel completed a 21-story building in Uyo. When he mooted the idea, he was trenchantly criticised for wasting resources on such a white elephant project. But the governor claimed that ExxonMobil was soon relocating its corporate headquarters to the state and would occupy several floors in the building. I doubted the claim and said so publicly, having spoken to many mobile executives then. It turned out that the oil company was at that time exiting its onshore operations, which were based in the state, and was actually selling off the business to Seplat Energy, an indigenous oil-producing company. Udom Emmanuel was actually lying to the people, and till today, the 21-story building has remained unoccupied, apart from two floors donated by the government to the Bank of Industry. Many other investments made by the former governor and located in his hometown, like the coconut factory, the syringe manufacturing plant, the electric metre manufacturing plant, and the flour mill factory, have all floundered. In May, the former governor announced at a public function in Uyo that the 21-story building is still vacant because of COVID-19. Such a barefaced falsehood!
This is why our people are so distrustful of their leaders. They do not want to be deceived the second time in this property business, and that is why they are kicking against the 18-story development. I understand their position; however, I should emphasise that the government is not always wrong in its investment decisions. In 2019, it launched an airline, Ibom Air, and I was one of those who expressed reservations about its viability. The airline business, I reasoned, is risky, largely unprofitable, and difficult to run successfully. Five years on, Ibom Air has become the nation’s favourite domestic carrier and a major source of employment for young people. I understand that the airline has since broken even and is not relying on the government to meet its operational expenses. But the government continues to support it through capital investments like aircraft acquisitions and the training of young Akwa Ibom people in aviation careers.
A residential development in Victoria Island should be a huge commercial success, and in this particular case, an abandoned, non-earning asset would be converted into a profitable business transaction, but it is, however, important to emphasise that if the expected N100 billion proceeds are not well managed, the raging criticisms would have been justified. For one, the proceeds should not be used to pay salaries, wages, pensions, or gratuities. The money should be invested in sustainable income-generating and job-creating businesses. For instance, Ibom power plants should be upgraded and made to provide adequate power to the state. A regular supply of electricity will trigger untold multiplier effects. Parts of the proceeds should also be invested in a wealth fund established by law for future generations of Akwa Ibom State.
I enjoin the governor to handle the Lagos investment, and indeed, all others, with the utmost transparency and openness, and reject any urge for him and the government’s officials to profit personally from them.
