Will a Tinubu Presidency Unlock FG Real Estate Assets in Lagos?
There is the intriguing prospect of having a former Lagos State Governor, Asiwaju Bola Ahmed Tinubu (President-Elect of Nigeria), in office as President if his party’s candidate, Jide Sanwo-Olu, wins the Lagos State Gubernatorial elections. This will mean that for the first time in this political dispensation, the aspiration of the centre for its real estate properties in Lagos will be aligned with that of the State’s Governor.
President Mohamadu Buhari was upbeat as he presented the 2023 Budget of Fiscal Consolidation and Transition, but it is quite clear that the country’s financial position is quite precarious. The key, as highlighted by the President, is how the country is able to generate revenue. One of the revenue-generating sources identified by the President is the Bureau of Public Enterprises (BPE) which has been tasked with raising N206.18 billion through Privatisation Proceeds. The BPE has already earmarked 42 assets around the country for sale or concession, and a significant number will be of interest to real estate stakeholders. In Lagos, the concession arrangements for the Tafawa Balewa Square Complex (TBS) and the Lagos International Trade Fair Complex (LITFC), Lagos will take centre stage but will not generate much interest because of the contention between the Federal Govt and the Lagos State Govt.”
This is how we reported on the budget speech of President Buhari several months ago. But will the election of Ashiwaju Bola Tinubu, there will be more than renewed interests in Federal Govt assets in Lagos State, as it will be presumed that the interest of the centre and that of the State will be aligned (this is on the assumption that incumbent Lagos State Governor, Babajide Sanwoolu, is returned to the State House, Alausa. This is because the Supreme Court has confirmed the State Government as having exclusive power over physical planning and can thwart any Federal Government plans for real estate assets within the state. Read more here
As recently as October 2022, the Lagos State Attorney General Moshood Onigbanjo SAN issued a warning to the FG and prospective dealers in the Tafawa Balewa Square as follows: “The attention of the Lagos State Government has been drawn to the news report on the front page of a National Newspaper, dated October 21 2022, that the Federal Government, through the Federal Ministry of Finance, Budget and National Planning, is planning to either sell or grant concession in respect of Tafawa Balewa Square situate in Lagos Island, Lagos State.
“The Attorney-General of the Federation (AGF) must be aware that the position of the Federal Government to either sell or concession the Tafawa Balewa Square cannot be valid as the AGF is the Plaintiff in Suit No. SC.508/2012 between Attorney-General of the Federation vs Attorney-General of Lagos State pending before the Supreme Court wherein the AGF is seeking a declaration that the ownership of the land, building, monuments, structures and fixtures better known as Tafawa Balewa Square in the city of Lagos is vested in the Federal Government.”
It is presumed that if the present Governor Babajide Sanwoolu is returned to office, such adversarial positions between the Federal Government and State will be harmonised, leading to proper utilisation of the humongous assets of the Federal Government. These assets include famous landmarks like the Tafawa Balewa Square and The International Trade Fair. But other assets have come up for concession or PPP (Private Partnership Projects) arrangements which have been delayed or cancelled because of the divergent position of the FG and the state. A prime example is the proposed redevelopment of the Police Barracks Falomo and Ijeh, Obalende, both prime pieces of real estate which are being underutilised by the police.
