Landmark Beach Resort Demolition: A Tale of Uncompensated Loss

The demolition of Landmark Beach Resort in Oniru, Lagos State, has left a trail of devastation and unanswered questions. Nearly nine months after the demolition, the federal government has refused to compensate the company for its losses, estimated at over $200 million. This development has sparked concerns about the government’s commitment to protecting private investments and the potential impact on foreign direct investment in Nigeria.

According to Paul Onwuanibe, the CEO and Founder of Landmark Beach Resort, the government’s inaction is a clear indication of its disregard for private businesses. Onwuanibe lamented that despite acquiring the land from the government for $17 million in 2006 and investing an additional $30 million in developing the property, the government has failed to provide any form of compensation or support. The demolition, which commenced on April 29, 2024, was carried out to make way for the 700-kilometer Lagos-Calabar Coastal Highway.

The Minister of Works, David Umahi, had announced that the government disbursed N2.75 billion as the first payment to property owners affected by the demolition. However, Landmark Group was conspicuously absent from the list of beneficiaries. Onwuanibe’s frustration is palpable, and his concerns about the government’s actions are shared by many. The CEO’s statement that “not a penny” has been received in compensation is a stark reminder of the government’s inaction.

The demolition of Landmark Beach Resort has not only resulted in significant financial losses but has also affected the livelihoods of numerous individuals and businesses that relied on the resort for their income. The resort’s hotel, which had over 160,000 members, was demolished while guests were still present, leaving many without a source of income.

The government’s actions have raised questions about its commitment to protecting private investments and promoting economic growth. The failure to compensate Landmark Group for its losses has sent a negative signal to potential investors, both domestic and foreign. As Onwuanibe aptly put it, the government’s actions are enough to scare foreign direct investors from investing in Nigeria.

In conclusion, the demolition of Landmark Beach Resort and the government’s refusal to provide compensation have highlighted the need for greater transparency and accountability in the treatment of private businesses. The government must take steps to address the concerns of Landmark Group and other affected parties to restore confidence in the investment climate. Anything less would be a betrayal of the trust that investors have placed in the government.

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