FG Gets Counsel on Property Concession

The Chief Executive Officer of BHS International, the concessionaire of Tafawa Balewa Square in Lagos, Mr. Olu Adenodi, has urged the Federal Government to ensure it protects all its property across the country.

Adenodi was quoted in a statement as urging the government to help it secure the “no objection approval” on TBS, “not only to ensure the success of the project, but to also check the unnecessary hurdles placed in the way of the lease holders and investors.”

The statement added, “The Federal Government should ensure it encourages harmonious relationship with the state in which its property resides so that the concessionaire’s interest will not be jeopardised.

“It could also expose the Federal Government to damages in several billions of dollars, as seen in the Wale Babalakin’s case over the Old Federal Secretariat in Lagos, where an arbitration panel ordered the Federal Government to pay a whopping N54bn as damages for breach of contract.”

Adenodi also asked the Federal Government to fulfil its obligation by facilitating the requisite approvals, particularly the “no objection approval” where necessary, to the change of use of the facilities involved.

He added, “The Federal Government’s failure to fulfil its obligation to assert ownership will put the concessionaire into a precarious position and hinder its financial obligation to lenders and investors.

“Furthermore, if not properly protected or checked, the governors of states where Federal Government’s property are situated or located will start taking interest with a view to convert or take over such facilities from it.”

–Punchng