$200m Landmark Beach Resort: Implications of Lagos State Govt Demolition Order

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The Lagos state government’s recent directive to dismantle the esteemed Landmark Beach resort, owned by Nigerian entrepreneur Paul Onwuanibe, for the construction of a superhighway has been a cause of loud controversy recently.

The government’s decision, ostensibly driven by plans to construct a 700-kilometer coastal highway linking Lagos to Calabar with the multimillion-dollar Landmark Beach resort as part of the sacrificial lamb has raised significant questions regarding property rights, economic impact, and environmental sustainability.

According to statements from presidential aide Temitope Ajayi, federal authorities approved the construction of the new coastal road on February 27. Ajayi further expressed optimism about the project’s significance, likening it to iconic coastal routes such as Ireland’s Wild Atlantic Highway and the United States Pacific Coastal Highway.

The initial phase of the superhighway project, with an estimated cost exceeding 1.06 trillion naira ($841 million), will commence in Victoria Island, Lagos traversing nine coastal states in Nigeria. 

Ajayi outlined the proposed specifications, indicating plans for a dual carriageway featuring five lanes on each side, alongside a central train track. Additionally, spurs branching out to connect with northern Nigeria are envisioned, aiming to facilitate enhanced regional connectivity and economic integration.

Without a doubt, the envisioned superhighway, with its ambitious design reminiscent of iconic coastal routes elsewhere in the world, holds the promise of catalyzing economic growth and fostering regional integration. But as with any large-scale infrastructure, the project brings a host of environmental concerns, including habitat destruction, ecosystem degradation, and disruption of natural drainage patterns.

At the heart of the issue also lies a clash between private enterprise and public interest especially with the imminent vanish of Landmark Beach resort that will be blown off like dust in the air to give way for this gigantic project. 

Landmark Beach Resort Beach
Photo: Lagos Hotels Ng

This scenario shows a common dilemma faced by rapidly growing cities worldwide, where the imperative for urban expansion often comes into conflict with established businesses and communities.

The Landmark Beach resort, a flagship attraction in Lagos’s upscale Victoria Island area, is a pride that symbolizes both the economic potential of tourism and the vulnerability of coastal ecosystems. 

The Landmark Group’s leisure beach, recognized among Nigeria’s top seven beaches in 2023 by the Lonely Planet travel guide, is a lucrative segment of the expansive 13-hectare mixed-use Landmark site situated along the Atlantic Ocean beachfront in Lagos’s affluent Victoria Island district.

According to a government notice cited by CNN, both the Landmark Beach Resort and other segments of the Landmark site located within the coastal right-of-way are slated for demolition.

The Landmark Beach resort with an annual footfall of approximately one million visitors and a significant contribution to local employment and tax revenue, the resort serves as a significant cushion to the economic dividends of leisure and hospitality ventures. 

However, its location within the proposed coastal highway route implies the transient nature of urban development, where even thriving businesses may be subject to displacement in the pursuit of broader infrastructural goals.

From a developmental perspective, the coastal highway project represents a bold developmental step towards enhancing Nigeria’s transportation network and bolstering regional connectivity which Nigeria needed at a time like this. 

Activities to enhance the actualization of the project such as sand filling, dredging, and land reclamation, inherent to such projects, pose extreme threats to fragile coastal ecosystems, including wetlands and forests one of which Landmark Beach Resort is a sacrificial lamb.

Moreover, the long-term implications of altering coastal landscapes extend beyond immediate environmental degradation, potentially exacerbating issues such as coastal erosion and loss of biodiversity.

Experts have argued that this ambitious project is deeply troubling and shortsighted. The issuance of a demolition notice for Landmark Beach Resort to make room for a road project raises concerns about the prioritization of infrastructure over existing businesses and livelihoods. 

Landmark Beach Resort Beach
Photo: Lagos Hotels Ng

The demolition of the  Landmark Beach Resort is viewed by many as an own goal of the government which has been finding it quite impossible to create jobs for its citizens. 

 Landmark Beach Resort with an estimated worth surpassing $200 million, as stated by Onwuanibe, the Landmark site serves as the host to over 80 businesses and sustains more than 4,000 direct jobs. Additionally, the company asserts that it contributes over 2 billion naira ($1.5 million) in annual tax revenue.

The imminent demolition of the Landmark Beach Resort not only threatens the livelihoods of these employees but also exacerbates the already precarious employment situation in Nigeria because this sudden loss of jobs will leave many workers facing uncertainty and financial hardship, impacting not only them but also their families and the broader community reliant on the resort’s economic activities.

The demolition of the Landmark Beach resort sends a chilling message to prospective investors about the stability of property rights in Nigeria. This abrupt removal of a multimillion-dollar asset, despite prior ownership and successful operation, raises concerns about the security of investments in the country. Such actions without doubts could deter both domestic and foreign investors, eroding confidence in Nigeria’s business environment and impeding future economic development efforts.

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