Nasarawa govt converts deputy governor's lodge into N2bn luxury estate

…Approves N600m to develop Kaduna property

Nasarawa State Governor, Abdullahi Sule has said that his administration was determined to leave behind credible assets and legacy that would generate income for the state and not project that will drain the state of its resources.

The governor, who commenced the construction of a N2 billion luxury terraces in Abuja, the nation’s capital, through Public Private Partnership (PPP) arrangement, said he can only embark on viable projects that government and the people of the state can boast about.

The abandoned Deputy Governor’s Lodge in Abuja, is the project site that is being converted into luxury estate, awarded to a private developer, Optiview Realty.

Governor Sule, who performed the groundbreaking ceremony in Abuja, emphasised the focus of his administration in acquiring and developing more assets for the state.

According to the governor, the 13-block terrace estate is a direct effort to empower youths of the state, especially that the developer is from Doma Local Government Area.

“The credibility of a government is determined by the number of assets acquired for the state, as no government means anything if it does not have assets.

“The essence of a government having assets is for the government to be also credit viable. If a government can boast of having visible assets, then, that government becomes credible and could be able to borrow money from here and there. That is the reason why, instead of selling this particular property, it is better for us to do exactly what we are doing today,” he said.

Governor Sule disclosed that his administration is committing eight hundred million naira as equity, being the value of the land, while Optiview Realty is committing N1.2 billion in the form of investment.

“Today, we are taking N800 million equity against N1.2 billion investment. This is the idea. But then, we are taking six blocks of flats. If we take those siz terraces, and common sense will tell you, even if we sell them at N200m each, we are now looking at N1.2 billion,” he stated.

He added that the whole business idea is to protect the land which was almost abandoned.

“The land was almost lost because on this particular land, tenement rates were not paid, C-of-O was not obtained. The documents were not found. Today, we have all these documents that are required. That is the reason why we have the approval to go ahead and construct this particular project,” he said.

Governor Sule, however, explained that the most important aspect of the transaction is that when the state enters a PPP arrangement especially in places like Abuja, it will open doors of opportunities signifying that Nasarawa State is ready for business.

“The most important aspect of it is that when we enter into the PPP, especially in places like Abuja, it also opens up another window of opportunity to say that Nasarawa is ready for business.”

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In the same vein, the Governor announced that he has approved N600 million for the development of the property owned by the Nasarawa State Government in Kaduna State.

“In Kaduna, Nasarawa State Government has a property, just like other states have their own properties. At the end of the day, the property has been left similar to this.

“Even though there has been a building that is there. But it is an area where every time we go for meetings, we rent houses and stay, which is very expensive. I’m happy to tell you that I have already approved the initial payment of N600 million for the construction of that site. That site is also going to be completed this year,” he stated.

He expressed optimism that his administration would be able to develop prime properties in Abuja, Kaduna and Lagos, all to the benefit of Nasarawa State.

“That is the whole idea about this. Once you are able to do that, then the state is now in a position to compete in the committee of states. Because you can’t compete if you are in a sink hole. We’ll try as much as we can to do what one of the emperors of the Roman empire used to say. That we met Nasarawa built on bricks, but we are leaving Nasarawa built on marble,” he stated.

Governor Sule appreciated the Nasarawa State Investment Development Agency (NASIDA), the Nasarawa Geographic Information Service (NAGIS), for their contributions leading to the PPP arrangement, as well as critical stakeholders for witnessing the signing of the Memorandum of Understanding (MoU) and groundbreaking, which was meant to be a standing event in order to encourage young people.

“Your being from Nasarawa State is good enough. Now that you are coming through NASIDA, that is why we are working for you to build your profile. By the time you have this property, everybody will agree that you are a serious company that have entered into a PPP with a state government, and you have been able to deliver,” he said.

The Managing Director/CEO of the Nasarawa State Investment Development Agency (NASIDA), Ibrahim Abdullahi, said Optiview Realty will construct 13-block of luxury terraces, out of which Nasarawa State Government will take six units and the developer will take 7 units shared in the ratio of 40/60 respectively.

“The economics of the deal is that if we sell our luxury units at a conservative price of N200-250, 000m per unit, we will realize about N400m above our equity of N800m investment in the deal. Moreover, we are optimistic that we could be able to sell it at a higher value to get more value for the state government, he stated.

The NASIDA MD recounted that sometimes in 2021/22, Governor Sule mandates the agency, in collaboration with the office of the secretary to the state government, to take stock of all assets belonging to the Nasarawa State Government.

“Your Excellency, it’s as a result of this exercise that today, we are on this ground and asset, a very strategic asset belonging to the people and government of Nasarawa State for it to be optimized. It is popularly known and built as the Deputy Governor’s Lodge for Nasarawa State. But this has been left non performing. With your vision, we deployed our PPP framework and mechanism to invite private sector partners to partner with us in redesigning and finding another purpose for this asset,” he said.

Abdullahi gave 18 months as timeline for the developer to complete the project.

Also, in a speech, the MD, Optiview Realty, Hussaini Abdullahi, said the project, which is to be built on a land measuring 4000 square meters, comprises of a 13-block luxury terraces, with a golf resort featuring a gymnasium, a cafe and other amenities that are specifically meant for such prime property.

Abdullahi said his company entered a PPP arrangement with the state government using a 60/40 sharing formula with about N1.2bn worth of construction and about N800m in equity contribution in the form of land by the state government.

“For us, we are an indigenous company. We are very proud, honoured and challenged to take on the responsibility of redeveloping the Nasarawa State Deputy Governor’s Lodge,” he said.