Senate probe and CBN’s int’l centre

Enang wants the Senate to mandate the committees on Finance, Judiciary, Human Rights and Legal Matters to conduct a public hearing on the loss of revenue into the consolidated revenue fund of the federation through evasion of the Fiscal Responsibility Act by acting against and beyond the mandate given by law to the agencies.Acquisition of […]

Enang wants the Senate to mandate the committees on Finance, Judiciary, Human Rights and Legal Matters to conduct a public hearing on the loss of revenue into the consolidated revenue fund of the federation through evasion of the Fiscal Responsibility Act by acting against and beyond the mandate given by law to the agencies.
Acquisition of the Nitel property has indeed generated huge controversy. It is said that in 2010, Estate Surveyors and Valuers evaluated the property and pegged its market value around N20 billion but CBN bought it for N98 billion.
During Nitel’s liquidation, this piece of land (area of about 80,000 square feet) together with its structure was put aside. The property which was put under the care of the Ministry of Communications was later acquired by a private property developer who then sold it to the CBN. Over the years, efforts to get details of how the property passed from the private firm to CBN did not yield much result as the deal remained clouded. Now CBN wants to convert the place to an international conference centre.
The old Nitel property was acquired during the Olusegun Obasanjo administration. Many described the process that led to CBN acquiring the property as far from being transparent.
Some top government officials were accused of being part of underhand deals that characterised the sale of the plot and the uncompleted structure thereon. But in his response in October, 2011, Mohammed Abdullahi who was then Head of Corporate Communications, CBN when the deals were consummated wrote saying the board of CBN in approving the purchase of the property was guided by the advice of professional Estate Valuers regarding the value of the property at the time of purchase in December 2010.
July last year, the edifice left uncompleted many years on this property was blasted causing fears among residents and passersby. It was a gigantic multiple storey structure abandoned in the middle of its construction after several billions had been expended on it.
Our reporter who visited the site last week reported that the place is covered with aluminum sheets. Inside, an excavator was digging up earth. At the entrance to the place is a post bearing ITB Nigeria Limited, apparently the company doing the work for CBN. This reporter was barred from entering to see management of the company but a staff at the gate said actual work had not commenced. All that was done was removal earth.
When confronted with concerns about this property, CBN Corporate Communications Manager, Mr Ugo Okoroafor asked that an email be sent to him containing the questions. That was done, yet he did not respond even after he was sent a reminder.
Though it was difficult putting down the value of the structure, an Abuja-based estate valuer, Mr Udosen Imeote said consultancy fees prior to the commencement of work on that site alone might have gulped half a billion naira.

Now, if one puts together the cost of the huge metal, cement, sand and the expertise expended on this site, billions of naira might have been wasted.

This is not the only property the old telecom giant might have wasted. Similar ones like offices, staff quarters and even equipment have been left to decay across the country in like matter.
The CBN governor had said the centre will have a three-star hotel, restaurants, shopping centres, banking halls. This will apparently create room for employment. But considering that the International Conference Centre and the Nicon Luxury Hotel not far from this place are not put to optimum use, one wonders if there will be good market for CBN. Besides, the World Trade Centre Abuja under construction will soon open. Spaces have been sold in the centre already.
Similarly, some real estate agents contend that if CBN builds its planned centre, being a government institution, it will not maximize profit from it because government business never works in Nigeria.
Omokide Razak manager of Ricoponer Global Limited said if it is given to a facility management company, probably better marketing will be done and return on investment may be achieved. He pointed at the first Churchgate tower on Airport return road which has been fully utilized as example of a well marketed and managed property. “We have a teeming population. There’s still room. Go to Cedi Plaza, there’s practically no space,” he expressed.   
But he wondered: “If he [Sanusi] is so concerned, why not suggest that the International Conference Centre under use be upgraded to be put to optimum use? He should pump more money into it. It’s intergovernmental thing. Why not apply for land so he uses the money in buying the Nitel property to build? Why wait for the property to be sold to a private firm then a government body comes behind to buy it? Is this CBN’s bailout strategy?”