Days after making headlines for handing over 100 hectares of land to the Nigerian Navy to establish a naval operating base and dockyard in the Abigi community, Ogun State Governor Dapo Abiodun has sent a letter demanding a payment of N7.5 billion before issuing the certificate of occupancy.
Last Saturday, Governor Abiodun shared photos of himself delivering a document to the Chief of Naval Staff, Emmanuel Ogalla, accompanied by a lengthy caption on how the land transfer would strengthen the relationship between Ogun State and the armed forces. This announcement earned him accolades, including praise from Defence Minister Bello Matawalle, who commended the governor’s “generous donation” of land within the Olokola Free Trade Zone and urged other governors to follow suit.
However, it was later revealed that the document Governor Abiodun presented was merely a land survey, not the certificate of occupancy as initially implied. On August 8, a day before his visit to the naval headquarters, the Ogun State Bureau of Lands and Survey sent payment advice to the Nigerian Navy, demanding N7.5 billion, according to documents seen by Peoples Gazette. The payment breakdown included an annual ground rent of N20 million, a special infrastructural development fee of N750 million, a capital contribution of N2.25 billion, a premium of N4.5 billion, and other miscellaneous fees.
Naval sources disclosed that the payment would not be made, as the governor had led them to believe that the certificate of occupancy would be issued at no cost. They also criticized the charges, pointing out that the land in the Olokola Free Trade Zone had been allocated to the Navy during the administration of former Governor Gbenga Daniel, who ended his term in 2011. The Abigi community had gifted the land to the Navy due to its strategic location near the Atlantic Ocean, aimed at fostering infrastructural development.
Further investigation revealed a 2018 letter titled “Authority to Oversee Nigerian Navy Land at Ogun Waterside,” indicating that the Navy had been managing the land well before Mr. Abiodun assumed office in May 2019. The letter detailed the Navy’s administration of the property, although development had been delayed due to a lack of funds from previous federal administrations.
The Ogun State government’s demand for N7.5 billion has raised questions about the intention behind the charges, especially as the payment would cover only a 50-year term, with rent subject to review every five years. The situation has drawn parallels to the frustration that led Aliko Dangote to relocate his refinery project from the Olokola Free Trade Zone to Lagos, costing him significant financial losses.
Governor Abiodun’s actions have sparked concerns about potential strains in the relationship between his administration and the federal armed forces. An anonymous official expressed hope that the matter could be resolved, as there was no budget allocation to cover the governor’s demands. The official warned that the situation could jeopardize the development of the naval base and dockyard, which would significantly benefit the remote farming community of Abigi.
Attempts to reach Governor Abiodun and his aides for clarification on the imposed fees went unanswered.
Ayo Sogbuyi is a seasoned journalist with over 30 years of experience, he is a passionate advocate for press freedom and ethical reporting. Throughout his career, he has covered significant global events and championed the role of journalism in holding power to account.