Moved to exit
Landmark Africa is relocating its Nigerian headquarters and expanding operations after the demolition of its Landmark Beach Resort in Lagos resulted in an estimated $80 million loss.
Landmark Africa, the firm behind Landmark Beach Resort in Lagos, plans to relocate its Nigerian headquarters and expand operations. This follows the April 2024 demolition of Landmark Beach Resort, which he called a devastating setback that led to an estimated $80 million loss. The company’s Chief Executive Officer, Paul Onwuanibe, announced its intent to enter two more African countries, establish a presence in three Nigerian states, and move its headquarters out of Lagos. It was announced that Landmark has secured waterfront land in Port Harcourt, in partnership with the Rivers State Government, to redevelop the once-popular Port Harcourt Tourist Beach into a world-class leisure, hospitality, and tourism destination.
Landmark Africa’s decision to exit Lagos is unsurprising following the demolition of its Beach Resort. The loss of this major player could negatively impact Lagos’ tourism and hospitality industry, which has been gaining traction in recent years. Job losses, a decline in economic activities, and reduced tax revenues are likely consequences as Landmark moves its operations elsewhere. Additionally, investor confidence in the industry may wane, and the government could face increased scrutiny over its handling of private property and approach to development projects.
In April 2024, the Federal Government began the demolition of Landmark Beach Resort’s beachfront, claiming that the resort encroached on the new coastal road’s right-of-way. Despite pleas from Landmark and other Nigerians, the government proceeded to demolish the Landmark beachfront and properties belonging to other developers. Landmark stated that it only received one week’s notice and is seeking ₦42 billion ($25.4 million) in compensation from the government to rebuild the resort and establish a new beach location. However, the government has not indicated whether compensation will be provided.
As a result, Landmark has initiated plans to relocate its Nigerian headquarters. For Landmark, expanding to new markets presents opportunities for growth and profitability. The move to diversify its operations could also help the firm reduce its reliance on a single market, thereby mitigating financial risks—a hard lesson learnt from last year’s demolition of its Beach Resort, which resulted in an estimated $80 million loss.
The company has demonstrated that its investors and financiers remain confident in its ability to replicate its facilities from Lagos and attract customers despite Nigeria’s harsh economic environment. Investors have the right to vote with their feet when the regulatory environment proves hostile. The Nigerian government maintains that the demolished portions exceeded the property Landmark paid for, while Landmark insists otherwise.
This situation highlights Nigeria's persistent issue of land tenure and property rights. In today’s world, determining land ownership objectively should not be so challenging. Leveraging land for meaningful development without clear ownership determination becomes fraught with risk. This is the ultimate lesson from this incident. We wish Landmark success in its business endeavours as it navigates these challenges.