Controversy trails Alade market’s N6.9bn upgrade

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There is acrimony between traders of Alade market and Ikeja Local Government over the redevelopment of 30-year-old market in Ikeja into a mall to suit the Megacity status of the state.

The redevelopment which is expected to cost N6.9 billion has been crippled for five years due to the face-off between the current occupants, the traders, who have kicked against the mode of redevelopment and the Ikeja Local Government that is hell-bent on embarking on the redevelopment.

Since Aug. 12, 2010, when the concession was signed between the Ikeja Local Government and the developer under a Build, Operate and Transfer, BOT, arrangement to redevelop the market; the traders and the government have been at each others throat.

The face-off became obvious in May this year after the government asked the traders to relocate to the new site constructed by the developer, few meters away from the old market; pending the completion of the redevelopment. But this caused the wrath of the traders who described the new site as inhabitable.

And since then, the traders have continued to express their displeasure weekly at the manner they have been asked to leave the market where they claimed they had been trading for over 30 years.

Annual rental fees

While still negotiating, the council sent a notice titled: “Final Notice of Relocation and Payment of N150,000 Relocation fees” with reference No. IKJ.GEN. 1213. Vol. 12/129; signed by the Executive Secretary of Ikeja Local Government.

The letter reads in part: “Further to the series of meetings on your relocation to the new site under construction, I have been directed to inform you that the Local Government has approved the sum of N150,000 as the relocation and annual rental fee per shop/ allottee payable to the Ikeja Local Government ACCESS Bank PLC Account: 0016300967 with effect from Tuesday 19th -Monday June 1st, 2015.”

Realizing the intention of the council, the traders on May 21st, 2015 stormed the office of the former Governor of Lagos State, Babatunde Fashola to express their grievances over the redevelopment. But, Fashola was not on ground to receive them.

At the office of the governor, the traders due to their number, paralysed activities, lamenting that the planned demolition of the over 30-year-old market would displace 1,000 traders who depend on it for survival.

The protesters who defied the scorching sun were on the fateful day armed with placards with different inscriptions which read: “No to demolition of Alade market; We are the original owners of the shop; Fashola please save us from demolition of Alade Market; don’t displace us and Enough of demolition of market in Lagos and others.

The protesters accused the Iyaloja of the market, Mrs. Elizabeth Adenuga of conniving with officials of the council led by Mr. Wole Ogunlolu, for the planned demolition without carrying them along, saying; “We got wind of the planned demolition on May 18th, 2015 through a letter from the council demanding each trader to pay N150, 000 as relocation fee.”

President of the Concerned Traders, Mrs Sulola Odunsi-Dania, said that the council authority initially made the move to displace them and demolish the market in 2003 but the state government denied any knowledge of the planned demolition.

Her words; “We told them that they can’t dislodge the 1,000 traders. The new shops cannot accommodate the 1,000 traders. What will be the fate of others? The place is not even environmentally friendly. It is right inside the canal.’’

Another trader, Mrs. Foluke Kupoluyi, lamented; “It is not habitable, it is a slum. The shops there are not even up to 1,000. There is no access road. It is not going to be okay for all of us; it is not manageable, it will not go round, there is no provision for security and it is even flooded”

Provision for security

Few days later, the former commissioner for Local Government and Chieftaincy affairs, Mr. Ademorin Kuye said; “An alternative place has been provided by the government for the traders. But we all need to understand that the issues in the market are not just something that can be resolved just like that.

“There must be proper understanding between the government and the traders. And there must be human phase in governance.

We have asked the developer and called the Executive Secretary of the council involved to convey a stakeholders meeting with the traders to make them understand that ultimately when this place is developed, they will have the first take on it,” he added.

Worried by the continued delay, the concessionaire, Messer Masters Reality International Concepts Ltd on Sunday, August 2, 2015 stormed the market to commence work.

But the traders prevented the concessionaire from commencing the redevelopment work at the market, citing non-provision of an alternative for their action.

Consequently, the concessionaire forcibly deployed its men and shut the market, taking possession, to begin the redevelopment in accordance with the Memorandum of Understanding (MoU) signed in 2010.

Action of the concessionaires

The action of the concessionaire led to a mild drama at the entrance of the market, after the traders claimed that the concessionaire had planned to set the market ablaze.

The face-off at the entrance which lasted for hours was resolved through the intervention of the Executive Secretary of Ikeja Local Government, Adekunle Dailey-Adeokun, which led to the re-opening of the market and a 16-man committee was set up to fashion out the relocation of the traders to a new market, built for them beside the main market.

Adeokun, who spoke on behalf of the state government and the council which approved the upgrade of the market, said the redevelopment of the market into a mega mall was not negotiable, adding that the traders had to make way for the contractor to move to site.

He said most of the traders kicking against the project were not the original shop owners and that the contractor had invested money on the project since the MoU was signed five years ago.

Adeokun explained that since the money must be paid back, the project must be completed on time.

Explaining the reason for his action, the Chief Executive Officer of Masters Reality International Concepts Ltd, Mr. Lai Omotola, said the company came to take possession of the property in a bid to commence its redevelopment. He explained that since the traders had been unwilling to leave the market for redevelopment, the action of the company became inevitable.

“On Aug. 12, 2010, we signed a concession with the Ikeja Local Government under a BOT arrangement to redevelop Alade Market into a mega mall, to meet the standard of a mega city.

“For the past five years, we have been meeting with the marketers to move them to another place we have built for them and they have refused to move, saying they were not okay with the alternative provided,” he said.

Company’s cash flow

According to him, with the recent plan by the Central Bank of Nigeria (CBN) to publish the names of debtors in the nation, there is need to move to the site to start the project.

He explained that the company’s cash-flow had been affected as the lender banks were becoming impatient to get their money back.

Mr. Omotola said a foreign cash-inflow of $50 million was obtained in 2013 with the exchange rate then pegged at N175 to a dollar, but lamented that the exchange rate had skyrocketed to N195 to the dollar.

He said the declining value of the Naira was a serious concern to him, saying the development posed a threat to the accelerated delivery of the project.

“All attempts for the market people to be reasonable with us proved abortive and it has come to a stage where our nobility is turning into stupidity.

“We came on ground today to work and the Executive Secretary called us to step down and go into a round table.

“At the meeting with the council, attended by the parties involved, it was agreed that a committee be set up with five people each from the council, the traders and the contractor.

“The concern of the developer is that the marketers must sign an agreement that once the things needed are in place, they will move to the place built for them, which already has 194 shops.

“We are frustrated and tired. We need the help of government to accelerate this project because as time goes on, we are paying big interest. This project is about N6.9 billion. The place we are relocating them to is part of the investment we have made,” he said.
Omotola added that if all things went on as planned, the developer would complete the project between 18 and 24 months, adding that the company had the plan to build another 130 shops aside the 194 already built, to move the traders to pave way for the project.

Traders drag council to court

Worried by the continued action of the government and the concessionaire to relocate them, the traders have dragged the Government and the concessionaire to the Ikeja High Court, for what they described as illegal demolition of the over 30-year-old Alade Market.

Halting the planned redevelopment

The case is scheduled for hearing on November 17th, 2015 before Justice Nwaka. The traders are praying the court to halt the planned re-development.

Litigation won’t stop N6.9bn Project-Council

Barely a week before hearing, Ikeja Local Government said the pending lawsuit before a Lagos High Court would not stop the redevelopment of Alade Market into a mega shopping mall valued at a minimum of N6.9 billion.

The council’s Executive Secretary, Hon. Adekunle Dailey-Adeokun who gave the update at a session with journalists in Ikeja added that it had briefed the state governor, Mr. Akinwunmi Ambode and the State House of Assembly about the project, saying both advised that all interests were properly accommodated.

Dailey-Adeokun noted that there was no going back on the relocation of traders from the market.

Asked about the pending lawsuit filed by some concerned traders in the market, the executive secretary explained that the suit “is still at the pre-hearing stage. I hope by the time we sit down, we would understand ourselves better and settle out of court because we belong to the same family.

“What is important is that we are bound to disagree and agree later. One interesting thing is that of the 300 lock-up shops, over 180 of them have responded by paying the mandatory N150, 000. So, majority are on our side. We have the majority on our side. But the minority must also have their say,” he added.

Relocation of the traders

He acknowledged that the trio of the local council, traders and the concessionaire, Masters Reality International Concepts Ltd had set up a 16-man committee, which he said, was charged with the responsibility of working out relocation of the traders to the newly constructed alternative market.

He said: “When we set up a 16-man committee, we agreed that after everything must have been completed, the committee will sit down to determine a date for the relocation. Definitely, it cannot happen in 2015 again. It will be early 2016. We have decided to allow the traders do their Christmas sales there.

“All parties have agreed to carry one another along. We will not do anything regarding the relocation of the market until early 2016. Already, the committee recommended that we should continue to provide all the essential facilities at the alternative market. We are working towards this recommendation.”

Adeokun thus urged the traders to come together and help redevelop the market, noting that the local government planned “to make Alade Market a leading market in Ikeja and Lagos as a whole. All of us must join hands irrespective of our differences to resolve matters amicably once and for all.”

Source: Vanguard