Enugu State Government: N20.4 Billion Pre-Lease Demolition Lawsuit

• The Enugu State Government demolished properties, including Ohha Microfinance Bank's headquarters, on May 15, 2024, after only 72 hours' notice.
• Court documents reveal the state government secured a lease offer for the land from Railway Property Management on August 15, 2024, three months after the demolitions.
• Ohha Microfinance Bank filed a N20.4 billion lawsuit (E/37/2025) alleging unlawful demolition without valid title or adequate compensation.
• The bank claims the state's actions violate Sections 43 and 44(1) of the 1999 Nigerian Constitution and the African Charter on Human and Peoples' Rights.
• The lawsuit challenges the legality of the post-demolition lease and seeks significant damages for the destruction of over 27 years of investment.

The outcome of this case, currently pending at the Enugu State High Court, could set an important precedent regarding the procedures for land acquisition and demolition by government entities across Nigeria, particularly concerning the necessity of securing valid title and ensuring due process before initiating such actions.

The Enugu State Government is currently embroiled in a significant legal dispute, facing a N20.4 billion lawsuit filed by Ohha Microfinance Bank Limited following the demolition of its corporate headquarters and numerous other properties. Court documents reveal that the state government secured an offer letter for the lease of the land in question from Railway Property Management on August 15, 2024, a full three months after the widespread demolitions took place. This timeline is central to the bank's claim that the government acted without valid title to the land at the time of the destruction.

The demolition event, which occurred on May 15, 2024, saw the destruction of Ohha Microfinance Bank's main office at No. 1, Ogui Road, Enugu, along with hundreds of other businesses, a polytechnic, and several other banks. The bank reported the loss of two safes valued at N15 million during the incident. Prior to the demolition, the Enugu State Government issued a mere 72-hour notice to vacate, delivered on May 12, 2024. The state government's defense, filed by Assistant Chief Legal Officer G.I. Iloma, acknowledges the August 15, 2024, lease offer from Railway Property Management, which was subsequently accepted, but maintains that this occurred months after the demolitions, which it claims were carried out due to the expiration of a 25-year lease held by Rev. Fr. Prof. Emmanuel Edeh of Our Saviour Institute of Science, Agriculture and Technology (OSISATECH). Furthermore, the Enugu Capital Territory Development Authority had issued removal notices around October 13, 2023, for buildings affected by the planned motor park project.

Ohha Microfinance Bank initiated its lawsuit, designated E/37/2025, on January 20, 2025, before Justice Cyprian Ajah at the Enugu State High Court, Enugu Judicial Division. Represented by human rights lawyer Olu Omotayo, the bank contends that the lease offer obtained by the state government is illegal because it was secured after the properties had already been unlawfully demolished. The plaintiff argues that the state government proceeded with the destruction of properties without possessing a valid title to the land, attempting to legitimize its actions retroactively by obtaining the lease documents months later.

The core of the bank's legal challenge seeks a declaration that the destruction of its properties without prompt and adequate compensation is illegal, unconstitutional, null, and void. This claim directly cites violations of Sections 43 and 44(1) of the 1999 Constitution of Nigeria, which protect citizens' rights to acquire and own immovable property and prohibit compulsory acquisition without adequate compensation. Additionally, the suit alleges breaches of Articles 22 and 23 of the African Charter on Human and Peoples' Rights. The bank is seeking substantial financial redress, including special damages of N420,194,500, aggravated, punitive, and general damages totaling N20 billion, an 18% interest rate on the special damages from May 15, 2024, until judgment, and a 10% interest rate on the judgment sum until full liquidation.

The Ohha Microfinance Bank Enugu demolition case underscores a critical tension between government development initiatives and the constitutional rights of property owners in Nigeria. The bank emphasizes that the state's actions contradict its stated public posture of being "investor-friendly," particularly given its alleged refusal to provide compensation for the destruction of an investment spanning over 27 years and valued at multi-millions of naira. The state government's attempt to justify the demolitions by citing an expired lease and subsequent acquisition of title has been directly challenged by the plaintiff, who views the post-demolition lease as an invalid attempt to cover an unlawful act.

This Enugu State Government pre-lease demolition lawsuit highlights the significant financial and operational impact on businesses when government agencies act without clear legal authority or proper compensation. The outcome of this case, currently pending at the Enugu State High Court, could set an important precedent regarding the procedures for land acquisition and demolition by government entities across Nigeria, particularly concerning the necessity of securing valid title and ensuring due process before initiating such actions. The substantial damages sought reflect the devastating impact on the bank's long-term investment and operations.

Lawyers advising businesses affected by government land acquisition or demolition should note the precedent set by Ohha Microfinance Bank's lawsuit, emphasizing the importance of challenging actions taken without valid title or adequate compensation. Compliance officers in government agencies should review procedures to ensure all legal prerequisites, including securing valid title and providing due notice/compensation, are met before initiating property demolitions to mitigate significant litigation risk.

Source: Original reporting via PUNCH newspaper