Gbagi Shops: Oyo Govt Distances Self from Traders’ Deal, Moves to Resolve Dispute

 

The Oyo State Government has clarified that the financial arrangement for the construction of replacement shops at the Bola-Ige International Business Complex, New Gbagi, Ibadan, was strictly between the affected traders and the developer, Hamex Investment Limited.

The government stressed that neither the state government nor the Office of the Executive Governor collected money from the traders for the construction of the shops.

The Commissioner for Investment, Trade, Cooperatives and Industry, Professor Salihu Adelabu, made the clarification on Thursday following a media report alleging that traders had paid ₦2 million each for shops that remained incomplete, creating the impression that the government was involved in the financial transaction.

Professor Adelabu explained that the Ministry intervened in the matter after the affected traders approached it to report disagreements with the developer over construction costs and delays in completing the shops.

 He stated that the Ministry had responded by bringing both parties together to facilitate dialogue and find an amicable resolution to the dispute, reaffirming the government’s commitment to promoting a peaceful and business-friendly environment in Oyo State.

The Commissioner, who was represented by the Permanent Secretary, Mr Olajide Okesade, at a meeting held in his office, said discussions established that the financial arrangement for the construction of the shops was entered into directly between the affected traders and Hamex Investment Limited.

He explained that the Ministry was not involved in negotiating the payments or collecting money from the traders, adding that, based on the information presented at the meeting, the arrangement was founded on a verbal agreement rather than a formally executed written contract available to the Ministry.

He stressed that the dispute should not be portrayed as though the Oyo State Government or the Executive Governor, Engineer Seyi Makinde, had collected money from the traders for the construction of the shops or reneged on any financial commitment to them.

According to him, the Ministry intervened following complaints from the affected traders, and its role has been to facilitate dialogue and work towards an amicable resolution between the parties.

While acknowledging the traders’ concerns over delays in completing the shops and the difficulties of conducting business without adequate trading spaces, Professor Adelabu stressed the need for constructive engagement rather than actions that could further complicate efforts to resolve the dispute.

In their contributions, the traders  raised concerns about changes in the amounts initially discussed for the shops, citing figures of ₦1.6 million, ₦1.95 million and ₦2 million per shop. 

They appealed to the developer to honour the agreed terms and expedite construction to enable them to resume business in suitable trading spaces.

In his response, the developer and facility manager, Alhaji Abdulwahab Abdulhammed of Hamex Investment Limited, attributed the delays to irregular payments by some traders, rising building-material costs and the difficult terrain of the construction site, which he said had increased the quantity of materials required.

 He explained that the shops were designed to be constructed collectively and that delays in payments had affected the pace of work.

In his remarks,the Babaloja-General of Oyo State, Alhaji Abass Yekini Oladapo, urged all parties to act in good faith, fulfil their respective responsibilities and work towards a peaceful resolution in the interest of the affected traders and the business community.

Following deliberations, the Commissioner directed the developer to resume and intensify construction work on the outstanding shops with effect from Friday, October 16, 2026, adding that Traders who are yet to fulfil their agreed payment obligations were advised to make the necessary payments on or before Friday, October 23, 2026, to facilitate the speedy completion of the project.

The developer was also directed to submit a formal letter to the Ministry upon completion of the shops before proceeding with the handover of the keys to the appropriate parties. 

He  further advised that any disagreement over proposed increases in construction costs should first be resolved amicably between the traders and the developer. Where the parties are unable to reach a mutually acceptable agreement, they are to return to the Ministry for further reconciliation.

Professor Adelabu urged the public and media organisations to exercise care in reporting the matter by distinguishing between the financial dealings of private parties and the Ministry's intervention to address their disagreement.

 He emphasised that the existence of a dispute between traders and a developer should not, without supporting evidence, be presented as proof that the State Government collected the money in question or abandoned a contractual obligation.

The Commissioner reaffirmed the commitment of the administration of Governor Seyi Makinde to promoting trade, protecting legitimate commercial interests and creating an enabling environment for businesses to thrive across Oyo State.

 He assured the affected traders that the Ministry would continue to facilitate dialogue within its mandate and encourage all parties to honour their respective commitments towards the timely completion of the shops.