A Lagos-based automobile dealer, Alujo Asiwaju Auto Nig Ltd, has called on Governor Babajide Sanwo-Olu to settle an outstanding debt allegedly owed by the Lagos State Government, warning it may institute legal action seeking N5 billion in damages.
The company, which deals in multiple vehicle brands, said it supplied vehicles to the state government in July 2025 under an agreement that payment would be made. However, while part payment has reportedly been received, a substantial balance remains unpaid.
In a letter dated March 24, 2026, and submitted through the Office of the Chief of Staff to the governor, the firm – through its legal representatives, Kpetsigo Oliver Ayodele of Rolling Hills Chambers – expressed frustration over what it described as repeated, unanswered reminders to the state government regarding the debt.
According to the letter, earlier correspondences were sent on December 5, 2025, and January 7, 2026, but have yet to yield any response or full settlement.
The company said the delay in payment has plunged it into financial distress, citing business setbacks and reputational damage.
It also alleged that the situation has had severe personal consequences for individuals involved in financing the vehicle supply.
The legal counsel claimed that one financier reportedly died after being unable to fund a critical medical procedure due to the unpaid debt, while another allegedly lost a son under similar financial constraints tied to healthcare needs.
Describing the situation as urgent, the firm issued a 48-hour ultimatum to the Lagos State Government to settle the outstanding balance or face legal action.
It warned that failure to comply would result in a lawsuit seeking N5 billion in damages for breach of agreement, delayed payment, and associated losses, including the alleged loss of lives.
As of the time of filing this report, the Lagos State Government had not issued an official response to the claims.
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