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Lagos Coastal Highway: Tinubu Administration Initiates N2.75 Billion Compensation for Impacted Nigerians
Minister David Umahi announced the commencement of compensation payments for affected property owners on Wednesday, May 1, as part of the Lagos-Calabar Coastal Highway project.
During a stakeholders meeting in Lagos, Umahi confirmed the initial compensation payment of N2.75 billion, with additional payments anticipated in the near future.
Previously, in April, Umahi outlined the project’s estimated cost of N15.356 trillion and projected completion timeframe of eight years for the coastal road.
Umahi also said that the contractor handling the project, Gilbert Chagoury’s Hitech Construction Company Limited (Hitech) did not do any competitive bidding for the project, rather, the contract was awarded to the company based on its track record, not on sentiments as being insinuated in some quarters.
When asked for clarifications on the cost of the project, how it was approved in line with the Public Procurement Act and if due process was followed, Umahi said, “I don’t understand what you mean by due process. Yes, due process was followed. People are concerned about whether it was appropriated for, and I say yes.
“In the 2024 Appropriation, you will find Lagos-Calabar coastal road and it is appropriated for. In appropriation and procurement, what is in the appropriation may not necessarily be what is in the procurement but the most important thing is that it is appropriated for and it followed due process.
“The due process is that we did our in-house evaluation of what we submitted. Some people said that this project is PPP (Public–private partnership), it is not PPP. It is EPC+F, which is Engineering, Procurement, Construction plus Finance. In EPC+F. There is a commitment in terms of funds from the Federal Government, depending on the negotiation.”
On the bidding process of the project as the contractor handling the project, Chagoury, has a close relationship with President Bola Tinubu, the minister said, “I am an engineer. I work by reality and not by sentiment.
“In the procurement act which is a law, you are allowed as a ministry to invite contractors that have special skills in a particular kind of work and negotiate with them and give out the job to them. We did that on the Third Mainland Bridge project.
“When it comes to the coastal road, we looked at the problem of ocean surge and the pedigree of the companies that have the capacity and track record of doing that, we looked at the Eko Atlantic in Lagos and remembered how Hitech was the only company that was able to solve the problem of flood that was taking of Victoria Island.
“They (Hitech) have the pedigree and track record of the ability to contain the ocean surge problems. They also have a proven track record of reinforced concrete road pavement.”
On the cost of the project, Umahi who earlier said that former Vice President Atiku Abubakar did not understand figures, noted, “If you use a dollar to N1,200, his argument comes up to about N19billion per kilometre. A standard carriageway is 11.55 metres, which is 7.3 inner shoulder of 5.3, outer shoulder of 2.75. We used this 11.55 to do our analysis.”
When asked the exact amount the project would cost the Nigerian government under the EPC+F arrangement and the completion period of the project, the minister said, “We are looking at eight years, life tenure of Mr. President.”
On September 24, 2023, investigative journalists revealed that Hitech Road Construction Company, the firm awarded the multi-billion dollar contract for the Lagos-Calabar Coastal Highway project, is a subsidiary of Hitech Construction Company, which is owned by Nigerian-Lebanese developer Gilbert Chagoury.
Chagoury, the owner of the Chagoury Group, is a business conglomerate, is a known business associate of Nigerian President Tinubu. Notably, Chagoury has been linked to alleged criminal activities
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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