Landowners Sue FG Over N15tn Lagos-Calabar Coastal Highway Project

The Federal Government has reaffirmed its commitment to the construction of the ambitious 700km Lagos-Calabar Coastal Highway, despite facing multiple lawsuits from landowners affected by the project. Speaking at a press briefing in Abuja on Thursday, Minister of Works, David Umahi, addressed concerns surrounding the highway's procurement process, which has led to legal action from aggrieved property owners. The N15.36tn coastal highway project, designed to enhance connectivity along Nigeria's coastal states, has been a subject of public scrutiny and controversy since its inception in March 2024. The project is set to be built on a concrete pavement and is expected to pass through key states including Lagos, Ogun, Ondo, Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and culminate in Cross River.

In May, the Minister disclosed that approximately 750 houses along the highway's path had been marked for demolition. However, the compensation offered to the affected landowners has sparked significant discontent, with many claiming that the amounts provided do not reflect the true value of their properties. One of the aggrieved landowners, Olanrewaju Ojo, the founder of Leisure Games, expressed his dissatisfaction, stating that the N1.3 million compensation he received was insufficient, describing it as an amount he could easily generate in a week. Critics of the project have also raised concerns about the transparency of the procurement process, accusing the government of bypassing proper procedures in awarding the contracts. Umahi, however, defended the process, emphasizing that all necessary legal and procedural requirements were met before construction commenced. He further clarified that the project had been approved by the Federal Executive Council under the Restrictive Procurement Act, and that environmental and social impact assessments had been completed.

The project, which is estimated to cost N4bn per kilometer, has faced delays, leading to concerns about its completion timeline and potential cost overruns. Despite these challenges, Umahi assured that the Federal Government remains steadfast in its determination to see the project through to completion within the next eight years. Addressing the ongoing lawsuits, Umahi dismissed the claims made by the landowners, accusing some of attempting to profit unjustly from the situation. He asserted that the government is following the legally established corridor for the highway and is committed to providing fair compensation to all affected parties. The Minister also highlighted the government's broader efforts to ensure value for money in its infrastructure projects. He mentioned the removal of the Consumer Price Index from contracts and the introduction of inflow pricing as part of the ministry's new initiatives. Furthermore, Umahi announced that no new projects would be included in the 2025 budget unless directed by President Bola Tinubu, as the focus would shift to completing existing projects and addressing critical infrastructure needs. Despite funding challenges, including an inadequate allocation of N52bn for capital projects, Umahi expressed optimism about the future of Nigeria's road infrastructure. He introduced the second phase of the highway development initiative under a Public-Private Partnership scheme, which aims to provide a sustainable source of finance for road projects. As the Lagos-Calabar Coastal Highway project progresses amidst legal battles and public scrutiny, the Federal Government remains committed to delivering a transformative infrastructure project that promises to boost economic activities and connectivity along Nigeria's coastal region.