FG pays N18bn as compensation for Lagos-Calabar Highway Project

Stanley Ihedigbo

Minister of Works, Sen. Dave Umahi, has revealed that N18 billion has been paid as compensation to individuals affected by the Lagos-Calabar Coastal Highway project.

This exceeds the initial N8 billion earmarked for the purpose.

Umahi made this announcement during a stakeholders’ meeting for Section One of the 700km highway project in Lagos.

The minister emphasized that despite petitions, the diversion at KM 15 will proceed as planned.

He commended President Bola Tinubu for initiating the project, noting that no head of state had considered it in the past 48 years.

Umahi highlighted the president’s commitment to completing critical projects, including those in Ogun and Lagos, by 2025.

The minister attributed the president’s focus on returns on investments to his private sector background.

The Vice Chariman, Senate Committee on Works, Sen. Mpigi Barnada and  Chairman Committee on Works, Hon. Akin Alani commended the minister for his efforts and hard working.

Umahi explained that the Lagos-Calabar Coastal Highway is designed to relieve the strain on Apapa Wharf, which has long faced challenges due to its shallow berths that limit cargo handling capacity.

These constraints, he noted, have necessitated the costly process of transloading, where goods are shifted between vessels, resulting in significant daily financial losses for Nigeria.

He also emphasized the importance of the seven axle road under construction, which will facilitate the seamless transportation of goods from the Dangote Refinery, Fertilizer Plant, and other major industries within the Lekki Free Trade Zone.

This critical infrastructure will connect to the Sagamu-Benin Expressway, ensuring smoother logistics and supply chains across key regions, including the North, South-West, South-South, and South-East.

In addition, the project is set to tap into the renewable energy potential along the coastal corridor, with plans to harness wind energy for future development.

The Lagos-Calabar Coastal Highway is a 700-kilometer project designed to span nine states, aimed at improving connectivity and boosting economic growth along Nigeria’s coastline.

The contract for the project was awarded to Hitech Construction Company Ltd. under an Engineering, Procurement, Construction, and Financing (EPC+F) arrangement, where most of the financial and construction risks are assumed by the contractor, with the federal government providing counterpart funding.

Construction officially began in March 2024 with the first phase, a 47.7-kilometer stretch in Lagos State, starting from Ahmadu Bello Way.

The Minister of Works previously stated that the full 700-kilometer highway is expected to be completed in eight years, with multiple sections beginning simultaneously once procurement, approvals, and other necessary processes are finalized.