FG Allocates N18 Billion for Compensation on Lagos-Calabar Coastal Highway Project”

The Nigerian government has set aside N18 billion for compensation related to the Lagos-Calabar coastal highway project, aiming to support affected communities and accelerate development. Learn more about this major infrastructure investment.

According to Minister of Works, David Umahi, the Federal Government has set aside N18 billion as compensation for property owners affected by section 1 of the Lagos-Calabar coastal highway project.

He announced on Sunday that everyone listed for compensation in this section would receive their payments within 10 days.

In a stakeholder engagement session focused on sections 1 and 2 of the project, Umahi stressed his dedication to providing fair compensation for all eligible property owners. He pointed out that legal obligations limit his ability to alter the terms of compensation.

He stated that he wouldn’t have been able to respond if the question had been asked earlier. However, he clearly and emphatically expressed his frustration with the situation. Despite this, he mentioned that his hands are tied by law and acknowledged having already lost some properties due to similar arrangements.

Paying for this is extremely challenging, but legal obligations require compliance. We have hired professionals to manage the process, and based on recommendations from the Bureau of Public Procurement, the Federal Executive Council has approved an initial compensation budget of N8 billion for this section.

As of today, we have reached N18 billion. I plan to publish all the details for transparency, including names, pictures, dimensions, and associated costs. However, there are more than 10 court cases concerning compensation that we’ll honor according to the court’s decisions. If needed, we’re prepared to take this matter up with the Supreme Court in order to strengthen our democracy by seeking a final judgment on these issues.

While I’m not a legal expert, there is a solid legal basis for this decision. We consulted experts to ensure compliance with the law, and half of the compensation has already been disbursed. I’ve instructed Olukorede Keisha, the Federal Controller of Works in Lagos State, to proceed without awaiting additional approvals from the Federal Executive Council because it is crucial that we prioritize those affected. They should have immediate access to their relocation funds. Therefore, within 10 days, we will finalize 100% of all payments as detailed by our enumerators.

In the meantime, the minister revealed that numerous projects with contractors had been canceled due to execution delays.

He stated, “We have halted several projects, such as three sections of the Lokoja-Benin corridor, after discussions with the Bureau of Public Procurement to reallocate these through selective tendering. Additionally, phase two of the Lagos-Ibadan project has been terminated and is in the process of being reassigned to a different contractor.”

Section three of the Kano-Maiduguri project is experiencing slow progress. Although the contractor accuses me of being ‘wicked’ for terminating such projects, I prefer to be viewed as strict rather than let people endure unproductive initiatives that have remained stagnant for over a decade. These actions are not driven by personal motives.

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Concerning the Second Niger Bridge and other bridges, we have suggested allocating ₦341 billion to prevent potential structural disasters. For instance, although the Third Mainland Bridge seems well-maintained on its surface, there are significant problems beneath the deck and even more critical ones underwater.

The concerns include slab deflection, pier buckling, and the detachment of pile caps. Prolonged exposure to saltwater has led to significant deterioration over time, affecting the reinforcement of the pile caps.

Umahi mentioned that neglecting maintenance has been a significant problem, as some of these structures are now 50 to 60 years old and have never received proper upkeep.

“The main challenge we are encountering is the seepage of chlorination and carbonation saltwater, which is corroding the reinforcement within the pile caps. We have sought advice from international experts experienced in similar situations, and Beja, our contractor, is actively exploring solutions,” he stated.

While discussing the country’s bridges, Umahi emphasized that one of the biggest challenges was erosion due to illegal sand mining and underwater currents, which gradually weaken bridge pile structures.

He disclosed that evaluations conducted between 1999 and 2019 have shown ongoing structural deterioration. Currently, Julius Berger, alongside an independent consultant, is assessing these pile caps to develop a thorough design solution. We intend to present our findings to the federal government and the National Assembly for urgent funding.

We’re instituting thorough evaluations of contractor equipment. Certain contractors are juggling up to 20 projects without showing substantial progress. If any contractor fails to provide the equipment specified in their bid, we will terminate their contract to ensure accountability is upheld.

In conclusion, I express my gratitude to the National Assembly for their interest in organizing a retreat focused on the 2025 budget, which we fully embrace. They will pinpoint priority projects and budgets, enabling us to establish attainable goals. We are committed to listening and taking action. With steadfast support from the President, I am confident that we will fulfill these commitments successfully.