DAYO AYEYEMI, in this piece, delves into issues surrounding the 700-km Lagos-Calabar Coastal Highway by the Federal Ministry of Works, from how the project started and where it is headed.
It has been one day one controversy since the Federal Executive Council approved a N1.06 trillion contract for the construction of the first phase of the 700-kilometre Lagos-Calabar Coastal Road project.
No sooner had the contractor, Messrs Hi-Tech Construction Company, commenced the construction of the 10-lane superhighway from the Lagos end, than people not impressed by the manner in which the project was awarded began to raise dust about the credibility of the project and the option of finance adopted.
Despite the justification put up by its promoter, the Federal Government of Nigeria, through the Minister of Works, David Umahi, a lot of citizens, including politicians, impacted property owners and public analysts, have not stopped to raise questions about the manner by which the contract for the superhighway was awarded to Hi-Tech Construction Company without a competitive bidding process.
They also queried how the government arrived at the contract sum, the demolition of properties on the road’s right of way without compensation and issues about the project’s Environmental and Social Impact Assessment Report, among others.
As the Federal Government confronts political parties opposing the project on the one hand, it is also battling issues with the affected property owners on the other hand.
Controversy about the project heightened when the over $200 million Landmark Hotel and Leisure Centre around Oniru Beach was marked for demolition.
Other affected property owners on the right-of-way of the Coastal Road project also joined the controversy, calling for the adjustment of road’s alignment to salvage their property and local communities.
The Peoples Democratic Party (PDP) presidential candidate in the 2023 election, Alhaji Abubakar Atiku, also condemned the claims made by the administration of President Bola Tinubu about the project.
He described it as wasteful and a highway of fraud over the claim by the Minister of Works, David Umahi, that the 700-km road will tentatively cost N15.6 trillion
Atiku also condemned by Umahi for altering the initial plan of the project after Hi-Tech had been awarded the contract without any competitive bidding.
Recall that the Federal Government started work on the 700-kilometre Lagos-Calabar Coastal Highway in March 2024. It is designed to extend through nine states with two spurs leading to Northern states.
According to the Minister of Works, during the official handover of the first phase, which includes a 47.47-kilometre dual carriageway, to Hitech Construction Company Ltd, the road would be built using concrete pavement.
Umahi said that the construction of the expressway would be completed in eight years. According to him, the coastal road, on completion, would tie the entire country together.
He said the road would comprise 10 lanes, that is five lanes each on both sides, adding that it also has provision for a rail line.
He described the new road as “unique” as it passes through nine coastal states.
According to the minister, the expressway would pay for itself, adding that it would guarantee a quick Return on Investment.
He hinted that the Federal Government is already liaising with state governments to acquire land in each state the expressway passes through for tourism.
He stated that though the ongoing concrete super highway would be financed by the Federal Government, it would be tolled to recoup the investment.
He said the first phase of the road is 47.47 kilometres
“We have procured the first section, the second section is 55.5 kilometres (procurement going on with BPE), the third section is 50 kilometres.
“This significance of the road is that it is a coastal road. We are going to have several facilities. We are going to acquire some lands where we are going to have corridors for hotels, tourism facilities, industry and housing estates. We are going to be liaising with the state governments to acquire the land. The road will be tolled. It’s a very good investment.”
Property owners react
Meanwhile, at least 1,000 impacted property owners have condemned how the project commenced without any engagement.
They alleged that they woke up to see that their houses had been marked for demolition.
Others claimed their houses had already been demolished without compensation, leaving them with no option but to sleep in the open.
Some property owners have appealed to the Federal and Lagos authorities to consider rerouting the project’s alignment to save their properties worth over N35 billion from demolition.
Should demolition of buildings be the only option left, they urged the federal and Lagos State governments to consider paying them compensation before the exercise begins.
The affected properties are located along the axis of Orile Ilasan, lroko-Awe Community Development Areas and Oba Elegushi Royal Estate in Lagos.
In a letter by their lawyer, B. Chinedu Moore & Associates, to the federal and Lagos State governments, 50 property owners are demanding a revert to the initial position of the coastal road project.
Specifically, they asked the government to shift the coastal road project from their locations back to the regional plan as much as possible.
They cited a deviation from the initial position of the coastal road, saying this has affected them.
“There is ample undeveloped expanse of land to accommodate the realignment or re-routing being sought. In the alternative, the span of the highway on these sections could be reduced from the proposed 120 metres to about 60 metres, as is being done at the Victoria Island and Oniru sections thereof, without negatively impacting the overall objective, purpose and use of the highway.
“If the government can’t shift it to the original location, they should reduce the span so that up to Ibeju Lekki where there is less development. They can now increase it,” they said.
According to them, another option the government can explore to save the property owners from the impending doom of homelessness is to pay the homeowners compensation before demolishing their property.
“The property owners have forwarded their documents to the authorities. The entire place is covered by the Certificate of Occupancy (C-of-O) granted to the Elegushi Royal family,” they said.
In the letter titled, ‘Re: Construction of the Lagos-Calabar Coastal Highway – A letter of humble appeal for a re-alignment or re-route of the highway at the Orile-Ilasan, Iroko Awe communities (CDAs) and Oba Elegushi Royal Estate sections of the highway in Eti-Osa Local Government Area of Lagos State,’ the affected communities and estate explained that they were within the layout granted by Lagos State government to the Elegushi Royal Family of Ikate land of Lagos State wide Certificate of Occupancy dated April 16, 1999 and registered as number seven on page seven in volume 1999 (Tourism) of the Land Registry, Alausa, Ikeja, Lagos.
The letter read, “Our clients are poised to be very adversely affected by the ongoing stage one construction of the Lagos Calabar Coastal Highway being undertaken by the Federal Government in conjunction with Lagos State government. This was caused by a surprising shift or diversion of the proposed highway away from the coastline (as earlier designed) into our clients’ well-developed communities, such that more than 50 well-built houses worth over N35 billion are totally affected, aside from many others that are partially affected. These houses have been marked and removal notices served on them by Lagos State Ministry of Physical Planning and Infrastructure Development with the threat of imminent demolition.”
The homeowners emphasised that there is sufficient undeveloped expanse of land space between their communities and estate, and the coastline (beach) to accommodate a re-alignment or a reroute of the highway to save them from the palpable agony of emotional and psychological trauma, mental frustration, financial and physical dislocation and imminent homelessness.
In a swift response, the Minister of Works, David Umahi, said the Lagos-Calabar Coastal Road project is irrevocable. According to him, the Federal Government is going on with the project.
He said, “If you want me to move the coastal line out of the coast, there is no longer Coastal Road.”
He also clarified that no job will be lost in Landmark Beach Resort following the proposed construction of the Lagos- Calabar coastal road.
The minister said he had read a lot of comments on social media and the first thing he did on his arrival to Lagos was to visit the spot.
He said that he visited the Managing Director of Landmark Beach Resort, Paul Onwuanibe, as regards the Lagos-Calabar Coastal road project.
He explained that he took his time to listen to Onwuanibe and told him that the project would not claim the landmark beach investment.
Umahi asserted that it was not true that Landmark Beach would be demolished as a result of the coastal road project, adding that the only area of concern is the sand where people play.
He declared that no job would be lost and that the Landmark Beach investment was safe.
He said, “What we have done is to save a lot of infrastructure along the corridor with the design.
“The width of each side of the road is 100 metres, but on getting to the corridor to save the infrastructure, we reduced it to 50 metres. So, the only thing involved is the sandy area, where people go to play.”
Managing Director of the resort, Paul Onwuanibe, received a demolition notice in late March, sparking concerns about the impact on tourism and investment. The Lagos State government claimed the property falls within the designated right-of-way for the first phase of the 700-kilometer Lagos-Calabar coastal highway project.
Compensation
The Federal Government extended the earlier ultimatum issued to affected property owners on the right-of-way of the Lagos Calabar Coastal Highway project by seven days to relocate.
The Minister of Works announced the extension of the ultimatum at a stakeholders’ engagement in Victoria Island, Lagos.
Some of the affected property owners said that they were not totally against the project but insisted that they must be paid adequate compensation for their losses.
Mr Olufemi Oyedele, the Managing Director /Chief Executive of Fame Oyster, has insisted that compensation of affected property owners must be paid before commencement of the project.
He described the ongoing construction of Lagos-Calabar Coastal Highway as a welcome development saying it would open up that corridor of Nigeria to physical development.
He said, “The prospects to the economy are multi-dimensional. One is the ripple effect of the N1.06 trillion. Imagine the number of workers that will be employed directly and indirectly by the road project. Imagine the area of land that will be opened up and the dead capital that has prospect of being resurrected. Imagine the number of industries that will be located along the road, the number of houses that will be built along the road and the number of goods that will be brought to Lagos market through the road.”
Umahi has also promised that compensation would be paid within 30 30-day timeline to be decided by an expansive committee.
The minister stressed that magnanimity would be considered for incomplete title holders, but there was no compensation for occupants of shanties.
Umahi also granted reviews of some alignments requested by some of the stakeholders around Ibeju Lekki, Jakande Estate, Ajah, to prevent huge economic losses, assuring that the law would be applied, but with the fear of God.
National Assembly Joint Committee
The joint committee, led by the chairman, Senate Committee on Works, Senator Barinada Mpigi and House of Representatives Committee chairman of Works, Akin Alabi, respectively has also visited the site of the project in Lagos
They emphasised that the National Assembly would monitor the project strictly, to ensure that every fund budgeted for the project is accounted for.
Ministry of Works responds
Meanwhile, in its latest press release, the Federal Ministry of Works said that those criticising the ongoing Lagos-Calabar Coastal Highway project either have little knowledge of the concept of EPC+F on project financing or are deliberately sacrificing the cause of development at the altar of politics.
“The trending posts of criticisms by some notable politicians on the propriety and priority of the Lagos-Calabar coastal highway project being executed by the ‘Renewed Hope’ administration of President Bola Tinubu are no doubt baseless thoughts of critics who are either bereft of the knowledge of the workings of the project initiative or they deliberately want to sacrifice the modest developmental efforts of Mr President at the altar of their political ambitions,” the statement read.
It argued that it was unthinkable that such highly placed people failed to understand the various elucidations provided by the Minister of Works on when the project was conceptualised and how various administrations that attempted failed to carry out the project.
It also explained the economic and technical considerations that gave rise to the commencement of the project.
“For the avoidance of doubt, the Lagos-Calabar coastal highway project is being done under EPC +F. What does this type of funding entail? This is a project financing mechanism in which EPC+F contractors also arrange financing for the project. EPC+F is Engineering, Procurement and Construction plus Financing. Engineering here includes design and specification. This initiative provides a fixed price, fixed date, and transfers risks to the contractor. This type of funding requires only a counterpart funding from the Federal Government. Such funds are sourced by contractors where they have confidence in the economic policies of government, which essentially entails allowing the participation of the private sector in the road infrastructure development through PPP or EPC+F.
“In the recent Inauguration of the Committee on Compensation of owners of properties that will be affected by Section 1 of the Lagos- Calabar Coastal Highway, the minister emphasized the nature of the project funding and the workings of EPC + F when he said, ‘And graciously, Mr President had approved that this section three will start from Calabar, which is the endpoint of the project, and start running towards Akwa Ibom.
“So, the 700 km is procured under phase one, in phases, and it is EPC +F. EPC+F is engineering, procurement, construction and finance. And so, under this kind of arrangement, the contractor is expected to bring in a certain amount of money, and Federal Government is expected to pay certain counterpart funding,” the statement read.
The statement warned that no patriotic Nigerian should discourage the project where funding is substantially from the contractor.
“There is no doubt that Mr President is aggressively tackling the backlogs of uncompleted road projects,” it read, adding that in the 2023 Supplementary Budget, President Tinubu had approved funds for intervention on the over 260 dilapidated roads nationwide.
It added that the 2024 appropriation made provision for capital investment on critical roads across the six geo-political zones of Nigeria.
Importance of the project
On the importance of the Lagos-Calabar coastal highway project to the economy of the nation, it said that when completed, the road will foster national economic growth. “Notably, all roads in the country are important as reflected by the interventions of this administration on road rehabilitation across the nation, but the coastal highway offers much more economic benefits to the nation because of its connectivity to the North and South through the existing spurs.
“The road, when completed, has the potential to increase Nigeria’s GDP and trigger industrialisation, create trade, enhance the transportation of goods and services and safety of road users.
“The road is going to be the biggest super highway in Africa in terms of the structure and solidity as we all as utility value, having 10 lanes with a rail track designed for concrete technology, covering 700 kilometres.
“It is going to attract foreign direct investment to Nigeria and it is going to trigger economic development. It is going to develop the potential of our coastal businesses, especially at the local economic corridors, and boost tourism and marine businesses,” the statement from the ministry read.
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