Paragraph 1: The Nigerian Federal Government has announced significant progress in compensating property owners affected by the construction of the Lagos-Calabar Coastal Highway. Specifically, N15 billion out of the allocated N18 billion has been disbursed for the first phase of the project, covering Section One of the highway. This disclosure was made during a stakeholders’ meeting in Lagos, where officials emphasized the government’s commitment to transparency and engagement throughout the compensation process. The Director of Federal Highways, Bridges, and Design, Bede Obioha, revealed that the total compensation for the 47.7km Section One exceeded N18 billion, with over N15 billion already disbursed. The compensation process for Section Two is currently underway, with figures to be announced upon completion.
Paragraph 2: Minister of Works, David Umahi, provided an update on the project’s timeline, stating that a 30km stretch of the 70km Section One of the Lagos-Calabar Coastal Highway will be inaugurated in May 2025. This aligns with previous reports from November 2024 indicating the N18 billion allocation for compensation along Section One. Minister Umahi also assured affected property owners that all documented compensation claims for this section would be settled within ten days of the announcement. He acknowledged the frustrations surrounding the compensation process, citing legal complexities and the need to adhere to established legal procedures.
Paragraph 3: Umahi elaborated on the challenges encountered in determining and disbursing compensation. He highlighted the legal constraints governing the process, emphasizing the need for due diligence and adherence to legal requirements. The initial budget approved by the Federal Executive Council was N8 billion, based on recommendations from the Bureau of Public Procurement. However, the actual cost escalated to N18 billion, necessitating adjustments and further approvals. To ensure transparency, the minister committed to publishing detailed information about the compensation, including names, property dimensions, and associated costs. He also addressed the ongoing legal challenges, with over ten compensation-related cases currently in court. Umahi pledged to respect court decisions, even if it meant pursuing appeals up to the Supreme Court.
Paragraph 4: The Minister of Works underscored the legal basis for the compensation process, emphasizing the involvement of legal experts and the fact that 50% of the compensation had already been disbursed. To expedite the remaining payments, Umahi directed the Federal Controller of Works in Lagos State, Olukorede Keisha, to prioritize the affected individuals’ needs and bypass further approvals from the Federal Executive Council. This directive aimed to ensure prompt access to funds for relocation, with the remaining compensation payments expected to be completed within ten days of the announcement, based on documented claims from enumerators.
Paragraph 5: Beyond the Lagos-Calabar Coastal Highway, the stakeholders’ meeting also addressed compensation related to the Lekki Free Trade Zone, specifically the impact on the Eleko Community. Minister Umahi highlighted the tax credit arrangement with the Dangote Group connected to the existing Free Trade Zone and announced a compensation package of approximately N10 billion for affected properties in the area, extending from the Lekki Free Trade Zone down to Eleko. He emphasized the commitment to fair compensation and community engagement, confirming that further consultations will take place before initiating compensation payments, which are anticipated to commence around mid-March.
Paragraph 6: In summary, the Nigerian government has made demonstrable progress in disbursing compensation for properties affected by the construction of the Lagos-Calabar Coastal Highway, with a substantial portion of the allocated funds already disbursed for Section One. Minister Umahi reaffirmed the commitment to transparency, legal compliance, and timely completion of the compensation process. He acknowledged the challenges posed by legal complexities and rising costs while emphasizing the government’s resolve to address the concerns of affected communities. Furthermore, the meeting addressed compensation related to the Lekki Free Trade Zone, signaling a broader commitment to addressing the impact of infrastructure development on local communities and ensuring fair compensation for affected property owners.
