The exclusion of the Lagos-Calabar Coastal Highway from the 2025 budget sparked significant debate and raised concerns among industry operators, stakeholders, and civic organizations. Initially, Works Minister David Umahi attributed the omission to a clerical error, stating that the Lagos-Port Harcourt Highway entry in the budget should have read Lagos-Calabar Highway. However, conflicting explanations emerged regarding the project’s funding mechanism and the rationale behind its exclusion. These differing narratives highlighted a lack of transparency surrounding the project and raised questions about the government’s fiscal management.
Several experts suggested that the omission was not an error but rather a consequence of the project’s structuring as an Engineering, Procurement, Construction, and Financing (EPC+F) model. Under this framework, the contractor assumes responsibility for financing the project, either in whole or in part, and recoups their investment through mechanisms like tolling. This explanation implied that the project’s funding would not be reflected in the annual budget as it would not be a direct government expenditure. However, questions arose regarding the government’s declared intention to fully fund the first phase of the project, a move seemingly inconsistent with the traditional EPC+F model.
Further complicating the narrative, experts offered divergent interpretations of the government’s role in the project’s financing. Some suggested that the government’s funding commitment represented a “counterpart contribution” within the broader EPC+F agreement, effectively pre-paying their share of the project cost. Others posited that the government might be employing a different procurement model for Phase 1, assuming full financial responsibility while limiting the contractor’s role to engineering, procurement, and construction. The absence of a clear and consistent explanation from the government fueled speculation and uncertainty about the project’s true financial arrangements.
Adding to the controversy, allegations emerged suggesting a deliberate omission of the project from the budget to obscure potential irregularities in its financing. Adewunmi Okupe, CEO of Ace hiTeck Construction Co. Ltd, claimed the government had unilaterally paid over N1 trillion for the first phase without parliamentary approval, bypassing standard bidding procedures. He argued that including the project in the budget would invite scrutiny and debate, prompting the government to strategically exclude it. This accusation raised concerns about potential corruption and a lack of accountability in the project’s management.
The lack of transparency surrounding the Lagos-Calabar Coastal Highway’s funding and budgetary status sparked criticism from civic organizations like BudgIT. They highlighted the potential implications of this omission, suggesting that future funding for the project might require reallocation from other essential initiatives, jeopardizing their implementation and undermining the budget’s overall credibility. BudgIT’s concerns underscored the importance of budgetary transparency and accountability in ensuring effective resource allocation and preventing potential mismanagement of public funds.
In summary, the exclusion of the Lagos-Calabar Coastal Highway from the 2025 budget generated considerable controversy. While the government initially attributed the omission to a clerical error, conflicting explanations emerged regarding the project’s financing structure and the rationale behind its exclusion. Experts proposed various interpretations, ranging from the project’s classification as an EPC+F initiative to allegations of deliberate obfuscation to conceal potential irregularities. The lack of clarity and transparency from the government fuelled speculation and raised concerns about potential mismanagement of public funds. This incident highlights the importance of clear communication and accountability in budgetary processes to maintain public trust and ensure effective resource allocation for critical infrastructure projects.
