Lagos-Calabar Highway: FG Disburses N15bn Compensation
The Federal Government has revealed that N15bn out of the N18bn meant for the first phase of compensation to owners of demolished properties along Section One of the Lagos-Calabar Highway has been disbursed.
It disclosed this in Lagos on Sunday at a stakeholders’ meeting on the Lagos-Calabar Coastal Highway.
The Director of Federal Highways, Bridges, and Design at the Federal Ministry of Works, Bede Obioha, said the quantum of compensation was more than N18bn.
He said, “For Section 1, 47.7km, the quantum of compensation already put together is in excess of N18bn, and so far the contractor has managed to disburse over N15bn.
“Section 2 is being put together and as soon as all is done and necessary, we will now make the figure known as well. You will agree with me, we have been very transparent in all we are doing and engaging you as we get along.”
The Minister of Works, David Umahi noted that 30km out of 70km of the Lagos-Calabar Coastal Highway Phase 1, Section 1, will be inaugurated in May.
He said, “30km out of 70km of Channel Zero, Lagos-Calabar Coastal Highway to be commissioned in May 2025.”
It was earlier reported in November 2024 that a total of N18bn had been allocated to compensate affected property owners on section 1 of the Lagos-Calabar coastal highway.
Umahi also stated that everyone on the compensation list of section 1 of the coastal road would have been paid in 10 days.
While addressing the issue of compensation, Umahi said his hands were tied under the law for satisfactory compensation of all those affected.
He said, “I wouldn’t have been able to respond if you had asked me this question earlier. But let me say clearly and emphatically that I’m quite frustrated with this situation. However, my hands are tied by the law. I understand that I’ve already lost some properties to arrangements like this.
“It’s incredibly challenging to pay for this, but when facing legal obligations, one is bound to comply. We have engaged professionals to handle this process and the Federal Executive Council approved an initial compensation budget of N8bn for this section, based on the recommendation by the Bureau of Public Procurement.
“But today, we are reaching N18bn, that’s where we are now. I am going to publish all details for transparency, including the names, pictures, dimensions, and costs involved. However, there are over 10 cases related to compensation in court and we will comply with whatever decisions the court makes. We will go to the Supreme Court if necessary to strengthen our democracy and seek final judgment on this matter.”
He said there was a legal basis for this. “We consulted experts for that, and 50 per cent of the compensation has already been paid. I have directed the Federal Controller of Works in Lagos State, Olukorede Keisha, to avoid waiting for further approvals from the Federal Executive Council, as the interests of the affected individuals must be prioritised.
“Those affected should be able to access their funds for relocation. Therefore, within the next 10 days, we will complete 100 per cent of the payments as documented by our enumerators,” the minister had stated.
Meanwhile, regarding the tax credit given to Dangote Group on the existing Lekki Free Trade Zone, Umahi noted that N10bn would be paid in compensation by mid-March.
“On compensation to those affected at the Eleko Community, what is happening at the community is a beautiful thing, not just the coastal highway, but it comes with tax credit to Dangote, and we are paying about N10bn in compensation from that Lekki Free Trade Zone down to Eleko.
“We will do another engagement before we start paying, maybe by the middle of March, we will start paying the compensation, we would not take anybody’s infrastructure without compensating them.”
