The Federal Government has disclosed that out of the N18 billion allocated for the initial phase of compensating property owners affected by demolitions along Section One of the Lagos-Calabar Highway, over N15 billion has already been disbursed.
This announcement was made during a stakeholders’ meeting on the Lagos-Calabar Coastal Highway in Lagos on Sunday.
Speaking at the event, Bede Obioha, Director of Federal Highways, Bridges, and Design at the Federal Ministry of Works, stated that the total compensation required exceeded N18 billion.
“For Section 1, covering 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,” Obioha revealed.
He further noted that preparations for Section 2 were ongoing, and once finalized, the details of compensation for that segment would be made public. “You will agree with me, we have been very transparent in all we are doing and engaging you as we get along,” he added.
Providing an update on the progress of the project, Minister of Works David Umahi announced that 30km of the 70km-long first phase of the Lagos-Calabar Coastal Highway would be inaugurated in May 2025.
“30km out of 70km of Channel Zero, Lagos-Calabar Coastal Highway to be commissioned in May 2025,” Umahi confirmed.
Back in November 2024, it was reported that N18 billion had been earmarked to compensate affected property owners along Section 1 of the highway project.
Umahi assured that all individuals listed for compensation in this section would receive their payments within 10 days.
Addressing concerns over compensation, the minister acknowledged the legal complexities involved.
“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,” he explained.
He further elaborated on the financial challenges, stating, “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.”
Umahi emphasized the legal framework guiding the compensation process, stating, “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.”
Meanwhile, regarding the tax credit awarded to Dangote Group for projects within the Lekki Free Trade Zone, Umahi disclosed that N10 billion would be allocated for compensation in the Eleko Community 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,” the minister assured.
