The Federal Government significantly raises compensation for property owners impacted by Section 1 of the Lagos-Calabar Coastal Highway, increasing the fund from N8 billion to approximately N18 billion. Minister of Works, Senator Dave Umahi, makes this announcement at a recent stakeholder meeting in Lagos, where discussions focus on addressing concerns about compensation and procedural fairness.
Umahi explains that while the Federal Executive Council initially approved N8 billion, further assessments by independent valuers led to the upward revision to ensure fair compensation. “Initially, we had N8 billion approved, but the amount now stands at N18 billion just for Section 1,” Umahi states, adding that half of the payments are already issued to property owners, with full payment expected within 10 days.
Feedback and Further Assurances
Reports from the News Agency of Nigeria (NAN) highlight some stakeholder dissatisfaction, with certain lawyers and valuation experts expressing concerns over the adequacy of compensation amounts. Lawyer and valuation expert, Mr. Olusola Enitan, argues that some property owners face difficulties replacing what they lost. Enitan cites Supreme Court rulings that support fair compensation principles.
In response, Umahi assures that the Ministry of Works follows legal standards and remains open to examining additional documentation to expedite the compensation process. House of Representatives Works Committee Chairman, Mr. Akin Alabi, commends the Ministry’s transparency and suggests publishing compensation details to counter misinformation.
About the Project
The 700-kilometer Lagos-Calabar Coastal Highway, spanning nine states, aims to improve regional connectivity and boost economic growth. The project, awarded to Hitech Construction Company Ltd. under an EPC+F contract, shifts most project risks to the contractor with federal support. Construction began in March 2024 with a 47.7-kilometer segment starting from Lagos’s Ahmadu Bello Way.
In April 2024, the government formed a committee to assess and compensate property owners affected by Section 1. This committee, which includes representatives from the Ministry of Works, Lagos State, and local communities, verifies claims and assesses properties to determine fair compensation. According to Umahi, compensation rates are based on federal standards, which exceed typical rates in Lagos. Property owners with verified titles are compensated, unless otherwise waived by presidential authorization.
