Umahi: ‘My Hands Are Tied’ as FG Pays N15bn Compensation for Lagos-Calabar Highway
The Federal Government of Nigeria say it has disbursed N15 billion out of the N18 billion allocated for the first phase of compensation to property owners affected by the Lagos-Calabar Coastal Highway construction.
Speaking at a stakeholders’ meeting in Lagos on Sunday, Minister of Works, David Umahi, confirmed that 30km out of the 70km Phase 1, Section 1 of the highway will be inaugurated in May 2025.
On the issue of compensation, Umahi expressed frustration over the legal complexities but assured that payments would be completed soon.
Also Read: What You Should Know About ₦15.6 Trillion Lagos-Calabar Coastal Road
“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,” Umahi said.
“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.”
Umahi disclosed that the Federal Executive Council (FEC) initially approved N8 billion for compensation based on the recommendation of the Bureau of Public Procurement, but the figure has now risen to N18 billion.
“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,” he added.
The minister also noted that over 10 compensation-related cases are currently in court, and the government is prepared to comply with judicial rulings, even if it means appealing to the Supreme Court.
Full Compensation Within 10 Days
To expedite the process, Umahi directed Olukorede Keisha, the Federal Controller of Works in Lagos State, to ensure that affected individuals receive their full compensation without unnecessary delays.
“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,” Umahi assured.
N10bn Compensation for Eleko Community
Regarding compensation for properties affected within the Lekki Free Trade Zone, Umahi said the Dangote Group’s tax credit for the project includes a N10 billion compensation fund, which will be disbursed 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,” he stated.
Umahi added that another round of engagement with affected residents would be conducted before disbursement begins.
“We would not take anybody’s infrastructure without compensating them,” he assured.
With 50% of the total compensation already disbursed, the government says it remains committed to ensuring that all affected property owners are fairly compensated as the ambitious Lagos-Calabar Highway project progresses.
