The Federal Government has allocated N18 billion to compensate property owners affected by the Lagos-Calabar coastal highway project, as announced by Minister of Works David Umahi on Sunday. He emphasized that all individuals on the compensation list for section 1 of the coastal road will receive their payments within 10 days.
During a stakeholder engagement meeting concerning sections 1 and 2 of the highway, Umahi expressed his frustration over the compensation process, noting that legal obligations restrict his actions. He stated, “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.”
The minister explained that the Federal Executive Council initially approved an N8 billion compensation budget based on recommendations from the Bureau of Public Procurement. However, the amount has now increased to N18 billion. Umahi committed to publishing all relevant details for transparency, including the names, photographs, dimensions, and costs associated with the compensation.
He acknowledged ongoing legal disputes regarding compensation, stating, “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 also revealed that 50% of the compensation has already been paid and directed the Federal Controller of Works in Lagos State, Olukorede Keisha, to expedite the process without waiting for further approvals. He stressed the importance of ensuring that affected individuals can access their funds for relocation.
In addition to the compensation announcement, Umahi noted that several projects had been terminated due to delays, including parts of the Lokoja-Benin corridor and the Lagos-Ibadan phase two project. He indicated that these would be reassigned through selective tendering to ensure timely completion.
Regarding infrastructure maintenance, Umahi warned that structural issues, especially in bridges like the Third Mainland Bridge, have arisen due to neglect. He revealed plans to allocate ₦341 billion to address potential structural disasters and highlighted the challenges posed by illegal sand mining and erosion.
Umahi concluded by expressing gratitude to the National Assembly for their interest in the 2025 budget, emphasizing the need for collaborative efforts to prioritize and achieve project goals.
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*Josephine Ogundeji is a correspondent with The PUNCH, specializing in the building industry and personal finance.*
