The Federal Government has defended its decision to award the Lagos-Calabar Coastal Highway project to Hitech Construction Company Ltd, citing its experience in concrete paving and its successful bid for subsequent project sections.
The Minister of Works, Sen. Dave Umahi, made this explanation during an inspection tour of the highway project in Lagos, as reported by the News Agency of Nigeria (NAN) on Saturday.
He noted that Hitech was selected through restrictive bidding for Section 1 of the highway because of its expertise in concrete paving, a method the government insisted on using, especially in areas with a high water table. He added that Hitech had previously handled the reconstruction of the Oworonshoki-Apapa Road, which demonstrated its capability in concrete road construction.
Umahi addressed concerns about the contract’s procurement process, explaining that Nigerian law allows for three types of bidding: restrictive procurement, selective/competitive bidding, and open bidding. He stated that the Federal Government initially sought companies with at least five concrete pavers—a requirement that limited the number of eligible contractors.
“When we started this project, we asked for companies that have up to five concrete pavers. You will agree with me that until we started this, the concrete paver was not as common in Nigeria as it is today. We had to look for a company that had done this kind of project before, and that is Hitech,” Umahi said.
He explained that after restrictive bidding was used for Section 1, the government opted for selective bidding for Sections 2, 3A, and 3B, allowing multiple companies to participate. Hitech ultimately won those bids.
Umahi maintained that the government followed due process and did not violate procurement laws, emphasizing the transparency of the selection process. He also dismissed claims that President Bola Tinubu influenced the selection, insisting that there was no corruption involved in awarding the contract.
What you should know
The Lagos-Calabar Coastal Highway is a 700+ km project designed to improve transportation and drive economic growth along Nigeria’s southern corridor.
The Federal Government awarded the contract to Hitech Construction Company Ltd. under an Engineering, Procurement, Construction, and Financing (EPC+F) model, where the contractor assumes most financial and construction risks while the government provides counterpart funding.
- Providing an update on Section 1 in Lagos, Minister of Works David Umahi recently stated that construction on the 47.47-km stretch, which began in March 2024, is progressing well, with 30 km expected to be commissioned by May 2025.
- However, the contract award has drawn criticism from figures such as former Vice President Atiku Abubakar and former Lagos ADC gubernatorial candidate Funso Doherty, who questioned its transparency.
- In August 2024, Doherty sued the Federal Government, the Bureau of Public Procurement (BPP), and Hitech, alleging that the contract violated the Public Procurement Act and the Environmental Impact Assessment (EIA) Act. He argued that the project was not subjected to open competitive bidding and that construction began without a proper EIA.
Doherty’s lawsuit seeks to nullify the contract, halt further construction, and enforce open bidding for the remaining sections. The case remains unresolved.
