The Federal Government has raised the compensation for property owners affected by Section 1 of the Lagos-Calabar Coastal Highway project, increasing the amount from an initial N8 billion to approximately N18 billion.
The announcement was made by the Minister of Works, Senator Dave Umahi, at a stakeholder engagement in Lagos, where discussions focused on concerns surrounding the compensation process, among other issues, as reported by the News Agency of Nigeria (NAN) on Sunday.
Umahi explained that while the Federal Executive Council initially approved N8 billion, further assessments by independent experts justified the increase to ensure equitable treatment for affected citizens.
“The Federal Executive Council initially approved N8 billion for this corridor, but today we are hitting N18 billion, and this is just for section one,” Umahi explained.
The Minister of Works further revealed that half of the compensation has already been paid to affected individuals and promised to complete all payments within the next 10 days.
More insights
The NAN report highlighted dissatisfaction from some stakeholders, including lawyers and valuation experts, who argued that the compensation was inadequate, and the process fell short of accepted standards.
Mr. Olusola Enitan, a lawyer and valuation expert, contended that the amount provided did not meet fair compensation benchmarks.
Enitan said, “Somebody who had a home is now renting with no capacity to replace what was taken from him.”
He referenced several Supreme Court rulings supporting the right to fair compensation.
- Addressing these concerns, Umahi assured that the Federal Ministry of Works was operating within legal guidelines and remained open to reviewing additional documents to facilitate swift compensation.
- Chairman of the House of Representatives Committee on Works, Mr. Akin Alabi, praised the ministry for its transparency and active engagement with stakeholders in the compensation process.
- He emphasized the need to publish compensation details to counter misinformation and uphold accountability.
What you should know
The 700-kilometer Lagos-Calabar Coastal Highway, spanning nine states, aims to boost connectivity and economic growth along Nigeria’s coast.
- Awarded to Hitech Construction Company Ltd. under an EPC+F model, most risks fall on the contractor, with federal backing.
- Construction began in March 2024 on a 47.7-kilometer segment starting from Ahmadu Bello Way in Lagos.
- In April 2024, the Federal Government established a committee to assess and compensate landowners impacted by Section 1 of the project in Lagos.
- This committee, including representatives from the Ministry of Works, Lagos State, and local communities, verifies claims, assesses property dimensions, and determines fair compensation.
- Works Minister David Umahi noted that Federal Government rates—higher than typical Lagos rates—will be used for compensation.
- Upon verification, property owners sign agreements, after which the contractor disburses payments directly.
The Works Minister revealed that compensation will be given only to owners with verified titles unless a presidential waiver allows otherwise.
