The Minister of Works, David Umahi, has clarified that funding for the Lagos-Calabar coastal highway project is indeed part of the 2025 appropriation bill, countering previous concerns about its omission.
President Bola Tinubu presented a N49.7 trillion budget proposal to the National Assembly in December 2024, after which various governmental bodies have been engaged in defending their budget allocations.
The civic-tech group BudgIT had raised alarms about the project’s funding not being reflected in the budget, leading to widespread discussions and criticism on social media. This was particularly due to the government’s demolition activities for the project, which proceeded despite the apparent lack of financial backing.
Umahi explained during the inauguration of the Abuja-Kaduna road rehabilitation that the project was erroneously listed under a different name in the budget document – as the “Lagos-Port Harcourt coastal highway” instead of “Lagos-Calabar coastal highway.”
“We are interfacing with the committee chairman to correct it. It is a mistake,” Umahi stated.
Budgetary checks reveal that N100,000,000 was allocated under the line item “Lagos-Port Harcourt coastal highway” with the project status marked as “ongoing.”
The Federal Executive Council had approved the construction of what was then termed the Lagos-Port Harcourt-Calabar highway back in February 2024, with the contract awarded to Hitech Construction Africa, owned by Gilbert Chagoury. Construction started in March 2024 from the Lagos end, and President Tinubu inaugurated the 700-kilometer project in May 2024. The project, estimated at N4 billion per kilometre, operates under an Engineering Procurement and Construction (EPC+) funding model, where the federal government must provide counterpart funding rather than through a public-private partnership.
The ongoing demolitions for the project have been controversial, raising questions about the government’s planning and the adequacy of compensation for affected property owners. Umahi’s clarification addresses these concerns, ensuring the project’s progression to enhance regional connectivity and stimulate economic development.