The Federal Government has disbursed ₦15 billion out of the ₦18 billion allocated for the first phase of compensation to property owners affected by the Lagos-Calabar Coastal Highway, Section One.
This update was revealed during a stakeholders’ meeting on Sunday in Lagos. Bede Obioha, Director of Federal Highways, Bridges, and Design at the Federal Ministry of Works, confirmed that the total compensation amount exceeded ₦18 billion.
“For Section 1, covering 47.7km, the compensation package exceeds ₦18 billion, and so far, over ₦15 billion has been disbursed by the contractor,” Obioha stated.
He further mentioned that arrangements for Section 2 are in progress, and once finalized, the figures would be disclosed. He assured stakeholders of the government’s transparency in handling the compensation process.
Minister of Works, David Umahi, announced that the first 30km of the Lagos-Calabar Coastal Highway is set for inauguration in May 2025.
“In May, 30km out of the 70km of Channel Zero, Lagos-Calabar Coastal Highway will be commissioned,” Umahi stated.
In November 2024, the Federal Government allocated ₦18 billion to compensate property owners affected by the construction of Section 1 of the highway. Umahi assured that all eligible individuals would receive their payments within 10 days.
Expressing his frustration over legal constraints affecting the compensation process, Umahi stated:
“I would not have been able to address this earlier, but now I can say emphatically that it has been frustrating. However, I am bound by legal requirements. I have personally lost properties to projects like this, and while compensation payments are challenging, we must comply with the law.”
He added that professionals were engaged to oversee the process, and the Federal Executive Council initially approved ₦8 billion for compensation based on recommendations from the Bureau of Public Procurement. However, the figure has now risen to ₦18 billion.
“For transparency, we will publish all details, including names, pictures, dimensions, and compensation amounts. However, over 10 compensation-related cases are in court, and we will abide by court rulings. If necessary, we will take the matter to the Supreme Court to uphold due process,” Umahi said.
To expedite the payments, Umahi directed the Federal Controller of Works in Lagos, Olukorede Keisha, to proceed without waiting for further approvals. He emphasized that affected individuals must access their funds for relocation.
“Fifty percent of the compensation has already been paid, and within the next 10 days, we will complete 100 percent of the payments as recorded by our enumerators,” he assured.
Additionally, Umahi disclosed that ₦10 billion would be disbursed by mid-March as compensation related to the tax credit granted to the Dangote Group for the existing Lekki Free Trade Zone.
“Regarding compensation for those affected in Eleko Community, this initiative is not just about the coastal highway but also involves a tax credit to Dangote. We are paying approximately ₦10 billion in compensation from the Lekki Free Trade Zone to Eleko. Before payments begin, we will hold another engagement, and by mid-March, we will commence the disbursement to ensure that no infrastructure is taken without due compensation,” he concluded.
