The Federal Government has increased compensation for property owners impacted by Section 1 of the Lagos-Calabar Coastal Highway project from N8 billion to approximately N18 billion.
This was disclosed by the Minister of Works, Dave Umahi, during a stakeholder engagement in Lagos on Sunday.
He said that independent assessments highlighted the need for the increase to ensure fair treatment for those affected.
“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.
Minister of Works, added that half of the compensation has already been disbursed to affected individuals, with a commitment to complete all payments within the next 10 days.
It was earlier reported that some stakeholders, including lawyers and valuation experts, expressed dissatisfaction with the compensation, claiming it was inadequate and that the process did not meet accepted standards. Their concerns highlighted the need for a more transparent and fair compensation mechanism for those affected by the Lagos-Calabar Coastal Highway project.
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.”
Umahi referenced several Supreme Court rulings that support the right to fair compensation, assuring stakeholders that the Federal Ministry of Works is adhering to legal guidelines.
He also expressed a willingness to review additional documents to expedite compensation.
Meanwhile, the Chairman of the House of Representatives Committee on Works, Mr. Akin Alabi, commended the ministry for its transparency and proactive engagement with stakeholders throughout the compensation process.
The 700-kilometer Lagos-Calabar Coastal Highway, which spans nine states, aims to enhance connectivity and promote economic growth along Nigeria’s coastline.
The project has been awarded to Hitech Construction Company Ltd. under an EPC+F model, placing most risks on the contractor with federal support.
Construction commenced in March 2024 on a 47.7-kilometer segment starting from Ahmadu Bello Way in Lagos.
