BREAKING: The Tinubu administration has started disbursing N2.75 billion in compensation to Nigerians impacted by the Lagos Coastal Highway project.

The Lagos-Calabar Coastal Highway project, under Umahi's oversight, carries an estimated cost of N15.356 trillion and is expected to be completed over an eight-year period. The minister highlighted that the contract for this massive infrastructure undertaking was awarded to Gilbert Chagoury’s Hitech Construction Company Limited (Hitech), not through a competitive bidding process but based on the firm's proven track record. This decision, according to Umahi, was made on merit and not influenced by external sentiments, countering some speculations.

Umahi faced inquiries regarding the project’s compliance with the Public Procurement Act, particularly in terms of the cost and the approval process. He clarified that all procedures adhered to the stipulations of the act, emphasizing that the project had been appropriately included in the 2024 Appropriation, ensuring its funding and legitimacy. He further elaborated on the procurement methods, explaining that the project, contrary to some opinions, is not a Public-Private Partnership (PPP) but operates under an Engineering, Procurement, Construction plus Finance (EPC+F) model. This model involves a significant commitment of funds from the federal government, contingent on negotiations.

The choice of Hitech for the coastal road project has drawn scrutiny due to the close relationship between Chagoury, the company’s owner, and President Bola Tinubu. Umahi defended this decision by referring to the specific provisions of the procurement act that allow for the selection of contractors with unique capabilities for specialized projects. He cited the successful handling of the Eko Atlantic project by Hitech, where they effectively managed significant flooding and ocean surge challenges in Lagos. This, according to Umahi, underscored Hitech’s expertise in tackling complex engineering feats involving reinforced concrete road pavement.

Concerning the financial specifics, the minister criticized former Vice President Atiku Abubakar’s understanding of the project's costs, presenting a detailed breakdown of the expenses based on standard roadway measurements. Umahi stressed that the calculations were thorough, factoring in the diverse components of the highway to ensure accuracy in the projected expenditure.

Moreover, in September 24, 2023 eyebrows were raised over the controversial aspects of the awarding of the highway project to Hitech Road Construction Company, a subsidiary of the Chagoury Group. The report pointed out Gilbert Chagoury’s alleged criminal records and his business ties with President Tinubu, raising concerns about the transparency and integrity of the procurement process.

In conclusion, Minister Umahi assured stakeholders that the Lagos-Calabar Coastal Highway project would progress efficiently and transparently, adhering to all legal requirements and ensuring substantial economic benefits upon its completion, projected to coincide with the end of President Tinubu's eight-year tenure. The government's commitment to compensating affected property owners and the strategic engagement of skilled contractors like Hitech are poised to significantly contribute to the project's success, despite the surrounding controversies.