By Uchechukwu Okoroafor, Abuja
It is no longer news that the federal government has initiated preliminary steps for the construction of the first phase of the Lagos-Calabar Coastal Highway, intended to link Lagos with eight other states.
Grow your business with us
Recently, the Minister of Works, Dave Umahi, distributed compensation packages to owners of properties along the planned route, and the demolition of affected businesses and structures has begun. The proposed 700-kilometre highway, with an astronomical estimated cost of over N15 trillion, will traverse through Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom states, before terminating in Calabar, the capital of Cross River State.
The project, aimed at interconnecting Nigeria, increasing trade, and fostering regional development, promises to feature a 10-lane dual carriageway with a train track running through the middle. While the potential benefits of such an infrastructure project are significant, the financial feasibility and prioritization of the Lagos-Calabar Coastal Highway project have raised substantial concerns.
The first phase alone is estimated at N1.06 trillion, equating to N4.329 billion per kilometre. This colossal expenditure is a daunting prospect for a country grappling with economic instability and severe budget constraints.
One prominent critic of the project is Labour Party’s 2023 presidential candidate, Peter Obi, who has consistently argued that the Lagos-Calabar Coastal Highway is a gross misallocation of resources. Obi has called for the government to prioritize the rehabilitation of existing roads across Nigeria that are in deplorable condition, rather than embarking on an expensive new project likely to be abandoned due to lack of funds.
The financing structure for the Lagos-Calabar project requires the federal government to provide 15 percent to 30 percent co-financing, with the private sector covering the balance. However, the economic climate raises serious doubts about the government’s ability to meet its financial obligations. This concern is echoed by numerous stakeholders, including former Vice President Atiku Abubakar, who has questioned the ethical integrity and rushed nature of the project’s approval process.
Atiku’s concerns are particularly troubling. He highlighted that the environmental impact assessment (EIA) was incomplete, the right of way was not fully secured, and the procurement process lacked transparency, potentially violating national procurement laws. The allegation that the contract was awarded to Hitech Construction Company, linked to President Tinubu’s son and associates, without competitive bidding, further clouds the project’s legitimacy and raises questions about conflicts of interest and cronyism.
Moreover, Atiku noted that the government released over N1 trillion for the project without the necessary approval from the National Assembly, despite only N500 million being approved. Such actions not only undermine the rule of law but also suggest an alarming disregard for due process and fiscal responsibility.
Peter Obi’s critique extends beyond procedural concerns to the broader issue of national priorities. With numerous uncompleted road projects scattered across the six geopolitical zones, Obi rightly questions the wisdom of initiating a new, vastly expensive project while essential infrastructure languishes. The deplorable state of many existing roads has turned them into death traps, severely hindering the free movement of goods and services. These neglected roads, if rehabilitated, could more immediately and effectively boost economic activities and improve safety across the country.
The sentiment against the Lagos-Calabar Coastal Highway is not isolated to political figures. Public opinion has largely been skeptical, with many Nigerians unconvinced about the project’s necessity and feasibility. This public disquiet has prompted the House of Representatives to mandate its committees on Procurement and Works to investigate the project’s procurement process. Their probe will examine whether due process was followed and if the project received the required legislative approval.
We believe the concerns raised are substantial and warrant serious consideration. The government’s haste in awarding the contract without competitive bidding undermines transparency and accountability. While we do not question the competence or technological credentials of the construction company, the apparent conflict of interest and procedural breaches cast a shadow over the entire project.
We strongly align with voices calling for the suspension of the Lagos-Calabar Coastal Highway project until all raised issues are satisfactorily addressed. The project, as currently envisioned, does not align with the immediate needs and priorities of the nation. In light of Nigeria’s pressing economic challenges, channeling resources into the rehabilitation of existing road infrastructure is a more prudent and beneficial approach. The dire condition of many Nigerian roads cannot be overstated. These roads are critical to everyday commerce and mobility, yet they remain in a state of neglect, endangering lives and impeding economic growth.
Allocating funds to repair and maintain these vital arteries would yield immediate and widespread benefits, enhancing connectivity, reducing travel time, and lowering transportation costs for businesses and individuals alike. Furthermore, the government should ensure that all infrastructure projects, whether new or existing, comply with due process and procurement laws. Transparency and accountability must be paramount in the execution of any public works to foster trust and ensure that taxpayer funds are used effectively and efficiently.
Lagos-Calabar Coastal Highway, while ambitious, represents a misstep in the current economic climate.
Peter Obi’s stance on prioritizing the rehabilitation of existing roads resonates with the pragmatic needs of Nigeria today. It is imperative for the government to heed these concerns, reevaluate its infrastructure strategy, and focus on projects that offer immediate and tangible benefits to the Nigerian populace. Rehabilitating impassable and dangerous roads across the country should take precedence over embarking on costly new ventures with questionable feasibility and execution integrity.