Construction of the Lagos-Calabar Coastal Highway has begun amid a myriad of fiscal and due process concerns. But indifference is the response of President Bola Tinubu’s administration to the challenges. The 700-kilometre stretch of road infrastructure, which will span eight years to complete, will gulp a staggering N15 trillion. This figure is tentative, given the country’s inflationary spiral. The project might well have significant economic benefits for the country but there are real questions involved, especially as regime spokespersons have repeatedly reiterated the fact that our economy is bankrupt, of which there is no question.
The pilot phase of the construction has started at the Eko Atlantic City and it will terminate at Lekki Deep Seaport, for which N1.06 trillion has already been released. It is a highway of 10 lanes, which will cost N4 billion per kilometre, and would be the first of its kind in Africa, says the Minister of Works, David Umahi. His zealousness in its implementation brooks no dissent, and sometimes it gets spiteful. The first set of victims, whose properties were demolished to pave the way for the construction, were paid N2.75 billion in compensation last week.
There are similar road networks in the offing, in the Sokoto-Badagry Coastal Highway and the Enugu-Abakaliki-Ogoja-Cameroon Highway, in what seems like a geo-political balancing act. As a spur, the latter will course through Oturkpo in Benue State, to Nasarawa State and end at Apo, in Abuja.
On the second project, Umahi said, “We have started the design and I’m sure that as soon as the Federal Executive Council approves it, we will be starting at the Sokoto side.” Given its 1,000-kilometre length, it will surely gulp over N20 trillion.
The political ecosystem is already astir on the Lagos-Calabar Coastal Highway, with the circumstances surrounding its award. Adherence to due process has been raised by some critics, causing waffling in official quarters. The point has to be made: the project did not go through a competitive bidding process, which is imperative for such a huge venture, in line with the 2007 Public Procurement Act, as enunciated in Section 16 (1) (1) and (d), to create transparency, accountability and value for money.
As the minister admitted, the award sidestepped the public tender competitive bidding process. This raises the question of how the cost was arrived at. Was it a favour to a friend of the administration? Or is the government bidding farewell to the transparency and accountability of public tender and the competitive bidding process? In addition, why was the Environmental and Social Impact Assessment (ESIA) phase of the project not done before work began? We know this through a letter dated 18th April that emanated from the Ministry of Works, soliciting residents living in the Section 1 and 11 areas of the highway in Lagos, to attend a workshop organised for a scoping study that will generate this all-important data, after the project implementation had commenced.
This action, the letter reads in part, will “ensure that the project is developed in a responsible and sustainable manner, in line with regulations in Nigeria as well as international standards and frameworks.” No, this is sophistry! The country’s statute and global best practices do not uphold putting the cart before the horse in the award of a contract, as the ministry’s letter exemplifies. The ESIA precedes any contract.
How the project will be financed is still mired in obfuscation. On 23 September 2023, Umahi disclosed that Hitech – the construction company for the work, would fund the project, precisely under the Public Private Partnership (PPP) scheme. However, in a volte-face recently, he said that the government will provide 50 per cent counterpart funding, in an Engineering, Procurement, Construction plus Finance (EPC+F) model. This fiscal decision is not cast in stone yet, as he revealed that discussions were ongoing for a possible reduction to 30 per cent of government funding.
