Lagos-Calabar highway project, shady – Atiku

Former vice president Atiku Abubakar has picked holes in the 700km Lagos-Calabar coastal highway project by Bola Ahmed Tinubu administration, alleging that it is “dubious and shady deal,”The presidential candidate of Peoples Democratic Party (PDP) in the 2023 election, who said it is curious that the terms of such an audacious project continues to be shrouded in secrecy, noted that the project was awarded to Hitech Construction Company Limited (Hitech) owned by Gilbert Chagoury, whom he claimed is a known business partner of Tinubu.

Atiku also said the project was awarded without any record of a competitive bidding or a decision by Federal Executive Council (FEC), added that it is curious that the “entire pilot phase of the project begins and ends in Lagos, especially within the axis of Bola Tinubu’s business interests.”

The former vice president in a statement by his media office, signed by Paul Ibe, recounted that the project returned to public discourse at the twilight of the Goodluck Jonathan administration in November 2014 wherein it was announced President Jonathan had signed the 10-state, 22-station project with China Civil Engineering Construction Corporation (CCECC) at a cost of $11.97bn.

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While Jonathan could not begin the project before he lost the election, his successor, former President Muhammadu Buhari announced in 2016 that the project had been renegotiated downward by $800m to $11.1bn and that it would be ready within three years.

Atiku further recalled that while Buhari was on vacation in August 2021, then Information Minister, Lai Mohammed, announced that the FEC had “approved the memo for the ratification of the president’s approval for the award” of the $11.1 billion project, and that it would be completed in six years.

Atiku, who noted that nothing was done on the project under the Buhari administration, said in September 2023, newly appointed Works minister, Engr. Dave Umahi announced that the project had been awarded to Gilbert Chagoury’s Hitech Construction Company Limited (Hitech) without any record of a competitive bidding or a decision by FEC.

“Umahi refused to reveal how much the project would cost. He only explained that it would run through nine states and would have a railroad running through the middle. Most importantly, the works minister said the project would come at zero cost to Nigeria, which is currently facing an all-time high level of debt.

“The works minister even stated, “Let me announce that it is under public-private partnership. The Hitech group are going to look for the money.

They have already found the money, and that is the good news because we don’t waste our time talking and holding meetings and wasting resources.”

He said the concept of the project was build, operate and transfer, meaning that Hitech would construct the road, operate it for some years and then recoup its money through toll gates before handing it back to the Nigerian government.

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Atiku added, “Because the project did not require public funds, it did not go through approval from the National Assembly, which holds the power of appropriation. Also, the project only went through the Infrastructure Concession Regulatory Commission (ICRC) with no record of a competitive bidding since Chagoury’s firm was to fund the project 100%.

“However, to the shock of many Nigerians, Umahi returned to FEC with a memo in March 2024 seeking the approval of N1.06 trillion that would be paid to Chagoury’s firm for the first phase of the project which is wholly in Lagos.

“This pilot phase was to begin from the edge of Chagoury’s Eko Atlantic City on Ahmadu Bello Way, Victoria Island, and terminate at the Lekki Deep Sea Port, Ibeju-Lekki, a distance of 47.47km. Till date, the Tinubu administration has refused to reveal how much the project will cost in total. Umahi, who even came on Channels Television recently, evaded questions as to the total cost of the project.

“But if 47.47km costs about N1.06tn, it means each kilometre is being built at N22.5 billion or $18 million. For a project that is going to be 700km, it means the total cost could be N15.7 trillion or $12.56 billion, which is higher than previous estimates.

“It is curious that the terms of such an audacious project continues to be shrouded in secrecy. Worse still, it is expected to lead to job losses like the demolition of Landmark Beach Resort in Oniru which will lead to the loss of over 12,000 direct and indirect jobs and over $200m in investments according to its management.

“More curious is the fact that the entire pilot phase of this project begins and ends in Lagos, especially within the axis of Bola Tinubu’s business interests. It is no secret that both Tinubu and Chagoury are business partners.

“This same Hitech, owned by Chagoury, was unable to complete the 50km Lekki-Epe Expressway. Despite installing two tollgates along the axis, Hitech which was part of the Lekki Concession Company (LCC) consortium was only able to construct about 20km, forcing the Lagos State Government to buy it back at the cost of N7.5 billion ($50 million at the time) in 2013 which came at a loss to the people of Lagos.”

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Atiku said Tinubu has, by the circumstances surrounding the highway project, put his personal business interest ahead of that of the Nigerian people in violation of his oath of office.

“The so-called pilot phase from Eko Atlantic to Lekki Deep Sea Port was initially conceived as a Lagos State Government project but because of its huge cost coupled with the fact that Lagos State has a huge debt burden no thanks to Tinubu, the Federal Government is now implementing it under the guise of Lagos-Calabar Coastal Highway. This perhaps explains why there are fears that the project will never get to Calabar, and this is the same reason the project is beginning from Lagos and not Calabar.

“But this renewed hope fund, which will be spent at the discretion of Tinubu and without transparency, will likely become another means of siphoning public funds through shady projects. With the current Lagos-Calabar highway already being handled in secrecy, it remains to be seen how such a fund will be managed,” Atiku said.