The murky coastal highway project

The opaqueness and flip-flops surrounding the 750-kilometre Lagos-Calabar Coastal Highway have deepened. On October 12, 2026, Minister of Works David Umahi announced that the highway would be rerouted inland after passing through Lagos and Ogun states, through Edo State, to join the long-neglected East-West Road. He described the detour as “a wonderful engineering decision by Mr President.”

The original project, estimated to cost between $11 billion and $13 billion, or N15.6 trillion, was designed to run through nine coastal states including Lagos, Ogun, Ondo, Delta, Edo, Bayelsa, Rivers and Akwa Ibom, before terminating in Calabar, Cross River State. The plan provided for a 10-lane highway, comprising two service lanes and four carriageways on either side, with a provision for a railway line in the middle.

Umahi explained that his team had realised that avoiding a strictly coastal route through certain swampy corridors would save costs, given the difficult terrain of the littoral areas, deep peat soils and high flood risks. Adding to the controversy, the highway’s width was reduced from 10 lanes to six.

The controversial highway was awarded to HITECH Construction Company Limited, owned by Gilbert Chagoury, a long-time friend and business associate of President Bola Tinubu. The contract was awarded through single-source procurement rather than competitive bidding under an Engineering, Procurement, Construction and Financing (EPC+F) arrangement and a Public-Private Partnership (PPP) model, rather than a purely self-funded Build, Operate and Transfer (BOT) arrangement.

Under the initial contractual framework, HITECH was to enjoy exclusive rights to collect tolls and fees on completed sections of the highway. Subsequently, the original fully financed model was abandoned, with government counterpart funding and budgetary allocations becoming central to the project’s execution. Umahi said that a 70 per cent loan component would be provided by foreign lenders led by a Dutch consortium, while government equity funding would cover the remaining share and help kick-start the initial sections of the project.

The about-turns continued. On March 31, 2024, Umahi said N1.06 trillion had been released to HITECH, but on April 11, he reversed himself, saying the money had not been released after all.

Meanwhile, at the project’s flag-off on May 26, 2024, President Tinubu declared: “Today is my day to boast. My bragging day. Today, I hold the bragging right. The deal is done. The dream is realisable. The determination to build a nation of prosperity is possible. We said we would build this road, and we are determined to do it. Do not be afraid. We will do this road, and it will be a success for Nigeria, and we will do even more of this.”

To translate that boast into reality, Tinubu officially commissioned the first 30-kilometre section, running from Victoria Island to Eleko Village on the Lekki Peninsula, on May 31, 2025. Currently, Section One, covering 47.47 kilometres, has reportedly been completed and is ready for commissioning.

Daily Trust is concerned that, from its inception, the project has been plagued by an apparent lack of accountability and disregard for constitutional provisions and due process. For instance, why was Section 80 of the Constitution seemingly set aside, allowing expenditure on the project without National Assembly appropriation? Why was the contract awarded without competitive bidding, contrary to the provisions of the Public Procurement Act 2007? Why were allegations of a conflict of interest involving the President’s son, reportedly a director of the contracting firm, not fully addressed? It is also imperative for the government to explain how a project along the Atlantic shoreline, with its fragile ecosystem, mangroves, fishing communities and erosion risks, proceeded without a prior environmental assessment in line with the Environmental Impact Assessment Act 1992.

Given the inconsistent statements about the project’s cost and route, opaque procurement process, and limited public disclosure of contracts, payments and variations, we demand independent financial and operational audits of the coastal highway project. This must include the publication of the bills of quantities, payment records and details of compensation paid so far for demolitions along the project right-of-way, which have affected commercial and residential properties.

We also urge the government to publish a transparent map and description of the final alignment of all sections of the highway, alongside the feasibility studies, original and revised contracts and designs, geotechnical reports, and cost differences between the original coastal route and any realigned sections. The Ministry of Works must put an end to confusing and conflicting statements that undermine public trust.

Going forward, we insist that no major project should again be executed through presidential fiat without the requisite surveys, geological and hydrological investigations, and Environmental and Social Impact Assessments (ESIAs). Modern engineering offers ways to construct roads across difficult terrain, wetlands, riverine environments and mangrove ecosystems, but such projects require proper planning, sound technical assessments and adequate safeguards.

Daily Trust believes it is time for the government to take responsibility and come clean with Nigerians by acknowledging the mistakes and shortcomings surrounding the project. Nigeria has been short-changed by the failure to exercise the required diligence before construction began, particularly when voices of reason and caution were ignored.

Nigerians deserve value for every kobo spent. The country will be better served by the diligent execution of such a strategically important project along its southern corridor. This is the time for the government to clear the doubts, resolve the inconsistencies and address the public scepticism surrounding the highway.