N15.6trn 700km Nigeria coastal highway raises biggest project debate 

• Nigerians put at crossroads over execution

ONOME AMUGE, IN LAGOS

The Lagos-Calabar coastal road, a promise of transformation and development, has found itself at the epicentre of controversy, with its ambitious plans shrouded in mystery and dogged by allegations of corruption.

As the 700 km Lagos-Calabar coastal road project sets its sights on a transformative future for Nigeria’s infrastructure with an eight-year timeline expected to be completed by 2031, the N15.6 trillion or $15 billion price tag stands tall as a towering challenge, casting a shadow of doubt over its ambitious engineering, procurement, construction, and financing (EPC+) funding model, in which the federal government is expected to put up a counterpart financing of about 30 percent while the contractor funds the remainder.

Amidst the shroud of secrecy surrounding this coastal road project, suspicions gather like a brewing storm, as the award of the project to Gilbert Chagoury’s Hitech Construction Company Limited raises eyebrows and flares tempers. With questions swirling like wind-whipped dust, this ambitious undertaking stands on a razor’s edge between hope and doubt, leaving citizens to ponder whether the project is a bold leap forward for the common good or a charade of private interests masquerading as public service.

In the never-ending game of political cat-and-mouse, Atiku Abubakar, the Peoples Democratic Party (PDP) presidential candidate in the 2023 election, casts a shadow of doubt over the Lagos-Calabar coastal road project, alleging a secret relationship between President Bola Tinubu and Gilbert Chagoury that may have accelerated the project’s execution.

The ambitious project may have been envisioned as a testament to Nigeria’s economic progress, but its rushed implementation has left a bitter taste in the mouths of many. Abubakar, is quick to shine a light on the dark underbelly of this initiative, suggesting that the disregard for property rights and due process is indicative of a broader malaise in Nigeria’s investment climate, one that threatens to drive away foreign investors and dampen the country’s economic prospects.

Abubakar, through his media adviser Paul Ibe, alleged that President Bola Tinubu’s administration awarded the Lagos-Calabar coastal road contract in contravention of established procurement regulations. Furthermore, he pointed out that the fact that Tinubu’s son and associates are directors of companies associated with Gilbert Chagoury, the contractor for the project, constitutes a clear conflict of interest.

The former Nigerian vice president expressed his lack of surprise at the Chagoury Group’s selection as the primary beneficiary of President Bola Tinubu’s patronage, stating,  “Thanks to quality reporting by Africa Intelligence, our suspicions have been confirmed that Chagoury and Tinubu are indeed business partners and it has been formalised with Seyi (Tinubu’s son) on the board of one of Chagoury’s firms.”

Abubakar also accused President  Tinubu of prioritising personal gain over the public good, contending that instead of promoting a conducive environment for business, the Tinubu administration has flagrantly abused its position of power, establishing a clear pattern of nepotism that bodes ill for the nation’s future.

“It is on record that this project is the most expensive single project ever embarked upon by the Nigerian government. The fact that it is happening at a time when Nigeria is facing its worst economic crisis ever is a red flag,” he stated.

In a nation where economic wisdom often falls victim to the whims of politics,Ndubuisi Ekekwe, founder of First Atlantic Semiconductors & Microelectronics,West Africa’s leading embedded systems company, questions the fiscal logic behind the Lagos-Calabar coastal road project, highlighting that the N15.6 trillion cost is about 50 percent of Nigeria’s budget.

Ekekwe stated further: “That $15 billion could have been spent in a more strategic way. I do think 24/7 electricity, better rail tracks, improved education and healthcare systems would have been prioritised.

“Nonetheless, good luck to Nigeria for its future $15 billion highway! That would be an African record and something to brag about: which country has the most expensive highway in Africa? “Sir, Nigeria”. That is progress for the record books, but that does not make it a good decision. We have not built or maintained highways internally, now, we think we can do so on seas! A nation in motion.”

Federal roads over Landmark tourism dreams

In the wake of the coastal road project’s initiation, numerous buildings fell prey to demolition orders by the federal government. At the epicentre of this onslaught stood the Landmark Resort and Beach, a $200 million jewel of the hospitality industry, whose crown was cruelly shattered as federal government bulldozers plowed through its property, leaving a trail of destruction, a move the Landmark Group’s CEO, Paul Onwuanibe considered a detriment to Nigeria’s tourism and hospitality industry.

In a bid to salvage their $200 million investment from the jaws of destruction, Landmark Group pleaded for a revision of the Lagos-Calabar coastal road project’s master plan, one that would spare their 1.5km resort from demolition. According to CEO Onwuanibe, the Landmark site, a vibrant ecosystem of over 80 businesses and more than 4,000 jobs, had established itself as a vital economic engine, pumping over N2 billion ($1.5 million) in tax revenue into the government’s coffers each year.

Landmark Realty, the resort’s parent company, decried the violation of the project’s original plan and advocated for a more comprehensive and inclusive consultation process that would ensure the preservation of the tourism and hospitality industry, the economic lifeblood of the region. The company argued that the original route for the West Africa coastal highway was meant to traverse the undeveloped Water Corporation Road Median. Instead, the road was rerouted through Landmark’s carefully curated ecosystem, a veritable hub of entrepreneurial activity, with over 80 businesses thriving within its bounds, the very lifeblood of the local economy.

Despite mounting outrage over the Lagos-Calabar coastal road project, Dave Umahi, the minister of works, who is also an engineer, insisted on moving forward with the demolition, taking a hardline stance in the face of rising public dissent. The demolition process left a trail of destruction in its wake, uprooting a community of beaches including Landmark Beach, Mami Chula Beach, Breeze Beach Club, Moist Beach, and G12 Oniru Beach, all of which fell within the federal government’s claimed right of way.

Umahi, adamant in his defence of the Lagos-Calabar coastal road, doubled down on the federal government’s demolition of Landmark Beach, putting forth a staunch defence of the action while simultaneously accusing the CEO of Landmark Africa Group of pushing a political agenda. With an air of certainty and the project’s bulldozers at his back, Umahi addressed newsmen, reiterating his conviction that the Lagos-Calabar coastal road project’s progress necessitated the demolition of any structures within the federal government’s designated right of way.

“He (Landmark CEO) has no claim. We make all the efforts to spare all his infrastructure. That is why I said he is a politician and I’m an engineer.

“While he plays politics, I do the engineering work. I don’t know the attention he is seeking for when things are very practical,” the minister stated.

Despite protests against the project from various quarters, some infrastructure enthusiasts and economic analysts alike consider the Lagos-Calabar coastal highway project as holding the tantalising promise of a transformational milestone in Nigeria’s economic evolution. 

Spanning nine states including Lagos, Ogun, Ondo, Delta, Bayelsa, Cross River, Akwa Ibom, Rivers states, and 700 kilometres of diverse terrain, it is believed that the project would connect communities, catalyse commerce, and unite the nation’s coastal regions.

Drawing on their expertise, project managers and industry insiders have ascribed the Lagos-Calabar coastal highway with the potential to reignite Nigeria’s economic engines through the power of the blue economy.  They also touted the project’s potential to bolster foreign direct investment and propel the nation’s economic landscape to new heights, heralding a new era of prosperity and opportunity.

According to Umahi, the coastal road would boast two spurs that would bridge the divide between the northern and southern regions, a crucial step in creating a seamless network of commerce and connectivity that would transform the Nigerian economy and unite its citizens in a symphony of growth and development.

Responding to the chorus of voices raising questions on the bidding process, the minister of works revealed that Hi-Tech Construction Company had been awarded the contract based on its impressive credentials in delivering the Eko Atlantic Wall project, a remarkable engineering that had safeguarded Victoria Island from the tempestuous rage of the Atlantic Ocean, and the Dangote-tax credit Oworonsoki-Oshodi-Apapa expressway, a concrete testament to the company’s prowess in reinforced concrete construction.

“The sections for this coastal road project include Ahmadu Bello Way to Lekki Deep Sea Port, Lekki Deep Sea Port to Ogun/Ondo boundary, Calabar to Uyo, Port Harcourt to Bayelsa, Bayelsa to Ondo. This project will unlock economic opportunities and open new corridors for trade, tourism, and industries,” he explained.

In a bid to strike a balance between progress and preservation, the minister announced plans to establish a committee, composed of representatives from coastal royal fathers, politicians, and businesses along the corridor, to evaluate the environmental impact assessment report of the Lagos-Calabar coastal highway project.

Achike Chude, a public affairs analyst, recently appeared on News Central’s “Breakfast Central” programme to react to the highway saga. Chude noted that, while past administrations had discussed the possibility of a coastal highway connecting Lagos and Calabar, none had made the move to initiate such a project.

According to Chude, the fact that the current administration had taken this step without prior announcement came as a surprise to the public, raising questions about the decision-making process behind the project.

“The move by the Nigerian federal government appeared to be too sudden and it didn’t give Nigerians and businesses such as Landmark [time] to prepare for the effect,” he explained.

Chude, a voice of reason amid the Lagos-Calabar coastal road project’s controversy, noted that while the public must make sacrifices for development, the government’s role is even more crucial. He noted further that amidst the confusion surrounding the project’s opaque decision-making process, the government’s lack of transparency and disregard for due process has left the public questioning the administration’s motives.

The government, Chude asserts, must shoulder the burden of accountability and engage in a transparent and inclusive dialogue with the citizens before embarking on such a massive undertaking.