FG increases compensation for Section 1 of Lagos-Calabar Expressway from N8 billion to N18 billion

The Federal Government has increased compensation for property owners affected by Section 1 of the Lagos-Calabar Coastal Highway project, increasing the amount from an initial N8 billion to about N18 billion.

The announcement was made by the Minister of Public Works, Senator Dave Umahi, at a stakeholders meeting in Lagos where discussions focused, among other things, on concerns surrounding the compensation process, as reported by the News Agency of Nigeria (NAN) on Sunday.

Umahi explained that although the Federal Executive Council initially approved N8 billion, further assessments by independent experts justified the increase to ensure fair treatment of affected citizens.

“The Federal Executive Council initially approved N8 billion for this corridor, but today we reach N18 billion, and this is only for section one.Umahi explained.

The Public Works Minister further revealed that half of the compensation has already been paid to the affected individuals and promised to complete all payments within the next ten days.

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The NAN report brought the dissatisfaction to the attention of some stakeholders, including lawyers and valuation experts, who argued that compensation was inadequate and that the process did not meet accepted standards.

Mr Olusola Enitan, a lawyer and valuation expert, argued that the amount provided did not meet fair remuneration benchmarks.

Enitan said: “Someone who owned a home is now renting without the ability to replace what was taken from them.”

He referred to several Supreme Court decisions supporting the right to fair compensation.

Addressing these concerns, Umahi assured that the Federal Ministry of Works was operating within legal guidelines and remained open to reviewing additional documents to enable prompt compensation.
Chairman of the House of Representatives Committee on Public Works, Mr. Akin Alabi, commended the ministry for its transparency and active engagement with stakeholders in the compensation process.
He emphasized the need to publish compensation data to counter misinformation and uphold accountability.

What you need to know

The 700-kilometre Lagos-Calabar Coastal Highway, spanning nine states, aims to boost connectivity and economic growth along Nigeria’s coast.

Awarded to Hitech Construction Company Ltd. under an EPC+F model, most of the risk lies with the contractor, with federal support.
Construction commenced in March 2024 on a 47.7 kilometer stretch from Ahmadu Bello Way in Lagos.
In April 2024, the The Federal Government has set up a committee to assess and compensate landowners affected by Part 1 of the project in Lagos.
This committee, made up of representatives from the Ministry of Public Works, Lagos State and local communities, verifies claims, assesses property sizes and determines fair compensation.
Works Minister David Umahi noted that federal government rates – higher than Lagos typical rates – will be used for compensation.
After verification, property owners sign agreements, after which the contractor disburses payments directly.

The Works Minister revealed that compensation will only be given to owners with verified titles unless a presidential waiver allows otherwise.