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

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

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

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

The Minister of Public Works further revealed that half of the compensation has already been paid to those affected and promised to complete all payments in the next 10 days.

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The NAN report highlighted the dissatisfaction of some stakeholders, including lawyers and valuation experts, who argued that the 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 the criteria of fair compensation.

Enitan said: “Someone who had a house is now rented without the ability to replace what was taken from him.”

He referenced several Supreme Court rulings that support 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 facilitate prompt compensation.
• The Chairman of the House of Representatives Committee on Works, Akin Alabi, commended the ministry for its transparency and active engagement with stakeholders in the compensation process.
• He stressed the need to publish compensation details to counter misinformation and uphold accountability.

what you should know

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

• Awarded to Hitech Construction Company Ltd. under an EPC+F model, most of the risk falls on the contractor, with federal backing.
• Construction began in March 2024 on a 47.7 kilometer segment starting at Ahmadu Bello Way in Lagos.
• In April 2024, the Federal Government Established Committee to Assess and Compensate Landowners Affected by Section 1 Project in Lagos.
• This committee, which includes representatives from the Ministry of Public Works, Lagos State and local communities, verifies claims, assesses the dimensions of the property and determines fair compensation.
• Public Works Minister David Umahi said federal government rates, higher than those typical in Lagos, will be used for compensation.
• After verification, owners sign agreements, after which the contractor disburses payments directly.

The Minister of Public Works revealed that compensation will only be granted to owners with verified titles, unless a presidential exemption allows otherwise.

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