The Federal Government has disbursed N15 billion out of the N18 billion allocated for the first phase of compensation to property owners affected by demolitions along Section One of the Lagos-Calabar Coastal Highway.
This announcement came during a stakeholders’ meeting held in Lagos on Sunday.
Over N18bn Required for Compensation—FG Confirms
Bede Obioha, Director of Federal Highways, Bridges, and Design at the Federal Ministry of Works, confirmed that the total compensation cost exceeds N18 billion.
Obioha stated:
“For Section One (47.7km), the total compensation surpasses N18 billion, and so far, we have disbursed over N15 billion.
We are currently compiling figures for Section Two and will release them once finalised. We’ve ensured transparency throughout this process.”
30km of Highway to Be Commissioned by May 2025
Minister of Works, David Umahi, announced that 30km out of the 70km under Phase 1, Section 1 of the highway will be commissioned by May 2025.
He assured stakeholders that all affected property owners would receive their compensation within 10 days, emphasizing the government’s commitment despite ongoing legal challenges.
Legal Hurdles and Transparency Commitment
While addressing compensation delays, Umahi expressed his frustration:
“I’m quite frustrated, but the law binds me. Initially, N8bn was allocated for compensation based on the Bureau of Public Procurement’s recommendation.
However, we have now reached nearly N18bn.”
Umahi pledged complete transparency:
“We will publish all details, including names, pictures, dimensions, and costs.
Although over 10 court cases regarding compensation remain unresolved, we will comply with all rulings—even escalating the matter to the Supreme Court if necessary.”
Fast-Tracking Payments and Legal Compliance
The Minister instructed Olukorede Keisha, Federal Controller of Works in Lagos State, to expedite compensation payments without waiting for additional Federal Executive Council approvals.
“We will complete 100% of the payments within the next 10 days. The affected individuals must access their funds promptly for relocation purposes,” Umahi affirmed.
N10bn Compensation for Eleko Community Under Dangote Tax Credit
Addressing developments in the Eleko Community, Umahi revealed that the government would pay an additional N10 billion in compensation related to the Dangote Group’s tax credit under the Lekki Free Trade Zone project.
“The Eleko Community project represents significant progress. We plan to start compensation payments by mid-March after additional stakeholder engagements.
We will ensure proper compensation for all affected properties,” he added.
