After months of waiting, property owners affected by the Lagos-Calabar Coastal Highway project finally have a date to hold onto. Compensation payments for Section 2 of the project will begin on April 26, 2025.
This was confirmed by the Minister of Works, David Umahi, during a stakeholders’ meeting held at Eko Hotel in Victoria Island, Lagos.
Verification of affected properties will start immediately. The process will be overseen by the Federal Comptroller of Works, Olukorede Keisha. Minister Umahi assured stakeholders that the payment process is fully prepared and ready to roll out.
So far, N16 billion has already been paid to contractors, even though the initial budget was N8 billion. Umahi explained that he spoke directly with the President, who approved the increased disbursement to help move the project forward quickly.

Most individuals due for compensation have already been settled. However, a few cases remain in court. The minister explained that legal battles are ongoing with a small number of claimants. According to him, the government is being represented by seven Senior Advocates of Nigeria. He stressed that the administration is following the proper procedures and will not be derailed. “We floored them the first time, and they’ve gone to the State High Court. Apart from those people, we have paid every other person,” he said.
In Section 1 of the project, the Federal Government has disbursed over N15 billion out of a total estimated compensation amount of more than N18 billion. This section covers 47.7 kilometers and has been used as a pilot for the broader compensation rollout. Bede Obioha, Director of Federal Highways, Bridges, and Design, shared that compensation figures for Section 2 are still being finalized. He assured stakeholders that the ministry remains committed to transparency and open communication as the project unfolds.
Minister Umahi also gave an update on construction progress. He revealed that 30 kilometers of the 70-kilometer stretch under Channel Zero, part of Phase 1 Section 1, will be commissioned in May 2025. This will mark a significant step forward and showcase the results of the massive investment made so far.
The Lagos-Calabar Coastal Highway is one of Nigeria’s most ambitious infrastructure projects in recent times. It aims to connect key economic zones along the coastline, reducing travel time and boosting commerce. Despite its potential, the project has faced criticism, legal challenges, and resistance from some affected communities.
The announcement of a firm compensation date brings some relief. For those who have been waiting, April 26 may mark not just a payday, but also a fresh start. As construction moves forward, many will be watching closely to see how the government handles the balance between development, fairness, and accountability.