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

The announcement was made by the Minister of Labour, Senator Dave Umahi, during a stakeholder engagement in Lagos where concerns over the compensation process were discussed, among other issues, the News Agency of Nigeria (NAN) reported on Sunday.

Umahi explained that the Federal Executive Council initially approved N8 billion but 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 have reached N18 billion and that is just for the first section,”Umahi explained.

The Minister of Public Works also announced that half of the compensation has already been paid to the affected people and promised that all payments will be completed within the next 10 days.

More information

The NAN report highlighted the dissatisfaction of some stakeholders, including lawyers and appraisers, who argued that the compensation was inadequate and the process fell short of accepted standards.

Lawyer and valuer, Mr. Olusola Enitan, argued that the amount provided did not meet the criteria of fair compensation.

Enitan said: “Someone who owns a house is now renting when he can’t afford to renovate what was taken from him.”

He cited several Supreme Court decisions supporting the right to just compensation.

• Addressing these concerns, Umahi assured that the Federal Ministry of Labor is operating within legal guidelines and is open to reviewing additional documents to facilitate speedy payment of compensation.
• Mr. Akin Alabi, Chairman of the Working Committee of the House of Representatives, praised 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 maintain accountability.

What you need to know

Spanning nine states, the 700-kilometer Lagos-Calabar Coastal Highway aims to increase connectivity and economic growth along Nigeria’s coast.

• In this project awarded to Hitech Construction Company Ltd. under the EPC+F model, most risks fall on the contractor with federal support.
• Construction began in March 2024 on a 47.7-kilometer section starting from Ahmadu Bello Road in Lagos.
• In April 2024, The Federal Government has established a committee to assess and compensate landowners affected by Part 1 of the project in Lagos.
• This committee, which includes representatives from the Ministry of Works, Lagos State and local communities, verifies claims, assesses property sizes and determines fair compensation.
• Minister of Labor David Umahi stated that Federal Government rates, which are higher than typical Lagos rates, will be used for compensation.
• After verification, property owners sign contracts and the contractor then pays payments directly.

The Secretary of Labor clarified that compensation will be given only to holders with verified titles, unless a presidential waiver allows otherwise.

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