The Federal Government has disbursed N15 billion as part of the first phase of compensation for property owners affected by demolitions along Section One of the Lagos-Calabar Coastal Highway.
The payment, which forms part of an N18 billion compensation package, was confirmed by officials during a stakeholders’ meeting in Lagos on Sunday.
The Director of Federal Highways, Bridges and Design at the Federal Ministry of Works, Bede Obioha, stated that the total compensation budget for the section exceeds N18 billion with a portion already paid to affected individuals.
“For Section 1, 47.7km, the quantum of compensation already put together is in excess of N18 billion, and so far, the contractor has managed to disburse over N15 billion,” Obioha said.
Minister of Works, David Umahi, reaffirmed the government’s commitment to ensuring full compensation for affected property owners.
He disclosed that within 10 days, all pending payments under Section One would be completed, in line with federal directives.
While addressing concerns over the compensation process, Umahi acknowledged the legal and financial complexities involved.
“I wouldn’t have been able to respond if you had asked me this question earlier. But let me say clearly and emphatically that I’m quite frustrated with this situation. However, my hands are tied by the law. I understand that I’ve already lost some properties to arrangements like this,” he said.
The minister noted that the Federal Executive Council initially approved N8 billion for compensation based on recommendations by the Bureau of Public Procurement but the figure has now risen to N18 billion.
He assured that transparency remains a priority, with all names, pictures, dimensions and costs involved in the process set to be published.
Beyond the current disbursement, Umahi confirmed that over 10 court cases related to compensation remain unresolved. The government, he said, is prepared to pursue legal action up to the Supreme Court if necessary.
He also directed the Federal Controller of Works in Lagos State, Olukorede Keisha, to expedite disbursement and ensure all affected individuals receive their payments without unnecessary delays.
Meanwhile, Umahi disclosed that an additional N10 billion in compensation is earmarked for individuals affected by developments linked to the Lekki Free Trade Zone and Eleko Community.
The funds will be paid through the tax credit system granted to Dangote Group with disbursement expected to commence by mid-March.
On the progress of the Lagos-Calabar Coastal Highway, the minister confirmed that 30km out of the 70km stretch under Phase One, Section One will be commissioned in May 2025.
With the project advancing, the government has assured continued engagement with stakeholders to resolve outstanding concerns while prioritizing infrastructure development along the strategic coastal corridor.
