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David Umahi and the albatross of a $13 Billion Lagos – Calabar Coastal Highway Road

Dave Umahi
David Umahi at the site of the Lagos - Calabar Coastal Road (Credit: X)

David Umahi is a tireless worker, and apparently very dedicated to his job as Minister of Works in Nigeria.

He has been in the news lately, not only for his diligent approach to supervision of the numerous roads and infrastructure projects under his ministry, but also for the Lagos – Calabar Coastal Highway Road contract.

Umahi came on national tv this week, to defend the award of the contract for the Lagos – Calabar Coastal Highway Road to Hitech Construction Ltd.

There have been several snide media comments, and even a direct calling out of the Tinubu administration, over the lack of transparency in the award of the 700-kilometer road to Hitech Construction.

Hitech Construction is famous for starting and the non-completion of the Lekki-Epe Expressway after mounting two toll gates on the road. The Lagos State Government eventually had to step in and take over the construction of the road, at a huge loss to the Lagos taxpayers.

Now, Hitech Construction without any competitive bidding, was awarded this very important road that is supposed to span over 7 states, without the disclosure of the total cost of the contract.

The company was also paid N1.06 trillion for the first 47 kilometers of the road spanning from Eko Atlantic in Victoria Island to the Leki Deep Sea Port, all within the geographical boundaries of Lagos State.

The payment of that humongous sum raised several eyebrows which led to the release of a statement by former Vice-President, Atiku Abubakar, attacking the award of the contract to Hitech Construction and the subsequent payment made.

In the statement, Atiku alleged that the contract was inappropriately awarded to Hitech Construction, which is owned by a Lebanese Nigerian, Gilbert Chagoury, who is a well known business associate of President Bola Tinubu.

Atiku pointed out the contract was done without competitive bidding and transparency, while also questioning the cost, which was unknown until Umahi came to media this week.

Now, in the media briefings by Umahi, he said the total cost of the contract would be N15.6 trillion, that is a whooping $13 billion for a 700-kilometer road. The cost per kilometer is too embarrassing to calculate.

By any means of calculation, that amount is outrageous for that length of comparable road anywhere in the world.

Several comparisons have been made with similar projects like the Cairo to Cape Town Road which is about 1,156 kilometers in length and estimated costs of $1.6 billion.

Granted that several bridges would be constructed along the path of the Lagos – Calabar Coastal Road, it still does not add up to cost $13 billion.

This is a scandal in waiting and Umahi, unfortunately has the arduous task of deflecting the critics while defending a very poorly managed contract process.

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