The Federal Government has disbursed N15 billion out of the N18 billion allocated for the first phase of compensation to owners of demolished properties along Section One of the Lagos-Calabar Highway.
This was revealed at a stakeholders’ meeting on the Lagos-Calabar Coastal Highway in Lagos on Sunday.
According to Bede Obioha, the Director of Federal Highways, Bridges, and Design at the Federal Ministry of Works, the total compensation amount exceeds N18 billion. He noted that the contractor has managed to disburse over N15 billion for Section 1, which covers 47.7km.
The Minister of Works, David Umahi, announced that 30km out of 70km of the Lagos-Calabar Coastal Highway Phase 1, Section 1, will be inaugurated in May 2025. Umahi also stated that everyone on the compensation list of section 1 of the coastal road would have been paid in 10 days.
Umahi expressed frustration with the compensation process, citing legal obligations that must be complied with. He noted that the Federal Executive Council approved an initial compensation budget of N8 billion for this section, based on the recommendation by the Bureau of Public Procurement. However, the total compensation amount has now reached N18 billion.
Regarding the tax credit given to Dangote Group on the existing Lekki Free Trade Zone, Umahi noted that N10 billion would be paid in compensation by mid-March. This compensation is for those affected at the Eleko Community, where the coastal highway project is ongoing.
In related news, S&P Global reported that the Dangote Petrochemical Refinery is now meeting 60% of Nigeria’s domestic petrol demand. However, this figure is disputed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which states that all three of the country’s working refineries combined are producing less than 50% of Nigeria’s daily petrol needs.