In response to allegations made by former Vice President Atiku Abubakar regarding the cost and procurement process of the Lagos-Calabar coastal highway project, Minister of Works, David Umahi, has stepped forward to clarify the situation.
Umahi revealed that the government is constructing the Lagos-Calabar coastal highway at a total cost of N4bn per kilometre, contrasting the N8bn per km figure claimed by Atiku Abubakar. This suggests that the entire project will amount to approximately N2.8trn.
During an appearance on the Television Continental News Hour programme, Umahi dismissed claims that the project did not follow the due procurement process. He explained that the contract was awarded on a counter-funding basis, not through a Public-Private Partnership as previously suggested.
Atiku had questioned the administration's decision to allegedly award the contract without competitive bidding and urged President Bola Tinubu to disclose the full cost of the project. Umahi, however, assured that despite the rising costs of materials in the construction industry, the ministry is committed to prudence and transparency.
Furthermore, Umahi clarified that the project would be completed within eight years, with each kilometre costing N4bn due to the use of concrete pavement on the four-lane carriageway. He also emphasized that only a portion of the appropriated N1.06tn has been disbursed.
Contrary to previous statements made by Umahi regarding the project's funding model, he explained that the administration never envisaged it under a Public-Private Partnership arrangement. Instead, it falls under an Engineering, Procurement, Construction, and Finance programme, similar to the Abuja-Makurdi road project.
While Umahi's recent statements seek to clarify the project's details and refute Atiku's claims, questions remain regarding the consistency of information provided by the minister and the actual procurement process followed.