The Minister of Works, David Umahi, has clarified the cost and procurement process of the Lagos-Calabar coastal highway project, disputing former Vice President Atiku Abubakar’s claims. In an interview on Arise Television, Umahi emphasized that the project’s cost per kilometer is N4bn, not N8bn as previously alleged by Atiku Abubakar.
“The sum of N4bn per kilometer simply means the total Lagos-Calabar coastal project will be completed at the cost of N2.8trn,” stated Umahi, debunking misconceptions about the project’s budget.
Umahi also addressed concerns about the procurement process, asserting that the contract was awarded based on a counter-funding model, not a Public-Private Partnership (PPP) as claimed.
Responding to Atiku’s criticisms about transparency and cost overruns, Umahi explained, “Despite material costs rising due to inflation and supply chain disruptions, we are committed to prudence and will disclose the true cost.”
The minister assured that the project, utilizing concrete pavement on a four-lane carriageway, would be completed within eight years. He clarified that although N1.06tn was allocated, the full amount had not been disbursed, indicating careful financial management.
Umahi further clarified the construction process, stating that the project was not under a PPP but an Engineering, Procurement, Construction, and Finance program, akin to the Abuja-Makurdi road project.
He elaborated, “The federal government is required to pay a certain amount for counterpart funding, different from PPP arrangements. Negotiations for counterpart funding for the Lagos-Calabar project will be between 15 and 30 per cent.”
Umahi’s statements provide insight into the project’s cost efficiency and transparent procurement methods, addressing public concerns and clarifying misconceptions.
