Wednesday, January 15, 2025

Strange Lagos-Port Harcourt coastal highway appears in 2025 budget

The government allocates a mere ₦100 million for what seems to be the closest semblance of the ₦12 trillion Calabar project.

Nigeria’s controversial coastal highway project has surfaced in the 2025 federal budget, but with a surprising twist.

The much-anticipated Lagos-Calabar route, touted by the Tinubu administration as a key infrastructure project to boost trade and connectivity across southern states, is conspicuously absent in the latest spending plan for the year. Instead, the N48 trillion budget references a Lagos-to-Port Harcourt coastal highway that was never mentioned until now, with a modest allocation of just ₦100 million.

Launched in early 2024, the Lagos-Calabar project has been mired in controversy over its feasibility, cost, and transparency. The government hurriedly awarded the N15 trillion project to Hitech Limited, owned by the Chagoury brothers, known allies of the president, without competitive bidding.

Critics have raised concerns about environmental risks to fragile coastal regions and whether the project aligns with the country’s infrastructure priorities.

Shift in Priorities?

The government has yet to clarify how it will fund the ambitious project, which is intended to be tolled to recover costs.

While N1 trillion was approved last yearby the federal executive council  to begin work at the Lagos end, the 2025 budget omits the Lagos-Calabar project entirely, instead listing a Lagos-Port Harcourt highway — potentially part of the same route.

A coastal highway to the southeastern city of Calabar would naturally pass through the oil hub Port Harcourt.

“This omission implies that if funding for this project materializes, it will likely necessitate reallocating funds from other critical projects, potentially hindering their implementation and impacting their budget’s credibility,” budget transparency non-profit, Budgit, said in a statement.

The works ministry dismissed concerns, saying the omission could possibly be an error from the budget office.

“That could be an honest mistake. There is no issue,” spokesperson Orji Uchenna Orji, told Pluboard. “The budget is an appropriation bill and if there is any issue with the funding, it will be addressed.”

He insisted there were no funding problems with the project and Minister David Umahi would provide appropriate explanation later.

The omission of such a mega project, whose full value amounts to nearly a third of the entire 2025 budget, has surprised many and raises questions about the government’s budgeting process.

“Annual ‘budget’ in Nigeria has become a mere routine signifying nothing,” wrote an X user.

“After the usual noise-making and drama on the floor of National Assembly, the ‘budget’ will be “passed” for Presidential ‘assent’. The vicious cycle continues until the next “budget”. Everything is opaque.”

A History of Controversy

The coastal highway has faced criticism since its inception. Concerns over procurement transparency have dogged the project, with allegations that contract processes were bypassed in favour of direct awards.

Environmental groups have also warned of the road’s potential to disrupt ecosystems along Nigeria’s southern coastline, where rising sea levels and erosion are already pressing issues.

Critics have also questioned the government’s priorities when most roads in the country are in poor condition. The government says the project will be completed in eight years.


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