Minister of Works, David Umahi, has clarified the cost of the Lagos-Calabar coastal highway project, refuting claims made by former Vice President Atiku Abubakar. Umahi stated that the project is being constructed at a cost of N4bn per kilometer, totaling N2.8trn for the entire project, not the N8bn per km as previously claimed.

During an appearance on Television Continental News Hour, Umahi addressed concerns regarding the procurement process, explaining that the contract was awarded on a counter-funding basis, not through a Public-Private Partnership as alleged. He emphasized the ministry’s commitment to prudence despite rising construction costs due to inflation and supply chain disruptions.

Umahi also revealed that the project, which includes a four-lane carriageway with concrete pavement, is expected to be completed within eight years. He compared the design modifications to the original plan from the Niger Delta Development Commission, highlighting the differences in cost estimation.

Contrary to previous statements, Umahi clarified that the project is not under a Public-Private Partnership model but rather an Engineering, Procurement, Construction, and Finance program. He explained that the federal government will provide counterpart funding for the project, similar to the arrangement for the Abuja-Makurdi road project.

Despite earlier claims that Hitech Construction would fund the project through a Public-Private Partnership, Umahi stated that the company was invited based on their expertise and financial capacity. He emphasized that the procurement process followed all necessary regulations and approvals, ensuring transparency and accountability.

In conclusion, Minister Umahi’s detailed explanation sheds light on the true cost and construction process of the Lagos-Calabar coastal highway project, dispelling misconceptions and highlighting the government’s commitment to infrastructure development.