Atiku Abubakar, the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, has criticized Works Minister Dave Umahi’s statement regarding the tentative cost of the 700km Lagos-Calabar Coastal Highway, which Umahi estimated to be approximately N15.6 trillion.
Abubakar also questioned Umahi’s decision to revise the initial plan for the project after Gilbert Chagoury’s Hitech had been awarded the contract without competitive bidding. He stated, “Umahi initially indicated that Hitech would fully fund the project, leading to no competitive bidding. However, he later claimed that Hitech could only provide 6% of the required funds for the pilot phase. This inconsistency raises concerns about deception.”
Umahi, during appearances on several TV stations, stated that the road project’s estimated cost would be N15.6 trillion ($13bn at an exchange rate of N1,200/$1), with separate costs for the accompanying rail line. He mentioned that the project would not follow a public-private partnership (PPP) model but would receive 15%-30% counterpart financing from the government.
Responding to Umahi’s revelation, Atiku’s media office released a statement highlighting the staggering cost equivalent to the combined budget of all 36 states and the Federal Capital Territory (FCT) for 2024. Abubakar emphasized concerns about the lack of clarity regarding the project’s funding mechanism and its deviation from the initial PPP plan.
Furthermore, Abubakar pointed out discrepancies in the project’s budget allocation, indicating that although the National Assembly approved N500 million for the project in the 2024 budget, the actual release exceeded N1.06 trillion, raising questions about transparency and oversight.
Abubakar also questioned the omission of the railway component from Umahi’s estimated cost, expressing concerns about the total project cost when both road and rail elements are considered.
Additionally, Abubakar criticized Umahi for awarding the project to Hitech without competitive bidding and called for transparency and accountability in government contracts. He urged members of the National Assembly to fulfill their oversight duties and investigate the project’s funding and execution thoroughly.
Abubakar also accused Umahi of contradicting statements regarding the release of funds to Hitech, highlighting inconsistencies in Umahi’s public statements.
The statement from Atiku’s media office concluded by calling for clarity on the project’s funding, adherence to procurement guidelines, and transparency in government contracts.