Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party (PDP) has accused President Bola Tinubu of prioritising personal business interests over Nigerian infrastructure, particularly regarding the construction of the 700km Lagos-Calabar coastal highway.
The Federal Government recently announced the start of construction on this project.
The Minister of Works, David Umahi, through his Special Adviser on Media, Orji Uchenna, in Abuja, disclosed details about the initial phase officially handed to Hitech Construction Company Ltd.
Atiku criticised the lack of transparency in awarding the project to Hitech and raised concerns about its financial implications and operational model, suggesting potential hidden costs for Nigeria despite claims of zero cost by the Works Minister.
The former vice president who spoke through his media coordinator Paul Ibe on Sunday, alleged that the project was awarded to Gilbert Chagoury’s Hitech Construction Company Limited (Hitech) without a documented competitive bidding process or approval by the Federal Executive Council (FEC).
He further criticised Umahi for not disclosing the cost of the project, which spans nine states including a railroad.
The project is expected to be funded through a “build, operate, and transfer” model, where Hitech Construction Company Limited will build and operate the road, recouping its investment from tolls before handing it over to the Nigerian government.
Atiku raised concerns about Nigeria’s high debt levels amidst the project’s funding model.
The statement partly reads:
“Umahi refused to reveal how much the project would cost. He only explained that it would run through nine states and would have a railroad running through the middle. Most importantly, the works minister said the project would come at zero cost to Nigeria, which is currently facing an all-time high level of debt.
“Because the project did not require public funds, it did not go through approval from the National Assembly, which holds the power of appropriation. Also, the project only went through the Infrastructure Concession Regulatory Commission with no record of a competitive bidding since Chagoury’s firm was to fund the project 100 per cent.
“However, to the shock of many Nigerians, Umahi returned to FEC with a memo in March 2024 seeking the approval of N1.06tn that would be paid to Chagoury’s firm for the first phase of the project which is wholly in Lagos.
“This pilot phase was to begin from the edge of Chagoury’s Eko Atlantic City on Ahmadu Bello Way, Victoria Island, and terminate at the Lekki Deep Sea Port, Ibeju-Lekki, a distance of 47.47km. Till date, the Tinubu administration has refused to reveal how much the project will cost in total. Umahi, who even came on Channels Television recently, evaded questions as to the total cost of the project.
“But if 47.47km costs about N1.06tn, it means each kilometre is being built at N22.5bn or $18m. For a project that is going to be 700km, it means the total cost could be N15.7tn or $12.56bn, which is higher than previous estimates.”
Atiku expressed concerns about the possibility of misuse of public funds through the renewed hope infrastructure fund managed by Tinubu. He criticised the project’s alignment with Tinubu’s business interests while drawing attention to issues with Hitech’s past performance on infrastructure projects.
The PDP frontman accused Tinubu of prioritising personal gains over public interest, pointing out discrepancies in the project’s execution and financing.
He raised doubts about the project’s expansion beyond Lagos due to financial constraints and suggested that the project’s initiation in Lagos was due to political and financial considerations rather than strategic planning.
Atiku also raised red flags about the proposed Renewed Hope Infrastructure Development Fund, questioning its transparency and accountability in funding capital projects.