•Atiku and Tinubu
Former Vice President Atiku Abubakar yesterday described the N15.6 trillion attached to the 700km Lagos-Calabar Coastal Highway as its tentative cost by the Minister of Works, Dave Umahi, as wasteful and a highway to fraud.
In a statement emanating from his media office, he criticised the minister for altering the initial plan of the project after Gilbert Chagoury’s Hitech had been awarded the contract without any competitive bidding, reports Nigerian Tribune.
The statement observed that Umahi had, during his media rounds at select TV stations yesterday, said the road project would cost N15.6 trillion ($13bn at an exchange rate of N1,200/$1), while the rail, which will pass through the road, will be costed separately.
Atiku stated: “Umahi had announced that the project would be fully funded by Hitech, and based on this, there was no competitive bidding. He (Umahi) then turned around to say that Hitech could only raise just 6% of the money for the pilot phase. This smacks of deceit.”
The statement pointed out that the minister had also said the project would not be undertaken under a Public-Private Partnership (PPP), but the government would be providing 15%-30% counterpart financing.
Responding to this revelation, Atiku said the tentative cost was equivalent to the total budget of all 36 states of the federation combined.
He added: “The total budget of all 36 states of the federation for 2024 stands at about N14 trillion. If you add that of the FCT, the entire budget of all sub-nationals is N15.91 trillion. This is scandalous. Worse still, they have already awarded the contract but are still not sure of the level of the counterpart funding component of the federal government!
“Umahi had said in September 2023 that Gilbert Chagoury’s Hitech had the money to construct the highway and that it would be PPP. Hitech was to build, operate, and transfer it back to the Nigerian government after years of tolling.
“It was reported by every media organisation, including those owned by Tinubu. It was on the basis of this proposal that Hitech was picked. Why did Umahi then turn around to claim that it was not to be a PPP but that the government would pay 15%-30%?”
The presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election noted that in the 2024 budget, the project was captured as the Lagos-Port Harcourt coastal highway and was put at a cost of N500 million.
“Although the National Assembly approved N500m for the project this year, the Tinubu administration has released N1.06tn. That is more than 200 times what is in the Appropriation Act. This is what happens when the National Assembly fails in its duties,” he added.
Atiku said it was curious that the N15.91 trillion announced by Umahi did not include the cost of the railway component. He, therefore, wondered how much the project would cost if the railway component is included.
“If N15.6 trillion is for the road component alone, then the total cost could be far higher when the railway is included. We want to know the cost of the railway,” he said.
