02/05/2024
COASTAL HIGHWAY: Federal Government Pays N2.75 Billion in Compensation for Demolished Properties
The Nigerian government on Wednesday compensated property owners with a payment of N2.75 billion for properties impacted by the construction of the country's most significant infrastructure project. The Minister of Works, David Umahi, made this announcement during a stakeholders meeting at Eko Hotel and Suites in Lagos, explaining that the N2.75 billion was paid for properties located within the first 3 kilometers that were demolished to make room for the 700km Lagos-Calabar Coastal Highway.
“These are difficult decisions, but they were necessary for economic development,” said Umahi. “Many people doubted that we would follow through with the payments, but we made it clear that this is President Bola Tinubu's administration. We have implemented several policies, and we are seeing the outcomes,” he added.
The recipients of the compensation include Landmark Group, Kids Club, Maxtivity, and Bolaji Areyoh, who, according to Umahi, had the largest affected infrastructure, especially his Mami Chula Beach Lifestyle, among others.
Areyoh acknowledged that despite the significant sacrifice involved, the project would bring benefits to many more Nigerians, encouraging others who are also affected to cooperate with the government. Olukorede Kesha, the Federal Controller of Works in Lagos, stated that the coastal highway is no longer just an idea—it’s a reality. "We are compensating for properties demolished within the first 3 kilometers today, and those affected will receive their cheques and funds in their bank accounts," she said.
"The minister had previously promised fair compensation, and this move proves that the federal government stands by its word," Kesha added.
Regarding the demolition at Landmark, Minister Umahi clarified that there was no mistreatment toward the group, noting that Landmark was never granted ownership of the shoreline, which is why it had to be reclaimed. He mentioned that some compensation was being paid out of goodwill, acknowledging that some occupants had been using the land illegally. Umahi also suggested that some people might be politicizing the situation.
The minister emphasized that compensation for demolished properties would follow the government’s established rates. However, the demolition of the Landmark Beach Resort has caused controversy, with some Nigerians criticizing the decision as inconsiderate. Critics suggest the government could have rerouted the highway to avoid demolishing a major beach resort, an investment reportedly worth $200 million, employing over 4,000 Nigerians in various businesses.
Others, however, see the broader perspective, arguing that the coastal highway represents a significant infrastructure project for Nigeria. These supporters believe that connecting two major cities along the southern coast will ease transportation and promote economic growth by enhancing connectivity, stimulating business activity, and facilitating smoother movement of people and goods.
"The highway will serve as a major route for commerce, connecting Lagos, a bustling city in the west, with Calabar, a vibrant port city in the east. Taking on this massive project will create new opportunities for communities and businesses, significantly impacting Nigeria's economy and society."
