Minister of Works, Dave Umahi, has defended the staggering ₦1.067 trillion cost of the first phase of the Lagos-Calabar Coastal Highway, insisting that the project is not overpriced but rather “undervalued” when compared to global standards.
Addressing journalists in a detailed session, Umahi explained that the 47.47-kilometre section of the 700-kilometre project would cost ₦1.067 trillion, translating to ₦7.5 billion per kilometre for a standard two-lane road.
“A standard coastal road is going for N7.5 billion per kilometer of standard highway,” Umahi said. “However, this N7.5 billion includes all the fillings, shore protections, solar lighting throughout, and planting of trees.”
He noted that the figure covers six lanes, flyovers, underpasses, shoreline defenses, and extensive solar lighting. According to him, the ministry has faced tough challenges along the route, including excavating and refilling pits up to 20 meters deep before laying concrete.
“You encounter a pit of up to 20 meters and then this pit we removed and then refilled with lumps in levels and stages and then we are passing through there now. At kilometer 32, we also have encountered such,” he said.
Umahi also compared the project’s cost to that of previous asphalt-based roads awarded under past administrations, arguing that the use of reinforced concrete makes the current project more durable and cost-efficient.
“As at five years ago, the cost of one meter cubed of concrete awarded by the past administration was ₦729,000 per meter cubed,” Umahi said. “We started the coastal highway with ₦350,000 per meter cubed. So leave out the president or any other person, hold me accountable, ask me questions, come for debate, and I will give you the cost of one meter cubed of concrete.”
The minister revealed that international financial institutions, including a Dutch bank, reviewed the cost and found it “undervalued,” adding that the project’s 70% loan component was oversubscribed by $100 million.
“The Dutch bank that led the other international banks to review the cost of the project said it was undervalued,” he stated.
Umahi, a former governor of Ebonyi State, challenged critics to “be objective” and “tell the public the truth,” stressing that both he and President Bola Tinubu were committed to transparency and accountability.
“If the financial institutions can give us this credit, we are ready to face anybody. But when you are criticising us, be very objective and tell the public the truth,” he said.
