FG defends award of Lagos-Calabar coastal highway to Hitech

• Published On: 16 March 2025 at 19:34

The Federal Government justified its decision to award the Lagos-Calabar Coastal Highway project to Hitech Construction Company Ltd. by citing the company's expertise in concrete paving and successful bid for additional project sections.

Sen. Dave Umahi, Minister of Works, made the clarification during an inspection tour of the highway project in Lagos, according to the News Agency of Nigeria on Saturday.

Umahi explained that Hitech was chosen for Section 1 after a stringent bidding process due to its expertise in concrete paving, a construction method preferred by the government, particularly in areas with a high water table. He cited Hitech's previous work on the Oworonshoki-Apapa Road as proof of its expertise in concrete road construction.

Umahi addressed concerns about the procurement process, stating that Nigerian law allows for three types of bidding: restrictive procurement, selective/competitive bidding, and open bidding. He pointed out that the Federal Government initially required companies to have at least five concrete pavers, significantly reducing the pool of eligible contractors.

"When we began this project, we asked for companies with up to five concrete pavers. You will agree with me that before we started, the concrete paver was not as common in Nigeria as it is now. We had to look for a company that had done this type of project before, which is Hitech," Umahi explained.

He went on to explain that after restrictive bidding was used for Section 1, the government switched to selective bidding for Sections 2, 3A, and 3B, allowing multiple companies to compete, with Hitech emerging as the winner.

Umahi claimed that due process was followed and that there was no violation of procurement laws. He denied allegations that President Bola Tinubu influenced the selection process and emphasised the contract's transparency.

The Lagos-Calabar Coastal Highway, which stretches over 700 kilometres, is a strategic infrastructure project designed to improve transport and boost economic growth along Nigeria's southern corridor.

The Federal Government awarded the contract to Hitech Construction Company Ltd. under the Engineering, Procurement, Construction, and Financing (EPC+F) model. This structure shifts the financial and construction risks to the contractor, while the government provides counterpart funding.

Umahi provided an update on Section 1 in Lagos, stating that construction on the 47.47-kilometer stretch, which began in March 2024, is progressing well, with 30 km expected to be completed by May 2025.

Political figures such as former Vice President Atiku Abubakar and former Lagos ADC gubernatorial candidate Funso Doherty have criticised the contract award process, questioning its transparency.

In August 2024, Doherty sued the Federal Government, the Bureau of Public Procurement, and Hitech, alleging that the contract violated the Public Procurement Act and the Environmental Impact Assessment Act. He claimed that the project was not subject to open competitive bidding, and that construction began without a proper EIA.

Doherty's legal action seeks to cancel the contract, halt further construction, and require open bidding on the remaining sections. The case has yet to be resolved.