In a startling revelation, the House of Representatives declared yesterday that the contentious Lagos-Calabar coastal highway had never received approval from the National Assembly, igniting a firestorm of debate and prompting urgent calls for an investigation into its procurement process.

The development follows questions from journalists on whether the controversial project received approval from the National Assembly.

During a session in Abuja, the Green Chamber not only disclosed the lack of legislative approval for the project but also resolved to delve deep into the murky waters of its procurement, shedding light on potential irregularities and raising concerns overdue process.

“The guarantees issued to cover the debt financing component of this project do not have the approval of this National Assembly,” asserted Austin Achado, an APC representative from Benue, as he moved the motion titled “Urgent need to investigate the procurement process and award of contract for the Lagos-Calabar Coastal Highway.”

Achado’s motion highlighted a multitude of issues surrounding the project, alleging a blatant disregard for due process and statutory regulations.

He said, “The House is disturbed that the contingent liabilities accruing to the Federal Government of Nigeria on this project violate the Debt Management Office (Establishment) Act of 2023.”

Central to the controversy is the awarding of a colossal contract to Hitech Construction Company Nigeria Limited by the Federal Ministry of Works, without the requisite approval from the National Assembly. 

The project, a gargantuan 700km Lagos to Calabar Coastal Road and Rail Project, comes with a staggering price tag of N4.329 billion per kilometer, using reinforced concrete technology to construct a mammoth carriage width of 59.7 meters, inclusive of 10 lanes, shoulders, and rail, along with auxiliary infrastructure such as service ducts, street lights, drainages, and shore protection.

While touted as a vital artery for national connectivity and economic prosperity, concerns over the procurement process have cast a shadow of doubt over the project’s legitimacy. Achado raised concerns regarding potential violations of the Public Procurement Act 2007 and the Infrastructure Concession and Regulatory Commission Act 2005, citing discrepancies in the procurement strategy employed by the Federal Ministry of Works.

“The procurement strategy adopted by the Federal Ministry of Works for the award of the contract violates the Infrastructure Concession and Regulatory Commission Act 2005,” Achado affirmed, pointing out that the act mandates an open competitive public bid process for all approved infrastructure projects and contracts.

Moreover, questions linger over the financing structure of the project, particularly the lack of transparency regarding the private sector counterpart’s funding sources and competitiveness. This opacity, Achado argued, poses a significant risk of contingent liabilities to the Nigerian government, further compounding the need for a thorough investigation into the procurement process.

In response to these revelations, the House of Representatives tasked its committees on Procurement and Works with the responsibility of investigating the procurement process of the Lagos-Calabar Coastal Highway contract. The urgency of the matter was underscored by the House’s directive for the committees to deliver their findings within four weeks.

The House has also asked the committee to summon the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN; the Minister of Finance, Wale Edun, and his counterpart in the Ministry of Works, David Umahi, to provide further clarification on the project.

However, the Ministry of Works has defended the project, asserting that it adhered to due process. It further noted that members of the House of Representatives had expressed their support for the initiative.

According to the Minister of Works, Dave Umahi, the Federal Executive Council approved and allocated N1.06 trillion to the contractor for the pilot phase of construction. This phase commenced at the Eko Atlantic City and will conclude at the Lekki Deep Seaport. 

Umahi clarified that the contract was awarded to Hitech without competitive bidding due to the company’s proven “track record.” He explained that the approval process involved the Bureau of Public Procurement (BPP) and was in accordance with legal procedures.

Additionally, Umahi said that the contract was based on a counterpart-funding model, rather than a public-private partnership as commonly perceived. Under this arrangement, the investor contributes designs, financing, and construction resources, while the Federal Government provides counterpart funding. The ministry received and processed such a bid, which was subsequently reviewed by the BPP. The resulting price was slightly lower than the ministry’s estimate and even lower than the costs of comparable projects awarded five years ago, such as the Bodo-Bonny project.

While many have commended the ambitious undertaking, some have raised concerns about the contract award process that led to Hitech Construction Company Nigeria Limited becoming the preferred contractor.

Presidential candidates of the Peoples Democratic Party (PDP) and the Labour Party (LP) Atiku Abubakar and Peter Obi, have been vocal in their criticism of the project. Atiku has described it as ‘wasteful and a highway to fraud’, noting that in the 2024 budget, the project was identified as the ‘Lagos-Port Harcourt coastal highway’ and ‘was allocated a budget of N500 million.’

He said, “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.’’

Obi on his part has asked the federal government to prioritize the rehabilitation of existing roads, which are currently in a deplorable state.

“At the forefront of my concerns is the pressing issue of numerous uncompleted roads scattered across the country, many of which have become hazardous death traps and security risks,” he said. “It is disheartening to witness the plight of innocent Nigerians who traverse these dilapidated roads under perilous conditions, vulnerable to kidnappers and other dangers,” he said.

My last post is stressing some of our members here. Yes, I explained why South Africa has an edge over Nigeria on budget size, tax revenue and even the capital market. Good People, Nigeria is like a startup which needs funding for growth. Of course, the nation has not fully justified why Nigerians should fund it, looking at how it has handled the small funds it has already received.

That said, if you earn N70,000  per month and have a family of 6, even at the best of your efficiency, you will still struggle when compared with someone who has a family of 4, and makes N5 million monthly. Simply, even if you have the most efficient manager in Nigeria, the nation does not have the funds to drive massive transformation. 

Note this: “In South Africa, property tax is levied by local municipalities and is based on the value of the property. The tax rate varies depending on the location of the property and can range from 0.5% to 1.5% of the property’s value.”

Simply, South Africa collects at least 0.5% of property value yearly. If you do that in Nigeria, the local government areas will have resources to transform our communities. As they say in an ancient axiom, when a poor man is told what it would take to prepare a good soup, he will tell the wife that he is fine with the current quality of the soup. Nigerians must understand that all those nice things in London, New York, etc, happen because taxes are paid. (And the managers do not steal the resources as they deploy them for the general good; I acknowledge that.)

In London, if you make $50,000, you pay a tax of about 40% on that! If your house is worth $400,000 in New Jersey, USA, you pay the government about $8,000 yearly. “Good soup, na money make am”, they say! We like those places, but they collect taxes to make them glitter.

Of course, without a transparent and honest leadership, you cannot expect people to waste their money. That is the chicken and egg matter here, but that does not change the fact that the promises of governments are future taxes of the citizens, and when those are not possible, visions fade!

Just like a startup, you need a leader in Nigeria who can make investors believe by providing a clear roadmap on how the funds they will deploy will be used to advance the nation! That will help us close some gaps with South Africa.

Someone who can create a society to engage our brightest minds in government by evolving a new political system designed to solve problems, rather than holding offices. A person who can engineer Nigeria into rebirth and restoration to offer a prosperous nation that is colorful, fluidic, vibrant and open for change. Someone who will help us solve our problems instead of thinking that World Bank and IMF will. Yes, a person of immense intelligence, competence, pragmatism, and unimpeachable. A person of integrity, broad knowledge, enormous vision and solid experience; one that can stimulate more vibrancy in the private sector and move the public sector out of its stasis. He must tackle corruption and stabilize democracy. And yes, give us electoral reform to remove stagnation, circuitous legal component and time-waste to get parliament focused on their work as soon as possible after elections.