Former Vice President Atiku Abubakar has condemned the proposed N15.6 trillion cost attached to the 700-kilometer Lagos-Calabar Coastal Highway project, describing it as wasteful and a pathway to fraud.
In a statement issued from his media office, Atiku criticized Umahi for altering the initial plan of the project, which had been awarded to Gilbert Chagoury’s Hitech without competitive bidding.
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.”
According to reports, Umahi, during media engagements on Thursday, disclosed that the road project would cost N15.6 trillion ($13 billion at an exchange rate of N1,200/$1), with the rail component to be costed separately.
Expressing disbelief, Atiku pointed out the staggering amount proposed for the project, equating it to the total budget of all 36 states of the federation combined for the year 2024.
Furthermore, Atiku noted that while the National Assembly approved N500 million for the project in the 2024 budget, the actual release by President Tinubu’s administration amounted to N1.06 trillion, over 200 times the approved amount.
“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 organization, 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%?”
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