Athena Perspectives Vol.1 Issue 2
Shortly after his appointment as the Minister of Works, Engr. Dave Umahi announced the award of the Lagos-Calabar Highway Project to Gilbert Chagoury’s Hitech Construction Company Limited (Hitech) [1]. This decision, made without competitive bidding or Federal Executive Council approval, raised concerns about procedural violations under the Public Procurement Act, 2007.
Initially touted as a Public Private Partnership (PPP) project, the recent award of the project’s first phase for N1.06 trillion by the Federal Government contradicts the earlier financing arrangement. With the total project cost undisclosed, citizens question the financing strategy, especially amidst soaring national debt levels.
The lack of clarity on future financing methods raises doubts about the project’s viability and completion. If the government reverts to a PPP arrangement for subsequent phases, it faces challenges meeting bankability requirements which include:
- Procurement Process Transparency: The absence of an international competitive bidding process raises concerns about contractor selection. The project lacks legitimacy without proper procurement procedures, jeopardizing investor confidence and project sustainability.
- Environmental and Social Impact Assessment (ESIA): A comprehensive ESIA, meeting international standards, is imperative for such a project. Covering 700km across nine states, this assessment is crucial for addressing environmental and social concerns and ensuring project sustainability.
- Compensation for Affected Persons: Proper compensation mechanisms for Project Affected Persons (PAPs) are essential. Failure to follow procurement regulations complicates the compensation process, potentially leading to legal disputes and project delays.
[1] https://pmnewsnigeria.com/2023/09/24/hitech-building-lagos-calabar-highway-fg-signs-contract-in-2-weeks/
- Viability Gap Funding and Toll Feasibility: The absence of ‘Willingness to Pay’ and ‘Ability to Pay’ surveys complicates toll fee determination. Without adequate revenue projections, the project risks relying heavily on government subsidies, undermining its financial sustainability.
- Transparency and Value-for-Money: Violations of procurement regulations and constitutional provisions raise questions about transparency and accountability. Adhering to legislative frameworks is crucial for ensuring public trust and optimizing project outcomes.
The Lagos-Calabar Coastal Highway Project faces significant challenges related to procurement transparency, environmental sustainability, compensation mechanisms, financial viability, and adherence to legal frameworks. Addressing these concerns is imperative for ensuring the project’s success and maximizing its socio-economic impact.
Therefore, the Coastal Road Project should, in the first instance be halted and subjected to due process, in line with the provisions of the Public Procurement Act, 2007. This includes issuing a competitive tender for contractor selection, ensuring equal opportunity for all qualified firms, and adhering to international best practices in procurement.
Lagos-Calabar Coastal Highway Resettlement Action Plan and Matters Arising
The inauguration of a compensation verification committee by the Federal Government for the N15 trillion Lagos-Calabar Coastal Highway construction project on Thursday, April 12, 2024, has raised several concerns regarding transparency and procedural adherence[1]. This project, touted as Africa’s largest road project, aims to span 700km from Lagos to Calabar, with an estimated cost of over N4 billion per kilometer. However, the absence of competitive tendering or international benchmarking in the procurement process has fueled skepticism about the project’s transparency and financing.
[1] https://punchng.com/lagos-calabar-highway-fg-inaugurates-committee-on-compensation/#google_vignette
The initiation of compensation procedures for affected landowners on the first 45km section of the highway heading east from Lagos is commendable. However, the tight 10-day timeframe for verification and remuneration raises doubts about the adequacy and transparency of the Resettlement Action Plan (RAP). A comprehensive RAP is crucial for infrastructure projects involving community relocation, encompassing legal frameworks, socioeconomic assessments, impact evaluations, and cultural considerations.
Attempting to complete compensation plans within such a short timeframe is impractical and risks compromising the quality and fairness of the process. Comparable projects worldwide, such as the Pacific Highway Upgrade in Australia, Coastal Highway 30, Texas, USA, and Coastal Highway 30 in Texas, underwent lengthy compensation processes spanning several years to ensure thorough assessments and stakeholder consultations.
The lack of adherence to public procurement regulations and the prioritization of this project, without competitive bidding, undermines public trust. Moreover, the absence of detailed information on the compensation methodology further exacerbates concerns about fairness and objectivity.
Recommendations:
- Extend the Timeline for Compensation Planning: The government should extend the compensation timeline to allow for thorough assessments, stakeholder consultations, and compliance with legal requirements. Rushing through the process within a 10-day timeframe risks compromising fairness and effectiveness.
- Enhance Transparency and Accountability: Provide detailed information on the compensation methodology and ensure adherence to international best practices. Transparency in the Resettlement Action Plan is crucial for building trust and credibility.
- Conduct Independent Oversight: Establish independent oversight mechanisms to monitor the compensation process and ensure adherence to standards. This will help address concerns about procedural fairness and mitigate potential conflicts of interest.
- Engage Stakeholders: Foster meaningful engagement with affected communities and stakeholders throughout the compensation process. This will promote transparency, address concerns, and ensure that the needs and rights of those affected are adequately addressed.
By implementing these recommendations, the government can enhance transparency, fairness, and effectiveness in the compensation process for the Lagos-Calabar Coastal Highway project, ultimately building public trust and confidence in the project’s execution.
Issues in the News
Transportation: CCECC Hands Over $50m Transport Varsity to FG
The China Civil Engineering Construction Corporation (CCECC) has officially handed over a $50 million transportation university to the Nigerian Federal Government. The university, located in Daura, Katsina State, aims to provide specialized education and training in the transportation sector, contributing to the development of Nigeria’s infrastructure and human capital. The handover ceremony was attended by government officials and representatives from CCECC, highlighting the collaboration between China and Nigeria in advancing educational and infrastructural development. This initiative is expected to enhance the skill set of Nigerians in the transportation industry and support the country’s economic growth.[1] See more: http://bit.ly/3yrHZ7N
[1] https://guardian.ng/news/ccecc-hands-over-50m-transport-varsity-to-fg/
Security: Flutterwave Allegedly Loses N11 billion in Security Breach
Africa’s prominent fintech company, Flutterwave, has allegedly lost N11 billion due to a security breach. The breach involved unauthorized transactions, leading to significant financial losses. Flutterwave has initiated investigations to understand the scope of the breach and to enhance its security measures. The incident raises concerns about cybersecurity vulnerabilities in the fintech sector and underscores the importance of robust security protocols to protect financial institutions and their customers.[1] See more: https://bit.ly/3QPCuWK
[1] https://www.tekedia.com/flutterwave-allegedly-loses-n11-billion-in-security-breach/
Education: FG opens student loan application portal May 24
The Nigerian Federal Government is set to open the student loan application portal on May 24. This initiative is aimed at providing financial assistance to students in tertiary institutions across the country. The portal will facilitate the application process for eligible students, enabling them to access loans to cover tuition and other educational expenses. This move is part of the government’s efforts to improve access to higher education and support students in achieving their academic goals.[1] See more: https://bit.ly/3wwHx7J
[1] https://punchng.com/fg-opens-student-loan-application-portal-may-24/
Transportation: US-Nigeria Open Skies Air Transport agreement comes into Force
The Open Skies air transport agreement between the United States and Nigeria has officially entered into force. This agreement aims to enhance air travel and economic ties between the two countries by allowing unrestricted air services between their territories. It is expected to increase connectivity, promote tourism, and facilitate business travel, thereby boosting economic growth. The agreement underscores the commitment of both nations to strengthening bilateral relations and improving aviation safety and security.[1] See more: https://bit.ly/3UH46hU
[1] https://radionigeria.gov.ng/2024/05/17/us-nigeria-open-skies-air-transport-agreement-enters-into-force/
Regional Updates
Top stories from Benin, Cameroon, Chad, and Niger (BCCN)…
Athena Perspectives brings you news from Nigeria’s neighbouring countries to improve understanding of local knowledge of other African countries and enhance regional integration
Border row escalates as Benin Republic blocks Niger’s oil export.
There have been reports of escalating border tensions between Benin and Niger as Benin blocks Niger’s oil exports. The dispute arises from Benin’s refusal to allow Nigerien crude oil exports to pass through its territory. This blockade has significant implications for Niger’s economy, as the country relies on oil exports for revenue. The situation underscores the challenges of border disputes and the need for diplomatic resolutions to prevent further escalation and mitigate economic impacts on both countries.[1]
[1] https://www.theafricareport.com/348133/border-row-escalates-as-benin-blocks-nigers-oil-export/
5 policemen killed in Cameroon Anglophone Crisis
There have been reports on the killing of five policemen in Cameroon amid the Anglophone crisis. The crisis, rooted in longstanding grievances of English-speaking regions in Cameroon, has led to violence and unrest. The policemen were killed in an ambush by separatist fighters, highlighting the ongoing security challenges in the region. The Anglophone crisis remains a pressing issue for Cameroon, with efforts ongoing to address the underlying grievances and restore peace and stability. [1]
[1] https://www.news-journal.com/5-policemen-killed-in-cameroon-anglophone-crisis/video_7cace8ed-5592-5456-94e1-62244815d6a1.html
Chad election runner-up seeks to annul presidential poll result
The Chad’s presidential election runner-up, Albert Pahimi Padacké, seeks to annul the election result. He contests the victory of President Idriss Deby and calls for the nullification of the election outcome, alleging irregularities. Meanwhile, Chad’s military has deployed to prevent potential unrest following the election results. This development underscores the political tension in Chad and the challenges associated with democratic processes in the region. It also highlights the importance of ensuring transparency and fairness in electoral processes to uphold democratic principles and prevent social unrest.
Niger cuts military ties with US citing threats over Iran, Russia ties
The government of Niger has decided to sever military ties with the United States due to perceived threats related to its relationship with Iran and Russia. Niger’s defense ministry announced the termination of military cooperation agreements with the US, citing concerns about potential repercussions stemming from its engagement with Iran and Russia. This move reflects Niger’s efforts to assert its sovereignty and pursue independent foreign policy decisions amid evolving geopolitical dynamics. It also highlights the complexities of international relations and the balancing act required by countries in navigating global alliances and partnerships.
https://en.irna.ir/news/85477566/Niger-cuts-military-ties-with-US-citing-threats-over-Iran-Russia