Minister of Works David Umahi has said President Bola Tinubu never directed him to award the Lagos-Calabar Coastal Highway project to Hitech Construction Company, insisting that he personally takes responsibility for the controversial procurement decision.
Umahi made the clarification while appearing on Channels Television’s Politics Today, amid continuing questions surrounding the selection of Hitech and the procurement process used for the multibillion-naira coastal highway project.
The minister said Tinubu had never called him to instruct that Hitech should receive the contract, stressing that decisions made under his ministry were his responsibility.
Umahi also rejected suggestions that the highway project was being used as a channel for money laundering, describing the accusations as unfounded while defending the government’s decision to engage Hitech.
According to the minister, Hitech was selected because of its previous experience in dealing with coastal erosion and its work associated with restoring parts of Victoria Island.
He said the company’s earlier methodology for addressing coastal erosion was a major consideration when the ministry evaluated its suitability for the coastal highway project.
Umahi explained that the procurement process was not necessarily required to follow an open competitive tender in every circumstance, arguing that Nigerian procurement rules provide for different methods depending on the nature and urgency of a project.
He specifically referred to restrictive selective tendering, under which a limited number of companies can be invited to qualify before a commercial bidding process is conducted.
The minister said such a process would involve the Bureau of Public Procurement, which he described as an important part of the approval and evaluation framework for government procurement.
Umahi therefore maintained that the selection of Hitech was based on considerations connected to the company’s technical experience rather than a presidential directive.
He also dismissed the suggestion that Tinubu’s relationship with Hitech owner Gilbert Chagoury influenced the award, arguing that personal relationships should not be confused with the formal procurement process.
The minister said he was accountable for the decisions taken within his ministry and maintained that the President’s role was to assign responsibilities rather than personally determine individual procurement choices.
The controversy surrounding Hitech’s involvement is not new, as the Lagos-Calabar Coastal Highway has faced questions over its cost, procurement, financing structure and route since the project was revived under the Tinubu administration.
The Federal Government subsequently structured the first section under an Engineering, Procurement, Construction and Financing model, with Hitech serving as the contractor and external financing supporting a significant portion of the project.
The first section covers about 47.47 kilometres from Victoria Island towards Eleko Village, while the broader highway is planned to connect Lagos with Calabar along Nigeria’s coastline.
The Federal Government has said the project is intended to improve connectivity, reduce transportation costs, stimulate trade and tourism and strengthen economic activity along the coastal corridor.
Umahi also addressed questions about why the procurement itself was not taken to the National Assembly for approval.
He argued that legislative approval was relevant to the borrowing arrangement rather than the procurement procedure itself, maintaining that the contract award did not require a separate National Assembly approval in the manner suggested by some critics.
The minister’s comments come shortly after he disclosed that the Federal Government would provide 30 per cent of the project financing while external lenders would provide the remaining 70 per cent under the EPC+F arrangement.
He said Deutsche Bank provided financing for the first section and that the financing facility had undergone due diligence covering areas including the environmental impact assessment, resettlement arrangements, procurement process and project costs.
The Federal Ministry of Finance has separately confirmed a $747 million syndicated loan led by Deutsche Bank for Phase One, Section One of the highway.
That financing arrangement has been presented by the Federal Government as an example of using international capital to support major infrastructure projects without relying entirely on direct government funding.
Despite the government’s defence of the project, the highway remains one of the most closely scrutinised infrastructure programmes of the Tinubu administration.
Critics have questioned aspects of its procurement and financing, while the government has continued to defend the project on the basis of its strategic importance and the technical requirements involved in constructing a major coastal road.
Umahi’s latest comments place the responsibility for the Hitech selection squarely on the Works Ministry, rather than on a direct instruction from the President.
As construction and financing arrangements continue, scrutiny is likely to remain focused on procurement transparency, project costs, financing obligations, construction progress and the eventual economic benefits expected from the coastal corridor.