David Umahi, minister of works has stated that the cost of constructing a standard carriageway on the Lagos-Calabar Coastal Highway is $5.5 million per kilometre. He defended the federal government’s decision to award the project to Hitech Construction through direct procurement rather than open competitive bidding.
Speaking in an exclusive interview with ARISE News, Umahi explained that Hitech was selected due to its specialist experience in coastal engineering. He highlighted the company’s work on the Eko Atlantic project as proof of its technical capacity to handle the engineering risks posed by Atlantic Ocean surges.
The minister confirmed that the project was not publicly advertised, but maintained that the process fully complied with federal procurement regulations.
When asked whether the contract had been subjected to open public bidding, Umahi stated that direct procurement is permissible under the law. He noted that while open tendering involves public advertisements, direct procurement can be utilised for specialist projects without competitive bids.
Umahi recalled that Hitech initially hesitated to take on the coastal protection project because of the financial and technical hazards. However, the company eventually developed a barrier system using massive concrete structures and geotextile materials to contain the ocean after earlier foreign interventions failed to protect Victoria Island.
According to the minister, the Bureau of Public Procurement reviewed the proposal and directed that the work be executed in sections before the Federal Executive Council approved the direct procurement approach.
Umahi also dismissed allegations that Seyi Tinubu, son of President Bola Tinubu, sits on the board of Hitech Construction, which is associated with the Chagoury Group. When asked directly about the claim, the minister replied that the government examined the company’s board during the pre-qualification process and confirmed the President’s son holds no such position.
Athekame Kenneth is a politics, economy, and finance reporter whose work is anchored in sharp investigative storytelling. He brings analytical depth to every piece, drawing on a strong academic foundation that includes a degree in Economics, an MBA in International Trade, and a minor in Petroleum Economics from Lagos State University, Ojo. His reporting blends rigorous research with a keen eye for hidden truths, delivering stories that illuminate power, policy, and the forces shaping everyday lives.
