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Headquarters of Nigeria's Federal Ministry of Finance
Contract dossier · documented case

Lagos–Calabar Coastal Highway — N15.356tn direct award to Hitech

📷 Naziftm, Wikimedia Commons, CC BY-SA 4.0
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ongoingDocumented Claim
Amount
₦15356.00tn — N15.356tn tentative total stated by Works Minister Umahi (Apr 2024); ~N4bn per km reported by The Sun; some outlets report N15.6tn. Project is 700km, EPC+F model
Awarding agency
Federal Ministry of Works
Contractor
Hitech Construction Company Ltd (Chagoury Group, owned by Gilbert Chagoury)
Date
2023-09 (award announced; sections formally approved later; flag-off March 2024)
Scope
Federal (Lagos–Ogun–Ondo–Delta–Bayelsa–Rivers–Akwa Ibom–Cross River)

What happened

The 700km Lagos–Calabar Coastal Highway, the flagship of the Tinubu administration's infrastructure agenda, was awarded to Hitech Construction without open competitive bidding — a fact confirmed on the record by Works Minister Dave Umahi on Channels TV in April 2024, who said the award was based on the firm's track record. Critics, including former VP Atiku Abubakar and Funso Doherty, allege the no-bid award to a company owned by the President's ally Gilbert Chagoury breaches the Public Procurement Act 2007; the government maintains it followed due process via restrictive bidding, BPP review and FEC approval. The full contract terms remain undisclosed, and the AGF has opposed an FOI suit seeking the contract documents (The Searchlight, April 2026). Construction is ongoing.

Red flags

Analytical observations against standard procurement-integrity patterns — not accusations.

🚩 No open competitive bidding

Analytical observation: the Works Minister himself confirmed on Channels TV (Apr 2024) that there was no competitive bidding and the award was based on track record. Open competition is the default under the PPA 2007; the government claims a restrictive-bidding exception was validly used (Agenda Papers/SaharaReporters, Apr 2024).

🚩 Political connection between contractor's owner and awarding administration

Analytical observation: Hitech is owned by Gilbert Chagoury, widely reported as a close ally of President Tinubu — a proximity flag analysts note when combined with a no-bid award (Agenda Papers, Apr 2024). Not evidence of wrongdoing on its own.

🚩 Contract secrecy — FOI resistance

Analytical observation: nearly two years after award, full contract documents have not been published and the AGF is litigating against an FOI disclosure suit, which prevents independent value-for-money assessment of the ~N4bn/km cost (The Searchlight, 2026-04-11).

Sources

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