On Thursday, the House of Representatives called upon key government officials to submit the financial instruments ( guarantees and credit enhancement instruments) for the Lagos-Calabar Coastal Highway for approval. This motion, initiated by Mr. Austin Achado, a representative from Benue State, addressed concerns about the project’s financial implications and procurement processes.
The proposed 700km highway, with an estimated cost of N15 trillion, aims to connect Lagos to Cross River State, passing through multiple states in between. Mr. Achado highlighted potential discrepancies in the project’s execution and emphasized the need for transparency and compliance with relevant laws and regulations.
Concerns raised by Mr. Achado include the lack of National Assembly approval for contingent liabilities associated with the project, as mandated by the Debt Management Office Act of 2023. He also questioned the procurement strategy’s adherence to the Public Procurement Act 2007 and the Infrastructure Concession and Regulatory Commission Act 2005.
Additionally, Mr. Achado expressed reservations about the project’s financing structure and urged clarity regarding private partners’ funding sources and selection criteria. He warned of potential contingent liabilities for Nigeria due to insufficient information provided by the Ministry of Works.
In response, the House called for the submission of all relevant documents to the National Assembly for approval. Furthermore, an ad-hoc committee was established to investigate the procurement process of the Lagos-Calabar Coastal Highway contract, with a mandate to report its findings within four weeks.
Follow us on Socials: