The contract was awarded without a public bidding process, and a minister informed OCCRP that the government is now facing a legal challenge.
In May, the government announced the first phase of construction by Hitech Construction Company Ltd., a subsidiary of a conglomerate owned by brothers Ronald and Gilbert Chagoury.
Hitech Construction has been awarded the entire project, which is estimated to cost $13 billion, with funding to be secured as the project advances.
Activists and opposition politicians criticized the deal, claiming it breached regulations by bypassing a public tender process. Minister of Works, David Umahi, confirmed the government is engaged in a legal battle regarding the highway.
“The entire process is now before the court,” he said in a text message to OCCRP.
Critics also pointed to the long-standing business ties and personal friendship between the Chagoury brothers and President Bola Tinubu. However, Umahi stated that the relationship did not influence the construction contract.
“The procurement for the Lagos-Calabar Coastal Highway followed due process, and the president had no involvement in the awarding or execution of the contract,” he said.
While Nigerians are familiar with the Chagoury brothers’ association with Tinubu, OCCRP has discovered that the younger generation also shares a business relationship.
