Lagos-Calabar Highway Project: Property Owners Reject N18bn Compensation Offer

Property owners along the proposed route for the Lagos-Calabar coastal highway project have voiced strong opposition to the government’s N18 billion compensation plan, arguing that the amount is insufficient to cover the actual value of their properties and relocation costs. The Lagos-Calabar highway, a critical infrastructure project designed to connect major economic hubs along Nigeria’s coastline, has faced delays largely due to funding issues and compensation disputes. With the recent rejection, property owners are calling for a re-evaluation of the compensation process, advocating for what they see as a fairer settlement in light of market values and their displacement risks.

A Key Infrastructure Project with Significant Economic Impacts

The Lagos-Calabar highway, part of Nigeria’s ambitious infrastructural development plan, is expected to span over 1,000 kilometers, linking the southwestern part of the country with the southeastern region. The highway is set to improve trade, enhance connectivity, and reduce transportation costs, thereby benefiting key sectors like agriculture, trade, and tourism. The project aims to facilitate movement across Lagos, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom, and Cross River states, ultimately fostering economic integration and easing the flow of goods and people across Nigeria’s coastal belt.

However, disputes over compensation have repeatedly stalled its progress, with affected communities and property owners voicing concerns about inadequate assessments of property values. The latest offer of N18 billion, designated to compensate hundreds of property owners, has met with disapproval, with many arguing that it fails to reflect the fair market value of the properties and does not consider the relocation and livelihood impacts adequately.

### Property Owners Push for Fairer Compensation

Representatives of the affected property owners have highlighted that the government’s current offer fails to account for the true economic loss incurred by the residents and business owners who would be displaced. According to stakeholders, most properties along the highway’s proposed route have appreciated significantly in recent years, partly due to increasing commercial activities. As a result, property owners contend that the government’s compensation offer undervalues their land and property, with some claiming they would face financial hardship if they were forced to accept the proposed amount.

Community leaders have also underscored that for many of these residents, their properties are not only investments but also primary residences and sources of livelihood. Small businesses, farms, and retail outlets line the areas affected by the project, and their owners have expressed concerns that they may not be able to recover or reestablish their businesses elsewhere.

In a recent meeting with government representatives, property owners and their legal advisers demanded a comprehensive reassessment of the valuation process to ensure a just and equitable compensation plan. Many emphasized the need for independent assessments and transparency throughout the negotiation process, urging the government to involve property owners in every step of the valuation to avoid discrepancies.

### Government’s Perspective on the Compensation Offer

The government has maintained that the N18 billion compensation figure was arrived at after thorough assessments conducted by professional valuers. Officials argue that the current amount is the result of a balance between project financing constraints and the need to compensate affected residents fairly. However, they have indicated a willingness to review specific cases if owners present evidence of undervaluation.

Ministry of Works officials involved in the project have also acknowledged the importance of the property owners’ concerns, stating that the government remains open to further consultations and discussions with affected communities. Officials emphasized that while compensation must remain within the project’s budget constraints, there is room for flexibility, and they encouraged residents to submit detailed valuations and supporting documents to aid in the review process.

### Legal Recourse Considered by Property Owners

Frustrated by the ongoing dispute, some property owners have indicated that they are exploring legal options to secure fair compensation. Community leaders have been in discussions with legal experts and advocacy groups to examine the potential for filing a collective suit against the government to demand an increase in compensation. Legal analysts argue that under Nigerian law, property owners whose assets are compulsorily acquired for public purposes are entitled to fair compensation based on market value and other consequential costs.

Experts believe that property owners could build a case on the basis of undervaluation, particularly if they can present independent appraisals that demonstrate a significant disparity between the government’s offer and current property values. However, some property owners are cautious about the prolonged nature of legal proceedings, fearing that such actions could further delay the compensation process and prolong uncertainty.

### Economic and Social Implications of the Stalemate

The impasse between property owners and the government risks delaying a project that could significantly impact Nigeria’s coastal economy. With key cities and commercial centers dependent on the highway’s completion, any delays could undermine the economic benefits the project is expected to bring, particularly for industries reliant on streamlined transportation routes. The delay also affects the government’s broader agenda to improve infrastructure across the country and promote regional connectivity.

For affected communities, however, the priority remains securing fair compensation that enables them to rebuild their lives. Without adequate support, property owners and small business operators argue that they would face significant economic hardship, impacting both their financial stability and community resilience.

Moving Forward: Potential for Mediation and Resolution

To resolve the deadlock, both sides are now exploring options for independent mediation to reach a mutually agreeable solution. Some experts have suggested involving external valuation firms or appointing a joint committee comprising government representatives, property owners, and independent appraisers to facilitate a transparent review of property values. This approach could help expedite the compensation process, ensuring that it is both fair and aligned with market realities.

In the meantime, property owners continue to mobilize, advocating for their rights and pushing for a reassessment that they believe is both fair and necessary. As negotiations continue, both the government and affected communities hope to reach an agreement that balances the project’s public interest with the rights and needs of those impacted, allowing the Lagos-Calabar highway project to move forward with minimal disruption and maximum benefit.