The Federal Government has begun disbursing roughly N1bn in compensation to residents of Cross River State whose homes and farmlands lie in the path of the controversial Lagos–Calabar Coastal Highway, officials confirmed on Sunday.
Yinka Onafuye, the Federal Controller of Works in the state, said the payments followed valuations of affected properties across 12 communities in Akamkpa and Odukpani local government areas. Between 700 and 1,000 residents have so far received bank payments, he said, with compensation still ongoing.
The disclosure came during an inspection tour of the Calabar–Itu Road and Sections 3A and 3B of the 750-kilometre highway by the Minister of Works, David Umahi, who defended the project’s scale and design amid mounting scrutiny.
Umahi said the highway would incorporate “relief stations”, solar-powered lighting and CCTV surveillance at strategic points to improve safety, speed up emergency response and bolster security along the route. He framed the project as central to President Bola Tinubu’s infrastructure ambitions, noting that the president first conceived a coastal highway more than 27 years ago as governor of Lagos State.
HITECH Africa Construction Company, the project’s contractor, pledged to accelerate work on both sections. Its Managing Director, Dany Aboud, said the firm would deploy additional manpower and equipment to meet the 36-month deadline set by the government.
Senator Mpigi Barinada, chair of the Senate Committee on Works, argued that the highway’s cost — a recurring point of public contention — reflected the sheer volume of earthworks required to navigate the swampy terrain.
Dr Alex Egbona, who represents the Abi/Yakurr Federal Constituency, said many locals were encouraged by the pace of construction and predicted the road would trigger “massive development” across Cross River. He also used the occasion to reassure Tinubu of strong political support heading into 2027.



