David Umahi discusses the Lagos-Calabar Coastal Highway contract award during an ARISE News interview.

BREAKING: Umahi Defends Lagos-Calabar Highway Contract Award Without Public Bidding

Meta Description: Nigeria’s Works Minister, David Umahi, has defended the direct procurement of the Lagos-Calabar Coastal Highway contract to Hitech Construction Limited, sparking renewed debate over public procurement rules, transparency and accountability.

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Nigeria’s Minister of Works, David Umahi, has defended the Federal Government’s decision to award the Lagos-Calabar Coastal Highway contract through direct procurement rather than open public bidding.

Umahi made the statement during an interview with ARISE News on Friday, October 23, 2026, while responding to questions about the procurement process for the controversial coastal highway project.

His comments have renewed public debate about transparency, accountability and compliance with Nigeria’s Public Procurement Act 2007.

According to reports by ARISE News and Punch Newspapers, the minister acknowledged that there was no public bidding for the contract but insisted that the procurement method was lawful.

“There was no public bidding, but there was direct procurement. It’s within the law,” Umahi said during the interview.

Umahi Explains Why Hitech Construction Was Selected

During the interview, the minister explained that the government considered the specialised engineering requirements of the Lagos-Calabar Coastal Highway before selecting Hitech Construction Limited.

Umahi argued that constructing a major highway along Nigeria’s coastline presents significant engineering challenges, including exposure to ocean surges and difficult coastal terrain.

He said Hitech’s experience with the Eko Atlantic development in Lagos was considered evidence of the company’s technical capacity and ability to undertake the project.

The minister also stated that the Bureau of Public Procurement (BPP) reviewed the proposal and that the Federal Executive Council approved the direct procurement process.

According to Umahi, the procurement was to be carried out in sections, with the relevant approvals obtained before proceeding.

These explanations form part of the Federal Government’s defence of the contract award. The legality of the process depends on the applicable procurement provisions, the approvals obtained and whether the statutory requirements were satisfied.

What Does Section 24 of the Public Procurement Act Say?

Section 24(1) of Nigeria’s Public Procurement Act 2007 provides that, except where the Act provides otherwise, procurement of goods and works by public procuring entities must be conducted through open competitive bidding.

The provision establishes open competition as the general rule for public procurement.

However, the Act also recognises other procurement methods under specified circumstances. Therefore, the absence of public bidding does not, by itself, establish that a procurement exercise was unlawful.

The key question is whether the Federal Government followed the statutory conditions and approval procedures required for the method used in awarding the Lagos-Calabar Coastal Highway contract.

The Public Procurement Act can be consulted through the Nigerian Investment Promotion Commission’s Public Procurement Act resource page.

Could the Procurement Process Lead to Legal Consequences?

The controversy has also drawn attention to Section 58 of the Public Procurement Act, which outlines offences and penalties relating to violations of the legislation.

The Act provides for imprisonment of between five and ten years without an option of fine for certain offences committed by natural persons who are not public officers.

However, determining whether a public officer has committed an offence requires an examination of the applicable provisions, the circumstances of the procurement and the available evidence.

As of the time of writing, the reported interview does not establish that Umahi has been convicted of an offence or sentenced to prison. Any claim that he must automatically lose his position or face a five-year prison term would require additional legal grounds and due process.

The minister has maintained that the direct procurement method used for the highway project was lawful.

Questions Surrounding Hitech Construction and Gilbert Chagoury

Hitech Construction Limited has attracted public attention because of its association with Nigerian-Lebanese businessman Gilbert Chagoury.

Questions about the contractor’s selection have become part of the wider debate surrounding the cost, approval process and transparency of the Lagos-Calabar Coastal Highway.

In a separate matter, the United States Department of Justice announced in March 2021 that Chagoury agreed to pay $1.8 million to resolve allegations relating to illegal campaign contributions to US political candidates.

According to the US Department of Justice, Chagoury admitted that he intended funds to be used for contributions prohibited under US federal election law.

The US case concerned campaign finance violations. It should not be presented as proof of wrongdoing in the Nigerian highway procurement process.

Claims concerning other alleged criminal convictions or historical money-laundering cases should be assessed using reliable court records and official documentation.

Lagos-Calabar Coastal Highway Project Remains Under Public Scrutiny

The Lagos-Calabar Coastal Highway is one of the Federal Government’s major infrastructure projects, intended to improve connectivity along Nigeria’s southern coastline.

The project has generated debate over its cost, engineering design, environmental implications, procurement procedure and expected economic benefits.

During the October 23 interview, Umahi also defended the government’s approach to the project and said the 750-kilometre highway was being developed in sections.

According to Punch Newspapers, the minister projected that the highway could be completed within three years, potentially around 2029.

The project’s progress and the government’s explanations are likely to remain subjects of public interest as construction continues.

Conclusion

David Umahi’s latest comments have renewed questions about how the Federal Government awarded the Lagos-Calabar Coastal Highway contract to Hitech Construction Limited without open public bidding.

While Section 24 of the Public Procurement Act establishes open competitive bidding as the general rule, the Act also provides for alternative methods under specific conditions.

The central issue is whether the procurement process complied with the law and whether the necessary approvals and statutory requirements were satisfied.

Further documentary evidence, official clarification or legal proceedings would be needed to determine whether any offence occurred and whether any individual bears criminal responsibility.

What is your opinion on the direct procurement of major government projects in Nigeria? Share your views respectfully in the comment section.

Sources

Editorial note: This report distinguishes the minister’s documented statements from allegations and legal interpretations. Readers should consult the original reports and official legal documents for further details.

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