$250 Million Lawsuit Hits FG Over Alleged Illegal Demolition on Lagos-Calabar Coastal Road Project
A coalition of foreign investors, operating under the U.S. chapter of the Foreign Investors Network, has filed a $250 million lawsuit against the Federal Government of Nigeria and its contractor, HiTech Construction Company Ltd, over alleged illegal demolition of private property in Lagos to make way for the ongoing Lagos-Calabar Coastal Highway.
The investors, who own an 18.84-hectare property within Winhomes Global Estate in Okun-Ajah, Lagos State, claim their land was unlawfully encroached upon and marked for demolition by government agents without adherence to due legal procedures. The estate, according to court documents, is backed by a valid Certificate of Occupancy, an approved survey plan (BOM/3538/001B/2024/LA/TOPO), and Governor’s consent.
At the centre of the dispute is an alleged deviation from the officially approved alignment of the coastal highway. The coalition argues that the road’s alignment was secretly altered between Chainage 16+500 and 17+500, causing it to cut through their titled land. They contend that this move was not gazetted and was executed without any form of notice, engagement, or compensation actions they say violate Sections 36 and 44 of Nigeria’s 1999 Constitution, which guarantee the right to fair hearing and protection from unlawful property seizure.
The investors have approached a Federal High Court, seeking multiple reliefs. These include a declaration that the demolition markings and proposed acquisition of their land are illegal, an order halting all further interference or demolition activities, and a $250 million compensation for the damages, losses, and threats posed to their investment. They are also seeking a mandamus order compelling the Federal Ministry of Works and other defendants to follow proper legal procedures, including issuing notices, conducting hearings, and providing compensation where necessary.
Legal analysts say the suit could set a significant precedent for property rights enforcement in Nigeria, especially in cases involving major public infrastructure projects. The Lagos-Calabar Coastal Highway is one of the Tinubu administration’s flagship infrastructure projects, designed to span over 700 kilometres across several coastal states, linking Lagos to Calabar.
However, the project has faced numerous controversies since inception, including accusations of environmental negligence, hasty demolitions, and noncompliance with compensation protocols. Communities in Lafiaji, Okun-Ajah, and other areas have previously raised alarms over abrupt demolition of homes and businesses.
The latest lawsuit, however, is the most high-profile legal challenge yet, given the magnitude of the compensation being sought and the fact that it involves foreign investors. Stakeholders fear it could negatively impact Nigeria’s investment image if not handled with transparency and respect for due process.
As of now, the Federal Government and HiTech are yet to file a formal response to the suit. The court is expected to schedule a hearing in the coming weeks, as the coalition pushes for swift legal intervention to prevent further demolition or project activity on the disputed land.
The outcome of this case is likely to have far-reaching implications for land governance, foreign direct investment, and the broader credibility of large-scale government infrastructure initiatives in Nigeria.
