Outrage as Coastal Road Investors Sue FG Over $250M Loss, Demand Justice in Lagos-Calabar Highway Dispute

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A major storm is brewing over Nigeria’s ambitious Lagos-Calabar Coastal Highway project, as diaspora investors behind a $250 million real estate development at Okun-Ajah accuse the Federal Government of unlawful demolition, lack of transparency, and betrayal of investor trust. The group, operating under the Foreign Investors Network of Nigeria (FINN), includes U.S.-based Nigerians and American partners who have now filed a lawsuit against the Federal Government and construction giant Hitech for damages and legal redress.

At the heart of the controversy is the alleged diversion of the original 2006 gazetted alignment of the coastal road, which the investors claim was altered without consultation, thereby affecting their legally approved property – the 18.8-hectare Winhomes estate. The investors say they obtained all necessary building permits and title documents before beginning construction. Despite this, bulldozers moved in earlier this year and demolished parts of the estate to pave way for the highway’s new path.

In a strongly worded open letter addressed to President Bola Tinubu, the investors condemned the action as an act of impunity and a blatant disregard for property rights. They questioned the logic behind deviating from the original coastal alignment to an inland path that, according to their technical assessments, had no genuine infrastructural necessity. The Federal Ministry of Works had cited the need to avoid MTN’s 2Africa subsea cable, but experts insist the cable lies offshore and poses no obstruction to the original route.

The group further accused officials of the ministry of working in secrecy and sidelining affected stakeholders in the decision-making process. Their concerns come just as Nigeria secured a record-breaking $747 million syndicated loan led by Deutsche Bank to finance the initial phase of the 700-kilometre coastal highway project. While the Federal Government touts the deal as a milestone in infrastructure financing, the investors argue that such a major national project should not come at the expense of lawful businesses and private citizens.

The lawsuit, now before a Federal High Court in Lagos, seeks a halt to further demolition within the affected zone — specifically chainage 16+500 to 17+500 — as well as compensation and full restitution. Civil society groups and legal analysts have thrown their support behind the investors, warning that such actions could send a negative signal to other foreign investors and dent Nigeria’s image on the global investment stage.

Further fueling the outrage are reports that journalists have been barred from accessing key construction areas along the Lagos corridor, raising additional concerns over environmental impact, community displacement, and project transparency. Land speculation is already on the rise along parts of the highway, with real estate prices reportedly doubling in Lekki and other fast-developing areas, even as investor confidence in the system begins to erode.

This controversy is rapidly becoming a litmus test for the Federal Government’s commitment to due process, fair treatment of investors, and responsible infrastructure development. As the court battle unfolds and public pressure mounts, the fate of both the Winhomes estate and Nigeria’s multi-billion-dollar coastal dream now hangs in the balance.