Former Nigerian Vice President, Atiku Abubakar, has alleged that President Bola Tinubu’s son, Seyi, and his surrogates are on the board of Hitech Construction Ltd owned by Gilbert Chagoury, which was recently awarded the controversial multibillion dollar Lagos-Calabar coastal highway which he says constitutes a conflict of interest.

Atiku, who was presidential candidate of the Peoples Democratic Party (PDP) in the country’s 2023 election, in a statement on Sunday, said awarding the contract to the company meant that Tinubu had placed his personal interest above the interest of the country.

In the statement issued by his media adviser, Paul Ibe,
Atiku cited a report by the Paris-based Africa Intelligence News Agency which revealed by the Corporate Affairs Commission
that Tinubu’s son is a director on the board of CDK Integrated Industries, a subsidiary of the Chagoury Group, which manufactures ceramic tiles and sanitary towels.

He noted that such a situation will make it difficult for Nigeria to attract foreign investors if the government fails to make the process of awarding contracts transparent and open, adding that it was not surprising that the Chagoury Group had become the biggest beneficiary of the Tinubu largesse.

The former Vice President restated that it has become obvious even to the undiscerning that the Lagos-Calabar Coastal Highway is being done in a hurry purely because of the business relationship between Tinubu and Gilbert Chagoury, the owner of Hitech, the contractor that was awarded the contract for the highway project in contravention of the procurement laws.

“It is on record that this project is the most expensive single project ever embarked upon by the Nigerian government. The fact that it is happening at a time Nigeria is facing its worst economic crisis ever is a red flag,” Atiku said.

“Thanks to quality reporting by Africa Intelligence, our suspicions have been confirmed that Chagoury and Tinubu are indeed business partners and it has been formalized with Seyi on the board of one of Chagoury’s firms.

“To add insult to injury, this project that is being done in excess of $13bn was awarded without a competitive bidding. From all indications, the so-called Badagry-Sokoto highway would be awarded in a similar fashion at an enormous cost to taxpayers purely because Tinubu has put his personal interest ahead of the Nigerian people.

“Tinubu has been globetrotting in search of foreign direct investments. He claims to have secured over $30 billion from various companies, but none has been forthcoming.

“Rather, all manufacturing firms have been posting heavy losses while some are exiting due to his poorly implemented exchange rate unification policy with even Aliko Dangote describing it as a huge mess at the recent annual general meeting of Dangote Sugar Refinery.

“The IMF in its latest report stated that Nigeria will by the end of the year, become the 4th largest economy in Africa behind South Africa, Egypt and Algeria, a disgraceful development for a nation which was the largest in Africa by a mile when the PDP left the stage in 2015.

“Investors are seeing how local businesses are being treated and will not come to a place where their investments will not be protected.

“But Tinubu’s eagerness to satisfy his business partners impaired his ability to coordinate the project properly.

“The awarding of the Lagos-Calabar coastal highway was rushed; the environmental impact assessment report was not even completed; the right of way for the 700 km stretch of the highway project was not secured; it was converted from a PPP to a government funded project within the twinkle of an eye.

“Under a normal circumstance, the project ought to have gone through a proper bid process and after a certificate of no objection by the BPP, the evaluation report should have been sent to the federal Executive Council FEC, for approval before the award.

“But what we saw was a letter from the Presidency informing the BPP that the contract was awarded to the company, which the BPP DG simply approved,” he stated.

A civil society organisation in Nigeria, Socio-Economic Rights and Accountability Project (SERAP), has dragged the 36 state governors of the Federation and the Minister of the Federal Capital Territory (FCT), Nyesom Wike, to court over their failure to account for and publish agreements made in N5.9 trillion and $4.6 billion loans obtained by their states and the FCT respectively.

The lawsuit with the number FHC/ABJ/CS/592/2024, was filed on behalf of the group by its legal team comprising of Kolawole Oluwadare, Kehinde Oyewumi and Valentina Adegoke, at the Federal High Court, Abuja.

In a statement on Sunday confirming the suit, the CSO said it has “asked the court to direct and compel the 36 governors and Wike to account for the N5.9trn and $4.6bn loans obtained by their states and the FCT and to publish copies of the loan agreements, location of projects executed with the loans for the public to see.

According to SERAP, the suit is sequel to its earlier demand addressed to the 37 respondents in a statement issued by the organisation’s Deputy Director, Kolawole Oluwadare on March 31.

In the suit, SERAP prayed the court to “direct and compel the governors and Mr. Wike to invite the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to investigate the spending of all the loans obtained to date by their states and the FCT.”

“It is in the public interest to grant the reliefs sought. Nigerians have the right to see and scrutinise the loan agreements and know the details of how the domestic and external loans obtained by the governors and FCT minister are spent,” it said.

“Opacity in the spending of the loans obtained by the governors and Mr. Wike would continue to have negative impacts on the fundamental interests of the citizens.”

SERAP further noted that many states in the country, including the FCT, had spent “public funds which may include the loans obtained by them to fund unnecessary travels, buy exotic and bulletproof cars and generally fund the lavish lifestyles of politicians.”

“According to the Debt Management Office (DMO), the total public domestic debt portfolio for the country’s 36 states and the Federal Capital Territory is N5.9 trillion. The total public external debt portfolio is $4.6 billion,” the group said.

It also accused the respondents of “allegedly mismanaging public funds which may include domestic and external loans obtained from bilateral and multilateral institutions and agencies.”

“SERAP demands transparency in the spending of the loans as they are fundamental to increase accountability, prevent corruption, and build trust in democratic institutions with the ultimate aim of strengthening the rule of law.

“The governors and the FCT Minister cannot hide under the excuse that the Freedom of Information Act is not applicable to their states and the FCT.

“Legal obligations to publish the information sought are also imposed by the provisions of the Nigerian Constitution and the African Charter on Human and Peoples’ Rights.”