FG Awards Lagos Ports Renovation To Tinubu’s Ally Gilbert Chagoury—Controversy Brews

Sources familiar with the matter disclosed that the Federal Executive Council (FEC) approved the contract in February 2024, with the Nigerian Ports Authority (NPA) expected to make an official announcement soon. “Yes, the award was given to Chagoury Group after due process,” a source confirmed to TheCable.

In November 2023, the NPA outlined plans to rehabilitate Nigeria’s ports, a project estimated at $1.1 billion. By April 18, 2024, the agency announced it had secured a $700 million facility agreement with Citi Bank Nigeria, backed by UK Export Finance (UKEF), to fund the renovation of the Apapa and Tin Can Island ports.

While the NPA has not officially confirmed Chagoury Group’s involvement, its spokesperson, Ikechukwu Onyemekara, stated that the project was awarded to Hitech Construction and ITB Nigeria. However, investigations by TheCable revealed that both firms are subsidiaries of Chagoury Group, raising questions about the conglomerate’s role in the contract.

Chagoury Group has played a significant role in Lagos’ infrastructure development, handling projects such as the Lekki-Epe Expressway and the Ajah flyover. In September 2023, Minister of Works David Umahi announced that Hitech would also execute the Lagos-Calabar coastal highway under a public-private partnership (PPP) arrangement.

The contract award has sparked controversy, with former Vice President Atiku Abubakar alleging a conflict of interest, pointing out that President Tinubu’s son, Seyi Tinubu, is a director at CDK Integrated Industries, another subsidiary of Chagoury Group. However, the presidency defended Seyi Tinubu’s business involvement, insisting that he operates within the law. Umahi also dismissed allegations of favoritism, stating that President Tinubu did not influence the selection of contractors for the Lagos-Calabar road project.