The Bola Ahmed Tinubu-led federal government has awarded a contract for the renovation of Tin Can and Apapa ports in Lagos to Chagoury Group, a multinational conglomerate owned by Lebanese-Nigerian billionaire Gilbert Chagoury.
Contract Approval and Funding
Sources confirm that the Federal Executive Council (FEC) approved the contract in February 2024, with an official announcement expected from the Nigerian Ports Authority (NPA) soon.
“Yes, the award was given to Chagoury Group after it followed due process,” a source told TheCable, confirming the development.
The NPA had previously outlined a $1.1 billion plan to rehabilitate Nigeria’s ports, with $700 million secured in April 2024 through Citi Bank Nigeria, backed by UK Export Finance (UKEF).
While the NPA initially did not disclose Chagoury Group’s involvement, its spokesperson, Ikechukwu Onyemekara, later clarified that the project was awarded to Hitech Construction and ITB Nigeria. However, investigations revealed that both companies are subsidiaries of Chagoury Group, confirming the conglomerate’s direct role in the project.
Chagoury Group’s Expanding Influence
Chagoury Group is known for handling major infrastructure projects in Lagos, including the Lekki-Epe Expressway and Ajah Flyover. In September 2023, Minister of Works David Umahi announced that Hitech Construction, another subsidiary, would lead the Lagos-Calabar Coastal Highway project under a public-private partnership (PPP).
Controversy Over Conflict of Interest
The contract award has sparked criticism, particularly from former Vice President Atiku Abubakar, who raised concerns about a potential conflict of interest. Atiku pointed out that Seyi Tinubu, President Tinubu’s son, is a director at CDK Integrated Industries, another subsidiary of Chagoury Group.
The presidency dismissed these concerns, insisting that Seyi Tinubu has the right to engage in private business within legal boundaries. Additionally, Minister Umahi defended the process, stating that President Tinubu did not influence the selection of any company for the Lagos-Calabar highway project.
Public Reactions and Implications
This development has reignited debates over transparency in government contracts, particularly in awarding multi-billion dollar infrastructure projects. While supporters argue that Chagoury Group’s track record makes it a suitable choice, critics fear that political connections may have played a role in securing the contract.
With the Nigerian Ports Authority expected to make a formal announcement, all eyes will be on the implementation and transparency of the project.
