A $13 billion contract to develop a large coastal roadway in Nigeria was recently awarded to Hitech Construction Company Ltd., although the process did not follow the typical public channels.Hitech, owned by the Chagoury brothers, are well-known in the construction industry and have a close relationship with Nigerian President Bola Tinubu.
Here’s what happened: the agreement was secured without any public bidding, which has raised a lot of eyebrows across the country.
This link has sparked discussion because it reveals that the president’s son, Seyi Tinubu, and Ronald Chagoury Jr, the son of one of the Chagoury brothers, co-owned a strange offshore firm.
The Organized Crime and Corruption Reporting Project (OCCRP) discovered this relationship after receiving some papers.
These documents revealed a collaboration between Seyi Tinubu and Ronald Chagoury Jr in the British Virgin Islands, where company secrets were kept private.
Fast forward to today, and this $13 billion project is expected to run 700 kilometers from Lagos to Calabar, beginning at a posh new development named Eko Atlantic City, which is also linked to the Chagoury company.
The government invested 1 trillion Nigerian naira (about $670 million) to begin off the first 47-kilometer leg. What’s the plan? The government pays 30% of the expenditure, with Hitech covering the remainder.
The project is expected to be a game changer for Nigeria, connecting millions to critical economic locations, increasing trade, and other such benefits. President Tinubu himself has praised the Chagoury brothers, describing them as “worthy stakeholders.”
However, not everyone is buying the story. Critics and campaigners are outraged by the lack of a public tender.
They claim that awarding such a large job to a friend’s company without competitive bidding raises red flags. It’s like giving away a large portion of the national pie without asking who else might want a piece.
The Minister of Works, David Umahi, claims that everything was done correctly, noting that the project followed all of the laws and that the president did not play favorites. However, given Nigeria’s track record of corruption (spoiler alert: it isn’t great) and previous scandals surrounding the Chagourys, people are wary.
