Lagos Coastal Road Controversy: Demolitions, Lost Properties and the Questions Facing Government

The Lagos - Calabar Coastal Highway was presented as a major infrastructure project that would improve transportation and connect communities along Nigeria’s coastline. But for property owners, investors and businesses affected by the project, the story has also involved demolitions, financial losses and unresolved questions about compensation.

Now, fresh controversy over the highway’s route, reports of a possible pause and renewed attention on Landmark Beach have brought those concerns back into focus.

In April 2024, the Federal Government began clearing structures along the Lagos section of the coastal highway, including parts of the Landmark Beach area. The Cable

The government maintained that the demolitions affected structures within the highway’s right of way, describing some of them as shanties. However, reports documented the destruction of beachfront businesses and structures, including facilities associated with the Landmark Beach leisure destination. BusinessDay's

The dispute quickly became about more than road construction. It raised questions about the route selected, consultation with affected businesses and the financial consequences of clearing an established commercial area.

The impact extended beyond Landmark Beach itself. Businesses operating along the beachfront faced the loss of premises, customers and investments, while workers and suppliers risked losing income.

On October 15, 2026, Paul Onwuanibe said that the acquisition and development of the property involved a combined $47 million in historical acquisition costs and borrowing. He also alleged that he had not received compensation. Avid 

These figures reflect the owner’s account and should not be confused with an independently established market valuation or a final compensation assessment.

In March 2026, businessman Akin Olaoye also spoke publicly about the destruction of his eyewear retail store at Landmark Beach. He said he had received no compensation, although he later expressed support for the completed road section. TheCable 

In October 2026, renewed debate emerged over the highway’s alignment and the Federal Government’s plans for other road projects in the South-South.

Following a meeting with President Bola Tinubu, Works Minister David Umahi rejected reports that the 750-kilometre Lagos Calabar Coastal Highway had been abandoned or replaced by the East-West Road. He maintained that the coastal highway remained part of the government’s plans, while the additional East-West Road reconstruction would proceed separately. Premium Times

The controversy has nevertheless raised questions about how the route may evolve, what previous design decisions mean for affected properties, and whether the public will receive sufficient documentation explaining changes.

Reports and public discussion about a pause in demolition activities have added another layer to the controversy. However, a pause in a particular operation, a review of the route and an official suspension of all demolitions are not necessarily the same thing. Channels Television

As of October 18, 2026, The government’s latest public position on the highway should therefore be distinguished from any unconfirmed claims about suspended demolitions.

What remains important is whether affected property owners will receive clear communication about the status of their properties, any revised route plans and the process for resolving outstanding compensation claims.

The coastal highway may offer long-term transportation benefits, but those benefits do not eliminate the need for transparency and accountability.

The government should provide accessible information about approved route changes, property acquisition procedures, environmental assessments and compensation decisions. Affected property owners and businesses should also have a clear channel through which to submit claims and obtain answers.

For Nigerians watching the controversy, the key question is not simply whether the road will be completed. It is whether major infrastructure can be delivered while treating affected communities, investors and businesses fairly.

What do you think? Should the government prioritise faster infrastructure delivery, or should greater attention be given to compensation and protecting existing investments?

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