Lagos-Calabar Highway: Court strikes out WinHomes estate suit against FG, contractor

The Federal High Court in Lagos has struck out a suit filed by WinHomes Estate Global Services Limited and Ifeoma Okengwu challenging the federal government’s alleged encroachment on an 18.838-hectare property at Okun-Ajah over the ongoing construction of the coastal highway.

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The court ruled that the case falls outside its jurisdiction.

In his ruling on Friday, the judge, Akintayo Aluko, after upholding two separate preliminary objections filed by the first to third defendants, the Controller of Works, Lagos; the Minister for Works; and the Attorney-General of the Federation, as well as Hitech Construction Company.

WinHomes had instituted the suit on 4 October 2024, claiming that the ongoing realignment of the Lagos-Calabar Coastal Highway encroached upon its titled land, allegedly leading to demolition activities and trespass.

Mr Aluko ruled that the court lacked subject matter jurisdiction under Section 251 of the Constitution because the plaintiffs’ claims concerned land use and trespass matters beyond the court’ls authority.

He also held that the plaintiffs lacked locus standi, noting that WinHomes had admitted in court filings that its interest in the land had been divested or sold to third parties.

The judge found that the plaintiffs failed to disclose a reasonable cause of action against the defendants.

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WinHomes had obtained the parcel of land from a local community for development, built only a gatehouse, subdivided the land into plots, and sold them.

The Lagos-Calabar Coastal Highway passes through the parcel, and the Federal Ministry of Works, after stakeholder engagement and offering monetary compensation, which WinHomes refused, demolished the gatehouse to proceed with the highway alignment.

WinHomes had sought declaratory relief and injunctions to restrain the defendants pending the determination of the suit.

The defendants countered with preliminary objections, arguing that the case was fundamentally a land dispute, a matter exclusively within the jurisdiction of the Lagos State High Court under the Land Use Act.

Mr Aluko agreed, noting that although the plaintiffs attempted to frame the suit as a challenge to federal agency actions, the relief sought related to ownership, use, and boundaries of land vested in Lagos State.

He cited Supreme Court and Court of Appeal precedents confirming that disputes over statutory rights of occupancy, trespass, or land title must be heard exclusively by a State High Court.

The judge also ruled that the plaintiffs’ use of Originating Summons was inappropriate for a matter involving conflicting facts, further undermining the competence of the action.

He held that the 2nd and 3rd defendants, the Minister for Works and the Controller of Works, Lagos, lacked juristic personality and could not be sued.

As a result, the court struck out the suit in its entirety for want of jurisdiction, stating that the proper venue for WinHomes to pursue its claims is the Lagos State High Court.

Background

In October, WinHomes petitioned President Bola Tinubu over what it described as the “reckless and unconstitutional” conduct of the Minister of Works, David Umahi, in a $250 million Diaspora-funded development in Lagos.

In an open letter, the organisation’s Chief Executive Officer, Stella Okengwu, a United States citizen and Nigerian Diaspora investor, accused Mr Umahi of abuse of office and actions capable of eroding foreign investor confidence.

She claimed the m inister repeatedly invoked the President’s name while taking public actions on the contested land, calling the move “dangerous, improper, and constitutionally untenable.”

WinHomes estimated the project’s value at N375 billion ($250 million) and claimed that highway diversion through the estate affected 400 plots worth N60 billion, with infrastructure damages of N85 billion.

The company stressed that all funds were transferred through legitimate channels and denied any financial impropriety.

It also accused the minister of facilitating attempts by private developers to acquire portions of the disputed estate.

Minister’s response

Mr Umahi dismissed the allegations during an Arise TV interview, insisting he acted within the law.

He questioned the legality of the land acquisition, the financial structure of WinHomes, and whether the company properly registered its transactions with the Lagos State Government.

He also noted discrepancies between the estate’s claimed plot allocations and its actual size, stating that physical inspections revealed inadequate infrastructure and poorly constructed fences and drainage.

Mr Umahi said only one unauthorised structure outside the gatehouse had been demolished and challenged the company to make its documents public.

He described the estate as being inadequately prepared for the government’s highway project and cited the potential risks of unverified investments.

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Diaspora investors’ reaction

The demolition sparked outrage among Diaspora investors, who claimed they were not given prior notice.

In October 2024, Mrs Okengwu, on behalf of the investors in a statement, reiterated that WinHomes followed proper due diligence, obtained certificates of occupancy, and secured government consent.

She alleged that ministry officials, accompanied by military and Lagos State Taskforce personnel, demolished properties without warning and removed building materials worth hundreds of millions of naira.

The investors stated they are not seeking financial compensation but appealed to President Tinubu to mandate the Minister of Works to revert to the 2006 gazetted highway alignment, warning that continued ministerial overreach could damage Nigeria’s investment reputation and contravene diaspora investment initiatives.