The Minister of Works, David Umahi, has announced that the first section of the Lagos-Calabar Coastal Highway is set to be completed by May 29, 2025, after which it will be tolled for 5 to 10 years to recover construction costs.

The construction of this first phase, which stretches 47.7 km within Lagos State, starting from Ahmadu Bello Way, commenced in March 2024 by Hitech Construction Company Limited.

Umahi made this disclosure during a recent event televised by Channels Television.

“The first section of the Lagos-Calabar Coastal Highway is going to be completed by May 29th and and we are going to toll it and we’re going to get back our money within 5 to 10 years,” Umahi said.

The Works Minister further disclosed that in addition to tolling, the Federal Government is planning to implement additional initiatives, including developing land along the corridor for tourism, factories, and housing, as part of efforts to further enhance returns on the project.

More insight  

Umahi explained that the Lagos-Calabar Coastal Highway is designed to relieve the strain on Apapa Wharf, which has long faced challenges due to its shallow berths that limit cargo handling capacity. These constraints, he noted, have necessitated the costly process of transloading, where goods are shifted between vessels, resulting in significant daily financial losses for Nigeria.

He also emphasized the importance of the seven axle road under construction, which will facilitate the seamless transportation of goods from the Dangote Refinery, Fertilizer Plant, and other major industries within the Lekki Free Trade Zone.

This critical infrastructure will connect to the Sagamu-Benin Expressway, ensuring smoother logistics and supply chains across key regions, including the North, South-West, South-South, and South-East.

In addition, the project is set to tap into the renewable energy potential along the coastal corridor, with plans to harness wind energy for future development.

What you should know 

The Lagos-Calabar Coastal Highway is a 700-kilometer project designed to span nine states, aimed at improving connectivity and boosting economic growth along Nigeria’s coastline.

The contract for the project was awarded to Hitech Construction Company Ltd. under an Engineering, Procurement, Construction, and Financing (EPC+F) arrangement, where most of the financial and construction risks are assumed by the contractor, with the federal government providing counterpart funding.

Construction officially began in March 2024 with the first phase, a 47.7-kilometer stretch in Lagos State, starting from Ahmadu Bello Way.

The Minister of Works previously stated that the full 700-kilometer highway is expected to be completed in eight years, with multiple sections beginning simultaneously once procurement, approvals, and other necessary processes are finalized.