NIgeria’s Minister of Works, David Umahi, has announced that the first section of the Lagos-Calabar Coastal Highway will be completed by May 29, 2025.
This 47.7-kilometre stretch, situated within Lagos State and commencing from Ahmadu Bello Way, has been under construction since March 2024, with Hitech Construction Company Limited as the lead contractor.
Speaking at a recent event, Umahi emphasised the government’s plans to toll this section of the highway for a period of five to ten years to recover construction costs.
“The first section of the Lagos-Calabar Coastal Highway is going to be completed by May 29th, and we are going to toll it. We’re going to get back our money within five to ten years” Umahi stated.
Umahi revealed that the federal government’s strategy extends beyond tolling. The administration aims to capitalise on the highway’s economic potential by developing land along the corridor for tourism, factories, and housing.
These initiatives, he explained, are part of a broader vision to enhance the project’s financial returns while driving local development.
“The government is not just thinking about toll revenue; we are looking at holistic development along this corridor, including housing, factories, and tourism,” Umahi said.
The Lagos-Calabar Coastal Highway is seen as a critical infrastructure project to address long-standing logistical challenges at the Apapa Wharf. Due to shallow berths, Apapa Wharf has been unable to handle large cargo volumes, necessitating costly transloading, which incurs significant daily financial losses for Nigeria. The new highway is expected to reduce these costs and improve the flow of goods across the country.
Additionally, the Works Minister highlighted the importance of the ongoing construction of a seven-axle road that will facilitate smoother transportation for industries such as the Dangote Refinery and Fertilizer Plant, both situated within the Lekki Free Trade Zone. This road will connect to the Sagamu-Benin Expressway, enhancing supply chain efficiency across key regions, including the North, South-West, South-South, and South-East.
In line with global trends toward sustainable development, Umahi also disclosed plans to harness wind energy along the coastal highway corridor.
This renewable energy initiative is expected to play a role in the long-term development of the area, contributing to Nigeria’s broader clean energy goals.
The Lagos-Calabar Coastal Highway is a 700-kilometer project, designed to stretch across nine states, improving connectivity and boosting economic activity 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, wherein the contractor bears most of the financial and construction risks. The federal government, however, is providing counterpart funding.
Work on the highway officially commenced in March 2024, and while the first phase is set to be completed by mid-2025, the entire 700-kilometer highway is expected to take eight years to finish.
Multiple sections of the project will begin simultaneously as procurement and approvals are finalised, allowing for faster completion.
Chioma Kalu
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