The Federal Government has acquired parcels of land along the Lagos-Calabar Coastal Highway corridor, with plans to drive investment through the development of housing and factories.
The Minister of Works, David Umahi, announced the initiative during an inter-ministerial press briefing to mark Nigeria’s 64th Independence anniversary.
Umahi explained that, in addition to tolling the highway, the government intends to build infrastructure such as homes, factories, and tourism centers, which are expected to generate revenue. This approach aims to ensure quicker returns on the government’s investments.
“The Federal Government is also planning additional initiatives, including developing land along the corridor for tourism, factories, and housing, as part of efforts to further enhance returns on the project,” Umahi said.
He noted that simply tolling the road would not immediately yield the expected financial returns, necessitating additional development along the corridor. “We’ve realized that tolling of roads alone won’t give immediate returns,” he stated.
Relieving Pressure on Apapa Wharf
The minister highlighted the strategic importance of the coastal highway, stating that it would ease the burden on Apapa Wharf, which has been facing challenges due to shallow berths that limit cargo handling capacity. This limitation has led to the expensive process of trans-loading, where goods are transferred between vessels, causing significant financial losses for the country.
Boosting Industrial Logistics
Umahi emphasized that the coastal highway, designed as a seven-axle road, is crucial for transporting goods from industries such as the Dangote refinery and fertilizer plant in the Lekki Free Trade Zone. The highway will connect with the Sagamu-Benin Expressway, creating smoother logistics across the North, South-West, South-South, and South-East regions.
Construction of the 700-kilometer coastal highway, which will pass through Lagos, Ogun, Ondo, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross River states, began in March. The first section, spanning 47.47 kilometers, is set to be completed by May 29, 2025, and will be managed by Hitech Construction Company Limited.
“We’re going to toll the road and expect to recoup our investment within five to ten years,” Umahi assured.