The Federal Government’s Lagos-Calabar Coastal Highway has begun attracting strong international investor interest, with at least four companies offering to refund the full cost of Section One of the project in exchange for operating and tolling the road, the Minister of Works, David Umahi, has said.
Umahi disclosed this on Wednesday during a press briefing at the Ministry of Works headquarters in Abuja, describing the 700-kilometre coastal highway as an investment-driven legacy project rather than a routine public works contract. He said the project aligns with President Bola Ahmed Tinubu’s strategy of leveraging foreign capital to stimulate economic growth amid fiscal pressures.
According to the minister, the Federal Government is financing only about 30 per cent of the project, while 70 per cent is being sourced from international financiers, with returns described as highly attractive. He revealed that discussions were already underway with four companies willing to take over and toll Section One after reimbursing the government’s entire expenditure on that segment.
Umahi explained that the Lagos-Calabar Coastal Highway was designed as a strategic economic corridor meant to unlock multiple infrastructure assets across the country, linking ongoing federal projects and boosting trade, tourism, logistics and coastal protection. He added that the road would also serve as a critical evacuation route for oil, gas and agricultural resources across the southern belt.
The minister dismissed allegations by Senator Enyinnaya Abaribe questioning the project’s procurement process, describing them as a direct attack on his integrity. He insisted that the contract fully complied with the Public Procurement Act, noting that all recognised procurement methods under the law were duly observed.
Read also:
- Bumpy road to resumption of oil production in Ogoni
- Delta approves over ₦42bn for roads, flood control, power projects
- FG moves against checkpoints on Lagos port access roads
Umahi further stated that the project passed through a comprehensive Environmental and Social Impact Assessment, a key requirement for attracting international funding. He said the process involved public notices, stakeholder engagements in affected communities, independent technical reviews led by academic experts and an open international comment period before certification was granted.
He disclosed that international financiers, including the Dutch Development Bank, conducted independent evaluations of Section One and gave positive assessments, describing the project as properly structured, high quality and undervalued. According to him, the funding offer was oversubscribed by about $100 million, reflecting strong global confidence in the project’s credibility.
The Lagos-Calabar Coastal Highway is one of President Tinubu’s four flagship legacy projects, designed to connect Lagos, Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River states. Section One, stretching from Ahmadu Bello Way in Lagos to the Lekki axis, has drawn public scrutiny over cost, procurement and environmental concerns, which the government has consistently refuted.
Beyond the highway, Umahi also defended President Tinubu’s record in the South East, rejecting claims that the region has no reason to support the administration. He said such assertions ignored what he described as inclusive governance and tangible federal investments under the current government.
Citing Abia State as an example, Umahi argued that the performance of Governor Alex Otti was enabled by the national economic reforms and policy environment created by Tinubu’s administration. He added that the President had corrected years of exclusion by appointing South-East officers to key national security positions and approving the establishment of an army depot in Abia State to tackle insecurity.
The minister dismissed suggestions that the South East would not support Tinubu in the 2027 elections, insisting that governors from the region were aligned with the President and appreciative of federal interventions.
