The first section of the Lagos-Calabar Coastal Highway is on track for completion by May 29, 2025, as announced by Minister of Works David Umahi on Monday. Following its completion, the highway will be tolled for a period of 5 to 10 years to recuperate construction costs.

Construction of this initial phase, which extends 47.7 kilometers in Lagos State from Ahmadu Bello Way, began in March 2024 under the management of Hitech Construction Company Limited. Umahi expressed satisfaction during an inspection of the site, emphasizing the project’s quality and the efforts to address the challenges of sand settlement.

“I am pleased with the progress. People have been asking about the completion timeline, and I can assure them that Hitech is doing excellent work. The first section of the Lagos-Calabar Coastal Highway will be finished by May 29, and we will implement tolls to recover our investment over the next 5 to 10 years,” Umahi stated.

In addition to tolling, the Federal Government plans to introduce initiatives aimed at developing the surrounding land for tourism, industry, and housing, further enhancing the project’s return on investment.

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The Lagos-Calabar Coastal Highway is strategically designed to alleviate the pressure on Apapa Wharf, which has faced longstanding operational challenges due to its shallow berths, limiting cargo handling capacity. Umahi pointed out that these constraints lead to costly transloading processes, where goods are moved between vessels, resulting in significant financial losses for Nigeria daily.

The minister also highlighted the importance of the seven-axle roads currently under construction, facilitating efficient transportation of goods from key locations, including the Dangote Refinery and Fertilizer Plant within the Lekki Free Trade Zone. This vital infrastructure will link to the Sagamu-Benin Expressway, ensuring more effective logistics and supply chains across Nigeria’s key regions, including the North, South-West, South-South, and South-East.

Encompassing a total length of 700 kilometers, the Lagos-Calabar Coastal Highway will traverse nine states, significantly enhancing connectivity and promoting economic growth along Nigeria’s coastline. The project contract was awarded to Hitech Construction Company Ltd. under an Engineering, Procurement, Construction, and Financing (EPC+F) model, where the contractor assumes most financial and construction risks, while the federal government provides counterpart funding.

The overall completion of the full 700-kilometer highway is projected to take eight years, with multiple sections expected to commence simultaneously once necessary approvals and procurement processes are finalized.