The Federal Government has said the Lagos-Calabar Coastal Highway project is already attracting strong interest from international investors, with at least four companies indicating willingness to refund the full cost of Section One in exchange for the right to operate and toll the road. This disclosure was made on Wednesday by the Minister of Works, David Umahi, during a press briefing at the ministry’s headquarters in Abuja.
Umahi said the coastal highway was designed as an investment-led infrastructure project rather than a traditional government-funded road project. According to him, the administration of President Bola Ahmed Tinubu deliberately structured the project to attract external funding at a time when the country is under fiscal pressure and needs to draw foreign capital into the economy.
He explained that the Federal Government is funding only about 30 per cent of the Lagos-Calabar Coastal Highway, while the remaining 70 per cent is being sourced from international financiers. The minister said the expected return on investment for the project remains high, which is why foreign investors have shown interest in taking over completed sections for tolling.
Umahi revealed that four companies have already expressed interest in paying back 100 per cent of what the government has spent on Section One of the highway. He said the companies are willing to take over the section and recover their investment through toll operations. According to him, discussions with the interested firms are ongoing.
The minister described the Lagos-Calabar Coastal Highway as more than just a road construction project, saying it is a strategic economic corridor designed to connect and unlock multiple infrastructure projects across the country. He said the road is meant to support trade, tourism, logistics, and coastal protection, while also serving as an evacuation route for oil, gas and agricultural products in Nigeria’s southern corridor.
Reacting to criticisms raised by Senator Enyinnaya Abaribe over the procurement process for the project, Umahi strongly rejected the claims and said they amounted to an attack on his integrity. He insisted that due process was followed in the award of the contract and said the project complied fully with the provisions of the Public Procurement Act.
According to the minister, the Procurement Act recognises three procurement methods, and the Lagos-Calabar Coastal Highway followed the appropriate procedures allowed by law. He challenged critics to study the Act and point out any specific area where the government breached procurement rules in executing the project.
Umahi also said the project underwent a comprehensive Environmental and Social Impact Assessment, which he described as a critical requirement for attracting international funding. He explained that the ESIA process involved public advertisements, consultations with stakeholders in affected communities, independent assessments led by an academic expert, and an open window for international comments before certification was granted.
He added that a certificate of Environmental and Social Impact Assessment was issued at the end of the process and was publicly displayed, noting that all records are available for verification. According to him, international financiers would not commit funds to a project that failed to meet environmental and social standards.
The minister disclosed that foreign financial institutions, including the Dutch Development Bank, carried out independent assessments of Section One of the Lagos-Calabar Coastal Highway. He said the institutions gave positive feedback, describing the project as properly structured, high in quality and undervalued.
Umahi further stated that when the project was opened to foreign lenders, it was oversubscribed by about $100 million, a development he said showed the level of confidence international investors have in the project. He noted that foreign funders subject projects to rigorous scrutiny before approving financing.
The Lagos-Calabar Coastal Highway is one of four legacy infrastructure projects initiated by President Tinubu. The road is expected to stretch about 700 kilometres along Nigeria’s coastline, linking Lagos, Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River states. Section One of the project, which runs from Ahmadu Bello Way in Lagos to the Lekki axis, has drawn public attention due to concerns over cost, procurement and environmental impact.
The Federal Government has continued to defend the project, maintaining that it followed due process and would deliver long-term economic benefits while reducing pressure on existing transport routes. Umahi said the sustained interest from international investors shows that the project is economically viable and credible.
The minister also responded to comments attributed to Senator Abaribe regarding political support for President Tinubu in the South East. Umahi said his response was based on his assessment as a minister involved in infrastructure development in the region. He stated that governors from the South East are working with the Federal Government and benefiting from ongoing projects.
Using Abia State as an example, Umahi said the performance of Governor Alex Otti should be seen within the context of the broader national reforms and support provided by the Federal Government. He also referred to recent security-related appointments and projects in the South East, including the establishment of an army depot in Abia State, which he said were aimed at improving security in the region.
He dismissed claims that the South East would not support President Tinubu in future elections, describing such views as personal opinions rather than a collective regional position.
