The Federal Government, through the Minister of Works, David Umahi, has commenced negotiations with the African Development Bank (AfDB) to secure funding for vital segments of the coastal and trans-Saharan highways within Nigeria.
The talks regarding potential financing took place at the Minister of Works’ office in Abuja on Tuesday, involving a delegation from the African Development Bank, spearheaded by Mike Salawou, the Director of Infrastructure and Urban Development, as detailed in a statement the ministry’s website.
- “As part of the action plan of the Federal Government to increase the economic opportunities of the nation and enhance the transnational investment process as envisioned by the Renewed Hope administration of the President of Nigeria, His Excellency, President Asiwaju Bola Ahmed Tinubu GCFR, the Hon. Minister of Works, His Excellency Sen. Engr Nweze David Umahi CON has opened a discussion with African Development Bank on possible funding for the construction of some sections of the Coastal and Trans- Sahara Highways in parts of Nigeria,” the statement read in part.
Umahi highlighted that the Coastal and Trans-Sahara Highways are set to offer lasting infrastructure and foster industrialization along their paths.
These highways are anticipated to form an extensive network of well-paved roads, facilitating a robust transportation system and trade routes across the North-South corridors.
The Minister pointed out that these routes are ripe with investment opportunities in infrastructure development, spanning the hospitality industry, tourism, agricultural production, real estate, parks, and industrial sectors.
What you should know
Umahi stated that funding sought from the African Development Bank (AfDB) would be required to tackle the sections of the coastal and trans-Sahara highways not yet constructed, awarded, or taken over by concessionaires under the Highway Development and Management Initiative (HDMI).
Speaking about the coastal highway project, the minister said it would stretch 700 kilometers, connecting Lagos to Cross River and weaving through the coastal states of Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom, and finally ending in Cross River, adding that there would also be extensions like the spur to the Ogoja road and the African Trans-Sahara Road leading to Cameroon.
Umahi further highlighted that the coastal road project has been meticulously planned in sections to ensure systematic development and execution. He revealed that the first section of phase one, measuring 47.47 kilometers, was awarded to Hi-tech Construction Limited last week.
According to him, this initial phase stretches from Ahmadu Bello Way to the Lekki deep seaport, culminating at the Lekki Peninsula.
The subsequent phase of the coastal road, approximately 57 kilometers long, aims to extend from the end of phase one to the border between Ogun and Ondo States.
More insights
- Concerning the financing of the coastal highway, Umahi said it is envisioned to attract various investors, with Hi-tech Construction Nigeria Limited leading the initiative. Discussions and collaborations with Hi-tech, alongside the Honourable Minister of Finance and the Coordinating Minister of the Economy, are anticipated to further the project’s development, he added.
- In his remarks, Salawo, the spokesperson for the African Development Bank (AfDB) team, emphasized the bank’s commitment to aiding the economic growth and social advancement of its member countries. He assured robust support for the Federal Government of Nigeria, highlighting the bank’s readiness to provide both technical and financial assistance for road infrastructure development.
- Stressing the importance of available studies for effective assistance, Salawou mentioned the bank’s eagerness to mobilize resources for various projects. He also pointed out the significance of the road dualization project between Nigeria and Cameroon, underlining its potential to enhance regional integration and trade relations, given Nigeria’s position as Cameroon’s foremost trade ally.