The Minister of Works, David Umahi, has said that the Lagos-Calabar Coastal Highway costs less per kilometer when compared to inherited road projects such as the Eleme-Onne and Abuja-Kano roads.
He made the disclosure during an interview on Arise TV on Friday, where he provided updates on key infrastructure milestones marking President Bola Tinubu’s two years in office.
Umahi acknowledged that while some critics consider the N4 billion per kilometer cost of the Coastal Highway expensive, they fail to recognize that it is actually lower than the cost per kilometre of several inherited projects.
He pointed out that the inherited Eleme-Onne Road, spanning about 30 kilometers and pegged at N156 billion, (equating to about N5.2 billion per kilometer) initially designed with two asphalt layers, it was later upgraded to reinforced concrete by the current administration at the same cost, enhancing durability and quality.
“I had run the value-for-money analysis and made it clear that a kilometer costs N4 billion. If you look at the cost of the Coastal Highway and compare it to some of the inherited projects, like the Eleme-Onne Road, which was 30 km for N156 billion—it was supposed to be done with two layers of asphalt: the binder and the wearing course.
“However, when we came on board, we redesigned it. Today, we have one full carriageway completed with reinforced concrete pavement at the same cost. Work is ongoing on the second carriageway.
“So, I can beat my chest and say, look, the Eleme-Onne Road project costs more, the Abuja-Kano Road project costs more—as inherited—than the Coastal Highway,” Umahi stated.
The Minister also highlighted the restrictive procurement process that led to awarding the contract to Hitech Construction Company, chosen for their expertise in coastal engineering, citing their work on the Eko Atlantic project.
What you should know
The Lagos-Calabar Coastal Highway is a 700 km infrastructure project designed to enhance connectivity and drive economic growth along Nigeria’s southern corridor. It will run from Lagos to Cross River, passing through Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom states.
The Federal Government awarded the contract to Hitech Construction Company Ltd. under an Engineering, Procurement, Construction, and Financing (EPC+F) model, where the contractor bears the bulk of the financial and construction risks while the government provides counterpart funding.
- The loan component of the project is being financed by the Dutch Bank and the Development Bank of Southern Africa.
- Construction of Section 1, which spans 47.47 km, began in March 2024. Of this, 30 km will be commissioned by President Bola Tinubu on May 31, 2025.
- President Bola Tinubu officially flagged off the highway on May 26, 2024, in Lagos. Other segments—including Section B3 in Cross River and the portion in Akwa Ibom—were flagged off in April 2025.
The project has faced criticisms over property demolitions and timing, but Umahi has defended it as being in the national interest. He also revealed plans to recommend tolling for the first completed section.
