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Home Sectors Real Estate and Construction

FG seeks 500-meter corridor from governors for tolling infrastructure on four legacy highways 

Caleb Obiowo by Caleb Obiowo
June 1, 2025
in Real Estate and Construction, Sectors
FG increases compensation for Section 1 of Lagos-Calabar Highway from N8 billion to N18 billion 
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The Federal Government has requested state governors to allocate a 500-meter-wide corridor of land along four major legacy road projects—the Lagos-Calabar Coastal Highway, Abuja-Kano Road, Trans-Sahara Highway, and Akwanga-Jos-Bauchi-Gombe Road—to support tolling infrastructure and boost returns on investment.

The Minister of Works, David Umahi, made the announcement on Saturday in Lagos during the commissioning ceremony of Section 1 of the Lagos-Calabar Coastal Highway and other road projects in the southern part of the country.

He said the directive was issued by President Bola Tinubu to ensure smoother implementation and long-term viability of the projects under a toll-based public-private partnership (PPP) model.

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“Mr President, I am happy that the governors are here. I want to announce your order that the governors where the Coastal Highway, the Abuja-Kano, the Transa-Sahara Highway and the Akwanga-Jos-Bauchi-Gombe Road run through, must give us a minimum of 500 meters of land on the edge of our carriageway,” Umahi said at the event.

“This would be part of the tolling arrangement so that the return on investment would be fruitful.” 

He added that the Ministry of Works has already submitted mapped land proposals to the Lagos State Government and would soon do the same for Ogun, Ondo, Sokoto, and Kebbi states.

What you should know  

The Federal Government has consistently maintained that major road infrastructure, particularly capital-intensive legacy projects, will be tolled to ensure a sustainable return on investment.

The request for a 500-meter corridor of land from state governors aims to support tolling infrastructure and commercial services that will enhance the viability of these projects under a public-private partnership (PPP) model.

  • The four legacy roads identified for this arrangement include the Lagos-Calabar Coastal Highway, Abuja-Kano Road, Trans-Sahara Highway, and the Akwanga–Jos–Bauchi–Gombe Road.
  • Beyond these four, several other highways—either planned or under construction—are also expected to be tolled. These include projects under the Highway Development and Management Initiative (HDMI), which allows private sector participation in developing, operating, and maintaining federal road assets.
  • In February 2025, Minister of Works David Umahi announced plans to introduce tolls on the Lagos-Ibadan Expressway once Phase 1 is completed, with tolling expected to begin even as work on Phase 2 continues.

Similarly, in March 2025, the Federal Government flagged off the 125km Benin–Asaba Superhighway, a fully privately financed project under a PPP model with Africa Plus Partners. Given the nature of the financing, it is also expected to be tolled to recover investment costs.


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Tags: Bola Ahmed TinubuCorridor request from Nigerian governorsDave UmahiLagos-Calabar Coastal Highway projectTolling of Nigerian legacy highways
Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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