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Home Exclusives

Lagos water transport: High fares threaten potential amid €410 million Omi Eko push 

Caleb Obiowo by Caleb Obiowo
October 24, 2025
in Exclusives, Features, Hospitality & Travel, Spotlight, Transportation
Lagos water transport: High fares threaten potential amid €410 million Omi Eko push 
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High ferry fares remain a major obstacle to the widespread adoption of inland water transport in Lagos, despite the system’s potential to ease the city’s chronic traffic congestion, experts have said.

Although waterways account for about 22% of Lagos’ landmass, linking 15 of the state’s 20 local government areas, ferries remain out of reach for many daily commuters who view them as an expensive luxury rather than a practical alternative to road travel.

This cost barrier persists even as Lagos struggles under the weight of worsening traffic.

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According to Numbeo’s 2025 Mid-Year Traffic Index, Lagos ranks as the world’s most congested city, with average one-way road trips exceeding an hour. Roads remain dominated by private vehicles and minibuses, compounding gridlock and air pollution.

While water transport offers a faster, stress-free alternative, experts say that pricing, limited service frequency, and infrastructure gaps continue to constrain the sector’s potential.

These concerns have resurfaced following the launch of the €410 million Omi Eko Project, a flagship initiative by the Lagos State Government to modernize and expand the city’s ferry network.

The project promises cleaner, more reliable transport options, but experts warn that affordability will determine whether commuters actually use them.

Cost barriers weigh heavily on adoption 

Ferry fares in Lagos vary widely by route and operator. A one-way trip from Ikorodu to Victoria Island, Lekki, or Ikoyi, lasting under 40 minutes, typically costs between N3,000 and N3,500, rising during peak demand periods or public events.

  • Modern ferries with 30-passenger capacity charge around N3,000, while larger Omi Bus vessels with 40 seats cost roughly N3,500.
  • The state-run LagFerry offers cheaper fares at about N1,500, but limited schedules and fewer daily trips make it inconvenient for routine commuters.

Transport analyst Hannah Kates, Founder and Managing Director of Public Tech Studio, believes that without government intervention, high fares will continue to discourage ridership.

“Most public transportation systems worldwide are heavily subsidized, and Lagos ferries already face the additional challenge of people being wary of water travel,” Kates said.

She stressed the need for targeted fare subsidies to make ferry trips more competitive with buses and minibuses, adding that affordability will be key to encouraging modal shift.

“The government must find the right balance that makes ferries affordable enough to attract commuters while reducing road congestion,” she noted. 

Independent transport researcher Tonami Playman agreed, arguing that current pricing excludes much of the working population. 

“Fares of N3,000 to N3,500 for short trips discourage daily commuters. If operators can offer more affordable rates while maintaining viability, adoption would rise significantly,” he said. 

Playman suggested that integrating ferries into the city’s broader public transport network, with unified ticketing and coordinated schedules, would also make the system more accessible.

Will the €410 million Omi Eko project change the game? 

The Omi Eko Project is one of the most ambitious transport modernization efforts in Lagos’ history. Backed by a €410 million funding package, the project is designed to transform the city’s waterways into a sustainable and high-capacity commuter network.

  • The financing structure includes a €360 million Global Gateway Initiative investment—comprising a €60 million EU grant, €130 million in concessional loans from the French Development Agency (AFD), and €170 million from the European Investment Bank (EIB). The Lagos State Government will contribute the remaining funds.
  • Over the next five years, the project will deliver 15 new ferry routes, 25 ferry terminals, and 140 kilometres of dredged and channelized waterways. Plans also include floating pontoons, electric charging stations, and maintenance depots to support an all-electric ferry fleet of over 75 vessels.
  • The initiative aims to move 25 million passengers annually, increase the modal share of inland water transport to 5% of all daily public trips, and cut carbon emissions by 41,000 tons per year.

However, experts caution that infrastructure alone will not guarantee success. For Omi Eko to make a meaningful impact, the system must be financially accessible, efficiently managed, and seamlessly connected to road-based transit.

Bridging operational gaps 

Currently, ferries account for less than 1% of daily public transport trips in Lagos. Operations remain fragmented, dominated by small private operators using low-capacity or unsafe vessels.

Terminals range from modern jetties with air-conditioned lounges to informal sandbank crossings with no safety facilities.

According to Kates, the Omi Eko Project could change that narrative, but only if issues of connectivity, reliability, and trust are resolved.

“If commuters don’t experience significant time or cost savings, they’ll stick to the roads,” she warned. 

She also emphasized the importance of real-time tracking and data transparency, recommending that ferries be equipped with GPS and integrated into navigation platforms.

“The government should publish live location feeds that can sync with apps like Google Maps,” she added. 

Playman, meanwhile, underscored the need for consolidation and operational efficiency, suggesting that ferry services and terminals be unified under a central management structure.

 “Successful systems in Hong Kong and London run every 15 minutes. Lagos should aim for similar intervals to build commuter confidence,” he said. 

He further advised Lagos to draw lessons from Istanbul, Hong Kong, and Bangkok, where frequent, affordable, and reliable ferry services form part of the urban transport ecosystem.

The experts agree that the Omi Eko Project presents a rare opportunity to reshape Lagos’ mobility landscape. But the challenge lies in aligning pricing, service frequency, and infrastructure to attract mass ridership.

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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Lagos water transport: High fares threaten potential amid €410 million Omi Eko push 

Lagos water transport: High fares threaten potential amid €410 million Omi Eko push 

October 24, 2025
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Nigeria’s fiscal deficit widens to N13.5 trillion in 2024 – Budget Office  

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