WorldStage– Structured as self-sustaining capital investments backed by a 70% external funding model, Nigeria’s multi-trillion naira legacy road projects are prioritizing long-term asset durability, project bankability, and cost-efficiency through strategic engineering realignments.
The Minister of Works, Sen. Dave Umahi, reaffirmed on Wednesday in Abuja that the Federal Government stands firmly by its decision to redesign the Ondo section of the flagship Lagos-Calabar Coastal Highway—a move intended to protect public capital, optimize construction costs per kilometer, and ensure viable tolling revenue along the corridor.
Addressing public scrutiny and local petitions regarding the route’s alteration, Umahi highlighted that navigating unviable geographical conditions—such as terrain featuring deep pits up to 100 meters with unstable subsoil—would have severely inflated construction costs and compromised the asset’s structural integrity.
“When people subject me to public scrutiny by asking me what is the cost per kilometre… you expect the cost of one kilometre of route passing through a normal terrain to be the same cost as passing through difficult terrain?” Umahi stated, confirming that the redesign avoids treacherous topography while soil stabilization and filling work on the affected axis are near completion.
The financial architecture of the legacy highway network relies on commercial viability. The projects operate under a co-financing model, with the Federal Government providing 30% counterpart funding in local currency while securing 70% from external financing. Capital recovery and investor returns will be generated via corridor tolling alongside ancillary commercial developments, including industrial zones, logistics hubs, housing developments, and agricultural corridors.
Project Status & Construction Milestones
Section One (47.47 km): Fully completed and cleared for official commissioning.
Section Two (55 km): Main pavement completion targeted for November, with ongoing structural work on overpasses, underpasses, and flyovers designed to accommodate heavy freight traffic serving the Dangote Refinery and Lekki Deep Sea Port complex.
Sections 3A & 3B (65 km): Over 30% completed, serving as a vital inter-state connector.
Sections 4A & 4B (67 km): Active construction underway spanning 27 km in Ogun State and roughly 40 km in Ondo State.
Section Five (82 km): Ongoing construction in Akwa Ibom State.
Delta Section (129 km): Currently undergoing route surveys and procurement, with physical work scheduled to commence by November.
To optimize public expenditure, President Bola Tinubu approved connecting the highway through the existing East-West Road corridor rather than constructing an entirely new alignment from Ondo into Edo State. This strategy includes raising sections of the East-West Road by two meters to mitigate climate-related flooding risks and protect logistics routes. Additionally, a new 45-kilometer Benin bypass will allow commercial freight to bypass central urban congestion, significantly cutting transit times and boosting regional commerce.
Beyond the coastal corridor, the Federal Government reported steady progress across its broader infrastructure portfolio. The 1,068-kilometer Sokoto-Badagry Highway has achieved 60% completion on its Ilela section despite security challenges, while the Kebbi (258 km) and Badagry (62.35 km) sections have both surpassed 40% completion, advancing Nigeria’s broader trade connectivity goals across its northern and southern economic belts.
