Lagos-Calabar Coastal Highway: What’s in it for Investors?

INTRODUCTION

For decades, traveling from Lagos to Calabar has been a challenging task. The journey, often hindered by poor road conditions and traffic congestion, typically takes between 12 to 14 hours. 

However, the Lagos-Calabar Coastal Highway project aims to transform this experience by reducing travel time to approximately 6 to 8 hours. This 700-kilometer infrastructure initiative not only promises to enhance transportation but also offers numerous investment opportunities across various sectors.

The Lagos-Calabar Coastal Highway is designed to connect major coastal cities, including Lagos, Port Harcourt, and Calabar, passing through states such as Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom, and Cross River. The project’s primary objective is to improve cross-country connectivity and strengthen trade relations among these regions. 

Construction began in March 2024 under the administration of President Bola Tinubu, with the first phase stretching 47.47 kilometers from Lagos. The entire project is expected to be completed by 2031, with an estimated cost of N4 billion per kilometer. The Nigerian government has shown significant commitment to this project.

The Lagos-Calabar Highway project is being managed under an Engineering, Procurement, Construction, and Financing (EPC+F) agreement with Hitech Construction Company Ltd. In this arrangement, the contractor takes on considerable financial and construction risks, supported by federal counterpart funding. Additionally, the government has secured foreign funds to ensure the project’s financial sustainability. Tolls are planned to be implemented along the highway to recoup the investment, with expectations of a return on investment within 15 years of completion.

As of February 2025, significant progress has been made:

1. Phase One Completion: The Minister of Works, Engr. David Umahi, announced that 30 kilometers of the planned 70-kilometer first phase are expected to be completed and inaugurated by President Tinubu in May 2025.
2. Infrastructure Enhancements: To facilitate smoother transportation, an 80-meter span bridge is planned near the Dangote Refinery. This development aims to ease truck movement to and from the refinery, emphasizing the integration of industrial infrastructure with the highway project.
3. Route Optimization: In a strategic effort to reduce construction costs, the government has redesigned the highway’s route, eliminating nearly 90% of the initially proposed bridges across key states. This decision reflects a commitment to fiscal responsibility without compromising the project’s infrastructural impact.

Investment Opportunities in the Lagos-Calabar Coastal Highway

The Lagos-Calabar Coastal Highway is set to be a catalyst for economic growth, offering a variety of investment opportunities:

1. Real Estate Development: Enhanced accessibility will increase demand for residential, commercial, and industrial properties. Areas like the Eleko/Ibeju-Lekki axis have already seen a surge in property values, transforming them into development hotspots. Investors who acquire land or properties along the highway’s route are likely to benefit from substantial appreciation as infrastructure progresses.
2. Industrial and Commercial Expansion: The highway improves connectivity to major industrial zones, including the Lekki Free Trade Zone, Dangote Refinery, and Lekki Deep Sea Port. These developments are attracting global investors, and the improved road network will further streamline logistics and trade operations. The proposed Lekki International Airport is expected to enhance commercial activities, making the region an emerging industrial hub.
3. Tourism and Hospitality Growth: Better access to Nigeria’s coastal attractions is anticipated to boost the tourism sector. Destinations like Calabar, known for their cultural festivals and natural beauty, will become more accessible, leading to increased demand for hotels, resorts, and related services. Investors in the hospitality industry can take advantage of this influx of tourists seeking leisure and business experiences.
4. Job Creation and Economic Development: The construction and operational phases of the highway are expected to create thousands of jobs across various sectors, including construction, retail, logistics, and services. This employment surge will stimulate local economies, reduce unemployment rates, and improve the standard of living for communities along the route.
5. Energy and Manufacturing Opportunities: Improved transportation infrastructure will facilitate the movement of raw materials and finished goods, benefiting the oil, gas, and manufacturing sectors. Investors looking to establish processing plants or factories will find the enhanced connectivity advantageous for efficient operations and distribution.

CONCLUSION

The Lagos-Calabar Coastal Highway is more than just a road project, it is a transformative initiative poised to redefine Nigeria’s infrastructure landscape. By cutting travel time, boosting trade, and opening up vast investment opportunities, this highway will serve as a catalyst for economic growth across multiple sectors. With the government’s commitment and private sector interest growing, the Lagos-Calabar Coastal Highway is shaping up to be a turning point for Nigeria’s economic future.