David Nweze Umahi CON, a Nigerian politician and current Nigerian minister of works
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By Abidemi Adebamiwa
Nigeria’s Minister of Works, David Umahi, has again defended the ₦7.5 billion-per-kilometre cost of the Lagos Calabar Coastal Highway. The 700-kilometre project would total roughly ₦5.25 trillion, a price that has stirred public concern over transparency and value. Umahi maintains the cost includes solar lighting, shoreline protection, bridges, and retaining walls, insisting his integrity is “at stake.”
In April 2024, the Minister told Channels Television that the highway would cost ₦4 billion per kilometre—making the current claim nearly double that figure. BusinessDay Nigeria reported in 2025 that the national road-building average is about ₦3.7 billion per km, already one of the highest in Africa. For context, Kenya’s Nairobi–Mombasa expressway, financed through a $3.6 billion deal, averages roughly ₦4 billion per km.
While Nigeria’s figure is steep, coastal projects often cost more. The Federal Ministry of Works cites Bangladesh highways ranging from $6.6 million to $11.9 million per km (₦8–14 billion) depending on terrain. Globally, India’s Mumbai Coastal Road reaches about ₦20 billion per km due to tunnels and sea defenses, while France’s Réunion Island sea-viaduct exceeds ₦150 billion per km—making Nigeria’s plan costly but not unprecedented.
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Lagos Calabar Highway Cost Breakdown Chart
Figure 1: Construction and materials account for roughly 70 percent of total life-cycle cost, with shoreline protection and bridges at 15 percent, maintenance 10 percent, and environmental or resettlement costs 5 percent.
If efficiently managed, the project could yield strong returns. A conservative analysis projects annual economic benefits near ₦695 billion through faster travel, reduced vehicle costs, tourism growth, job creation, and land appreciation.
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Annual Economic Benefits of Lagos Calabar Coastal Highway
Figure 2: Employment and multiplier effects drive the largest share of benefits, followed by vehicle-cost savings and land-value growth across six coastal states.
Over 30 years, cumulative benefits could reach about ₦8.1 trillion against ₦6 trillion in total cost. That yields a benefit-to-cost ratio of roughly 1.35 to 1, suggesting modest economic viability if spending remains disciplined and inflation controlled.
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Cumulative Benefits vs Costs Over 30 Years Chart
Figure 3: The break-even point appears around the twelfth year after completion; sustained maintenance and toll funding are essential to keep benefits above cost.
Comparisons with peer projects reinforce the need for transparency.
Global Cost per Kilometre Comparison Bar Graph
Figure 4: Nigeria’s ₦7.5 billion per km far exceeds its own average and Kenya’s rate. France’s sea-viaduct (₦150 billion per km) remains off-scale, illustrating how marine works multiply costs.
The Environmental and Social Impact Assessment (ESIA) published by the Federal Ministry of Environment currently covers only Section 1 of the route. Extending it to the full corridor is critical for accountability. The Lagos Calabar highway could transform coastal commerce—linking ports, refineries, and tourism hubs—or it could become another inflated public-works cautionary tale.
Nigeria’s taxpayers deserve clarity. Releasing the full Bill of Quantities, financing details, and environmental obligations would prove whether ₦7.5 billion per kilometre reflects genuine engineering necessity or simply another expensive promise waiting to unravel.
Abidemi is a policy analyst with advanced degrees and certification from Northwestern University and Harvard Business School and the Managing Editor of Newspot Nigeria.
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