The Federal Government has secured a $747 million loan to fund the Lagos-Calabar Coastal Highway project, an announcement made by Minister of Works David Umahi on July 10, 2025, during a press briefing in Abuja.
The loan, provided by a consortium of international lenders including the African Development Bank and Standard Chartered, will finance the initial 47.47-kilometer phase of the 700-kilometer highway, connecting Lagos to Cross River State. The project, estimated at $13 billion overall, aims to boost trade and connectivity across nine states.
Umahi detailed that the loan carries a 15-year term with a 3% interest rate, with construction set to begin in August 2025 under Hitech Construction Company, following a groundbreaking in 2024. The highway will feature six lanes and link economic hubs like Lekki Port, though it has faced criticism over environmental impact and land acquisition disputes affecting 1,500 residents.
President Bola Tinubu hailed the funding as a step toward infrastructure renewal, but opposition lawmakers question the loan’s sustainability amid Nigeria’s $100 billion debt. Community leaders in affected areas demand compensation, with negotiations ongoing. The project’s completion is targeted for 2030, pending further funding.