Lagos-Calabar Coastal Highway: Costly, Controversial, and Raising Red Flags

Nigeria’s ambitious Lagos-Calabar Coastal Highway project is under intense scrutiny over its ballooning costs, lack of transparency, and allegations of cronyism involving top government officials, including President Bola Tinubu’s son, Seyi Tinubu.

Marketed as a transformative 700-kilometer, 10-lane superhighway with a central rail line to link nine coastal states, the project is drawing criticism for its eye-watering cost and opaque contract procedures. Analysts and civil society groups are questioning whether Nigerians are being subjected to both fiscal exploitation and future toll fees.

Phase 1: The Numbers Raising Eyebrows

The Federal Executive Council approved ₦1.067 trillion for Phase 1, Section 1, covering 47.47 kilometers from Ahmadu Bello Way in Lagos to the Lekki Deep Sea Port. This puts the cost at ₦22.47 billion per kilometer, a figure more than double the national average of ₦4 billion/km for the entire project and up to 13 times higher than global averages.

Construction began in March 2024, with Minister of Works David Umahi confirming that ₦1 trillion has already been disbursed. An additional ₦18 billion was paid as compensation for demolished structures, despite no legal obligation to do so.

As of June 2025, 30 km of the initial 47.47 km stretch has been completed. The full 700 km project is projected to cost between ₦15.36 trillion and ₦15.6 trillion.

International Comparison: Nigeria’s Highway Costs Far Outpace Global Peers

A comparison with other countries reveals Nigeria is spending far more per kilometer than even the most infrastructurally advanced economies:

• China: ₦2 billion/km for 6-8 lane highways
• India: ₦1.7 billion/km for 8-lane expressways
• South Africa: ₦2.5 billion/km for major freeways

Nigeria’s ₦22.47 billion/km for Phase 1 is 9 to 13 times higher than these benchmarks. Even the national project average of ₦4 billion/km is nearly double China’s cost for similar infrastructure.

Transparency Concerns and Alleged Cronyism

Critics point to several troubling issues:

• No Competitive Bidding: The contract was awarded directly to Hitech Construction Company, linked to billionaire Gilbert Chagoury, a known associate of President Tinubu.
• Allegations Involving Seyi Tinubu: Investigations by Sahara Reporters and the Organized Crime and Corruption Reporting Project (OCCRP) allege that the President’s son has financial interests in the project, raising questions about conflict of interest.
• Discrepancies in Cost Statements: Umahi has maintained that the project averages ₦4 billion/km, a claim contradicted by Phase 1 figures and previous FEC documentation estimating ₦22.3 billion/km.
• Opaque Compensation: The ₦18 billion paid out for demolished properties lacks a clear breakdown or legal justification, prompting fears of misuse.

“Double Taxation”: Nigerians to Pay Tolls After Funding the Road

Adding to the controversy is the federal government’s announcement that the highway will be tolled after completion. Critics argue that this constitutes a “double tax” on citizens—first through bloated public spending and second through user fees.

“Why are Nigerians being asked to pay again to use a road they’ve already funded through taxes?” asked a post by social media user @midemide1, who called the project “over-bloated” and questioned the absence of public tendering.

A Pattern of Cost Inflation

Nigeria’s infrastructure projects have long been plagued by inflated costs:

• The Second Niger Bridge rose from ₦108 billion to ₦206 billion amid allegations of kickbacks.
• The Ajaokuta Steel Complex saw $496 million paid with little progress.

Analysts say the Lagos-Calabar Coastal Highway bears all the hallmarks of similar mismanagement, amplified by its massive scale.

By contrast, India’s CAG audits, South Africa’s procurement laws, and China’s economies of scale help contain corruption and cost overruns.

Recommendations for Reform and Accountability

Civic groups and watchdogs are calling for:

1. Public Cost Breakdown: Transparent disclosure of how the ₦1.067 trillion was allocated across materials, labor, and compensation.
2. Open Bidding: Future phases should involve competitive tenders to drive down costs.
3. Independent Audit: The EFCC or a reputable international firm should review current expenditures.
4. Conflict of Interest Probe: Allegations involving Seyi Tinubu must be formally investigated.
5. Fair Tolling Framework: If tolling is inevitable, it must be equitable, transparent, and not exploit low-income users.

The Road Ahead: Progress or Plunder?

The Lagos-Calabar Coastal Highway could reshape Nigeria’s transportation landscape and stimulate coastal trade. But its ₦1.067 trillion cost for 47.47 km, paired with alleged insider involvement and lack of competitive bidding, casts a long shadow over its integrity.

With Nigeria ranked 145th out of 180 countries on the 2024 Corruption Perceptions Index, public skepticism remains high.

“The project should be about national progress, not personal profit,” a civil society leader remarked. “Without transparency and accountability, this road may lead not to development—but deeper distrust.”