The ECOWAS Bank for Investment and Development (EBID) has approved a $100 million funding package for the construction of a 47.7-kilometer stretch of Nigeria’s ambitious Lagos-Calabar Coastal Highway, marking a significant step toward enhancing regional connectivity and economic growth.
The funding approval was part of a larger set of commitments unveiled during EBID’s 92nd Ordinary Session, where the bank announced a total allocation of €174 million and $125 million for infrastructure and social development initiatives across West Africa.
The decision was reached during the bank’s Board of Directors’ meeting held on June 30, 2025.
The funding, allocated for Section 1, Phase 1 of the 700-kilometer highway project, will support construction starting from Ahmadu Bello Way in Lagos.
The Lagos-Calabar Coastal Highway, a flagship initiative of President Bola Tinubu’s administration, aims to connect nine Nigerian states—Lagos, Ogun, Ondo, Edo, Delta, Bayelsa, Rivers, Akwa Ibom, and Cross River—enhancing access to seaports, agro-industrial zones, and coastal communities.
The project is designed to boost trade, tourism, and industrial development along Nigeria’s southern economic corridor.
Anita Somda-Dala, Head of Communications at EBID, described the highway as a “strategic investment” that will unlock new regional value chains.
“This project will link nine Nigerian states, improve access to seaports and isolated agro-industrial areas, and contribute to the emergence of a regional value chain to help coastal communities,” she said in a statement.
The funding is part of a broader €174 million and $125 million package approved by EBID to support infrastructure and social development projects across West Africa, aligning with the United Nations Sustainable Development Goals (SDGs) for industry, innovation, and infrastructure.
Construction of the highway began in March 2024, with Hitech Construction Company Limited overseeing the initial phase. President Tinubu commissioned the first completed 30-kilometer section from Ahmadu Bello Way to Eleko Village in Lagos on May 31, 2025, hailing it as a milestone in Nigeria’s infrastructure development.
However, the project has not been without controversy, with critics, including former Vice President Atiku Abubakar, questioning the lack of public bidding for the contract and raising concerns about environmental and social impacts, particularly the demolition of properties along the route.
The Federal Government has allocated over ₦3 trillion for various segments of the highway, with Section 1 awarded at ₦1.068 trillion, Section 2 at ₦1.6 trillion, and Sections 3A and 3B at ₦1.33 trillion.
The Minister of Works, David Umahi, has defended the project’s cost and execution, emphasizing its potential to transform Nigeria’s economy by improving connectivity and reducing cargo turnaround times.
The government has also paid ₦18 billion in compensation to affected property owners, though concerns persist about the adequacy of environmental and social impact assessments (ESIAs).
The $100 million injection from EBID is expected to accelerate progress on the highway, which is projected to be completed by 2028 at an estimated total cost of ₦14–15.6 trillion.
Stakeholders, including the Nigerian Ports Authority and local communities, have called for transparency and inclusive engagement to ensure the project delivers on its promise of economic transformation without displacing residents or harming biodiversity hotspots.
The Lagos-Calabar Coastal Highway, bolstered by ECOWAS funding, stands as a pivotal project in driving trade, connectivity, and sustainable development across the nation’s coastal corridor.
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