EXPLAINER: Why FG’s Diversion of N15trn Lagos-Calabar Coastal Highway Is Generating Controversy

The federal government’s decision to reroute a section of the Lagos-Calabar Coastal Highway has reignited debate over cost, engineering, and economic priorities.

Here is what is at stake:

1. A Signature Project: The 700km Lagos-Calabar Coastal Highway is the flagship infrastructure project of President Bola Tinubu’s administration. It is a four-lane concrete highway designed to run along Nigeria’s coastline from Lagos to Calabar.

2. Original Design:* The road was planned to take off from the former Bar Beach in Victoria Island, Lagos, and pass through Ogun, Ondo, Delta, Bayelsa, Rivers and Akwa Ibom States before terminating in Cross River State.

3. Huge Financial Outlay:* The project is estimated to cost N15 trillion. In 2025, the Federal Government said it would spend $747 million on it, backed by an additional $47 million external loan, underscoring its high-capital nature.

4. What Has Been Done:* The first phase of the project, the Lagos section, was commissioned in May 2025, amidst fanfare.

5. Why Government Diverted It:* Minister of Works, David Umahi, said the Ondo State alignment is riddled with deep pits and unsuitable terrain that would have astronomically increased construction costs. He argued the diversion to the East-West Road corridor was to save public funds.

6. Why It Is Controversial:* Communities and stakeholders in Ondo State petitioned the Ministry, alleging the diversion was politically motivated and that the state is being short-changed. Umahi insists the decision is purely based on engineering assessment.

7. The Economic Justification: Economists backing the move, including CPPE’s Dr. Muda Yusuf, argue the East-West corridor is a stronger economic artery. It connects Nigeria’s biggest commercial hub in the South-East/South-South, will enhance trade connectivity, open up inland states, and deliver more value for money compared to building through difficult coastal swamps.