President Tinubu Seeks Additional $47 Million for Lagos-Calabar Coastal Highway Amid Rising Project Costs

President Bola Tinubu has formally requested the House of Representatives to approve an additional $47 million in funding for the ongoing Lagos-Calabar Coastal Highway project. This comes as the estimated cost of the ambitious infrastructure project has risen from $700 million to $747 million.

Speaker Tajudeen Abbas of the House of Representatives read a letter from President Tinubu during Wednesday’s plenary session, outlining the need for the supplementary funds. The President stated that the increase is necessary to cover a shortfall in financing commitments for the project .

When the initial borrowing plan was transmitted, the lead arranger for financing had secured commitments of up to $700 million. The additional $47 million is required to match the total loan size specified in the project’s financing documents . This shortfall is being covered by export credit agencies .

The Lagos-Calabar Coastal Highway is a flagship project of the Tinubu administration, intended to connect nine coastal states: Lagos, Ogun, Ondo, Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross River .

The project is designed to enhance economic activities, reduce travel time and create jobs with projections to contribute up to $12 billion annually to Nigeria’s GDP within its first decade . The Minister of Works, David Umahi, has previously indicated that the first phase of the highway is expected to be ready for commissioning by May 2025 .

The request for an additional $47 million for the highway is part of a larger appeal by President Tinubu for an extra $347 million external loan under the 2025–2026 borrowing plan .

This includes an additional $300 million for the Nigerian universal communications access project, which aims to deploy 7,000 telecommunications towers to bridge the digital divide in underserved communities a component inadvertently omitted in the initial borrowing plan .

The House of Representatives has reportedly approved President Tinubu’s request for the $347 million loan boost .

The project has faced challenges, including litigations and petitions from affected property owners, as well as cost escalations due to fluctuating foreign exchange rates, inflation and rising costs of materials like bitumen and iron rods .

Despite these hurdles, the government has emphasized its commitment to completing the project ensuring compensation for affected parties .

The approval of this additional funding is crucial for the timely progression and completion of the Lagos-Calabar Coastal Highway, a key component of Nigeria’s infrastructure development strategy.