Nigeria’s Minister of Works, David Umahi, has revealed the cost of the Lagos-Calabar Coastal Highway, which comes to 7.5 billion naira per kilometre.
The Minister stated that the initial 47.47-kilometre section carries a price tag of 1.6 trillion naira, covering six lanes, shore protection, solar lighting, and reinforced concrete construction.
Umahi defended the figure, arguing that it is lower than previous projects such as the Eleme-One and Abuja-Kano roads. He cited international bank reviews and invited public debate on the costs.
He explained, “This is the rundown of the figures. Number one, the first section, 47.47, is costing 1.067 trillions, and it’s by six lanes. Now, when you divide this 1.067 trillion by 47.47 by two, you will get 11.57 billion per kilometre of three lanes.
“A standard road is two lanes. Standard federal highway is two lanes. So, by the time you now divide it by three and multiply by two, you will now say that a standard coastal road is going for 7.5 billion per kilometre of standard highway.
“Now, let me also tell you that the Deutsche Bank that led the other international banks to review the cost of the project so as to fund the 70 percent of the loan component, they said that that project was undervalued. It was undervalued. And when it was time to contribute to give the loan, that project was oversubscribed by 100 million US dollars.
“And so, if the financial institutions can give us this credit, we are ready to face anybody. But when you are criticising us, be very objective and tell the public the truth.”
The cost revelation by the minister follows the recent criticism by Oyo State Governor Seyi Makinde who described Umahi as “dancing around the cost” during an interview on ARISE NEWS after failing to provide an average cost per kilometre of the coastal highway.
“They asked a minister how much the coastal road is, and then you (Umahi) are dancing around and going to say that no, the next kilometre is different from the next kilometres. Then what is the average cost?” Makinde had said.
“When we did the Oyo to Iseyin road then, it was about N9.99 billion, almost N10 billion. About 34 or 35 kilometres, the average cost is about N238 million per kilometre,” the governor noted.
“But when we did Iseyin to Ogbomoso, that was 76 kilometres, it was about N43 billion; the average cost is about N500 million per kilometre. And we had two bridges, one over the Ogun River and then one at the Ogbomoso end.”
Amid this recent criticism, the coastal highway has also sparked considerable controversy over its high construction costs and the displacement of communities along its path.