Nigeria's Minister of Works, Senator Dave Umahi, has announced that the much-anticipated Lagos-Calabar Coastal Highway will be a tolled road immediately after its inauguration.
No Toll Delay After Commissioning
During an inspection tour of the project site in Lagos on Saturday, the minister made a firm declaration. He stated that the highway would be tolled as soon as it is completed and commissioned, dismissing any notion of opening it to free traffic first.
"I must emphasise that this road is going to be tolled, and by the contractor, it is part of the package," Umahi said. He explained that he would invite the contractor, Hitech Construction Company Ltd., to provide the tolling programme. The infrastructure for toll collection is expected to be built before the end of April.
"I don't want to open this permanently for traffic and then we begin to talk about tolling," the minister added, underscoring the government's intention to implement the toll regime from day one.
Budget Frozen Despite N170 Billion Increment
Addressing the financial implications of recent project challenges, Senator Umahi revealed that the budget had already seen significant increases but would go no higher. He confirmed that the project's cost had risen by a total of N170 billion due to several factors.
The minister listed the causes of the cost escalation:
- Realignment and diversion of the route to preserve high-rise buildings at the project's start.
- Necessary shore protection works encountered during construction.
- Massive evacuation of refuse dumps, some as deep as 15 metres and stretching for kilometres.
Despite this substantial increase, Umahi insisted there would be no further budget expansion. "We have concluded the re-measurements, and we are a country with a lot of other issues," he stated, noting that the Bureau of Public Procurement had been engaged, closing the door on additional funding.
Contractor Bears Part of the Risk
In a notable comment, the Minister indicated that the contractor, Hitech, would absorb some of the financial risks associated with the unforeseen challenges. "Hitech has to be at this risk, and that is part of its contribution in building our nation," Umahi remarked.
This statement clarifies the shared responsibility model for the project's financial overruns, placing a portion of the burden on the construction firm handling the landmark infrastructure development.
The Lagos-Calabar Coastal Highway remains one of Nigeria's most significant ongoing transport projects, aimed at boosting connectivity and economic activity along the country's southern coastline. The confirmation of its tolled status sets a clear precedent for the funding and management of future mega-projects.
