The ECOWAS Bank for Investment and Development (EBID) has approved a $100 million loan to support the ongoing construction of the Lagos-Calabar Coastal Highway, marking a significant milestone in West Africa’s drive for enhanced infrastructure, regional trade integration, and economic development.
The funding was approved during the bank’s 92nd Ordinary Session of its Board of Directors held in Lagos on Tuesday, July 2, 2025. This strategic investment is earmarked for Section 1, Phase 1 of the Lagos-Calabar Highway project, a critical 47.7-kilometre stretch starting from Ahmadu Bello Way in Victoria Island, Lagos.
According to a statement released by the bank, the loan is designed to accelerate Nigeria’s infrastructure renewal while simultaneously fostering economic linkages between nine coastal states. The highway project, which is being handled by Hitech Construction Company Limited, is expected to improve connectivity to Nigeria’s major seaports and isolated agro-industrial regions, bolstering both domestic productivity and international trade.
“The bank approved a $100 million funding for the Lagos-Calabar coastal motorway project in the Federal Republic of Nigeria, in order to link nine Nigerian states, improve access to seaports and isolated agro-industrial areas,” the statement read. “The funding would also contribute to the emergence of a regional value chain to help coastal communities.”
The Lagos-Calabar Coastal Highway has been described by infrastructure experts and government officials as a transformative development for Nigeria and the broader ECOWAS region. Once completed, the highway is projected to become a critical artery for economic activities, logistics, tourism, and inter-state mobility along the southern corridor.
It also forms a vital part of ECOWAS’s broader regional integration goals, which aim to facilitate intra-African trade through physical connectivity and harmonised infrastructure across member states.
Construction of the highway officially began in March 2024 under the administration of President Bola Tinubu. The Federal Government has consistently maintained that the project aligns with its “Renewed Hope Agenda” aimed at stimulating industrial growth, creating jobs, and repositioning Nigeria as a transport and logistics hub in West Africa.
The project, once completed, is expected to generate thousands of direct and indirect jobs, reduce travel time, and attract private investments to coastal states such as Lagos, Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom, Cross River, and potentially up to Cameroon.
The ECOWAS Bank’s investment in the highway is part of a broader financial envelope comprising €174 million and $125 million, approved for several regional development initiatives in sectors such as energy, social infrastructure, technical education, and industrialisation across West Africa.
The bank reiterated its commitment to inclusive and sustainable development through targeted investments that enhance physical infrastructure and strengthen regional value chains.
Reacting to the funding approval, Dr. Chijioke Ugochukwu, a Lagos-based economist, noted that the project could be a catalyst for both short- and long-term economic growth.
“This is not just a road project. It’s a gateway to unlocking Nigeria’s coastal economic potential, integrating informal trade routes, and stimulating rural development,” he said. “But timely implementation and transparency in fund utilisation are essential to realise its full benefits.”
Meanwhile, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Jobson Ewalefoh, also hailed the EBID support, reiterating Nigeria’s openness to further public-private partnerships (PPPs).
“With an infrastructure gap estimated at over $2.3 trillion, Nigeria offers some of the most compelling investment opportunities in Africa. This coastal highway will serve as a beacon project for future collaborations,” Ewalefoh stated during the recent Nigeria Public-Private Partnership Summit in Abuja.
In addition to spurring trade, the Lagos-Calabar Coastal Highway is expected to boost the tourism sector, particularly in beachline cities and heritage sites located along the coastal belt. Improved access to these areas could unlock billions in hospitality, real estate, and entertainment revenue.
However, stakeholders continue to call for strict monitoring, stakeholder consultation, and environmental compliance as the project progresses, especially due to its proximity to sensitive coastal ecosystems and densely populated urban centres.
With this approval, ECOWAS and Nigeria signal a renewed commitment to regional integration, trade expansion, and sustainable infrastructure development—pillars seen as critical to Africa’s long-term prosperity under the African Continental Free Trade Area (AfCFTA).