Minister of Works, Senator Dave Umahi, has projected a Return on Investment (ROI) of around N1.67 trillion in 15 years on the Lagos-Calabar Coastal Highway corridor.
The 700km Lagos-Calabar coastal highway project is designed to connect Lagos to Cross River, passing through coastal states of Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom, before culminating in Cross River.
Umahi gave the estimate while addressing newsmen and stakeholders during a meeting on Lagos-Coastal Highway projects, at the Eko Hotel, on Thursday in Lagos.
The minister gave the total estimates based on the classification of vehicles to be tolled when the project is completed.
”I ran the figures this morning. That is if the 47.47km Phase I is completed and I toll on the two sections, I give an average of 50,000 vehicles, the big vehicles will be charged about N6,000, the small ones will pay between N1,000 and N1,500.
“Lets make it that an average of N3,000 would be charged, In fact, when I rounded the figures, I will have about 1.67trillion in 15 years. So, the ROI will be huge,” he said.
The minister said that the total cost of the coastal road project could not be fixed, saying if inflation hits, the project would have to be reviewed.
“Some people say we paid 1.067 trillion, the answer is No. We paid money according to the procurement act and according to the policy of the Federal Ministry of Works
Umahi noted that the project would boost economic activity, improve transportation, and create a more enjoyable travel experience.
He said, “Along the corridor, tourism will be developed, there will be increased economic activity with estates, factories, etc., transportation network will improve, and train stations will increase activity and there will be faster water transportation.’’
Umahi said that the project, which aims to make road travel more attractive than air travel, would have amenities along the corridors such as solar lighting, toll stations, filling stations, hotels, and CCTV cameras for improved security and faster response times to incidents.
The minister, who acknowledged that the coastal road’s importance was a national asset with the potential to attract foreign investments, noted that it required acquiring land which might be problematic for some property owners.
He used the proverb “you can’t make an omelette without breaking eggs” to acknowledge the potential hardship caused by land acquisition.
He said that the government prefers a negotiated settlement with property owners instead of relying solely on legal processes.
The minister acknowledged government’s ultimate authority over land ownership.
He, however, appealed to property owners for their cooperation and avoid confrontational approach.
Some stakeholders at the meeting including royal fathers, politicians, land owners and estate developers, described the projects as laudable, raised issues about having a reasonable amount as compensation and pleaded that it be timely, among others.
