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HomeNewsAnalysis Says Lagos-Calabar Coastal Road 7 Times Costlier Per Kilometre Than Pan-African...

Analysis Says Lagos-Calabar Coastal Road 7 Times Costlier Per Kilometre Than Pan-African Cairo-Cape Town Route

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Controversy is deepening as Nigeria’s Lagos-Calabar Highway Costs has been estimated to cost seven times more per kilometre than that of the Pan-African Cairo-Cape town route.

Nigeria’s Lagos-Calabar Coastal Highway, a 700 km project estimated at $11–13 billion (₦15.6 trillion), has its per-kilometer cost of $15.7–17.9 million, which dwarfs the $1.65 billion budget for the 10,228 km Cairo-Cape Town Highway—Africa’s longest road, stretching across 10 nations at just $156,000/km.

Critics, including former Vice President Atiku Abubakar in 2024, label the disparity a “highway to fraud,” noting the Nigerian project’s cost nearly matches the combined 2024 budgets of all 36 Nigerian states (₦15.91 trillion).

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The Lagos-Calabar Highway is far more expensive per kilometer than the Cairo–Cape Town Highway, though the latter’s total cost is unclear due to its fragmented development. The Nigerian project’s high cost, opaque contracting, and environmental risks have drawn criticism, while the transcontinental highway’s costs are distributed across nations and decades.

Key Cost Comparisons

Per-Kilometre Cost:

Lagos-Calabar: $15.7–17.9 million/km (₦4 billion/km), according to Nigeria’s Works Minister David Umahi, who defended the figure by comparing it to inherited projects like the Eleme-Onne Road (₦5.2 billion/km).

Cairo-Cape Town: $156,000/km for the Ethiopian section (170 km), funded by the African Development Bank and built by Egypt’s Arab Contractors. Even if the total $3 billion estimate for the full route is used, the average cost remains below $300,000/km.

Funding Models:

Nigeria’s project relies on a Public-Private Partnership (PPP), with Hitech Construction financing 70% and the government covering 30%. Critics question the lack of competitive bidding and ties between Hitech and President Tinubu’s allies.

The Cairo-Cape Town Highway is piecemeal-funded by multilateral institutions (e.g., AfDB) and national budgets, leveraging existing roads to reduce costs.

Economic Justifications:

Nigerian officials say the Lagos-Calabar Highway will boost GDP by $45 billion in five years and create jobs, but opponents argue the cost is untenable amid economic crises.

The transcontinental highway prioritises regional trade and tourism, with projected gains from streamlined cross-border logistics.

Controversies and Challenges

Nigeria: The Lagos-Calabar project faces backlash over environmental damage (wetlands/mangroves), forced demolitions, and allegations of inflated costs.

Cairo-Cape Town: Delays persist due to political tensions (e.g., Ethiopia-Egypt disputes over Nile water rights) and uneven funding across nations.

BUSINESS DAY

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