Works minister David Umahi has projected a return on investment of around N1.67 trillion in 15 years on the Lagos-Calabar Coastal Highway corridor.

The 700km coastal highway project is designed to connect Lagos to the Cross River, passing through the coastal states of Ogun, Ondo, Delta, Bayelsa, Rivers, and Akwa Ibom before culminating in the Cross River.

Mr Umahi gave the estimate while addressing journalists and stakeholders during a meeting on the project 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. 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, and the small ones will pay between N1,000 and N1,500.

“Let’s make it that an average of N3,000 would be charged. In fact, when I rounded the figures, I will have about N1.67 trillion in 15 years. So, the ROI will be huge,” Mr Umahi said.

The minister explained that the total cost of the coastal road project could not be fixed, considering inflation, which could lead to a review.

“Some people say we paid N1.067 trillion. The answer is no. We paid money according to the Procurement Act and according to the policy of the Federal Ministry of Works,” said the minister.

Mr Umahi noted that the project would boost economic activity, improve transportation, and create a more enjoyable travel experience.

He added, “Along the corridor, tourism will be developed, there will be increased economic activity with estates, factories, etc., the transportation network will improve, train stations will increase activity, and there will be faster water transportation.”

Mr Umahi also mentioned that the project aims to make road travel more attractive than air travel and would include amenities along the corridors such as solar lighting, toll stations, filling stations, hotels, and CCTV cameras for improved security and faster incident response times.

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 land, which might be problematic for some property owners.

(NAN)