Published in: Breaking Real Estate News

Lagos-Calabar Coastal Highway Phase 2 Funding ₦1.2 Trillion 2026 Land Price Impact

Author Mercy

Published on: February 20, 2026

The Federal Government has officially confirmed ₦1.2 trillion in secured funding for Phase 2 of the Lagos-Calabar Coastal Highway (covering the Lagos–Ondo–Delta stretch), with accelerated construction targeted to commence in Q2 2026.

This follows the completion of Phase 1 groundwork and comes after months of funding negotiations involving the Federal Ministry of Works, infrastructure bonds, multilateral partners (AfDB, World Bank), and private-sector participation. The announcement is already translating into 25–45% land price increases in adjacent corridors in Ogun, Ondo, and Delta states, as investors position early for the expected economic ripple effects.

Funding Breakdown (Confirmed as of February 2026)

• Federal budget allocation: ₦450 billion (direct capex)
• Infrastructure bonds & sukuk: ₦350 billion
• Multilateral loans/grants (AfDB, World Bank, China EXIM): ₦280 billion
• Private-sector PPP contributions: ₦120 billion (toll concessions & developer equity)
• Total secured: ₦1.2 trillion (Phase 2 full funding package)

Expected Completion Timeline & Milestones

• Q2 2026: Major construction acceleration (clearing, earthworks, bridge foundations)
• 2027–2028: Primary carriageway & interchanges completion (Lagos–Ore–Ondo segment)
• 2029–2030: Full Lagos–Calabar stretch operational (with spurs to Delta ports)
• Overall project completion target: 2030 (phased rollout)

Impacted Zones & Land Price Surge (Early 2026 Data)

1. Ogun State (Mowe–Ofada–Shimawa–Ijebu-Ode)
   • Land price increase: 28–45% (600 sqm serviced plots ₦18M–₦38M)
   • Key driver: Highway alignment + rail synergy
2. Ondo State (Ore–Ondo town–Akure approach)
   • Land price increase: 25–40%
   • Key driver: Industrial/agro-processing spillover
3. Delta State (Warri–Sapele–Ughelli corridor)
   • Land price increase: 22–35%
   • Key driver: Port & oil/gas connectivity

Early Investment Positioning Strategies (2026)

• Land banking: Target parcels within 5–15 km of highway alignment in Ogun & Ondo — highest appreciation potential (30–50% over 24–36 months)
• Residential development: Focus on mid-market 2–3 bed units in Mowe–Ofada & Ore — projected yields 15–22% with rental demand from workers
• Commercial/logistics: Warehouses & light industrial plots near interchanges — 12–18% yields + long leases
• Risk mitigation: Verify titles (C of O / Governor’s Consent), use escrow for payments, monitor federal disbursement progress

Final Thoughts

The ₦1.2 trillion Phase 2 funding confirmation for the Lagos-Calabar Coastal Highway marks a major inflection point for real estate in Southwest and South-South Nigeria.

With construction ramp-up in Q2 2026, the adjacent corridors are entering a high-velocity phase — early positioning in Ogun, Ondo and Delta offers strong risk-adjusted returns.

For investors: infrastructure follows demand, but capital follows infrastructure first.

Which corridor along the Lagos-Calabar route are you watching? Share your target or strategy below!

Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.

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