Key Takeaways
- Funding Boost: Lagos-Calabar Coastal Highway Phase 2 now fully funded at ₦1.5 trillion – up from earlier ₦1.2 trillion estimate.
- Timeline: Major construction acceleration targeted for Q2 2026; full Lagos–Ondo–Delta stretch operational by 2030.
- Land Impact: 25–50% price uplift already recorded in adjacent Ogun, Ondo & Delta corridors.
- Investor Tip: Position early within 5–15 km of alignment in Mowe–Ofada, Ore, Warri for 20–45% potential returns over 24–36 months.
The Federal Ministry of Works has confirmed ₦1.5 trillion in secured funding for Phase 2 of the Lagos-Calabar Coastal Highway (Lagos–Ondo–Delta stretch), with major construction acceleration targeted for Q2 2026. This is an increase from the earlier ₦1.2 trillion estimate and is already driving 25–50% land price uplift in adjacent corridors in Ogun, Ondo, and Delta states.
Funding Sources Breakdown (March 2026)
| Source | Amount (₦) | Percentage |
|---|---|---|
| Federal budget capex | ₦550 billion | 37% |
| Infrastructure bonds & sukuk | ₦450 billion | 30% |
| Multilateral loans (AfDB, World Bank, China EXIM) | ₦350 billion | 23% |
| Private-sector PPP contributions | ₦150 billion | 10% |
| Total secured | ₦1.5 trillion | 100% |
Revised Timeline & Milestones
- Q2 2026: Major earthworks, bridge foundations & primary carriageway start
- 2027–2028: Lagos–Ore–Ondo segment completion
- 2029–2030: Full Lagos–Calabar stretch operational (with Delta port spurs)
- Overall target: Phased rollout complete by end-2030
Impacted Zones & Land Price Uplift (March 2026)
- Ogun (Mowe–Ofada–Shimawa–Ijebu-Ode): +28–50% (plots ₦35M–₦90M)
- Ondo (Ore–Ondo town–Akure approach): +25–45%
- Delta (Warri–Sapele–Ughelli corridor): +22–40%
Early Positioning Strategies for Investors
- Target parcels within 5–15 km of highway alignment in Ogun & Ondo – highest appreciation potential (30–50% over 24–36 months)
- Focus on mid-market residential & light commercial in Mowe–Ofada & Ore – projected yields 15–22%
- Prioritize commercial/logistics plots near interchanges – long leases, 12–18% yields
- Verify titles (C of O / Governor’s Consent), use escrow, monitor federal disbursement progress
What is the current funding status for Lagos-Calabar Highway Phase 2?
Fully secured at ₦1.5 trillion as of March 2026, with sources including federal capex (₦550B), bonds/sukuk (₦450B), multilateral loans (₦350B) and PPP (₦150B).
When does major construction start on Phase 2?
Major works (earthworks, bridges, primary carriageway) accelerate in Q2 2026, with Lagos–Ore–Ondo segment targeted for completion 2027–2028.
Which areas are seeing the biggest land price uplift from the highway?
Ogun (Mowe–Ofada–Shimawa–Ijebu-Ode) leads with +28–50%, followed by Ondo (+25–45%) and Delta (+22–40%) corridors.
How can investors position early for Phase 2 impact?
Buy within 5–15 km of alignment in Ogun/Ondo, focus on mid-market residential or logistics plots, verify titles digitally and use escrow. Potential returns 20–45% over 24–36 months.
Will Phase 2 funding affect property prices in Lagos itself?
Indirectly – improved connectivity boosts commuter towns (Ikorodu, Epe) and spillover demand, but prime Lagos zones (Ikoyi, VI) remain driven by scarcity rather than highway access.
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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