FG, Hitech sign deal to attract foreign investments

• Published On: 26 February 2025 at 17:31

The Federal Government of Nigeria has signed an engineering, procurement, construction, and financing contract with Hitech Construction Company Nigeria Ltd. for the Lagos-Calabar Coastal Highway Project.

This agreement allows the contractor, in collaboration with the Federal Ministry of Finance, to seek foreign investment to fund the project.

This was disclosed in a statement issued on Tuesday by Uchenna Orji, Special Adviser to the Minister of Works and Media.

Orji stated that the agreement is consistent with the Renewed Hope administration's strategy for securing long-term funding for Legacy Projects that promote economic growth.

At the signing ceremony, Minister of Works Dave Umahi stated that the Lagos-Calabar Coastal Highway was President Bola Tinubu's vision years ago and is now a reality under the Renewed Hope administration.

He emphasized the project's importance in stimulating economic growth, improving connectivity, and promoting regional development.

He promised that, with the contractor's expertise and President Tinubu's strong political will, the 750-kilometer Lagos-Calabar Coastal Highway would be completed by the grace of God before the end of the President's second term.

He stated, "We are extremely grateful to God Almighty for this project, which Mr President initiated.

"A 27-year-old dream has become a reality in front of us, and we are fortunate to be a part of this wonderful, evolving megaproject, Africa's largest ever.

"So today, we have signed the EPC+F contract, which is Engineering, Procurement, Construction plus Finance."

He went on to say, "The beauty of it is that the F component of EPC + F is currently being fulfilled. So, by signing this EPC+ F contract, the contractor will be able to bring in foreign investment through the Federal Ministry of Finance for this project. The Federal Government's commitment is 30% counterpart funding, which the President is fulfilling.

"And now there is a foreign component to the project, that is, foreign financing, which will accelerate the performance of this project, and I am pleased with Hitech's performance, the quality of work they are doing, and the speed of work. We would have been able to commission the entire first section within one year of the project's completion if not for the payment of a very high fee."

The government began construction of the Lagos-Calabar Coastal Highway in March 2024, with a 47.7-kilometer first phase in Lagos beginning at Ahmadu Bello Way.

This phase is scheduled for completion in May 2025. Minister of Works Dave Umahi stated that each kilometer of road would cost N4 billion to build.