The Nigerian Government is making significant changes to the Lagos-Calabar Coastal Highway, opting for a redesigned route that eliminates nearly 90% of planned bridges across key states, including Ondo, Delta, Rivers, Akwa Ibom, and Bayelsa.

This major shift in strategy is aimed at reducing construction costs while maintaining the project’s economic and infrastructural impact.

Minister of Works David Umahi, speaking at a stakeholders’ engagement meeting in Lagos on Sunday, explained that instead of building costly bridges over water bodies, the government is redirecting the highway to upland areas. This approach is expected to save billions of naira, ensuring that the road remains both cost-effective and profitable.

Why the Redesign?

Originally, the Lagos-Calabar Coastal Highway included multiple bridges, some stretching as long as three kilometers, to accommodate the network of rivers, creeks, and wetlands across the coastal corridor. However, Umahi revealed that these bridges posed a significant financial challenge.

“For the sections of Ondo, the section of Delta, the section of Port Harcourt, the continuous section in Akwa Ibom and Bayelsa, we are confronted with a lot of bridges, some as long as three kilometers. We don’t want to do that. That is going to cost us a fortune,” Umahi said.

The decision to shift the road inland is not just about saving money; it is also about ensuring that the highway is built efficiently, maintained sustainably, and generates a return on investment. By reducing the number of bridges, the government aims to simplify construction, reduce maintenance costs, and speed up completion timelines.

Why Was This Not Done in Lagos?

The decision to redesign the highway in other states has led many Nigerians to ask a critical question: Why was a similar approach not taken in Lagos, where businesses worth billions of naira were destroyed?

While Umahi framed the redesign as a cost-saving measure, many have asked the above question about Lagos, where the government demolished thriving multibillion-dollar businesses to make way for the project.

This contradiction has raised concerns over the government’s priorities, especially given that there are other critical but neglected road projects, such as the East-West Road, that many believe should have been prioritized over the Lagos-Calabar Coastal Highway. The East-West Road, which has been in a state of disrepair for years, is a vital transport corridor for the oil-rich Niger Delta region.

The most prominent casualty of the highway project in Lagos was the Landmark Beach Resort, a popular tourism hub that was completely demolished despite multiple appeals from business owners, stakeholders, and the public.

The Landmark Beach Resort, located along the Lekki coastline, housed a range of commercial activities, including beachfront restaurants, bars, event spaces, and leisure facilities. It was a major tourist attraction, generating significant revenue and employment opportunities. However, the government insisted on demolishing it to ensure that the highway maintained its coastal alignment—a justification that now appears contradictory in light of the recent redesign decisions.

This double standard has sparked criticism, with many believing that the government’s decision to rush into demolitions in Lagos without exploring alternative routes has ethnic sentiments.

Is It Still a Coastal Road?

With the latest redesign, a significant portion of the highway will no longer follow a coastal route, effectively making it an upland highway rather than a true coastal road. This has reignited debate over the project’s purpose. Many have noted that if the government abandoned its coastal alignment, it should not have embarked on the project in the first place.

One of the most crucial sections of the highway is the Lekki Free Zone, where an 80-meter-span bridge has been designed to facilitate truck movement around the Dangote Refinery and other major industrial hubs. This section is expected to significantly ease logistics for businesses operating in the zone, ensuring that goods and raw materials can be transported seamlessly and efficiently.

Umahi assured stakeholders that consultations had been completed, and all necessary approvals—including land revocation and enumeration—had been signed off by the Lagos State Government. This clearance paves the way for uninterrupted construction in the region.

The Government’s Economic Justification

Despite the growing criticism, the government insists that the project is more than just a road and bridge initiative—it is an economic investment corridor designed to spur commercial activities, tourism, and renewable energy projects such as windmill power generation.

“This is beyond roads and bridges. It is an investment. Along the corridor, we’re going to have a lot of commercial activities. Tourism is going to grow in a very dignified and intensified manner. We’re going to have windmill energy. This coastal highway is going to be connected to the existing roads—a lot of them, we inherited,” he said.

Balancing Cost, Efficiency, and Economic Impact

The N15 trillion Lagos-Calabar Coastal Highway remains one of the most ambitious infrastructure projects in Nigeria. While cutting down bridge construction is expected to drastically lower costs, the government still faces the challenge of funding the massive project. Concerns have been raised over budget transparency, the potential for delays, and whether the inland realignment could impact communities or businesses along the coast.

Many Nigerians are now wondering if the project will face the same delays and budget overruns that have plagued previous infrastructure projects.

However, the Federal Government insists that its approach will ensure the long-term viability of the project, making it a critical driver of national development.

The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against the Central Bank of Nigeria (CBN) at the Federal High Court in Lagos, seeking to stop the implementation of the recent increase in Automated Teller Machine (ATM) transaction fees.

The legal action comes amid growing public outrage over the policy, which SERAP has described as “patently unlawful, unfair, and unjust.”

In a statement posted on its official X handle, SERAP argued that the new charges disproportionately affect poor Nigerians while benefiting commercial banks and the apex bank. The organization insisted that the court must intervene to prevent what it sees as an exploitative policy that will further marginalize low-income earners and those who rely on cash transactions.

SERAP’s legal team, led by Kolawole Oluwadare and Andrew Nwankwo, filed the suit under case number FHC/L/CS/344/2025. In its court documents, SERAP accused the CBN of compromising its mandate to promote economic stability and sustainable development by enforcing policies that deepen financial exclusion. It also argued that the apex bank’s decision violates the Nigerian Constitution, the Federal Competition and Consumer Protection Act, and Nigeria’s international human rights obligations by increasing financial burdens on citizens without justification.

The lawsuit asks the court to determine whether the CBN’s decision to increase ATM withdrawal fees is arbitrary, unfair, and unreasonable and whether it contradicts the provisions of the Federal Competition and Consumer Protection Act 2018. Additionally, SERAP is seeking an interim injunction to restrain the CBN, its officers, agents, and any other parties acting on its directive from enforcing the new charges until a final ruling is made.

According to the statement, SERAP is seeking “an order of interim injunction restraining the CBN, its officers, agents, associates or any other persons acting on its directive or instructions from enforcing and giving effect to the decision, pending the hearing and determination of the motion on notice for an order of interlocutory injunction filed in this suit.”

SERAP contends that the increase in ATM fees will create an even deeper divide between those who can afford banking services and those who cannot. The group argues that many Nigerians, particularly in rural areas and low-income brackets, still rely on cash transactions, and making access to cash more expensive could discourage them from using formal banking services altogether. This, financial experts warn, could roll back years of progress in Nigeria’s financial inclusion drive.

The controversy erupted following the CBN’s announcement on February 11, 2025, that new ATM withdrawal fees would take effect from March 1. The apex bank, in a circular signed by Acting Director of the Financial Policy and Regulation Department, John Onojah, justified the move by citing rising operational costs and the need to improve the efficiency of ATM services.

Under the revised policy, withdrawals made from an individual’s bank ATM remain free. However, customers who use ATMs at the same bank’s premises will now be charged N100 per N20,000 withdrawal. Those using ATMs belonging to other banks face an even steeper cost, with an N100 fee plus a surcharge of up to N450 per N20,000 withdrawal at off-site locations.

The CBN defended the decision by pointing out that the last review in 2019 had reduced ATM withdrawal charges from N65 to N35, implying that banks have absorbed increased operational expenses for several years. However, the move has sparked backlash, with many arguing that it amounts to an unfair exploitation of consumers who are already struggling with economic hardship.

Many Nigerians have expressed frustration over the continuous increase in banking charges, particularly in light of the country’s worsening economic conditions. Rising inflation, stagnant wages, and increasing unemployment have left many struggling to afford basic necessities.

Impact on Financial Inclusion Efforts

The policy has also raised concerns about its impact on Nigeria’s financial inclusion goals. Over the past decade, the CBN has promoted financial inclusion as a key policy objective, working to bring more Nigerians into the formal banking system. Efforts such as mobile banking, agent banking, and simplified Know-Your-Customer (KYC) processes have aimed to reduce barriers to financial access, particularly for those in rural areas.

However, with this new policy, financial analysts warn that many low-income Nigerians may begin to avoid formal banking altogether to escape high transaction costs. Instead, they may turn to informal cash-handling methods, such as keeping money at home or using unregulated savings groups, which could expose them to security risks and financial instability.

Another concern is the possibility of increased reliance on Point of Sale (PoS) agents, who provide cash withdrawal services in communities with limited ATM access. PoS agents, who already charge withdrawal fees, may see an increase in demand as bank customers try to avoid direct ATM charges. However, this could also lead to higher PoS transaction costs as agents respond to rising demand by increasing their own fees.

With SERAP pushing for an interim injunction, the Federal High Court in Lagos is expected to set a date for hearing the motion. If the injunction is granted, it could temporarily halt the implementation of the ATM fee hike, offering relief to consumers.