Nigeria’s Mega-Projects Must Prove Their Value Before Debt Costs Rise Further

Nigeria needs better roads, bridges and transport corridors, but major infrastructure projects must deliver enough economic value to justify their financing costs. Borrowing, exchange-rate depreciation, construction inflation and rising debt-service obligations can turn ambitious projects into long-term fiscal pressure if costs are not tightly managed. Projects such as the Lagos–Calabar Coastal Highway and Sokoto–Badagry Super Highway should be assessed on their actual economic potential. Traffic volumes, freight demand, travel-time savings, maintenance costs, industrial links and revenue prospects matter more than the number of states a road passes through. Transport investment delivers stronger returns when it links farms to processing centres, manufacturers to ports and businesses to markets. Public-private partnerships can help share risk, but they still require credible contracts, viable demand, affordable financing and limited foreign-exchange exposure. Government should publish clear project data, including contract values, payment stages, cost variations, milestones and completion rates. Major infrastructure borrowing should also undergo transparent economic-return assessments to ensure new roads become productive assets rather than expensive liabilities.

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