EIB Commits €170 Million to Lagos Water Transport Project, Backs Omi Eko Initiative

EIB Commits €170 Million to Lagos Water Transport Project, Backs Omi Eko Initiative

LAGOS — The European Investment Bank (EIB), through its development and international partnerships arm, EIB Global, has committed €170 million to support the Lagos State Government's ambitious Omi Eko Project aimed at transforming water transportation and improving urban mobility across Nigeria's commercial capital.

The financing agreement, announced during a signing ceremony at the Lagos State Waterways Authority (LASWA) headquarters in Lagos, marks the first collaboration between the EIB and LASWA and represents the largest funding contribution to the Omi Eko Project.

The project is designed to develop an efficient, resilient and affordable waterways transportation network that will ease congestion on Lagos roads while delivering significant socio-economic and environmental benefits. It is also part of the strategic Abidjan-Lagos transport corridor supported by the European Union under its Global Gateway Initiative.

The ceremony was attended by EIB Vice-President Ambroise Fayolle, European Union Ambassador to Nigeria Gautier Mignot, French Consul General in Lagos Laurent Favier, and senior Lagos State Government officials.

The EIB's long-term loan is backed by an EU guarantee under the Global Gateway Initiative and complements funding from the French Development Agency (AFD), which is providing a €130 million sovereign loan, alongside a €60 million investment grant from the European Commission.

Under the project, a modern urban water transport system will be developed through the construction of new ferry terminals and jetties, acquisition of electrically powered passenger ferries, and establishment of maintenance facilities for the fleet.

The Omi Eko Project will introduce 15 structured ferry routes spanning approximately 140 kilometres across Lagos waterways. It will connect 25 upgraded ferry terminals and deploy 75 state-of-the-art electric ferries, each capable of carrying up to 440 passengers.

The electric vessels are expected to significantly reduce greenhouse gas emissions and water pollution while providing commuters with safer, faster and more affordable transportation alternatives.

When fully operational, the project is projected to increase the share of water transportation in Lagos from less than one per cent currently to as much as eight per cent by 2032, in line with the Lagos State Transport Master Plan. It is also expected to improve accessibility for waterfront communities and generate substantial time and cost savings for residents.

Speaking at the event, Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, described the EIB's investment as a major boost to the state's transportation ambitions.

"The EIB's commitment to the Omi Eko Project is highly commendable. The Lagos State Government remains fully committed to providing the enabling environment necessary for the success of this partnership through strong political will, policy consistency, transparency, accountability and effective collaboration," he said.

Also speaking, the Special Adviser to the Lagos State Governor on Blue Economy, Oluwadamilola Emmanuel, said the partnership represented a major milestone in unlocking the economic potential of Lagos waterways.

"The partnership signing ceremony with the EIB marks a significant milestone in our journey to unlock the full potential of our Blue Economy and of the Omi Eko Project in particular. We are confident that with the support and expertise of the European Investment Bank, the project will become a landmark achievement in sustainable urban mobility," he stated.

EIB Vice-President Ambroise Fayolle described the project as a flagship green transport initiative that would improve the daily lives of millions of Lagos residents.

"We strongly support this project because it will deliver safer, more efficient and affordable public transport while creating opportunities for sustainable economic growth and employment. It is also a concrete demonstration of the EIB's commitment to supporting the European Union's Global Gateway strategy in West Africa," Fayolle said.

European Union Ambassador to Nigeria, Gautier Mignot, noted that the combined €360 million in concessional financing and €60 million grant funding demonstrated the strength of the partnership between the EU, Lagos State and Nigeria.

According to him, the project reflects Team Europe's commitment to strengthening connectivity, promoting sustainable development and improving the quality of life for millions of people.

Overall, the Omi Eko Project is being supported through a €410 million financing package provided by the European Investment Bank, the French Development Agency and the European Union.

The initiative aligns with Nigeria's National Development Plan 2021–2025, which prioritises investment in critical infrastructure, and contributes to the achievement of several Sustainable Development Goals (SDGs), including sustainable cities, climate action and economic growth.

Since commencing operations in Nigeria in 1978, the European Investment Bank has invested approximately €2.3 billion in key sectors including transport, energy, agriculture, innovation, technology and financing for small and medium-sized enterprises.