Investment thrives on stability. When people—especially those in the diaspora—bring their hard-earned money back home, they’re betting on Nigeria’s future. But what happens when the government itself turns that bet into a losing game? That’s the predicament Nigerian investors in the U.S. are facing. After putting $250 million investing into the planned Lagos-Calabar Coastal Highway project, they’re now stranded because the Nigerian Federal Ministry of Works, led by Minister David Umahi, allegedly diverted the highway’s route—then abandoned the project. Just like the Ajaokuta Steel Mill, which remains incomplete after over 40 years, and the Second Niger Bridge, which took over three decades to finish, this is yet another case of dashed hopes and broken promises.
A Story of Misplaced Trust
The Lagos-Calabar Coastal Highway was supposed to be a game-changer—a massive infrastructure project that would connect key coastal cities and boost economic activity. Investors, both foreign and Nigerian, saw an opportunity. They bought land, built properties, and poured their money into the promise of growth.
But instead of progress, they got silence.
The government reportedly altered the route, cutting off properties that were supposed to benefit from the highway. Worse, after making this change, construction on that segment of the project stalled, leaving investors with land and buildings that no longer had the value they were promised.
In frustration, these investors recently staged protests in major U.S. cities, including Houston and Chicago, calling for international intervention. Some are now threatening to escalate the matter to the FBI and the U.S. Department of Homeland Security, arguing that this amounts to financial sabotage.
Why This is a Disaster for Nigeria’s Business Reputation
This isn’t just about a single road project—it’s about trust in Nigeria’s investment climate.
The Nigerian government has spent years encouraging Nigerians abroad to invest back home. But what does it say when those who take that leap end up stranded because of poor planning and alleged political maneuvering?
Investors made decisions based on an officially planned highway route. The government changed it.
Investors expected economic growth around the project. Instead, they got uncertainty and financial losses.
Investors believed in Nigeria’s potential. Now, many are regretting that belief.
The Tinubu Administration’s Silence Speaks Volumes
President Bola Ahmed Tinubu came into office with the Renewed Hope Agenda, promising to boost economic growth and attract foreign direct investment. But silence on an issue like this makes that promise look weak.
If the government allows investors to suffer losses without taking action, what stops this from happening again? How can Nigeria hope to compete for international investments when it treats its own diaspora investors like afterthoughts?
A Wake-Up Call for Nigeria’s Leadership
Nigerian and foreign investors are now questioning the system. American investor Kimberly Stark, one of those affected, has already expressed deep regret over her investment in Nigeria. If word spreads that investing in Nigeria is risky—not because of market forces, but because of government unpredictability—it will drive potential investors elsewhere.
At this point, the Nigerian government has two choices:
1. Step in, address investor concerns, and provide a clear plan for the abandoned project.
2. Ignore the issue and let Nigeria’s investment credibility take another hit.
The world is watching, and if these investors go through with their threats to involve international agencies, the fallout won’t just affect this one project—it could impact Nigeria’s ability to attract investors for years to come.
So, the real question remains: If investors can’t trust the Nigerian government to follow through on its own plans, why should they invest in Nigeria at all?
Investments thrive on trust, and when that trust is broken, the economy suffers. Stay informed with the latest business and investment news from Inside Success Nigeria. Follow us on @InsideSuccessNigeria for more updates.
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