Lagos, EIB Sign €170m Deal To Boost Sustainable Water Transport System
The Lagos State Government has entered into a €170 million financing partnership with the European Investment Bank (EIB) to develop a sustainable and efficient waterborne transport system as part of efforts to improve urban mobility in the state.
The agreement, signed on Friday at the headquarters of the Lagos State Waterways Authority (LASWA), marks the first collaboration between LASWA and the EIB, which is the largest financier of the Omi Eko Project.
The Omi Eko Project is designed to transform water transportation in Lagos through the development of modern ferry infrastructure, the introduction of electric-powered vessels, and the expansion of waterways connectivity across the state.
The initiative is being supported under the European Union’s Global Gateway Initiative and forms part of the strategic Abidjan-Lagos Corridor development plan.
Under the financing arrangement, the EIB will provide a €170 million long-term loan, supported by an EU guarantee. The project is also being co-financed by the French Development Agency (AFD) and the European Commission through a €130 million sovereign loan and €60 million investment grant respectively.
The project will involve the construction of new ferry terminals and jetties, acquisition of electric ferries, and establishment of maintenance facilities for the fleet.
When completed, the initiative will introduce 15 structured ferry routes covering 140 kilometres and connect 25 upgraded terminals across Lagos. It will also provide 75 modern electric vessels, each capable of carrying up to 440 passengers.
Officials said the electric vessels would help reduce greenhouse gas emissions and water pollution while improving travel efficiency for residents, particularly those living in waterfront communities.
The project is expected to increase the contribution of water transportation to Lagos’ overall transport system from its current level of less than one per cent to about eight per cent by 2032, in line with the Lagos State Transport Master Plan.
Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, described the partnership as a significant step towards achieving a modern and sustainable transport network.
Osiyemi said the state government remained committed to providing the necessary policy support, transparency, accountability and collaboration required to ensure the successful delivery of the project.
The Special Adviser to the Lagos State Governor on Blue Economy, Oluwadamilola Emmanuel, said the partnership represented a major milestone in unlocking the potential of Lagos’ blue economy.
He expressed confidence that the Omi Eko Project would become a landmark achievement through strategic international cooperation and innovative transport solutions.
Speaking at the event, EIB Vice-President Ambroise Fayolle said the bank was committed to supporting projects that promote safer, more affordable and environmentally friendly transportation.
He noted that the initiative would improve the daily lives of Lagos residents while creating opportunities for sustainable economic growth and employment.
The European Union Ambassador to Nigeria, Gautier Mignot, said the project demonstrated the strength of cooperation between the EU, EIB, AFD, Nigeria and Lagos State.
According to him, the wider financing package from European partners totals €410 million, comprising subsidised loans and grants aimed at strengthening connectivity and supporting sustainable development.
The Omi Eko Project is expected to become a major component of Lagos’ transport transformation agenda and contribute to improved mobility across the city and the wider West African region.
