Omi Eko: Lagos new effort to reverse N4trn, 5bn hours yearly productivity loss

After the Bus Rapid Transit (BRT) system and an ambitious rail system involving Blue Line, Red Line, and Green Line projects, the Lagos State government is, once again, upbeat with advanced plans to improve water transportation.

As Africa’s most populous city with a working population of about 6.4 million people, Lagos loses up to 5 billion hours of productivity and an estimated N4 trillion annually to poor transport infrastructure.

The recent launch of what the state calls ‘Omi Eko’ is its current effort at reversing those losses by decongesting its grossly inadequate and poorly maintained road infrastructure and improving urban mobility.

It is noted that during peak periods in Lagos, that is between 6:30am and 10am and also 4:00pm and 9pm, a trip from Ikorodu to Ajah takes about 3 hours, but the same trip upon the completion of the Omi Eko project will take 30 minutes.

The goal of the Omi Eko project is to take thousands of cars and buses off the road. This is expected to bring about more productivity and more than two hours of personal commute saved daily.

Omi Eko is intended to encourage water transportation. It is a €410 million inland waterways transport initiative designed to shift mobility away from roads and toward the city’s vast, underutilised waterways. It is expected to impact on the state’s real estate market and broader economic future.

In a city where mobility determines productivity, access, and economic opportunity, congestion has become more than an inconvenience; it has become a systemic constraint on the city’s growth, posing a significant threat to its ability to achieve its economic ambitions.

In its recent report, Fortren and Company, a property research firm, explains that Omi Eko, a phrasal noun in the Yoruba language, translated as ‘Water of Lagos,’ was launched in 2025, targeting completion in 2030. The project aims to transform the city’s lagoon and inland water networks into a world-class mass transit network.

“It was implemented by the Lagos State Waterways Authority (LASWA) with financial support from international partners, including the French Development Agency (AFD), European Investment Bank (EIB), European Union (EU). There is also an added €10 million invested by the private sector, which brings it to a total of €410 million,” the report says.

The report provided a few reasons for the investment in this project. These include taking advantage of the distinct geography of Lagos that is based on its coastal and lagoon location.

Others are mitigating productivity loss from urban congestion, ensuring a smooth green energy transition, decreasing the overuse of roads by diverting traffic to the underused waterways, and enhancing the quality of life and commuter experience.

Martin Uche, director, research and advisory at Fortren and Company, has projected that Lagos state’s population will hit 40 million by the end of 2040. “Even at this point in 2026, the road expansion in Lagos can no longer keep up with the population, which has been growing at 25 percent every 5 years since 1965.

This has forced the government to look at water as the only viable ‘third highway,’” he stated, noting that the investment in inland waterways supports a smooth green energy transition by reducing dependence on carbon-intensive road transport.

Road travel accounts for about 20 percent of the city’s emissions, making decarbonising mobility critical to climate goals. The Omi Eko water transport initiative is expected to cut emissions by roughly 41,000 tonnes annually through a modal shift from road to water. Water transport is also far more energy-efficient, using up to 75 percent less energy per passenger-kilometre than road vehicles.

“By integrating electric and cleaner boats, Lagos is building a low-carbon transport system that reduces congestion, lowers fuel use, improves air quality, and aligns with its long-term sustainability agenda,” Uche noted.

SENIOR ANALYST - REAL ESTATE

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