Lagos Secures €170m EIB Funding to Transform Water Transport with Electric Ferries
Kathy Kyari
Lagos State has secured a €170 million financing partnership with the European Investment Bank (EIB) Global to accelerate the development of a sustainable and efficient waterways transportation system aimed at transforming urban mobility across the state.
The agreement, announced during a signing ceremony at the headquarters of the Lagos State Waterways Authority (LASWA), marks the first collaboration between LASWA and EIB and represents the largest funding commitment to the Omi Eko Project.
The project, which forms part of the strategic Abidjan-Lagos corridor supported under the European Union’s Global Gateway Initiative, is expected to enhance transportation options, reduce congestion on roads, improve accessibility for waterfront communities, and contribute to environmental sustainability.
The signing ceremony was attended by EIB Vice-President Ambroise Fayolle, European Union Ambassador to Nigeria Gautier Mignot, and French Consul General in Lagos Laurent Favier, among other dignitaries.
The EIB's long-term loan is backed by an EU guarantee under the Global Gateway Initiative and complements financing from the French Development Agency (AFD) and the European Commission. The Omi Eko Project is being co-financed with a €130 million sovereign loan from AFD and a €60 million investment grant from the European Commission.
Under the project, Lagos will establish a comprehensive waterborne public transport network through the construction of new ferry terminals and jetties, the acquisition of electric-powered ferries, and the development of maintenance facilities.
The initiative will introduce 15 structured ferry routes spanning 140 kilometres and connect 25 upgraded and expanded ferry terminals across Lagos. It will also deploy 75 modern electric vessels, each capable of carrying up to 440 passengers.
Once completed, the project is expected 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.
Speaking on the partnership, the Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, described the EIB’s support as a major boost to the state's transportation agenda.
“The EIB’s commitment to the Omi Eko Project is highly commendable. Likewise, the Lagos State Government is fully committed to providing the enabling environment required for the success of this partnership. This includes strong political will, policy consistency, transparency, accountability, and effective collaboration. We are prepared to work closely with the European Investment Bank to ensure that Omi Eko meets the highest global standards of project delivery and sustainability,” Osiyemi said.
Also commenting, the Special Adviser to the Lagos State Governor on Blue Economy, Oluwadamilola Emmanuel, said the agreement represented a significant step toward unlocking the state's maritime potential.
“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 Omi Eko Project will stand as a landmark achievement, showcasing what is possible when visionary leadership meets strategic international partnership,” he said.
EIB Vice-President Ambroise Fayolle said the project would improve transportation services while supporting economic growth and environmental sustainability.
“We strongly support this flagship green project, which will develop a more safe, efficient and affordable public transport in Lagos. It will improve the daily lives of Lagos’ large population while boosting sustainable growth and job opportunities. It is a concrete demonstration of the EIB’s commitment with his partners to the EU’s Global Gateway strategy in West Africa,” Fayolle said.
The European Union Ambassador to Nigeria, Gautier Mignot, described the project as evidence of the strong partnership between Europe and Nigeria.
“The OMI EKO project is a strong demonstration and the sizeable support of the European Union, EIB and AFD are bringing to this project, 300 MEUR in subsidized loans and 60 MEUR in grants, shows the strength of our partnership with Nigeria and Lagos State and the positive impact of this collaboration on the daily lives of millions of people.
“It is also a demonstration of our Team Europe’s commitment to roll out EU’s Global Gateway strategy in West Africa, with the aim of strengthening global connectivity across the world. I look forward to navigate, in a not too distant future, on electric ferries throughout the wonderful Lagos lagoon and to further expand transport connectivity in Lagos, in Nigeria but also in the ECOWAS region and beyond. Let’s shape the future together,” Mignot said.
The project is being delivered through a Team Europe financing package worth €410 million, bringing together the European Investment Bank, the European Union and the French Development Agency.
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