With a working population of 6.4 million people, and a daily commute time of 3 hours per working population, Africa’s most populous city loses up to 5 billion hours of productivity (an estimated 4 trillion naira) annually due to poor transport infrastructure. 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 city’ growth, posing a significant threat to the state’s ability to achieve its economic ambitions. It is against this backdrop that the Lagos State Government has made a decisive intervention with the Omi Eko Project, a €410 million inland waterways transport initiative designed to shift mobility away from roads and toward the city’s vast, underutilised waterways. In this article, we will be discussing the Omi Eko Project and the impact it will have on the state's real estate market and broader economic future.
Omi Eko Explained: Lagos’ Bet on Water-Based Transport.
The Omi Eko Project, translated as “Water of Lagos” in Yoruba is a €410 million inland waterways transport initiative launched by the Lagos State Government 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.
€410m has already been raised to fund Omi-Eko Project - Fortren & Company WHY IS LAGOS INVESTING IN THE OMI EKO PROJECT NOW?
Lagos state’s population is projected to 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% every 5 years since 1965 . This has forced the government to look at water as the only viable “third highway”.
To mitigate productivity loss from urban congestion: 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 will bring about more productivity and more than 2 hours of personal commute saved daily.
To ensure a smooth green energy transition: Lagos’s investment in inland waterways supports a smooth green energy transition by reducing dependence on carbon-intensive road transport. Road travel accounts for about 20% 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% 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.
To decrease the overuse of roads by diverting traffic to the underused waterways: Although Lagos has over 200 kilometres of navigable lagoons and inland waterways , water transport currently serves less than 1% of daily commuter trips , while roads carry the vast majority of travel.t ens of thousands of commuters daily from cars and buses to ferries along key corridors such as Lagos Island–Ikorodu and CMS–Ajah. Each ferry can replace hundreds of road vehicles, reducing pressure on bridges and highways. This modal shift is expected to ease congestion, shorten travel times, and cut road maintenance costs while improving overall traffic flow across the city.
To take advantage of the distinct geography of Lagos that is based on coastal and lagoon location: Lagos has a unique water transport location with the major population centers along the lagoon system and the Atlantic coast. Waters, unlike road expansion which is limited to land availability and expensive, have scalable mobility without huge land acquisition. The Omi Eko Project takes advantage of this geographic benefit and uses the natural water channels of Lagos as resources of transit.
To enhance quality of life and commuter experience: Long commuting times in Lagos contribute to stress, fatigue, and reduced productivity, with many residents spending 2–4 hours daily in traffic . The Omi Eko project is designed to scale water transport to serve around 100,000 public transport users per day up to 2 hours on major corridors. By shortening travel times and providing safer, faster, and more reliable commutes, the initiative will free up time for family, rest, education, and economic activities, improving overall quality of life for Lagos commuters.
Lagos Blue
Water Project - Fortren & Company. This Image was generated using AI Core Components of Omi Eko Project:
The Omi Eko (Blue Water) plan of Lagos will construct an all-modern water transport infrastructure. Key components include:
Ferry network. An organized network of 15 dedicated routes which span approximately 140km of channels with 25 upgraded and extended ferry ports throughout the city. These will be linked to the rest of the transport modes as well as their coordination. Electric vessels. Purchase of approximately 75 state of art ferries. They will be huge, hybrid/electric vessels that will accommodate a number of up to 440 passengers each. Every ship will be powered by electricity (with reserve) to reduce the noise and pollution. Contemporary facilities and terminals. The Omi Eko project will modernize about 25 major jetties and terminals electric boat charging stations and maintenance depots to support a fleet of over 100 electric and hybrid ferries . To ensure smooth operations, more than 50 kilometres of primary waterways will be dredged, cleared, and canalized to accommodate the new vessels. These upgrades aim to increase daily passenger capacity, reduce travel disruptions, and provide a safer, faster, and more comfortable commuting experience, fully leveraging Lagos’s inland water transport potential. Inbuilt Ticketing and Connectivity The Omi Eko ferry system will be fully integrated into Lagos’s broader public transport network, connecting to Metro, BRT, and city bus lines. Using the state-wide Cowry Card, commuters can seamlessly transfer between modes without multiple tickets, reducing transfer time by an estimated 10–15 minutes per trip. Schedules across all modes will be synchronized based on peak travel data, ensuring ferries align with morning and evening peak periods when over 60% of daily commuters travel. This integrated system aims to improve multimodal efficiency, reduce total journey times, and increase daily public transport ridership across Lagos.
Funding package. The Global Gateway financing of the amount of €410 million has been signed. These are a €130M loan by the AFD of France, a €170M loan by the EIB and a €60M Euro grant by the EU (mostly charging infrastructure). The balance of funds will be contributed by Lagos state and private investors. Timeline and scale. The primary construction will take place within 3-5 years. During that period, the project is supposed to accommodate up to 25 million passengers annually after the project has reached maturity. The officials plan to increase the portion of water transport to approximately 5% of all journeys at present consisting of approximately 100,000 commuters each day and transporting them along the priority routes. In terminals, boat operations and supply chains, thousands of construction and transport jobs will be made. How Will Omi Eko Impact Commuters and the Economy?
The Omi Eko ferry system is designed to significantly reduce travel times and alleviate road congestion in Lagos. Estimates by Lagos transport authorities indicate that commuters on major routes could save up to two hours per day , translating to over 200,000 hours saved weekly for the projected 100,000 daily ferry users .
This upgraded network is expected to handle approximately 25 million trips annually , increasing from the current 15 million waterway journeys per year , and even capturing a small percentage of road commuters could ease congestion on major highways, which currently costs the economy 4 trillion naira annually in lost productivity.
Economic benefits extend beyond time savings. Improved mobility enhances access to business districts and mainland neighborhoods, creating opportunities for retail, services, and investment around ferry terminals.
The Omi Eko project is projected to create over 3,000 direct jobs in ferry operations, vessel maintenance, terminal management, and electric charging infrastructure. In addition, through collaboration with Lagos’s THEMES+ development agenda, over 5,000 community members along the waterways are being trained to assist in operating and managing the system, fostering inclusive local employment.
By reducing daily commute times by up to two hours for 100,000 daily riders and improving connectivity across key corridors, Omi Eko is expected to increase workforce productivity, lower transportation costs, and generate measurable economic returns for Lagos, including enhanced access to business districts and growth in commerce around ferry terminals.
What Sustainability goals does the project support?
Sustainability is put in the forefront by Omi Eko. The new ferries will be fully electric powered, reducing greenhouse gas and pollutant emission by far more than the diesel boats or road vehicles. In fact, the project estimates a cut in Carbon dioxide by approximately 41,000 tons annually, through the replacement of car and bus commuting with the use of e-ferries.
This will significantly enhance the already bad quality air of Lagos, reduce noise and water pollution. The electric boats will also generate virtually zero tailpipe emissions, which is much higher in normal road transport. (A typical ferry, by way of example, has an environmental footprint of around 123 0 -1 CO 2/km, whereas an electric bus has around 72 0 -1/km replacing normal ferries with electric ones reduces carbon by a factor of many times).
Transporting water is also cost efficient. Lagos will replace ferries with renewable power: solar panels will be installed on many jetties, and there will be CNG generators that will supply the boats with electricity. Omi Eko increases the share of waterborne transit (around 1 percent to 5 percent) to relieve the pressure on fossil-fueled buses and cars. It is presented as a green transit solution, which is climate-resilient, which fits the environmental commitments of Nigeria.
On social sustainability, the scheme requires the inclusive community and local hiring. The aim is to make sure that the coastal communities are benefiting by improving local jetties and providing fishermen and boat operators with new training (instead of throwing them out of work).
Overall, Omi Eko favors the achievement of various sustainability objectives, such as reducing carbon and air pollution, enhancing the movement of clean energy, and creating an equitable economic environment. According to AFD, this initiative would make Lagos a prototype of sustainable water transport in West Africa and other regions of the world.
What Challenges and Risk remain?
Despite its potential to decongest roads and transform urban mobility, the Omi Eko project faces significant affordability challenges that could limit commuter uptake. Current ferry fares for popular routes such as Ikorodu to Victoria Island, Lekki, or Ikoyi range from about ₦3,000 to ₦3,500 per one‑way trip, with occasional increases during peak demand or events. Meanwhile, state‑run LagFerry services offer cheaper rides at around ₦1,500, but operate on limited schedules that are less convenient for daily commuters. Without targeted fare subsidies, high ticket prices risk excluding low‑income workers and making water transport disproportionately accessible to middle‑income users. Transport analysts argue that integrating subsidies or blended fare strategies is essential to make water transit competitive with buses and minibuses, which are more affordable for many residents. Integrated pricing and connectivity with other public transport could help broaden participation and ensure the system serves a wider socioeconomic segment.
Lagos faces significant infrastructure constraints in scaling its water transport system. The city’s unstable power grid limits reliable charging for multiple ferries simultaneously, necessitating the integration of solar-powered charging stations at terminals. Operationally, about 140 kilometres of primary waterways require regular dredging and repair, as neglected channels quickly silt up, reducing navigability. Seasonal floods and strong tidal currents also pose risks to certain routes, particularly along the Lagos Lagoon and coastal corridors.
Safety remains a critical concern: the existing ferry fleet is largely disjointed and inconsistently maintained, leading to past incidents that undermine commuter confidence. Experts note that prior water transport initiatives in Lagos have experienced intermittent success, emphasizing that sustained political backing, community engagement, and regulatory oversight are essential to build trust, ensure compliance with safety standards, and achieve long-term operational viability for the Omi Eko project.
Lastly, another major test will be integration and management. Ferries now comprise less than 1 percent of journeys and the industry is operated by many small companies. Omi Eko needs to unite these components with a single system. There are many types of terminals (modern jetties to informal landings on the beach) and thus, they can be difficult to synchronise and coordinate schedules and safety. Any slackness or inefficiency would generate doubt. Lagos has to also fund the portion of the project itself, and budgets maintenance funds towards the new assets. In brief, the success of the project will be related to the timely, affordable, and trusted ferry travel, as otherwise commuters are going to remain stuck on the busy roads.
Lagos is progressive despite all these challenges. To address the issue of risk, the state government and partners focus on constant community involvement and gradual implementation. When properly executed, Omi Eko would finally make the waterways of Lagos become not a forgotten resource, but a part of urban transportation infrastructure, the daily routine of millions of people and a new design of African cities.
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