Can Lagos Waterways Finally Work? The €410 Million Omi Eko Water Transport Project And Legal Roadmap For Investors

Lagos’s transport system increasingly revolves around three major modes: road, rail and water. Water currently accounts for less than 1% of daily trips in Lagos, while Omi Eko is designed to help take that share towards 8% by 2032. Lagos is entering a new phase of water transport investment. A €410 million waterborne public transport project involving new ferry routes, upgraded terminals and electric vessels is being developed to create a large-scale inland waterways transport network. But the investment opportunity comes with an important legal question: who has authority to regulate, license and control activity on Lagos’s inland waterways?

For investors, ferry operators, infrastructure developers and private-sector partners, the answer sits within a combination of federal inland-waterway law, the Supreme Court’s 2024 decision on NIWA and LASWA, and the regulatory framework surrounding project development. 

These were the highlights at a recent sensitisation session attended by our Senior Partner, Dr Olisa Agbakoba (SAN), and Managing Partner, Yvonne Ezekiel. 

Why Lagos’s Waterways Remain Underused: Five Barriers

Everyone at the session unanimously recognised that Lagos needs to leverage its waterways more effectively. Ferries, jetties, and coastal routes have the potential to significantly reduce congestion on our roads, an argument that has been made repeatedly over the years. Yet, the question remains: why has it not happened yet? Dr Olisa Agbakoba highlighted several key obstacles:

1. Low public awareness and weak communication: While government initiatives for water transport exist, public awareness remains minimal. Without effective communication, stakeholder engagement and commuter adoption will struggle to gain momentum.
2. Regulatory jurisdiction and intergovernmental coordination: The Supreme Court has settled the federal regulatory position, but implementation still creates a practical coordination issue between Federal and State, because Lagos State is the project promoter and LASWA remains directly involved in the development and operation of the state’s water-transport system. 
3.  Potential Government Conflicts: Overlapping marine economy initiatives from both state and federal levels can lead to disputes and bureaucratic roadblocks, hampering progress.
4.  Commuter behaviour and adoption: Many Lagosians are accustomed to road transport. To shift this deeply ingrained habit, we must offer compelling reasons for commuters to change their mindset.
5.  Infrastructure and last-mile connectivity: Currently, there are too few jetties, limited ferry fleets, and a lack of last-mile connections from jetties to destinations. A ferry route that leaves commuters stranded is not a viable solution.

How Lagos Can Fix Its Water Transport Problem

During the sensitisation session, our Senior Partner put forward strategic ideas aimed at overcoming these challenges and advancing water transportation development:

• Implementing Congestion Fees: Drawing inspiration from the UK, we propose introducing congestion zones in Lagos where drivers pay fees (e.g., 3,000 Naira). This would discourage car use in congested areas and promote public transport options, including ferries and rail.
• Developing Robust Infrastructure: The project requires coordinated development of functional jetties, ferry terminals, navigation infrastructure and reliable services, with the relevant federal and state authorities’ roles clearly mapped. Ensuring seamless ferry connections to other transportation options is crucial for efficient transit.
• Creating Seamless Intermodal Transport Solution : We recommend integrating car-hire services and other last-mile transport solutions at ferry terminals to enhance accessibility for commuters.
• Launching Clear Communication Campaigns: Educating the public about new water transport options, schedules, and benefits will increase adoption. Visible communication of government plans and private investment opportunities can foster interest.
• Encourage Private-sector participation and financing: Government can focus on policy, regulation and enabling infrastructure while private operators and investors contribute capital, technology and operational expertise through appropriately structured partnerships. We advocate for enabling policies and incentives that attract private investments and expertise to rapidly scale infrastructure.

Federal vs State: Who Actually Controls Lagos’s Waterways?

One crucial consideration for anyone contemplating investment or operations in this sector is the governance question. While federal law places the relevant navigable inland waterways under federal regulatory control, Lagos State drives waterway ambitions. Until a cohesive framework is established to coordinate these two interests rather than letting them compete, every jetty concession, every ferry license, and every infrastructure investment will carry added regulatory risks. 

This is not a reason to shy away from investment; rather, it emphasises the importance of careful structuring. Private sector stakeholders seeking to enter Lagos’s burgeoning blue economy require clarity on permitting authority and licensing pathways, as well as effective strategies to resolve potential disputes between federal and state bodies before making moves in this vibrant space.

 Investing in Lagos’s Blue Economy: What Comes Next”.

For maritime operators, infrastructure investors, and private sector players eyeing opportunities in ferry manufacturing or jetty concessions, the potential is genuine. However, it exists within a regulatory environment still being negotiated between two levels of government. Now is the time to structure your entry thoughtfully, positioning yourself ahead of forthcoming policies and avoiding unforeseen jurisdictional disputes.

This is where expert legal counsel can prove invaluable: navigating the federal-state overlap, structuring public-private partnerships that withstand administrative changes, and establishing compliance frameworks around concessions before they face regulatory scrutiny. In a landscape ripe with opportunity, let’s work together to unlock the full potential of Lagos’s waterways and build a sustainable transport future.

 Key Takeaways

• Public awareness of waterway plans remains low — communication is a prerequisite, not an afterthought
• Federal and state jurisdiction over waterways overlaps, creating real coordination risk
• A congestion-pricing model, drawing on examples such as London’s Congestion Charge, was proposed as a possible behavioural measure during the sensitisation. 
• Infrastructure gaps (jetties, ferries, last-mile connectivity) remain the biggest practical barrier
• Private sector involvement, backed by enabling policy rather than direct state control, is positioned as the faster path to scale
• Lessons from Lagos’s BRT rollout are a useful reference point for both communication and operational execution

FAQ

1. Is the Lagos congestion charge already in effect?

No. It was raised as a proposed measure during the sensitisation, modelled on congestion pricing used in the UK. It has not been enacted as policy.

2. Who has legal authority over Lagos’s waterways,federal or state government? Coastal waters fall under federal jurisdiction, while Lagos State is separately pursuing its own waterway and marine economy development. This creates an overlap that hasn’t yet been resolved through a formal coordination framework.

In National Inland Waterways Authority & Ors v Lagos State Waterways Authority & Ors (2024) LPELR-62198(SC), the Supreme Court considered competing claims by federal and Lagos State authorities over regulation, licensing and levies on inland waterways in Lagos. The Court affirmed federal control under the National Inland Waterways Authority Act.

3. What role can private companies play in Lagos’s waterway development?

The sensitisation highlighted an argument for reduced direct government involvement in ferry manufacturing and jetty construction, in favour of enabling policy and incentives that attract private capital and operational expertise.

4. Why has water transport lagged behind road and rail in Lagos despite its potential?

A combination of low public awareness, infrastructure gaps (jetties, ferries, last-mile links), and entrenched commuter habits — not a lack of theoretical viability.