Real Estate Policy & Markets

Nigeria Plans a 2.9km Underwater Tunnel, and It Could Reshape Property Values in Snake Island and Badagry

Lagos Lagoon waterfront representing Nigeria's proposed underwater tunnel connecting Victoria Island to Snake Island and Badagry
Nigeria’s proposed 2.9km underwater tunnel could unlock new real estate growth in Snake Island and Badagry.

In September 2025, Nigeria’s Federal Government announced plans to build what would become Africa’s first underwater tunnel, a 2.9-kilometre passage beneath the Lagos Lagoon. Minister of Works David Umahi revealed the project during an inspection tour, calling it a first for the continent.

What the Tunnel Would Connect

The tunnel would run from Ahmadu Bello Way in Victoria Island, beneath the lagoon, to Snake Island, extending toward Badagry. It’s designed to serve as the missing link between two of Nigeria’s largest highway projects, the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Superhighway, forming part of a 61-kilometre stretch connecting both corridors.

How Nigeria Plans to Pay for It

Umahi said the project would run under a Public-Private Partnership, using land resources around Snake Island and Badagry to fund construction through a Build-Operate-Transfer model. “We have land at Snake Island and by Badagry,” he said. “We hope to use this land under PPP to fund the project.”

Why This Matters for Real Estate

Government officials have said improved accessibility through the tunnel could open new growth corridors in Snake Island, Badagry, and surrounding communities, potentially attracting industrial development, tourism investment, and residential expansion. Land in these areas has historically been undervalued compared to central Lagos, largely due to access difficulty. A direct, high-speed connection to Victoria Island could change that calculation significantly, if the project moves from announcement to construction.

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Conclusion

Nigeria has announced ambitious infrastructure before that took years, or never fully materialised. This tunnel remains in the planning and design phase, nearly a year after the announcement. For property owners and investors watching Snake Island and Badagry, the opportunity is real, but so is the wait.

 PRAISE SAMSON

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