President Bola Tinubu has welcomed the successful closure of a USD 1.26 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure drive and economic transformation agenda.
The President commended the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office for their collaboration in securing the funding, noting that the achievement underscores his administration’s commitment to innovative and sustainable financing for critical national projects.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded. Our administration will continue to explore available funding opportunities to execute critical economic and infrastructural projects across the country,” Tinubu said.
Phase 1, Section 2 of the project spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The corridor is expected to significantly improve trade efficiency, logistics, and connectivity along Nigeria’s coastal axis. The latest financing follows the earlier USD 747 million closed for Phase 1, Section 1, further reinforcing the project’s scalability and bankability.
The transaction was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). It also marks ICIEC’s first Nigerian transaction since the country’s recent institutional and regulatory reforms, reflecting renewed investor confidence in Nigeria’s investment climate.
SkyKapital served as Lead Financial Advisor, while Earth Active (UK) provided Environmental and Social advisory services to ensure compliance with IFC Performance Standards, the Equator Principles, and global ESG best practices. Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the deal as a “defining moment in Nigeria’s infrastructure journey,” assuring that the funds would be deployed responsibly to deliver the project within set timelines.
He noted that the financing is unprecedented in scale for a Nigerian road project, being fully underwritten by First Abu Dhabi Bank and Afreximbank, with partial coverage from ICIEC, making it the largest ICIEC-supported transaction since the institution’s establishment.
Construction of the highway is being handled by Hitech Construction Company Limited, whose pace of work and early opening of sections have attracted praise from lenders for engineering excellence and execution speed.
The Federal Government also disclosed that a comprehensive Value-for-Money assessment was conducted by SkyKapital, in collaboration with the Ministry of Works, and independently reviewed by GIBB, in line with transparency and fiscal discipline commitments.
With the successful close of Phase 1, Section 2, the government says the Lagos–Calabar Coastal Highway stands as a flagship project of President Tinubu’s Renewed Hope Agenda, signalling Nigeria’s growing capacity to translate reform into delivery.