Tinubu Welcomes $1.126bn Financing for Lagos–Calabar Coastal Highway
President Bola Ahmed Tinubu has commended the successful closure of a $1.126 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure development drive.
The financing, secured by the Federal Ministry of Finance in collaboration with the Ministry of Works and the Debt Management Office, is for the construction of a 55.7-kilometre stretch of the highway linking Eleko in Lekki to Ode-Omi. The corridor is considered strategic to national trade, logistics, and economic growth.
President Tinubu said the deal would ensure uninterrupted progress on the project and reaffirmed his administration’s commitment to exploring innovative funding options for priority infrastructure nationwide.
The latest transaction follows the earlier closure of a $747 million financing package for Phase 1, Section 1 of the project, further underscoring the scale and bankability of the Lagos–Calabar Coastal Highway, which is projected to be one of Africa’s largest coastal road developments.
The facility was fully underwritten by First Abu Dhabi Bank and Afreximbank, with partial risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Officials described it as ICIEC’s largest-supported transaction since Nigeria’s recent institutional and regulatory reforms, reflecting growing investor confidence in the country’s reformed investment climate.
SkyKapital served as Lead Financial Adviser on the deal, while environmental and social advisory services were provided by Earth Active (UK) in line with international ESG standards. 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, Wale Edun, described the financing as a “defining moment” in Nigeria’s infrastructure journey, noting that the funds would be deployed responsibly to deliver the project within agreed timelines. He added that the transaction represents the first fully underwritten financing of such scale for a Nigerian road project.
Construction of the highway is being carried out by Hitech Construction Company Limited, whose early progress and phased opening of sections have reportedly attracted positive reviews from lenders.
As part of the Federal Government’s transparency and fiscal discipline framework, a comprehensive Value-for-Money assessment was conducted by the Ministry of Works, coordinated by SkyKapital and independently reviewed by GIBB.
Officials say the successful close of Phase 1, Section 2 marks a significant shift in market confidence and highlights Nigeria’s capacity to translate reform initiatives into tangible infrastructure delivery under President Tinubu’s Renewed Hope Agenda.
