Tinubu hails $1.26bn financing milestone for Lagos–Calabar Coastal Highway
President Bola Ahmed Tinubu has commended the Federal Ministry of Finance and other key agencies for securing a landmark $1.26 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure drive.
In a statement issued on Friday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, the President praised the Ministries of Finance and Works, alongside the Debt Management Office, for successfully closing the transaction, which he said ensures uninterrupted progress on what is regarded as one of Africa’s most ambitious road infrastructure projects.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded,” Tinubu said, adding that his administration would continue to explore innovative financing options to deliver critical economic and infrastructural projects nationwide.
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 logistics efficiency, strengthen national trade routes, and enhance connectivity across key economic zones. The latest financing follows the earlier $747 million secured for Phase 1, Section 1, underscoring 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). The deal marks ICIEC’s first Nigerian transaction since the country’s recent institutional and regulatory reforms, reflecting growing investor confidence in Nigeria’s investment climate.
SkyKapital served as Lead Financial Adviser, coordinating deal structuring and lender engagement, while Earth Active (UK) provided environmental and social advisory services to ensure compliance with international ESG standards. Legal advisory services were led by Hogan Lovells as international counsel and Templars as Nigerian 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 ensure timely delivery of the project.
He added that the deal represents the first fully underwritten transaction of such scale for a Nigerian road project, with participation from First Abu Dhabi Bank and Afreximbank, and partial coverage from ICIEC.
Construction of the highway is being carried out by Hitech Construction Company Limited, whose progress on site and early opening of key sections have earned praise from lenders for engineering quality and execution speed.
The Federal Government said a comprehensive Value-for-Money (VfM) assessment was conducted as part of the process, reinforcing its commitment to transparency and fiscal discipline.
According to the Presidency, the successful close of Phase 1, Section 2 signals renewed market confidence and highlights Nigeria’s ability to translate reform agendas into tangible infrastructure delivery under President Tinubu’s Renewed Hope Agenda.
