The Federal Government of Nigeria has secured a $747 million syndicated loan to fund Phase 1, Section 1 of the Lagos-Calabar Coastal Highway, a flagship infrastructure initiative under President Bola Tinubu’s Renewed Hope Development Agenda. The Federal Ministry of Finance announced the financial close on Wednesday, with Deutsche Bank leading the syndicate as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. The financing covers the 47.47-kilometre stretch from Victoria Island to Eleko Village in Lagos State.
According to the ministry, this transaction marks the largest syndicated infrastructure road loan in Nigeria’s history and signals growing global investor confidence in the country’s reform efforts and infrastructure pipeline. The loan syndicate includes First Abu Dhabi Bank, which also serves as Agent and Intercreditor Agent, along with Afrexim Bank, ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank through its UK, Paris, and Nigeria branches. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance, enhancing investor protection and de-risking the project.
Construction on the highway is already over 70 percent complete and is being executed by Nigerian engineering firm Hitech Construction Company under an Engineering, Procurement, Construction plus Financing (EPC+F) framework. The road is being constructed using Continuously Reinforced Concrete Pavement (CRCP), a technology chosen for its durability and low maintenance. Designed for a minimum lifespan of 50 years, the project reflects Nigeria’s commitment to long-term, cost-effective infrastructure development.
The Lagos-Calabar Coastal Highway is expected to become a key trade and logistics corridor, improving regional integration, boosting tourism, reducing transportation costs, and creating thousands of jobs. The government is finalizing a tolling strategy to ensure the project’s operational sustainability under a concession-backed model. Talks are ongoing with regional and international investors to finance subsequent phases.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the deal as a landmark in Nigeria’s infrastructure journey. He said the transaction validates the country’s macroeconomic reforms and underscores the return of international capital to support national development. Edun noted that the deal is a strong signal of Nigeria’s readiness for a full transition to public-private partnership-led infrastructure development, emphasizing transparency, contract sanctity, and policy continuity.
Minister of Works, David Umahi, called the highway a strategic national asset and described the financing as a precedent-setting move that reflects confidence in the current administration’s reform agenda. Hitech Construction’s Managing Director, Dany Abboud, said the progress of the project shows that Nigerian engineering, when supported by structured international finance, can meet global standards. He emphasized that the use of CRCP technology will ensure durability, value for money, and efficient delivery.
Also commenting on the transaction, ICIEC CEO Khalid Khalafalla said the risk cover provided by his institution has enabled the project to move forward while promoting broader economic goals. He highlighted the potential impact on job creation, regional trade, and support for small and medium-sized enterprises. Khalafalla said the project aligns with West Africa’s sustainable development and multimodal connectivity objectives.
The Lagos-Calabar Coastal Highway stands as a transformational project in Nigeria’s infrastructure landscape, combining innovative finance, local expertise, and international best practices. Its successful execution is expected to drive inclusive growth and improve Nigeria’s position as a hub for logistics, commerce, and investment in the region.
