President Bola Tinubu has commended the Federal Ministry of Finance for successfully securing $1.126 billion in financing for the execution of Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing the deal as a major milestone in the delivery of one of Africa’s most ambitious infrastructure projects.
The President praised the Ministries of Finance and Works, as well as the Debt Management Office (DMO), for their collaboration in closing the transaction, noting that the Federal Government will continue to explore innovative financing options to fund critical infrastructure nationwide.
“This is a major achievement. Closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded. Our administration will keep exploring available funding opportunities to execute priority economic and infrastructure projects across the country,” Tinubu said.
Phase 1, Section 2 of the project spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, key economic corridors expected to significantly boost national trade efficiency and logistics connectivity.
The latest financing follows the earlier $747 million closed for Phase 1, Section 1, underscoring the scalability and bankability of the highway project.
The financing package was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with partial risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The transaction represents ICIEC’s largest involvement 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, overseeing deal structuring, lender engagement and execution. Environmental and Social advisory services were provided by Earth Active (UK), ensuring compliance with IFC Performance Standards, the Equator Principles, and international ESG best practices. Legal advisory services were led by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Describing the transaction as a “defining moment in Nigeria’s infrastructure journey,” the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the funds would be deployed responsibly to ensure timely delivery of the project.
“The signing on December 19, 2025, of the $1.126 billion financing for Phase 1, Section 2 follows the successful closing of the $747 million financing for Phase 1, Section 1 on July 9, 2025. Together, these landmark transactions firmly establish the Lagos–Calabar Coastal Highway as a flagship project of President Bola Ahmed Tinubu’s Renewed Hope Agenda,” Edun said.
He noted that the deal is particularly significant as it marks the first time a Nigerian road infrastructure project of this magnitude has been fully underwritten, with FAB contributing $626 million and Afreximbank $500 million, supported by ICIEC coverage.
Construction of the highway is being handled by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have earned commendation from lenders for engineering excellence, operational discipline and speed of execution.
In line with the Federal Government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money (VfM) assessment was conducted by the Federal Ministry of Works in collaboration with SkyKapital and independently reviewed and confirmed by GIBB.
The successful close of Phase 1, Section 2 is seen as a major boost to market confidence, highlighting Nigeria’s ability to translate vision into execution and reforms into tangible development under President Tinubu’s Renewed Hope Agenda.
