President Bola Ahmed Tinubu has commended the Federal Ministry of Finance for successfully closing a USD 1.126 billion financing package for the execution of Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major milestone in the delivery of one of Africa’s most ambitious infrastructure projects.
The President also praised the Ministries of Finance and Works, as well as the Debt Management Office (DMO), for their collaboration in concluding the transaction, assuring that the Federal Government would continue to deploy innovative financing options to fund 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 priority infrastructural 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. The section is expected to connect key economic corridors and significantly enhance national trade efficiency and logistics connectivity.
The latest financing follows the earlier closure of a USD 747 million facility for Phase 1, Section 1, further underscoring the scalability and bankability of the project.
The transaction 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). It represents ICIEC’s largest transaction since Nigeria’s recent institutional and regulatory reforms and reflects growing investor confidence in the country’s reformed investment climate.
SkyKapital served as Lead Financial Advisor, coordinating the structuring, lender engagement and execution of the deal.
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. Hogan Lovells acted as International Legal Counsel, while Templars provided Nigerian legal advisory services.
Describing the development 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 USD 1.126 billion financing for Phase One, Section Two of the Lagos–Calabar Coastal Road marks a defining moment, following the successful closing of the USD 747 million financing for Phase One, Section One on July 9, 2025. Together, these transactions firmly establish the Lagos–Calabar Coastal Highway as a flagship project of President Bola Ahmed Tinubu’s Renewed Hope Agenda,” Edun said.
He added that the deal was particularly significant as it marked the first fully underwritten transaction of such scale for a Nigerian road infrastructure project, with FAB contributing USD 626 million and Afreximbank USD 500 million, alongside ICIEC’s partial coverage.
Construction of the highway is being executed by Hitech Construction Company Limited, whose rapid progress on site and early opening of key sections have drawn commendation from lenders for engineering excellence, operational discipline and execution speed.
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 financial close of Phase 1, Section 2 is seen as a significant boost to market confidence, highlighting Nigeria’s capacity to translate reform into delivery under President Tinubu’s Renewed Hope Agenda.
