The Federal Government of Nigeria has secured a $747 million syndicated loan to finance the construction of Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, in what officials describe as a major breakthrough in infrastructure financing and a key step under the Renewed Hope Infrastructure Development Agenda of the Tinubu administration.
The loan will fund the initial 47-kilometre stretch of the project, connecting Victoria Island to Eleko Village in Lagos. According to a statement released by the Ministry of Finance’s Director of Information and Public Relations, Mohammad Manga, the project is designed to enhance regional trade, logistics, and tourism across Nigeria’s coastal corridor.
Deutsche Bank led the syndication process, acting as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. Other participants include First Abu Dhabi Bank, African Export-Import Bank, ECOWAS Bank for Investment and Development, Nexent Bank N.V., and Zenith Bank. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) also provided partial political and commercial risk insurance for the transaction.
The project, now over 70 percent complete, is being constructed using Continuously Reinforced Concrete Pavement (CRCP) technology—an advanced infrastructure solution that promises a 50-year lifespan with minimal maintenance. Construction is being handled by Hitech Construction Company under an Engineering, Procurement, Construction, and Financing (EPC+F) contract.
Minister of Finance, Wale Edun, praised the transaction as a signal of renewed investor confidence in Nigeria’s economic reform trajectory.
“This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development,” Edun said.
“It is a model of sustainable, transparent, and catalytic infrastructure financing. It demonstrates President Tinubu’s commitment to mobilising the private sector for national development.”
He added that the transaction paves the way for Nigeria to transition fully to public-private partnerships in the financing and management of critical public infrastructure.
“This sends a clear message to investors: Nigeria is ready, mature, and committed to the sanctity of contracts,” he stated.
Minister of Works, David Umahi, echoed Edun’s sentiments, describing the deal as a vote of confidence in Nigeria’s infrastructure reform agenda.
“The Lagos-Calabar Coastal Highway is a strategic national asset, and this financing sets a new precedent for private-sector-led infrastructure development,” Umahi said.
Managing Director of Hitech Construction, Dany Abboud, praised the rapid progress and quality of the ongoing work.
“We are proud to be part of this historic initiative. Our use of CRCP technology not only ensures durability but also aligns with international standards of engineering excellence.”
ICIEC CEO, Dr. Khalid Khalafalla, emphasized the wider regional impact of the highway, which he said will ease congestion, boost trade, and promote inclusive growth across West Africa.
“This project unlocks opportunities for SMEs, creates jobs, and strengthens local capacity. It reflects our shared commitment to sustainable infrastructure and regional prosperity,” he noted.
A tolling strategy is currently being developed to ensure long-term sustainability and maintenance of the highway once operational.
With this development, the Lagos-Calabar Coastal Highway is shaping up to become a landmark project in Nigeria’s infrastructure evolution, promising economic transformation along the country’s coastal corridor and setting a template for future private-sector-led public infrastructure initiatives
