By Crystal Ugoeze
President Bola Ahmed Tinubu has commended the Federal Ministry of Finance and other key government agencies for successfully closing a USD 1.26 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure drive.
The President applauded the Ministries of Finance and Works, alongside the Debt Management Office, for their collaboration in sealing the transaction, noting that it would ensure uninterrupted progress on what is regarded as one of Africa’s most ambitious infrastructure 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 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, a strategic corridor expected to significantly enhance trade efficiency and logistics connectivity nationwide. The latest financing follows the earlier USD 747 million closed for Phase 1, Section 1, reinforcing the project’s scalability and bankability.
The financing 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)—marking ICIEC’s first Nigerian transaction since recent institutional and regulatory reforms. Officials say the structure reflects growing international confidence in Nigeria’s reformed investment climate.
SkyKapital served as Lead Financial Advisor, coordinating the transaction’s structuring and execution, while Earth Active (UK) provided environmental and social advisory services in line with IFC Performance Standards, the Equator Principles and global ESG best practices. 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 deal as a “defining moment” in Nigeria’s infrastructure journey, stressing that the funds would be deployed responsibly and within agreed timelines.
Edun noted that the facility represents the first fully underwritten transaction of such scale for a Nigerian road project, with contributions from First Abu Dhabi Bank and Afreximbank, and partial coverage by ICIEC—making it the largest ICIEC-supported deal since the institution’s inception.
Construction of the highway is being handled by Hitech Construction Company Limited, whose progress and early opening of key sections have earned commendation from lenders for engineering excellence and execution speed.
In line with the Federal Government’s transparency and fiscal discipline policy, a comprehensive Value-for-Money (VfM) assessment was conducted by SkyKapital, independently reviewed and confirmed by GIBB.
The successful financial close of Phase 1, Section 2 is seen as a significant step in translating reform into delivery under President Tinubu’s Renewed Hope Agenda, reinforcing market confidence in Nigeria’s capacity to execute large-scale infrastructure projects.