Nigeria’s President Bola Tinubu has lauded the closure of a $1.26 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a landmark moment for Nigeria’s infrastructure development.
In a statement issued on Friday, by his Special Adviser on Information and Strategy, Bayo Onanuga, the President commended the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office (DMO) for their collaborative effort in securing the funding.
The financing ensures that construction on the ambitious 700-kilometre project will continue “unimpeded,” reinforcing the administration’s commitment to the Renewed Hope Agenda.
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The $1.26 billion facility for Section 2 (a 55.7-kilometre stretch linking Eleko in Lekki to Ode-Omi) follows the previous $747 million secured for Section 1 earlier this year.
This transaction represents several milestones in Nigeria’s fiscal history.
For the first time, a Nigerian road project has been fully underwritten by major international lenders, including First Abu Dhabi Bank (FAB) and Afreximbank.
The deal also incorporates global risk mitigation, featuring coverage from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)— marking their first Nigerian transaction since recent regulatory reforms.
Additionally, SkyKapital acted as the Lead Financial Advisor, coordinating engagement with international lenders.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the funding as a “defining moment.”
He noted that the structure reflects growing international confidence in Nigeria’s reformed investment climate.
“Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Ahmed Tinubu’s Renewed Hope agenda,” Edun stated, promising that the funds would be deployed “responsibly and judiciously.”
The construction is being handled by Hitech Construction Company Limited, which has received praise from lenders for its execution speed and engineering excellence.
To ensure transparency, a comprehensive Value-for-Money (VfM) assessment was conducted by SkyKapital and independently reviewed by GIBB.
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This process ensures that the multi-billion-dollar investment aligns with international Environmental, Social, and Governance (ESG) best practices and IFC Performance Standards.
The Lagos–Calabar Coastal Highway is envisioned as a transformative economic corridor that will unlock Nigeria’s “Blue Economy,” improving trade efficiency, logistics, and tourism along the Atlantic coastline.
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