Tinubu Applauds $1.26bn Funding Secured for Lagos–Calabar Coastal Highway

President Bola Ahmed Tinubu has welcomed the successful financial close of a $1.26 billion facility for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, hailing it as a critical breakthrough in advancing what is billed as one of Africa’s most ambitious infrastructure developments.

In a statement released on Friday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President praised the Federal Ministry of Finance, the Ministry of Works and the Debt Management Office for working together to secure the deal.

He reaffirmed his administration’s commitment to leveraging innovative funding mechanisms to deliver key projects across the country.

“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,” the President said.

The newly financed segment of the coastal road covers about 55.7 kilometres, stretching from Eleko in the Lekki axis to Ode-Omi, areas considered vital economic corridors.

The section is expected to boost trade flows and improve logistics connectivity nationwide.

The latest deal follows the earlier $747 million secured for Phase 1, Section 1, further strengthening the project’s financial credibility and long-term viability.

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According to the statement, the facility was fully underwritten by First Abu Dhabi Bank (FAB), with risk cover provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

It marks ICIEC’s first transaction in Nigeria since recent institutional and regulatory reforms, reflecting renewed confidence among international investors.

SkyKapital acted as Lead Financial Adviser, overseeing the structuring process, lender engagement and execution of the transaction.

Environmental and Social advisory services were provided by UK-based Earth Active, ensuring compliance with IFC Performance Standards, the Equator Principles and global ESG benchmarks.

Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.

Reacting to the development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the deal as a turning point in Nigeria’s infrastructure drive and assured that the funds would be managed prudently to meet project timelines.

“The signing on December 19, 2025, of USD1.26 billion financing for Phase one — section two of the Lagos-Calabar Coastal road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the USD 747 million financing for Phase one section one on July 9, 2025.

“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, embodying the administration’s commitment to bold, transformational infrastructure,” Edun said.

He added that the scale and structure of the deal were unprecedented in Nigeria’s road financing history.

“This financing is particularly notable as it represents, for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project. The facility was fully underwritten by First Abu Dhabi Bank (USD 262 million) and Afreximbank (USD 500), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation,” he said.

The construction work is being executed by Hitech Construction Company Limited, whose rapid delivery pace and early opening of some sections have earned commendation from lenders for engineering quality, discipline and speed of execution.

To uphold transparency and fiscal responsibility, the Federal Government also carried out a detailed Value-for-Money (VfM) assessment through SkyKapital, in collaboration with the Ministry of Works, with the results independently reviewed and validated by GIBB.

The statement concluded that the successful close of financing for Phase 1, Section 2 represents a major boost to market confidence, underscoring Nigeria’s capacity to turn reforms and policy vision into concrete infrastructure delivery under President Tinubu’s Renewed Hope Agenda.