President Bola Tinubu has welcomed the successful closure of a $1.26 billion financing deal to fund Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major milestone for one of Nigeria’s most ambitious infrastructure projects.
The financing package — coordinated by the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office — will support the construction of a 55.7-kilometre stretch from Eleko in Lekki to Ode-Omi, a corridor expected to boost trade, logistics, and connectivity along the coast.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded,” President Tinubu said, adding that the federal government would keep exploring innovative funding options for critical projects nationwide.
The deal follows an earlier $747 million financing secured for Section 1 of the project, a development officials say underscores investor confidence in the highway’s long-term viability.
According to the statement, the new funding was fully underwritten by First Abu Dhabi Bank, with risk-mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) — its first major engagement in Nigeria since recent regulatory reforms.
SkyKapital served as Lead Financial Advisor, while Earth Active (UK) handled environmental and social compliance.
Legal advisory support was provided by Hogan Lovells and Templars.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the agreement as a “defining moment,” noting that funds would be deployed responsibly to keep the project on schedule.
He said the transaction represents one of the largest underwritten road-infrastructure financings in Nigeria, with participation from Afreximbank and partial coverage by ICIEC.
Construction is being handled by Hitech Construction Company Limited, whose pace of work has drawn praise from lending partners, according to the statement.
A Value-for-Money assessment was also completed to ensure transparency and fiscal discipline.
Officials say the financing marks growing market confidence in Nigeria’s infrastructure plans and signals continued momentum for the Lagos–Calabar Coastal Highway under the Renewed Hope agenda.
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