The Federal Government has successfully arranged a $747 million syndicated loan to finance the first phase of the Lagos-Calabar Coastal Highway project.
Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, disclosed in a statement on Wednesday that the funding would support the development of the initial 47.47-kilometre stretch from Victoria Island to Eleko Village in Lagos State.
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According to the ministry, this represents Nigeria’s largest syndicated loan for road infrastructure to date and highlights renewed global investor confidence in the nation’s reform and development agenda.
Deutsche Bank served as the global coordinator, initial mandated lead arranger, and bookrunner for the financing.
Other international and regional institutions in the syndicate include First Abu Dhabi Bank—which is also functioning as Agent and Intercreditor Agent—the African Export-Import Bank, the Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V. (formerly Credit Europe Bank), and Zenith Bank via its offices in the UK, Paris, and Nigeria.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial risk insurance to protect the investment against political and commercial uncertainties.
“The syndicate includes support from development finance institutions, export credit agencies and international commercial banks—notably First Abu Dhabi Bank, also acting as Agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria,” he said.
The construction contract, which follows an Engineering, Procurement, Construction plus Financing (EPC+F) structure, was awarded to Hitech Construction Company, a leading Nigerian firm. This structure integrates technical implementation with strategic financial planning through public-private collaboration.
The first section of the project is already over 70 percent completed and is being constructed with Continuously Reinforced Concrete Pavement (CRCP)—a design choice praised for its long-term strength, low maintenance, and cost-efficiency. The highway is projected to last at least 50 years.
“The highway, constructed using Continuously Reinforced Concrete Pavement (CRCP), reflects a commitment to long-term resilience and efficiency. Engineered for a minimum lifespan of 50 years with minimal maintenance, it offers outstanding durability and cost-effectiveness,” the statement said.
In terms of environmental and regulatory compliance, the government highlighted that the project has undergone extensive assessments in line with international standards. A tolling system is also being finalized to ensure long-term financial sustainability.
“The Lagos-Calabar Coastal Highway will serve as a vital trade and logistics corridor, enhancing regional integration, tourism, reducing transport costs, and creating jobs. A tolling strategy is currently being finalised to ensure the project’s operational and financial sustainability.”
Plans are underway to raise capital for future phases of the highway, with significant interest already shown by foreign and regional financiers.
Commenting on the project, Finance Minister Wale Edun said the successful closing of the loan reflects the confidence of global lenders in Nigeria’s recent macroeconomic reforms.
“The closing of this market-defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development,” Edun said.
“It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”
Minister of Works, David Umahi, described the funding deal as a strong endorsement of the government’s reform agenda and an important step for future infrastructure investments.
“The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships,” he said.
Dany Abboud, Managing Director of Hitech Construction Company Limited, shared his optimism about the project, which he believes is a showcase of what Nigerian expertise and global financing can achieve.
“With over 70% of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards,” Abboud said.
“The use of CRCP technology ensures unmatched durability and cost-efficiency.”
ICIEC’s CEO, Khalid Khalafalla, also reiterated the importance of the project for the region.
“Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth,” he said.
Khalafalla noted that the project will generate jobs, enhance local skills, and support small and medium-sized businesses, underscoring ICIEC’s strong dedication to sustainable development, improved regional connectivity, and shared prosperity throughout West African communities.
