Tinubu gets $747m foreign loan for Lagos-Calabar Coastal Highway
Joseph Itikefe
The Nigerian Government has secured a $747 million syndicated loan to fund the construction of Phase 1, Section 1 of the Lagos-Calabar Coastal Highway.
According to the statement signed by Mohammed Manga, Director of Information and Public Relations, the loan was arranged by Deutsche Bank, which served as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner.
The bank also participated in the lending syndicate alongside other regional and international financiers.
Manga noted that Phase 1, Section 1 of the project covers the stretch from Victoria Island to Eleko Village in Lagos.
The Ministry described the financing as Nigeria’s first syndicated loan of such magnitude for road infrastructure, highlighting it as a sign of strong global investor confidence in the country’s reform agenda and infrastructure pipeline.
The statement read, “The Islamic Corporation for the Insurance of Investment and Export Credit (“ICIEC”) provided partial political and commercial risk insurance.
“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.
“Other lenders involved are the African Export-Import Bank (“Afrexim”), the Abu Dhabi Exports Office (“ADEX”), the ECOWAS Bank for Investment and Development (“EBID”), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.) and Zenith Bank (through its UK, Paris and Nigeria offices).
“The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms.”
“This structure aims at a strategic partnership between the Government and the private sector, seamlessly aligning technical execution with financing solutions,” he said.
According to Manga, it will enable fast-track project delivery while unlocking and maximising private sector appetite for investment in the country’s priority infrastructure.
He stated that the construction of Phase 1, Section 1, is already over 70% complete.
Manga explained that the highway, constructed using Continuously Reinforced Concrete Pavement, CRCP, was a reflection of 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,” he said.
“The project’s design and implementation have been shaped by comprehensive technical, legal, and environmental and social assessments, ensuring alignment with the highest international standards.”
Commenting on the loan, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated: “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development.
“We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action.
“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.
“It positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships, PPPs.”
“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,” he added