President Bola Ahmed Tinubu has applauded the successful closure of $1.26 billion financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major milestone in the delivery of one of Africa’s most ambitious infrastructure projects.
The President praised the Federal Ministries of Finance and Works, alongside the Debt Management Office, for jointly concluding the landmark transaction, assuring that his administration will continue to deploy innovative financing options to fund critical national infrastructure.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded. Our administration will keep exploring available funding opportunities to execute critical economic and infrastructural projects across the country,” Tinubu said.
Phase 1, Section 2 of the highway spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, a strategic corridor expected to significantly boost national trade efficiency and logistics connectivity. The latest financing follows the earlier $747 million secured for Phase 1, Section 1, reinforcing the project’s scalability and bankability.
The facility was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)—marking ICIEC’s first Nigerian transaction since recent institutional and regulatory reforms. The deal signals growing investor confidence in Nigeria’s reformed investment climate.
SkyKapital served as Lead Financial Advisor, while Earth Active (UK) provided environmental and social advisory services to ensure compliance with IFC Performance Standards, the Equator Principles and global ESG best practices. Hogan Lovells acted as International Legal Counsel, with Templars as Nigerian Legal Counsel.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the transaction as “a defining moment in Nigeria’s infrastructure journey,” noting that the funds will be deployed responsibly and within timelines.
He added that the December 19, 2025 signing—following the July 9, 2025 closure of the $747 million facility—firmly establishes the Lagos–Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda. According to Edun, the deal represents Nigeria’s first truly underwritten road infrastructure transaction of this scale, with contributions from FAB ($262 million) and Afreximbank ($500 million), alongside ICIEC coverage.
Construction is being handled by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have earned commendation from lenders for engineering excellence and execution speed.
In line with the Federal Government’s transparency and fiscal discipline drive, a comprehensive Value-for-Money assessment was conducted by SkyKapital, reviewed independently by GIBB.
The successful close of Phase 1, Section 2, the Presidency said, marks a decisive shift from vision to execution, underscoring renewed market confidence in Nigeria’s capacity to deliver transformative infrastructure under the Tinubu administration.
