The Federal Government has secured a $747 million syndicated loan to fund the construction of Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, in what officials are describing as a landmark step in Nigeria’s infrastructure financing efforts.
According to a statement on Wednesday by Mohammad Manga, Director of Information and Public Relations at the Ministry of Finance, the funds will cover the first 47-kilometre stretch of the project, running from Victoria Island to Eleko Village in Lagos.
The coastal highway is one of the signature projects under President Bola Ahmed Tinubu’s Renewed Hope Infrastructure Development Agenda, expected to significantly boost regional trade, logistics, and tourism along Nigeria’s southern corridor.
“In a major milestone for Nigerian and West African infrastructure development, Deutsche Bank led a $747m syndicated loan to finance Phase 1 Section 1 (from Victoria Island to Eleko Village 47+47km) of the Lagos-Calabar Coastal Highway, a flagship project under Nigeria’s Renewed Hope Infrastructure Development Agenda,” the statement read.
Deutsche Bank is serving as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. Other key lenders include First Abu Dhabi Bank, African Export-Import Bank, ECOWAS Bank for Investment and Development, Nexent Bank N.V., and Zenith Bank. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance for the deal.
The road is being constructed using Continuously Reinforced Concrete Pavement (CRCP) technology, which is known for its durability and low maintenance, and is designed to last at least 50 years. Officials say the stretch is already over 70 per cent complete.
The Engineering, Procurement, Construction and Financing (EPC+F) contract was awarded to Hitech Construction Company, one of Nigeria’s top infrastructure firms.
Minister of Finance, Wale Edun, praised the transaction as a reflection of renewed investor confidence in Nigeria.
“This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development,” he said. “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.”
He added, “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 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, also hailed the deal as a clear endorsement of the Tinubu administration’s economic reform strategy.
“This transaction is a vote of confidence in Nigeria’s economic reform agenda,” Umahi said. “The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships.”
Hitech Managing Director, Dany Abboud, lauded the pace and quality of the work on-site.
“We are proud to deliver this historic project. With over 70 per cent of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards. The use of CRCP technology ensures unmatched durability and cost-efficiency,” Abboud said.
Dr Khalid Khalafalla, CEO of ICIEC, added that the project would drive widespread regional benefits.
“ICIEC is proud to join the Nigerian government and our co-financiers in realizing the Lagos–Calabar Coastal Highway Project. 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. “This initiative will create employment opportunities, build local capacity, and bolster small and medium-sized enterprises, demonstrating our steadfast commitment to sustainable development, multimodal connectivity, and prosperity for communities across West Africa.”
The Federal Government also disclosed that a tolling strategy is in development to ensure the long-term sustainability and maintenance of the highway once it becomes operational.
