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By Lizzy Chirkpi
President Bola Tinubu has commended the Federal Ministry of Finance for securing USD 1.126 billion in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a landmark achievement in Nigeria’s infrastructure development.
The highway, considered one of Africa’s most ambitious and transformative infrastructure projects, will see Phase 1, Section 2 cover approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The project is expected to enhance national trade efficiency and logistics connectivity across key economic corridors.
President Tinubu praised the collaborative efforts of the Ministries of Finance and Works and the Debt Management Office, stating that the federal government would continue to explore innovative funding solutions for critical economic projects.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded. Our administration will continue to explore available funding opportunities to execute critical economic and priority infrastructural projects across the country,” the President said.
The successful financing follows the earlier USD 747 million closing for Phase 1, Section 1 and underscores the scalability and bankability of the highway project. The funding was fully underwritten by First Abu Dhabi Bank (USD 626 million) and Afreximbank (USD 500 million), with partial risk coverage provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)—marking the largest ICIEC-backed transaction since Nigeria’s regulatory reforms.
SkyKapital served as Lead Financial Advisor, coordinating structuring, lender engagement, and execution. Environmental and social advisory services were provided by Earth Active (UK), ensuring compliance with international ESG standards, including IFC Performance Standards and the Equator Principles. Legal advisory was led by Hogan Lovells internationally and Templars locally.
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 would be deployed responsibly to deliver the project on schedule.
“This financing represents, for the first time, a fully underwritten transaction of this magnitude for a Nigerian road infrastructure project. It firmly establishes the Lagos–Calabar Coastal Highway as one of the flagship projects of President Tinubu’s Renewed Hope agenda,” Edun said.
Construction is being executed by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have drawn commendations from lenders for operational discipline and engineering excellence.
In line with the Federal Government’s commitment to transparency and fiscal discipline, a Value-for-Money assessment was conducted by the Ministry of Works in coordination with SkyKapital and independently reviewed by GIBB.
The successful closing of Phase 1, Section 2 is seen as a major boost to market confidence and demonstrates Nigeria’s capacity to translate ambitious infrastructure plans into tangible results under the Renewed Hope Agenda.