President Bola Ahmed Tinubu has commended the Federal Ministry of Finance for successfully securing USD 1.126 billion in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, underscoring a pivotal achievement in one of Africa’s largest and most transformative infrastructure initiatives.
The President praised the collaborative efforts of the Ministries of Finance and Works, alongside the Debt Management Office, in closing the transaction. He reiterated that the federal government will continue to pursue innovative financing solutions to support priority economic and infrastructural projects nationwide.
“This is a major achievement. Closing this transaction ensures that the Lagos–Calabar Coastal Highway will proceed without interruption. Our administration will continue to explore all available funding opportunities to execute critical economic and infrastructural projects across the country,” President Tinubu said.
Scope and Strategic Significance
Phase 1, Section 2 spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The corridor is a critical economic artery, poised to significantly enhance national trade efficiency, logistics connectivity, and regional development. This successful financing follows the earlier USD 747 million closure for Phase 1, Section 1, demonstrating the scalability and bankability of the Lagos–Calabar Coastal Highway project.
Financing Structure and Partners
The facility was fully underwritten by First Abu Dhabi Bank (USD 626 million) and Afreximbank (USD 500 million), with partial risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)—marking ICIEC’s largest transaction since Nigeria’s institutional and regulatory reforms. The structure reflects growing investor confidence in Nigeria’s reformed investment climate and its capacity to deliver major infrastructure projects.
SkyKapital served as Lead Financial Advisor, overseeing structuring, lender engagement, and execution. Environmental and social advisory services were provided by Earth Active (UK), ensuring alignment with IFC Performance Standards, the Equator Principles, and international ESG best practices. Legal advisory was led by Hogan Lovells as international counsel and Templars as Nigerian legal counsel.
Government Oversight and Execution
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the transaction as a “defining moment in Nigeria’s infrastructure journey,” emphasizing that funds will be deployed responsibly to meet project timelines.
“The signing of USD 1.126 billion financing for Phase 1, Section 2 on December 19, 2025, follows the successful closing of USD 747 million for Phase 1, Section 1 in July 2025. These transactions firmly establish the Lagos–Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda, demonstrating the administration’s commitment to bold, transformative infrastructure,” Edun said.
Construction is being executed by Hitech Construction Company Limited, whose rapid on-site progress and early opening of key road sections have earned commendations for engineering excellence, operational discipline, and execution speed.
A comprehensive Value-for-Money assessment conducted by the Federal Ministry of Works, in coordination with SkyKapital and independently reviewed by GIBB, reinforced the transparency and fiscal discipline underpinning the project.
Boosting Market Confidence
The successful close of Phase 1, Section 2 represents a decisive step in translating vision into execution and reform into delivery. It signals increased market confidence in Nigeria’s ability to implement large-scale infrastructure projects efficiently under the Renewed Hope Agenda.
Bayo Onanuga
Special Adviser to the President (Information and Strategy)
