By Peter Omopo
President Bola Ahmed Tinubu has commended the Federal Ministry of Finance for successfully securing a $1.26 billion financing package for Phase One, Section Two of the Lagos–Calabar Coastal Highway, describing the development as a major milestone in the delivery of one of Africa’s most ambitious infrastructure projects.
The President also lauded the collaborative efforts of the Ministries of Finance and Works, as well as the Debt Management Office, noting that the successful transaction underscores the Federal Government’s commitment to exploring innovative financing options for critical national infrastructure.
“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 infrastructural projects across the country,” Tinubu said.
Phase One, Section Two of the project spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The section is expected to connect key economic corridors and significantly improve national trade efficiency and logistics connectivity.
The latest financing follows the earlier closure of a $747 million facility for Phase One, Section One, reinforcing the scalability and bankability of the Lagos–Calabar Coastal Highway. The transaction was fully underwritten by First Abu Dhabi Bank, with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking the institution’s first Nigerian-backed transaction since recent regulatory and institutional reforms.
SkyKapital served as the lead financial adviser on the deal, coordinating structuring, lender engagement and execution, while environmental and social advisory services were provided by Earth Active (UK) to ensure compliance with international environmental, social and governance standards. Legal advisory roles were handled by Hogan Lovells as international counsel and Templars as Nigerian legal counsel.
Describing the deal as a defining moment for Nigeria’s infrastructure development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the funds would be deployed responsibly to ensure timely delivery of the project.
Edun noted that the December 19, 2025 signing of the $1.26 billion facility, alongside the earlier $747 million financing closed in July, firmly positions the Lagos–Calabar Coastal Highway as a flagship project of the Tinubu administration’s Renewed Hope Agenda. He added that the transaction represents the first fully underwritten road infrastructure financing of its scale in Nigeria, with contributions from First Abu Dhabi Bank and Afreximbank, and partial coverage by ICIEC.
Construction work is being carried out by Hitech Construction Company Limited, whose rapid progress on site and early opening of key sections have attracted praise from lenders for engineering quality and execution speed.
In line with the Federal Government’s transparency and fiscal discipline commitments, a comprehensive value-for-money assessment was conducted and independently reviewed, further strengthening investor confidence in the project.
The successful financial close of Phase One, Section Two is expected to boost market confidence and highlights Nigeria’s capacity to translate reform initiatives into tangible infrastructure delivery under the Tinubu administration.
