Infrastructure: Tinubu applauds $1.26bn financing for Lagos-Calabar Coastal Highway

*President Bola Ahmed Tinubu lauds the Federal Ministry of Finance for successfully closing USD1.26 billion in financing for the execution of Phase 1, Section 2 of the iconic Lagos–Calabar Coastal Highway, marking a significant milestone in the delivery of Africa’s most ambitious and transformative infrastructure projects

Gbenga Kayode | ConsumerConnect

Nigerian President Bola Ahmed Tinubu has applauded the Federal Ministry of Finance for successfully closing USD 1.26 billion in financing for the execution of Phase 1, Section 2 of the Lagos–Calabar Coastal Highway.

The Federal Government said the feat recorded on the segment of the massive project marked a significant milestone in the delivery of Africa’s most ambitious and transformative infrastructure projects in the country.

Insecurity: Nigeria launches Forest Guards, set to deploy 7,000 Officers immediately

President Tinubu also applauded the Ministries of Finance and Works and the Debt Management Office (DMO) for working together on the transaction.

He assured Nigerians that the Federal Government would continue to explore creative financing to fund critical projects across the country.

READ ALSO: Nissan Ends Production Of Versa Cars As US Industry Stakeholders React

Tax Laws: Alleged Discrepancies In Gazetted Copies May Create Legal Uncertainty, Compliance Risks –CITN

Cybersecurity: NCC Offers ‘A-Z Tips’ On How Consumers Can Stay Safe Online

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, who stated this Friday, December 26, 2025, noted President Tinubu further said: “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.”

ConsumerConnect reports Phase 1, Section 2 of the Lagos–Calabar Coastal Highway construction project covers approximately 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi, key economic corridors and significantly enhancing national trade efficiency and logistics connectivity.

The government stated that successful financing followed the earlier closing of the USD 747 million financing for Phase 1, Section 1, demonstrating the scalability and bankability of the Lagos–Calabar Coastal Highway project.

The financing was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking ICIEC’s first Nigerian transaction since the country’s institutional and regulatory reforms.

The statement noted that the structure reflects growing confidence in Nigeria’s reformed investment climate and its capacity to deliver infrastructure.

It disclosed that SkyKapital acted as Lead Financial Advisor, coordinating structuring, lender engagement, and execution.

The Nigerian Government as well revealed that Earth Active (UK) provided Environmental and Social advisory services, ensuring complete alignment with the IFC Performance Standards, the Equator Principles, and international ESG best practices.

Hogan Lovells, as International Counsel, and Templars, as Nigerian Legal Counsel, led the legal advisory services.

Describing the transaction as a “defining moment in Nigeria’s infrastructure journey”, Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, said the fund would be deployed responsibly and judiciously, to deliver on the project within timelines.

Edun stated: “The signing on December 19, 2025, of USD1.26 billion financing for Phase one — section two of the Lagos-Calabar Coastal road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the USD 747 million financing for Phase one section one on July 9, 2025.

“Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Ahmed Tinubu’s Renewed Hope agenda, embodying the administration’s commitment to bold, transformational infrastructure.”

The Minister also said: “This financing is particularly notable as it represents, for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project.

“The facility was fully underwritten by First Abu Dhabi Bank (USD 262 million) and Afreximbank (USD 500), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation.”

Construction is being executed by Hitech Construction Company Limited, whose rapid progress on site and early opening of key road sections have drawn commendation from lenders for engineering excellence, operational discipline, and execution speed.

In line with the Federal Government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money (VfM) assessment was conducted by SkyKapital in close coordination with the Federal Ministry of Works and independently reviewed and confirmed by GIBB.

The Federal Government noted that the successful close of Phase 1, Section 2 of the Lagos-Calabar Coastal Highway construction project represents a clear step-change in market confidence.

It demonstrates Nigeria’s ability to move decisively from vision to execution and from reform to delivery under the Renewed Hope Agenda of President Bola Tinubu, added Onanuga.

Kindly Share This Story