President Bola Ahmed Tinubu has applauded the successful closure of $1.26 billion in landmark financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure delivery drive and investor confidence.
In a statement issued by the State House and signed by spokesperson Bayo Onanuga, President Tinubu praised the Federal Ministry of Finance, Federal Ministry of Works, and the Debt Management Office (DMO) for working collaboratively to conclude the transaction, noting that the funding guarantees uninterrupted execution of one of Africa’s most ambitious infrastructure 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 infrastructural projects across the country,” the President said.
Phase 1, Section 2 spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, a strategic corridor expected to significantly enhance trade efficiency, logistics connectivity, and economic integration along Nigeria’s coastline.
The financing follows the earlier $747 million secured for Phase 1, Section 1, further reinforcing the project’s bankability and scalability.
The funding package was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)—marking ICIEC’s first Nigerian transaction since recent institutional and regulatory reforms.
The structure, according to officials, reflects growing international confidence in Nigeria’s reformed investment climate.
Financial advisory for the transaction was led by SkyKapital, while Earth Active (UK) provided Environmental and Social advisory services to ensure compliance with IFC Performance Standards, the Equator Principles, and global ESG best practices. Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the financing as a “defining moment in Nigeria’s infrastructure journey,” noting that it represents the first fully underwritten road infrastructure transaction of this scale in the country.
“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,” Edun said, adding that the funds would be deployed responsibly and within agreed timelines.
Construction of the highway is being executed by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have reportedly drawn commendation from lenders for engineering quality and execution speed.
To ensure transparency and fiscal discipline, the Federal Government conducted a comprehensive Value-for-Money (VfM) assessment, led by SkyKapital in collaboration with the Ministry of Works and independently reviewed by GIBB.
According to the Presidency, the successful financial close of Phase 1, Section 2 signals a step-change in market confidence, underscoring Nigeria’s capacity to translate reform into delivery under the Renewed Hope Agenda.
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