FG secures $747m loan for Lagos-Calabar Coastal Highway

The Federal Government has secured a $747m syndicated loan for the construction of the Lagos-Calabar Coastal Highway, marking what officials describe as a major milestone in Nigeria’s infrastructure financing.

According to a statement issued on Wednesday by the Director of Information and Public Relations at the Ministry of Finance, Mohammad Manga, the loan will finance Phase 1 Section 1 of the project, stretching 47 kilometres from Victoria Island to Eleko Village in Lagos.

The project is a flagship under the Renewed Hope Infrastructure Development Agenda of the Tinubu administration and is expected to boost regional trade, logistics, and tourism.

“In a major milestone for Nigerian and West African infrastructure development, Deutsche Bank led a $747m syndicated loan to finance Phase 1 Section 1 (from Victoria Island to Eleko Village 47+47km) of the Lagos-Calabar Coastal Highway, a flagship project under Nigeria’s Renewed Hope Infrastructure Development Agenda,” the statement read.

Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner for the deal. Other lenders in the syndicate include First Abu Dhabi Bank, African Export-Import Bank, ECOWAS Bank for Investment and Development, Nexent Bank N.V. (formerly Credit Europe Bank N.V.), and Zenith Bank.

The Islamic Corporation for the Insurance of Investment and Export Credit also provided partial political and commercial risk insurance.

The 47km stretch under construction, now over 70 per cent complete, is being built using Continuously Reinforced Concrete Pavement, a technology designed for high durability and minimal maintenance over a projected 50-year lifespan.

The financing is structured under an Engineering, Procurement, Construction and Financing contract awarded to Hitech Construction Company, one of Nigeria’s major infrastructure firms.

Finance Minister Wale Edun said the transaction reflects growing investor confidence in the country’s economic reforms and infrastructure plans.

“This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development.

“We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action,” he said.

“The closing of this market defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development.

“It positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships.

“It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the Government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth,” Edun added.

Minister of Works, David Umahi, described the financing deal as a boost to the administration’s reform agenda.

“This transaction is a vote of confidence in Nigeria’s economic reform agenda.

“The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships,” Umahi said.

Managing Director of Hitech Construction Company, Dany Abboud, expressed pride in the project’s pace and standards.

“We are proud to deliver this historic project. With over 70 per cent of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards. The use of CRCP technology ensures unmatched durability and cost-efficiency,”

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