President Bola Ahmed Tinubu has commended the successful closure of $1.26 billion in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major milestone in the delivery of one of Africa’s most ambitious and transformative infrastructure projects.
In a statement issued on Friday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President praised the Federal Ministry of Finance, the Ministry of Works and the Debt Management Office for their collaboration in securing the landmark transaction. He said his administration would continue to deploy innovative financing mechanisms to deliver critical infrastructure across the country.
“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 1, Section 2 of the coastal highway covers approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, two strategic economic corridors. The section is expected to significantly improve national trade efficiency and logistics connectivity.
The latest financing follows the earlier closure of $747 million for Phase 1, Section 1, further strengthening the project’s scalability and bankability.
According to the statement, the financing package 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).
The deal marks ICIEC’s first transaction in Nigeria since the country’s recent institutional and regulatory reforms, highlighting renewed investor confidence in Nigeria’s investment environment and capacity to deliver large-scale infrastructure projects.
SkyKapital acted as Lead Financial Adviser, overseeing structuring, lender engagement and execution, while Earth Active (UK) provided environmental and social advisory services to ensure compliance with IFC Performance Standards, the Equator Principles and international ESG best practices.
Legal advisory services were led by Hogan Lovells as international counsel and Templars as Nigerian legal counsel.
Describing the transaction as “a defining moment in Nigeria’s infrastructure journey,” the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the funds would be deployed responsibly to deliver the project within agreed timelines.
“The signing on December 19, 2025, of USD 1.26 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,” Edun said.
“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,” he added.
Edun further noted that the deal was unprecedented in Nigeria’s road infrastructure financing history.
“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,” he said.
Construction of the highway is being executed by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have drawn commendation from lenders for engineering excellence, operational discipline and speed of execution.
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 validated by GIBB.
The statement said the successful financial close of Phase 1, Section 2 represents a significant boost to market confidence, demonstrating Nigeria’s ability to translate vision into execution and reforms into tangible outcomes under President Tinubu’s Renewed Hope Agenda.
