President Bola Tinubu has commended the Federal Ministry of Finance for securing a landmark USD 1.26 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure drive and economic transformation agenda.
The President praised the collaborative efforts of the Ministries of Finance and Works, alongside the Debt Management Office, noting that the successful close underscores the Federal Government’s commitment to innovative and sustainable funding models for critical national 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,” Tinubu said.
Phase 1, Section 2 of the project spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The corridor is expected to significantly enhance trade efficiency, logistics, and connectivity across key economic zones. The financing follows the earlier USD 747 million secured for Phase 1, Section 1, further reinforcing the project’s scalability and bankability.
The funding 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). The deal marks ICIEC’s first Nigerian transaction since recent institutional and regulatory reforms, reflecting renewed investor confidence in Nigeria’s infrastructure landscape.
SkyKapital served as Lead Financial Advisor, overseeing structuring and execution, while environmental and social advisory services were provided by Earth Active (UK) in line with IFC Performance Standards, the Equator Principles, and global ESG benchmarks. 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 transaction as a defining moment in Nigeria’s infrastructure journey, assuring that the funds would be deployed responsibly and within set timelines.
He noted that the December 19, 2025 signing builds on the earlier July 2025 financing and firmly positions the Lagos–Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda. According to Edun, the deal represents one of the largest underwritten road infrastructure financings in Nigeria’s history, with participation from FAB and Afreximbank and partial coverage by ICIEC.
Construction of the highway is being handled by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have earned praise from lenders for engineering quality and execution speed.
To ensure transparency and fiscal discipline, a comprehensive Value-for-Money assessment was conducted by SkyKapital, working with the Federal Ministry of Works, and independently reviewed by GIBB.
The successful close of Phase 1, Section 2 is seen as a strong signal of growing market confidence and Nigeria’s capacity to translate reforms into tangible infrastructure delivery under the Renewed Hope Agenda.