President Bola Tinubu has commended the Federal Ministry of Finance for securing a landmark $1.126 billion financing package 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 infrastructure projects.
The President also praised the Ministries of Finance and Works, alongside the Debt Management Office, for their collaborative efforts in closing the deal, noting that the transaction ensures uninterrupted progress on the highway project.
“This is a major achievement. Closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded. Our administration will continue to explore innovative financing options to deliver critical economic and priority infrastructure across the country,” Tinubu said.
Phase 1, Section 2 of the project spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi—two strategic economic corridors expected to significantly boost trade efficiency and logistics connectivity nationwide. The latest funding follows the earlier $747 million financing secured for Phase 1, Section 1, reinforcing the project’s scalability and bankability.
The financing was fully underwritten by First Abu Dhabi Bank and Afreximbank, with partial risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The transaction represents ICIEC’s largest engagement since Nigeria’s recent institutional and regulatory reforms, reflecting growing investor confidence in the country’s improved investment climate.
SkyKapital served as Lead Financial Adviser, overseeing transaction structuring, lender engagement and execution, while Earth Active (UK) provided environmental and social advisory services in line with IFC Performance Standards, the Equator Principles and global ESG benchmarks. Legal advisory services were led by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Describing the deal 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 ensure timely project delivery.
“The signing on December 19, 2025, of the $1.126 billion financing for Phase 1, Section 2, following the earlier $747 million closure for Section 1, firmly establishes the Lagos–Calabar Coastal Highway as a flagship project of President Bola Ahmed Tinubu’s Renewed Hope Agenda,” Edun said. “It also marks the first time a Nigerian road infrastructure project of this scale has been fully underwritten.”
Construction is being handled by Hitech Construction Company Limited, whose rapid progress and early opening of key road sections have earned commendation from lenders for engineering excellence and execution speed.
In line with the Federal Government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money assessment was conducted by the Ministry of Works in collaboration with SkyKapital and independently validated by GIBB.
The successful close of Phase 1, Section 2 is seen as a significant boost to market confidence, underscoring Nigeria’s capacity to translate reform-driven policies into tangible infrastructure delivery under the Tinubu administration’s Renewed Hope Agenda.
