Tinubu Applauds $1.126bn Lagos–Calabar Highway Financing

President Bola Ahmed Tinubu has welcomed the successful closure of a $1.126 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost for one of Nigeria’s most ambitious infrastructure projects.

The President commended the Federal Ministry of Finance, the Ministry of Works and the Debt Management Office for jointly delivering the transaction, noting that the financing ensures uninterrupted construction of the coastal highway. He reaffirmed his administration’s commitment to exploring innovative funding options to deliver priority economic and infrastructure projects nationwide.

Phase 1, Section 2 of the highway spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The stretch cuts through strategic economic corridors and is expected to significantly improve trade efficiency, logistics connectivity and regional integration. The deal follows the earlier closure of a $747 million financing package for Phase 1, Section 1, reinforcing the project’s scale and bankability.

The facility was fully underwritten by First Abu Dhabi Bank and Afreximbank, with partial risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit. The transaction is ICIEC’s largest support package linked to Nigeria since recent institutional and regulatory reforms, reflecting growing investor confidence in the country’s reformed investment climate.

Financial advisory services were led by SkyKapital, which coordinated transaction structuring, lender engagement and execution. Environmental and social advisory was handled by Earth Active UK, ensuring compliance with IFC Performance Standards, the Equator Principles and global ESG benchmarks. Legal advisory was provided by Hogan Lovells as international counsel and Templars as Nigerian counsel.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the financing as a defining moment in Nigeria’s infrastructure development, stressing that the funds would be deployed responsibly and in line with agreed timelines. He noted that the deal represents the first fully underwritten road infrastructure financing of this magnitude in Nigeria.

Construction of the highway is being handled by Hitech Construction Company Limited, whose pace of work and early opening of key sections have drawn positive reviews from lenders for engineering quality and execution discipline.

As part of the Federal Government’s transparency and fiscal responsibility drive, a comprehensive Value-for-Money assessment was conducted by the Ministry of Works, supported by SkyKapital and independently reviewed by GIBB.

The successful financial close of Phase 1, Section 2 is seen as a clear signal of renewed market confidence, underscoring Nigeria’s ability to translate reforms into delivery under President Tinubu’s Renewed Hope agenda.