December 26, (THEWILL) — President Bola Tinubu has commended the Federal Ministry of Finance for successfully closing USD1.26 billion in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing the development 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, as well as the Debt Management Office (DMO), for working collaboratively to conclude the transaction, assuring Nigerians that the federal government will continue to deploy innovative financing options to fund 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 highway covers approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, key economic corridors expected to significantly improve national trade efficiency and logistics connectivity. The financing follows the earlier successful closing of USD747 million for Phase 1, Section 1, reinforcing the project’s credibility, scalability, and bankability.
A statement signed on Friday by Bayo Onanuga, the Special Adviser to the President on Information and Strategy, disclosed that the transaction 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). It marks ICIEC’s first Nigerian transaction since recent institutional and regulatory reforms, highlighting growing international confidence in Nigeria’s reformed investment climate.
SkyKapital acted as Lead Financial Adviser, overseeing transaction structuring, lender engagement, and execution. Environmental and Social advisory services were provided by Earth Active (UK), ensuring compliance with IFC Performance Standards, the Equator Principles, and global ESG best practices. Legal advisory services were jointly 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 and judiciously to ensure timely delivery of the project.
“The signing on December 19, 2025, of USD1.26 billion financing for Phase One, Section Two of the Lagos–Calabar Coastal Road marks a defining moment, following the successful closing of USD 747 million financing for Phase One, Section One on July 9, 2025. Together, these landmark transactions firmly establish the Lagos–Calabar Coastal Highway as a flagship project of President Bola Ahmed Tinubu’s Renewed Hope Agenda”, he said.
Edun added that the financing is unprecedented for a Nigerian road project, representing the first fully underwritten transaction of such magnitude. The facility includes underwriting by First Abu Dhabi Bank (USD262 million) and Afreximbank (USD500 million), with partial coverage by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation.
Construction of the highway is being handled by Hitech Construction Company Limited, whose rapid progress on site and early opening of key sections have drawn commendation from lenders for engineering excellence, operational discipline, and execution speed.
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 confirmed by GIBB.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
