Tinubu lauds finance, works ministries over $1 billion Lagos-Calabar coastal highway deal

President Bola Tinubu has praised the federal ministry of finance for successfully closing a $1.126 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway.
This is contained in a statement issued by presidential spokesperson, Bayo Onanuga, on Friday in Lagos.
Mr Tinubu also commended the ministries of funance and works, alongside the Debt Management Office, for their collaboration in concluding the landmark transaction.
“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 priority infrastructural projects across the country,” the president said.
Phase 1, Section 2 of the highway covers about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, key economic corridors expected to enhance national trade efficiency and logistics connectivity.
The successful close follows the earlier 747 million dollars financing secured for Phase 1, Section 1, underscoring the scalability and bankability of the Lagos–Calabar Coastal Highway project.
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).
It marks ICIEC’s largest transaction since Nigeria’s institutional and regulatory reforms, reflecting growing investor confidence in the country’s reformed investment climate.
SkyKapital served as Lead Financial Adviser, coordinating transaction structuring, lender engagement and execution, while Earth Active (UK) provided Environmental and Social advisory services.
The advisory ensured compliance with the IFC Performance Standards, the Equator Principles and international environmental, social and governance best practices.
Hogan Lovells acted as International Legal Counsel, with Templars serving as Nigerian Legal Counsel on the transaction.
Describing the development as a defining moment, minister of finance and coordinating minister of the economy, Wale Edun, said the funds would be deployed responsibly and within agreed timelines.
“The signing on Dec. 19, 2025, of the 1.126 billion dollars financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Road marks a defining moment in Nigeria’s infrastructure journey.
“Collectively, these transactions firmly establish the Lagos–Calabar Coastal Highway as one of the flagship projects of President Bola Ahmed Tinubu’s Renewed Hope agenda,” Mr Edun said.
He stated that the facility represents the first fully underwritten transaction of such magnitude for a Nigerian road infrastructure project.
Construction of the highway is being executed by Hitech Construction Company Limited, whose early delivery of key road sections has attracted commendation from lenders.
In line with the federal government’s commitment to transparency, a comprehensive Value-for-Money assessment was conducted by the Ministry of Works and independently reviewed by GIBB.
The successful close of Phase 1, Section 2 signals increased market confidence and Nigeria’s capacity to translate reform-driven infrastructure vision into delivery.
(NAN)
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