Tinubu Celebrates $1.26 Billion Financing Milestone for Lagos-Calabar Coastal Highway
ABUJA – President Bola Tinubu has hailed a major breakthrough in Nigeria’s infrastructure landscape following the successful closure of a $1.26 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway. The President described the development as a landmark achievement that ensures the ambitious project, designed to be one of Africa’s most transformative trade corridors, remains on track and unimpeded.
The President extended his commendation to the Federal Ministries of Finance and Works, as well as the Debt Management Office, for their collaborative effort in securing the funds. He emphasized that his administration remains dedicated to exploring innovative and creative financing models to bridge the nation’s infrastructure gap. This latest capital injection follows an earlier $747 million secured for Section 1, further proving the project’s viability to international investors.
The newly funded segment spans approximately 55.7 kilometers, stretching from Eleko in Lekki to Ode-Omi. This section is viewed as a critical economic artery that will drastically improve national trade efficiency and logistics connectivity by linking major industrial hubs. The financing was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) providing essential risk mitigation—the institution’s first major Nigerian engagement following recent regulatory reforms.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the signing of the agreement on December 19, 2025, as a “defining moment.” He noted that the transaction represents the first time a Nigerian road project of this magnitude has been truly underwritten by such prestigious global lenders. Edun assured that the $1.26 billion would be deployed with strict fiscal discipline to ensure the project meets its set timelines.
Technical execution of the highway is being handled by Hitech Construction Company Limited, which has already received praise from lenders for its engineering speed and the early opening of preliminary road sections. To maintain transparency, the project underwent a rigorous Value-for-Money assessment by SkyKapital and an independent review by GIBB, ensuring the investment aligns with international best practices.
Global advisors including Earth Active (UK) ensured the project meets stringent environmental and social standards, while legal counsel was provided by international firm Hogan Lovells and Nigerian firm Templars. This successful financial close is seen by the presidency as a clear signal of renewed market confidence in Nigeria’s investment climate under the “Renewed Hope” agenda.
