The Federal Government has secured a $747 million syndicated loan to finance Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, a major infrastructure project under the Renewed Hope Agenda.
The loan, announced in a press statement by the Ministry of Finance on Wednesday, is aimed at completing the first section of the highway, which spans 47 kilometres from Victoria Island to Eleko Village in Lagos State.
According to the statement by the Director of Information and Public Relations at the Ministry of Finance, Mohammad Manga, this stretch is already more than 70% completed and is expected to play a crucial role in unlocking trade, improving connectivity, and enhancing logistics across the region.
The deal was led by Deutsche Bank, acting as the Global Coordinator and Lead Arranger, alongside a consortium of international and regional lenders.
First-of-its-kind financing for road infrastructure
This syndicated loan represents the first of its magnitude for road infrastructure in Nigeria.
In addition to Deutsche Bank, the loan syndicate includes prominent institutions such as First Abu Dhabi Bank, the African Export-Import Bank (Afreximbank), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V. (formerly Credit Europe Bank N.V.), and Nigeria’s own Zenith Bank.
To manage political and commercial risks, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial risk insurance.
The road will be constructed using Continuously Reinforced Concrete Pavement (CRCP), a technology known for its durability and cost-effectiveness. According to the Ministry of Finance, this technique ensures the road will have a lifespan of at least 50 years with minimal maintenance, making it a long-term asset for national development.
The Lagos-Calabar Coastal Highway is one of the signature projects under the Tinubu administration’s infrastructure blueprint and is expected to improve regional integration, reduce transportation costs for goods and passengers, and generate employment opportunities both during and after construction.
Public-private partnership structure
The project is structured under an Engineering, Procurement, Construction, and Financing (EPC+F) contract awarded to Hitech Construction Company, a leading Nigerian infrastructure firm. This model enables both public and private sector collaboration in developing key infrastructure while reducing the immediate fiscal burden on the government.
Finance Minister Wale Edun described the transaction as a sign of growing international confidence in Nigeria’s macroeconomic reforms. “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development,” he said in the statement.
He added that the deal also reinforces Nigeria’s readiness to adopt public-private partnerships (PPP) for the design, financing, and management of infrastructure assets—creating new pathways for private sector involvement.
Minister of Works David Umahi also hailed the agreement as a strategic milestone. He noted that the Lagos-Calabar Highway is a national asset that will reshape coastal connectivity and open up the South-South corridor to new economic activity.
Hitech Construction’s Managing Director, Dany Abboud, confirmed that over 70% of the section is completed. He emphasised that the use of CRCP technology would ensure unmatched durability and cost efficiency, setting a new standard for road construction in Nigeria.
The government is also developing a tolling framework to ensure the road’s operational sustainability after completion. This aligns with the broader strategy of maintaining critical infrastructure through self-sustaining revenue mechanisms.
The Lagos-Calabar Coastal Highway, when fully completed, is expected to stretch across several states, boosting regional trade, expanding tourism potential, and creating seamless transportation for millions of Nigerians. With this financing milestone, the first phase is now well-positioned for timely completion and long-term impact.
To be frank in my earlier concept of this heavy investment on a costal highway liking Lagos to Calabar as a waste of revenue. But my reaction has suddenly changed having seen the accorded recognition of some reputable international organizations on the project. A genuine look about the long-range economic advantage of this project will undoubtedly show some degree of economic value to the country, with particular reference to the southern regions. The areas that would benefit from it mostly are from the South, South-east, South-west and the Central regions of the country. The investment is worth the risks associated with the project. Over-all, Nigeria as a whole will benefit from this laudable project. It is a giant project to any developing country such as Nigeria. My projection and prayer is that there is no distraction toward the completion of the project. I commend the efforts of the individuals that are directly and indirectly associated with the project. It goes to confirm that this project will surely be an eye-opener to the world that black-race has good taste and good concept. Nigeria should continue to show outstanding examples to African leaders to be forward-looking for the advancement of the continent.