The Federal Government has secured about $1.2 billion in financing from the United Arab Emirates to advance construction of a key segment of the Lagos–Calabar Coastal Highway.
The Presidency made this announcement in a statement on Friday, according to Bloomberg.
The funding will be applied to a 56-kilometre section of the coastal freeway, one of the Federal Government’s flagship infrastructure projects.
When completed, the highway is expected to span 700 kilometres along Nigeria’s Atlantic coastline, linking major economic and commercial centres.
What FG is saying
President Bola Tinubu said the deal ensures uninterrupted progress on the project as the government intensifies efforts to close Nigeria’s infrastructure gap.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded,” President Bola Tinubu said in the statement.
He added that the government would continue to pursue creative financing options to support large-scale infrastructure development across the country.
Context and backstory
In July, Nigeria secured an additional $747 million in financing for another section of the same highway, demonstrating the project’s scale and phased funding structure.
- The deal was led by Deutsche Bank, acting as the Global Coordinator and Lead Arranger, alongside a consortium of international and regional lenders.
- 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.
- The loan was fully underwritten by First Abu Dhabi Bank, with risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit, reflecting growing Gulf participation in Nigeria’s infrastructure financing.
- 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 Lagos–Calabar Coastal Highway has been positioned as a transformative transport corridor aimed at improving logistics, trade, tourism and regional integration.
What this means
The latest UAE-backed facility strengthens funding certainty for one of Nigeria’s largest road projects and signals sustained international confidence in the country’s infrastructure programme.
If delivered as planned, the coastal highway could significantly reduce travel time, stimulate coastal economic activity, and enhance connectivity between southern states—key objectives of the Tinubu administration’s growth and development agenda.
