President Bola Tinubu commended the Federal Ministry of Finance for effectively securing USD 1.26 billion in funding to support the implementation of Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, representing a major achievement in advancing one of Africa's largest and most impactful infrastructure initiatives.
President Tinubu commended the Ministry of Finance and Works, along with the Debt Management Office, for their teamwork during the deal, stating that the federal government remains committed to seeking innovative financial solutions to support essential projects nationwide.
"This marks a significant milestone, and finalizing this deal ensures the Lagos–Calabar Coastal Highway project proceeds without interruption. Our government remains committed to seeking out financial resources to carry out essential economic and infrastructure initiatives throughout the nation," the President stated.
Section 2 of Phase 1 covers roughly 55.7 kilometers, linking Eleko in Lekki with Ode-Omi, two vital economic routes that will greatly improve nationwide trading effectiveness and logistical connections. This achievement in funding comes after the previous closure of the $747 million financing for Section 1 of Phase 1, highlighting the expandability and financial viability of the Lagos-Calabar Coastal Highway initiative.
The funding was entirely guaranteed by First Abu Dhabi Bank (FAB), with assistance in managing risks offered by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). This represents ICIEC's initial deal in Nigeria following the nation's structural and regulatory changes, indicating increasing trust in Nigeria's improved business environment and ability to execute major infrastructure projects.
SkyKapital served as the Principal Financial Advisor, overseeing the design, interaction with lenders, and implementation process. The environmental and social consulting was handled by Earth Active (UK), guaranteeing complete compliance with the IFC Performance Standards, the Equator Principles, and global ESG standards. Hogan Lovells functioned as International Counsel, while Templars provided local legal advice within Nigeria.
Calling the deal a "pivotal point in Nigeria's development path," the Minister of Finance and Coordinator of the Economy, Wale Edun, stated that the money will be used wisely and effectively to complete the project according to set deadlines.
The announcement made on December 19, 2025, regarding the $1.26 billion funding for Phase 1, Section 2 of the Lagos–Calabar Coastal Road represents a significant milestone in Nigeria's development efforts, coming after the completion of the $747 million deal for Phase 1, Section 1 on July 9, 2025. Together, these major deals solidify the Lagos–Calabar Coastal Highway as a key initiative under President Bola Ahmed Tinubu’s Renewed Hope Agenda, reflecting the government's dedication to ambitious and transformative infrastructure projects.
"This funding stands out because it marks the first time a deal of this scale for a Nigerian road development has been fully underwritten. The loan was entirely backed by First Abu Dhabi Bank (USD 262 million) and Afreximbank (USD 500 million), with some support from ICIEC, which makes it the biggest transaction supported by ICIEC since the organization began," Edun stated.
Hitech Construction Company Limited is carrying out the construction work, with their swift development at the site and timely activation of major road segments receiving praise from financiers for outstanding engineering, strict operations, and fast implementation.
Consistent with the Federal Government's dedication to openness and financial responsibility, a detailed Cost-Effectiveness (C-E) analysis was carried out by SkyKapital in collaboration with the Federal Ministry of Works and separately examined and validated by GIBB.
The completion of Phase 1, Section 2 marks a significant shift in investor trust, highlighting Nigeria's capacity to transition swiftly from ideas to action and from policy changes to tangible outcomes within President Bola Tinubu’s Renewed Hope Initiative.
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