President Bola Tinubu has commended 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, describing the development as a major boost to Nigeria’s infrastructure drive.
This was contained in a statement issued on Friday by the President’s spokesperson, Mr. Bayo Onanuga, in which Tinubu also praised the Ministries of Finance and Works, as well as the Debt Management Office (DMO), for their collaboration in concluding the landmark transaction.
According to the President, the successful close of the deal ensures that work on the strategic highway will proceed without disruption.
“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,” Tinubu said.
Phase 1, Section 2 of the coastal highway spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, two key economic corridors expected to significantly enhance national trade efficiency and logistics connectivity.
The latest financing follows the earlier $747 million secured for Phase 1, Section 1, reinforcing the scalability and bankability of the Lagos–Calabar Coastal Highway project.
The facility 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). Notably, the transaction represents ICIEC’s largest exposure since Nigeria’s institutional and regulatory reforms, reflecting growing investor confidence in the country’s improved investment climate.
SkyKapital acted as Lead Financial Adviser, coordinating transaction structuring, lender engagement and execution, while Earth Active (UK) provided Environmental and Social advisory services. The advisory process ensured compliance with IFC Performance Standards, the Equator Principles, and international Environmental, Social and Governance (ESG) best practices.
On the legal side, Hogan Lovells served as International Legal Counsel, with Templars acting as Nigerian Legal Counsel.
Describing the development as a defining milestone, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the funds would be deployed responsibly and within agreed timelines.
“The signing on December 19, 2025, of the $1.126 billion 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,” Edun said.
He added 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 reportedly earned commendation from lenders.
In line with the Federal Government’s commitment to transparency and accountability, 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 is seen as a strong signal of renewed market confidence and Nigeria’s growing capacity to translate reform-driven infrastructure vision into tangible deliverynan
