President Bola Ahmed Tinubu has commended the Federal Ministry of Finance and other key agencies for successfully closing a landmark USD 1.126 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure development agenda.
In a statement signed by Mr. Bayo Onanuga, his Special Adviser on Information and Strategy, the President praised the collaborative efforts of the Ministries of Finance and Works, as well as the Debt Management Office, noting that the transaction underscores the Federal Government’s commitment to innovative financing for priority national projects. He said the successful close ensures uninterrupted progress on what is regarded as one of Africa’s most ambitious and transformative infrastructure initiatives.
Phase 1, Section 2 of the project spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, a strategic economic corridor expected to significantly enhance trade efficiency and logistics connectivity. The latest financing follows the earlier USD 747 million close for Phase 1, Section 1, further reinforcing the project’s scalability and bankability.
The facility was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with partial risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Officials noted that this represents ICIEC’s largest supported transaction in Nigeria since recent institutional and regulatory reforms, reflecting growing international confidence in the country’s investment climate.
SkyKapital served as Lead Financial Advisor, overseeing transaction structuring and lender engagement, while Earth Active (UK) provided Environmental and Social advisory services in line with IFC Performance Standards, the Equator Principles, and international ESG benchmarks. Legal advisory services were led by Hogan Lovells as International Counsel and Templars as Nigerian Counsel.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the deal as a defining moment in Nigeria’s infrastructure journey, noting that the funds would be deployed responsibly to ensure timely delivery. He added that the transaction marks the first fully underwritten financing of this scale for a Nigerian road project.
Construction of the highway is being handled by Hitech Construction Company Limited, whose progress on site and early opening of key sections have attracted commendation from lenders for engineering quality and execution speed. A comprehensive Value-for-Money assessment was conducted by the Federal Ministry of Works in collaboration with SkyKapital and independently validated by GIBB, in line with the government’s transparency and fiscal discipline commitments.
The successful close of Phase 1, Section 2 is widely seen as a significant vote of confidence in Nigeria’s reform trajectory and its capacity to deliver large-scale infrastructure under President Tinubu’s Renewed Hope Agenda.
