The Federal Government has successfully secured a significant $747 million syndicated loan facility to finance the crucial Phase 1, Section 1 of the ambitious Lagos-Calabar Coastal Highway project. This landmark financial deal, announced on Wednesday, July 9, 2025, by the Federal Ministry of Finance, marks a major milestone in Nigeria’s infrastructure development drive and signals renewed global investor confidence in the nation’s economic reforms.

The syndicated loan, described as the first of its size for road infrastructure in Nigeria, was spearheaded by Deutsche Bank, which served as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. The consortium of lenders includes prominent regional and international financial institutions such as First Abu Dhabi Bank, African Export-Import Bank (Afrexim), Abu Dhabi Exports Office (ADEX), ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank. Crucially, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance, adding a layer of security to the massive undertaking.

According to a statement from Mr. Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, the secured funds are specifically earmarked for the 47.47-kilometer stretch of the highway, extending from Victoria Island to Eleko Village in Lagos. Construction on this initial phase, awarded as an Engineering, Procurement, Construction + Financing (EPC+F) contract to Hitech Construction Company, is already over 70 percent complete, underscoring the government’s commitment to fast-tracking the project.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, lauded the transaction, stating, “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development.” He emphasized the administration’s focus on financing infrastructure through sustainable, transparent, and catalytic means, positioning Nigeria for a full transition towards Public-Private Partnerships (PPPs) in critical infrastructure development.

Minister of Works, David Umahi, echoed this sentiment, describing the financing as a vote of confidence in President Bola Tinubu’s economic reform agenda. The broader Lagos-Calabar Coastal Highway is a colossal 700-kilometer project designed to connect Lagos to Cross River, traversing seven other coastal states. Engineered with Continuously Reinforced Concrete Pavement (CRCP), the highway boasts an expected minimum lifespan of 50 years with minimal maintenance, promising outstanding durability and cost-effectiveness.

Once completed, the coastal highway is projected to transform trade and logistics, enhance regional integration, boost tourism, significantly reduce transport costs, and generate substantial employment opportunities across Nigeria’s southern corridor. The Federal Government is also finalizing a tolling strategy to ensure the project’s long-term operational and financial sustainability, with discussions already underway for financing subsequent phases.