Tinubu Hails $1.13bn Deal as Lagos–Calabar Coastal Highway Records Major Breakthrough

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President Bola Ahmed Tinubu has commended the successful closure of a $1.126 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a landmark achievement that reinforces Nigeria’s commitment to delivering transformative infrastructure.

In a statement issued by the Presidency, the President praised the Federal Ministry of Finance, the Federal Ministry of Works and the Debt Management Office for their collaboration in securing the facility, noting that the deal guarantees uninterrupted progress on what is considered Africa’s most ambitious coastal road project.

He reaffirmed his administration’s resolve to continue exploring innovative financing options to fund priority infrastructure across the country.

“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.

The newly financed Phase 1, Section 2 covers about 55.7 kilometres, stretching from Eleko in Lekki to Ode-Omi, and is expected to significantly improve trade efficiency, logistics flow and connectivity along key economic corridors.

The deal follows the earlier closure of $747 million financing for Phase 1, Section 1, further underscoring the project’s bankability and long-term viability.
The transaction was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with partial risk coverage provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking the institution’s largest Nigeria-backed transaction since recent reforms.

Analysts say the structure reflects growing international confidence in Nigeria’s improving investment climate and its ability to execute large-scale infrastructure projects.

SkyKapital acted as Lead Financial Advisor, coordinating the structuring and execution of the deal, while Earth Active (UK) provided environmental and social advisory services to ensure compliance with IFC Performance Standards, the Equator Principles and global ESG best practices. Legal advisory services were led by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the financing as a defining moment in Nigeria’s infrastructure journey, noting that it firmly establishes the Lagos–Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda.

He said the funds would be deployed responsibly to ensure timely delivery, adding that the facility represents the first fully underwritten road infrastructure financing of this scale in Nigeria.
Construction is being handled by Hitech Construction Company Limited, whose rapid progress and early opening of key road sections have drawn commendation from lenders for engineering excellence, operational discipline and speed of execution.

In line with the Federal Government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money assessment was conducted by the Federal Ministry of Works in collaboration with SkyKapital and independently reviewed by GIBB.

The Presidency said the successful close of Phase 1, Section 2 marks a clear boost in market confidence and demonstrates Nigeria’s growing capacity to move from reform to delivery under President Tinubu’s Renewed Hope Agenda.