FGN secures $747mn Syndicated Loan to Boosts Lagos-Calabar Coastal Highway Development
By Patience Ikpeme
Federal government has secured a $747 million syndicated loan to finance Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, stretching from Victoria Island to Eleko Village.
A statement from the ministry of finance on Wednesday said “this marks the largest syndicated road infrastructure loan in Nigeria’s history, signaling robust global investor confidence in the country’s ongoing reforms and infrastructure ambitions.”
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, expressed optimism when he said, “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development. It positions the country as ready for a full transition to the design, development, financing, as well as operations and management of critical public infrastructure through Public Private Partnerships.”
The project is structured under an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company. This strategic partnership aligns technical execution with financing solutions to fast-track delivery and maximizes private sector investment.
The highway is engineered using Continuously Reinforced Concrete Pavement (CRCP), designed for a minimum lifespan of 50 years with minimal maintenance. This reflects a commitment to long-term resilience and cost-effectiveness, setting a new benchmark for road infrastructure in the region.
Beyond construction, the Lagos-Calabar Coastal Highway is poised to become a vital trade and logistics corridor, boosting regional integration, tourism, and job creation. A tolling option is being finalized to ensure the project’s financial sustainability through a self-sustaining, concession-backed framework.
David Umahi, Minister of Works, emphasized the project’s strategic importance: “This transaction is a vote of confidence in Nigeria’s economic reform agenda. The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships.”
Deutsche Bank is at the helm as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner, collaborating with a syndicate of regional and international lenders. The involvement of institutions like First Abu Dhabi Bank, African Export-Import Bank, and Zenith Bank underscores the broad-based support for Nigeria’s infrastructure drive.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) will provide partial political and commercial risk insurance. Dr. Khalid Khalafalla, CEO of ICIEC, highlighted the significance: “Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth.”
Dany Abboud, Managing Director of Hitech Construction stated that, “With over 70% of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards. The use of CRCP technology ensures unmatched durability and cost-efficiency.”
With financing for subsequent phases already underway and strong interest from investors, this landmark transaction exemplifies Nigeria’s renewed engagement with international financial institutions.
It is a testament to the country’s bold reforms and commitment to delivering transformative, bankable infrastructure projects that will drive sustained and inclusive growth across West Africa.
