President Bola Tinubu has commended the Federal Ministry of Finance for securing $1.126 billion in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing the deal as a major milestone in Nigeria’s infrastructure development drive.
The President also praised the Ministries of Finance and Works, as well as the Debt Management Office, for their collaboration on the transaction, noting that the Federal Government will continue to deploy innovative financing solutions to deliver priority national projects.
Phase 1, Section 2 of the project spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, a corridor expected to significantly improve logistics efficiency and national trade connectivity. The financing follows the earlier $747 million closure for Phase 1, Section 1, reinforcing the bankability and scalability of the Lagos–Calabar Coastal Highway.
The facility was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with partial risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Afreximbank is also an underwriter of the facility. The transaction represents ICIEC’s largest-supported deal since Nigeria’s recent institutional and regulatory reforms.
SkyKapital served as Lead Financial Advisor, while environmental and social advisory services were provided by Earth Active (UK), ensuring compliance with IFC Performance Standards, the Equator Principles, and international 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 the agreement was signed on December 19, 2025.
According to Edun, the transaction marks the first time a Nigerian road infrastructure project of this scale has been fully underwritten, with FAB contributing $626 million and Afreximbank $500 million, supported by ICIEC coverage.
Construction is being carried out by Hitech Construction Company Limited, whose pace of execution and early opening of key sections have attracted commendation from lenders for engineering quality and operational discipline.
A comprehensive Value-for-Money (VfM) assessment, conducted by the Federal Ministry of Works in collaboration with SkyKapital and independently reviewed by GIBB, confirmed the project’s fiscal and economic viability.
The successful close of Phase 1, Section 2 is seen as a boost to investor confidence and a demonstration of the government’s ability to translate reform initiatives into tangible infrastructure delivery under President Tinubu’s Renewed Hope Agenda.
Bello Ahmed
