Nigeria secures $747m syndicated loan for Lagos-Calabar coastal highway project

Nigeria has secured a $747 million syndicated loan to finance Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, a flagship initiative under the federal government’s Renewed Hope Infrastructure Development Agenda.

The Federal Ministry of Finance announced on Wednesday that Deutsche Bank led the syndicate as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner, joining forces with regional and international lenders to fund the 47.47-kilometre stretch from Victoria Island to Eleko Village.

According to the ministry’s press release, this loan “marks the first syndicated road infrastructure loan of its size in Nigeria and is a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.”

The syndicate includes prominent financial institutions such as First Abu Dhabi Bank, which also serves as Agent and Intercreditor Agent, African Export-Import Bank (Afrexim), ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank through its UK, Paris, and Nigeria offices.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provides partial political and commercial risk insurance, underscoring the project’s robust risk mitigation framework.

Construction on the highway, led by Hitech Construction Company—the Nigerian engineering firm contracted under an Engineering, Procurement, Construction plus Financing (EPC+F) arrangement—is already over 70% complete.

The press statement highlighted the project’s strategic partnership model designed to “enable fast-track project delivery while unlocking and maximising private sector appetite for investment in the country’s priority infrastructure.”

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The Lagos-Calabar coastal highway will be built using Continuously Reinforced Concrete Pavement (CRCP), a technology selected for its long-term resilience. The finance ministry explained that the highway is “engineered for a minimum lifespan of 50 years with minimal maintenance,” reflecting Nigeria’s commitment to durability and cost-efficiency in infrastructure development.

Beyond the technical specifications, the highway is envisioned as a critical trade and logistics corridor. It is expected to “enhance regional integration, tourism, reduce transport costs, and create jobs.” A tolling strategy, currently being finalised, aims to ensure the project’s operational and financial sustainability through a concession-backed framework. Financing for subsequent phases is already underway, with “strong interest from regional and international investors.”

Wale Edun, finance minister and coordinating minister of the economy, described the transaction as a milestone achievement. “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development,” Edun said. He added, “The closing of this market-defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development.”

Edun emphasised that the project “positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships.”

He further noted that “It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the Government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”

This landmark financing underscores an evolving approach that leverages innovative financing structures and public-private partnerships to deliver transformative projects critical to the nation’s economic growth.

David Umahi, minister of works, echoed the sentiment, calling the transaction “a vote of confidence in Nigeria’s economic reform agenda.”

He described the highway as “a strategic national asset” and the financing as “a strong precedent for future public-private infrastructure partnerships.”

Dany Abboud, Hitech Construction’s Managing Director, expressed pride in the company’s delivery. “With over 70% of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards,” Abboud stated. He also pointed out that “the use of CRCP technology ensures unmatched durability and cost-efficiency.”

Khalid Khalafalla, CEO of ICIEC, added, “Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth.”

He highlighted the broader benefits, including employment creation, capacity building, and bolstering small and medium-sized enterprises, noting the initiative’s alignment with sustainable development and multimodal connectivity objectives across West Africa.