The Federal Government of Nigeria has secured a $747 million syndicated loan to fund the first phase of the Lagos-Calabar Coastal Highway project, specifically the stretch from Victoria Island to Eleko Village in Lagos.
According to a statement released by the Ministry of Finance, this marks the largest syndicated loan for road infrastructure in the country’s history. The financing arrangement was led by Deutsche Bank, which also acted as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. The deal reflects increasing global investor confidence in Nigeria’s ongoing economic reforms and infrastructure initiatives.
Support for the loan came from a coalition of international and regional financial institutions, including:
* First Abu Dhabi Bank (serving as Agent and Intercreditor Agent)
* African Export-Import Bank (Afrexim)
* Abu Dhabi Exports Office (ADEX)
* ECOWAS Bank for Investment and Development (EBID)
* Nexent Bank N.V.
* Zenith Bank through its UK, Paris, and Nigerian branches
Risk coverage for the transaction was provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which offered partial insurance for both political and commercial risks.
The highway is being constructed under an EPC+F (Engineering, Procurement, Construction + Financing) contract by Hitech Construction Company. This public-private partnership model aligns engineering execution directly with financing, enabling faster delivery while attracting more private sector investment.
Construction is already over 70% complete, and the road is being built with Continuously Reinforced Concrete Pavement (CRCP)**—a durable material expected to last over 50 years with minimal maintenance. The project design underwent thorough technical, legal, environmental, and social reviews to meet international standards.
Speaking on the deal, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, noted that the successful closure of the financing demonstrates renewed confidence in Nigeria’s economy and development agenda. He described the loan structure as a model for sustainable and transparent infrastructure funding that also fosters private sector collaboration.
Mr. Edun emphasized that this transaction highlights President Bola Tinubu’s dedication to increasing private sector participation in public infrastructure, marking a significant shift toward long-term, partnership-driven national development.
