The Nigerian Federal Government has obtained a $747 million loan to fund the first phase of the Lagos-Calabar Coastal Highway, marking a significant step in bolstering the nation’s infrastructure. The loan, facilitated by Deutsche Bank, will support the construction of Phase 1, Section 1, stretching from Victoria Island to Eleko Village, the Ministry of Finance announced on Thursday.
This landmark financing, the first syndicated road infrastructure loan of its scale in Nigeria, signals strong international confidence in the country’s economic reforms and infrastructure ambitions, according to Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance. Deutsche Bank served as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner, joined by a consortium of lenders including First Abu Dhabi Bank, which acted as Agent and Intercreditor Agent, the African Export-Import Bank (Afrexim), the Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank’s offices in the UK, Paris, and Nigeria. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial risk insurance to support the deal.
The project, executed under an Engineering, Procurement, Construction, and Financing (EPC+F) contract with Hitech Construction Company, one of Nigeria’s leading infrastructure firms, is designed to foster a robust public-private partnership. This approach aims to accelerate project delivery while attracting private sector investment to critical infrastructure. With construction already over 70% complete, the highway employs Continuously Reinforced Concrete Pavement (CRCP), ensuring durability with a minimum lifespan of 50 years and low maintenance costs.
The highway’s design adheres to rigorous international standards, incorporating comprehensive technical, legal, and environmental assessments to ensure sustainability and resilience. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, hailed the loan as a testament to Nigeria’s macroeconomic reforms and President Bola Tinubu’s commitment to advancing public-private partnerships. “This transaction showcases Nigeria’s readiness to finance and manage critical infrastructure through innovative structures, signaling to investors the maturity of our market and our dedication to sustainable growth,” Edun stated.
The Lagos-Calabar Coastal Highway project has faced scrutiny, with protests recently targeting the Ministry of Works over concerns related to the project, including the reported abduction of an individual. Despite these challenges, the government remains committed to its vision of transforming Nigeria’s infrastructure landscape, with the highway poised to enhance connectivity and drive economic development along the coastal corridor.
