- Safiu Kehinde
The Federal Government has secured the closure of $1.2 billion financing deal for the phase one, section two of the Lagos-Calabar Coastal Highway.
This was made known in a statement issued on Friday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.
According to the statement, the successful financing follows the earlier closing of the USD 747 million financing for Phase 1, Section 1.
The financing was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking ICIEC’s first Nigerian transaction since the country’s institutional and regulatory reforms.
The structure reportedly reflects growing confidence in Nigeria’s reformed investment climate and its capacity to deliver infrastructure.
SkyKapital acted as Lead Financial Advisor, coordinating structuring, lender engagement, and execution while Environmental and Social advisory services were provided by Earth Active (UK).
This, according to Onanuga, ensured complete alignment with the IFC Performance Standards, the Equator Principles, and international ESG best practices. Hogan Lovells, as International Counsel, and Templars, as Nigerian Legal Counsel, led the legal advisory services.
Describing the transaction as a “defining moment in Nigeria’s infrastructure journey”, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the fund will be deployed responsibly and judiciously to deliver on the project within timelines.
Edun, as quoted by Onanuga, said the transactions firmly established the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Tinubu’s Renewed Hope agenda.
“The signing on December 19, 2025, of USD1.26 billion financing for Phase one — section two of the Lagos-Calabar Coastal road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the USD 747 million financing for Phase one section one on July 9, 2025. Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Ahmed Tinubu’s Renewed Hope agenda, embodying the administration’s commitment to bold, transformational infrastructure.
“This financing is particularly notable as it represents, for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project. The facility was fully underwritten by First Abu Dhabi Bank (USD 262 million) and Afreximbank (USD 500), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation,” The Minister said.
Reacting to the development, Tinubu praised the Federal Ministry of Finance for the significant milestone in the delivery of Africa’s most ambitious and transformative infrastructure projects.
The President applauded the Ministries of Finance and Works and the Debt Management Office for working together on the transaction, adding that the federal government will continue to explore creative financing to fund critical projects across the country.
“This is a major achievement, and closing this transaction means the Lagos-Calabar Coastal Highway will continue unimpeded. Our administration will continue to explore available funding opportunities to execute critical economic and infrastructural projects across the country,” Tinubu said.
The Phase 1, Section 2 of the Lagos-Calabar Coastal Highway covers approximately 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi, key economic corridors and significantly enhancing national trade efficiency and logistics connectivity.
Construction is being executed by Hitech Construction Company Limited, whose rapid progress on site and early opening of key road sections have drawn commendation from lenders for engineering excellence, operational discipline, and execution speed.
In line with the Federal Government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money (VfM) assessment was conducted by SkyKapital in close coordination with the Federal Ministry of Works and independently reviewed and confirmed by GIBB.