Nigeria secures $747m loan for Lagos-Calabar Coastal Highway

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Nigeria has secured a $747 million syndicated loan to finance the first phase of the Lagos-Calabar Coastal Highway, marking a major milestone in the country’s infrastructure development efforts.

According to a statement by Mohammed Manga, spokesperson for the Ministry of Finance, the loan will fund the 47.47-kilometre stretch from Victoria Island to Eleko Village in Lagos. The project represents Nigeria’s largest syndicated loan for road infrastructure and signals renewed global investor confidence in the country’s reform agenda.

The financing was coordinated by Deutsche Bank, which served as global coordinator, lead arranger, and bookrunner. Other participating institutions include First Abu Dhabi Bank, the African Export-Import Bank, Abu Dhabi Exports Office (ADEX), ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance. The infrastructure is being constructed under an EPC+F (Engineering, Procurement, Construction + Financing) framework by Hitech Construction Company, a major Nigerian engineering firm.

The project is already over 70 percent completed and is being built using Continuously Reinforced Concrete Pavement (CRCP), which is designed for durability, minimal maintenance, and a 50-year lifespan. A tolling strategy is being finalized to ensure the financial sustainability of the road.

In a recent statement, Finance Minister Wale Edun asserted the transaction reflects the success of Nigeria’s macroeconomic reforms and shows the government’s commitment to attracting private capital into infrastructure. “This is a clear sign that Nigeria is ready for large-scale public-private partnerships,” Edun said.

For his part, Minister of Works, David Umahi, described the highway as a strategic national asset, adding that the financing serves as a template for future projects. Hitech’s managing director, Dany Abboud, said the progress made proves Nigerian engineering can meet global standards when backed by structured finance.

ICIEC CEO Khalid Khalafalla also hailed the project, noting it will boost regional trade, generate jobs, and support sustainable development across West Africa. Financing for subsequent phases of the highway is currently being structured, with additional interest from international investors.