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Economic development

Landmark $747 Million Loan Secured for Lagos-Calabar Coastal Highway Project

Strategic Insights

— 2 min read

The Federal Government of Nigeria has achieved a significant milestone in its infrastructure development agenda with the signing of a $747 million syndicated loan to fund Phase 1, Section 1 of the Lagos-Calabar Coastal Highway. This transformative project aims to improve Nigeria's infrastructure, boost trade, create jobs, and drive regional integration. Led by Deutsche Bank, the loan is the largest syndicated road infrastructure loan in Nigeria's history and a major step towards President Bola Tinubu's Renewed Hope Infrastructure Development Agenda.

Key Takeaways:

  • The loan, worth $747 million, is the largest syndicated road infrastructure loan in Nigeria's history, providing financing for Phase 1, Section 1 of the Lagos-Calabar Coastal Highway.
  • The project, expected to be completed under an EPC+F model, is being executed by Hitech Construction Company Limited, which has completed over 70% of Phase 1, Section 1.
  • The Lagos-Calabar Coastal Highway is being constructed using Continuously Reinforced Concrete Pavement (CRCP) technology, known for its strength and long lifespan, with an expected durability of at least 50 years.
  • The project is a major step towards President Bola Tinubu's Renewed Hope Infrastructure Development Agenda, aiming to accelerate the participation of the private sector in infrastructure financing and development.
  • The loan's closing marks a significant endorsement of Nigeria's economic trajectory, as reflected in the words of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
  • Participating lenders include Deutsche Bank, First Abu Dhabi Bank, African Export-Import Bank (Afrexim), Abu Dhabi Exports Office (ADEX), 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) provided partial political and commercial risk insurance to support the financing structure.
  • The project's completion is expected to fast-track delivery while ensuring alignment between technical execution and financing.
  • Talks for financing the remaining phases of the project are underway, with growing interest from regional and international partners.

Statistics:

  • The loan amount is $747 million.
  • The project spans 47.47 kilometres, from Victoria Island to Eleko Village.
  • Hitech Construction Company Limited has completed over 70% of Phase 1, Section 1.
  • The Lagos-Calabar Coastal Highway is expected to last at least 50 years with minimal maintenance.
  • The tolling strategy for the highway is currently being finalised to ensure operational sustainability.

Sources:

  • Statement issued by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on Wednesday, July 9, 2025.
  • Deutsche Bank.
  • First Abu Dhabi Bank.
  • African Export-Import Bank (Afrexim).
  • Abu Dhabi Exports Office (ADEX).
  • ECOWAS Bank for Investment and Development (EBID).
  • Nexent Bank N.V.
  • Zenith Bank.
  • Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
  • Hitech Construction Company Limited.

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