President Bola Ahmed Tinubu has declared that a newly secured $1.26 billion financing package for a critical section of the Lagos-Calabar Coastal Highway is a powerful signal of growing international investor trust in Nigeria's infrastructure potential and reform agenda.
A Milestone Deal for National Infrastructure
The funding, concluded on December 19, 2025, is designated for Phase 1, Section 2 of the monumental coastal road project. This segment covers approximately 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi. President Tinubu, in a statement released by his Special Adviser on Information and Strategy, Bayo Onanuga, praised the Federal Ministries of Finance and Works, as well as the Debt Management Office, for their collaborative efforts in finalising the transaction.
"This is a major achievement. Closing this transaction ensures that work on the Lagos–Calabar Coastal Highway will continue without interruption," the President stated. He reaffirmed his administration's dedication to seeking innovative funding models for pivotal national projects that drive economic growth.
Structure and Significance of the Financing
This latest financial arrangement follows an earlier $747 million facility secured for Phase 1, Section 1, highlighting the project's strong bankability and scalable nature. The $1.26 billion deal was fully underwritten by First Abu Dhabi Bank (FAB), with crucial risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Notably, this transaction marks ICIEC's first engagement in Nigeria since recent institutional reforms, and it stands as the largest deal ever supported by the corporation since its establishment. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the closure as "a defining moment in Nigeria’s infrastructure journey." He emphasised that it firmly establishes the highway as a flagship project of President Tinubu's Renewed Hope Agenda.
Ensuring Transparency and Quality Execution
A consortium of expert firms ensured the deal's robustness and compliance with global standards. SkyKapital acted as the Lead Financial Adviser, while Hogan Lovells and Templars served as International and Nigerian Legal Counsel, respectively. Earth Active provided environmental and social advisory to align the project with International Finance Corporation (IFC) Performance Standards and the Equator Principles.
In a move underscoring the government's commitment to fiscal discipline, a comprehensive Value-for-Money assessment was conducted by SkyKapital with the Federal Ministry of Works and was independently validated by GIBB. The construction is being handled by Hitech Construction Company Limited, which has already received commendation from lenders for its rapid progress and engineering quality on earlier sections.
The successful financial close for this section is seen as a decisive step, demonstrating Nigeria's capacity under the current administration to translate ambitious infrastructure visions into bankable, executable projects that attract serious international capital.
