President Bola Tinubu has applauded the successful closure of the $1.26 billion financing arrangement for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major milestone in the delivery of one of Africa’s most ambitious infrastructure projects.
The President also commended the Federal Ministries of Finance and Works, as well as the Debt Management Office, for their collaboration in securing the funding, noting that his administration will continue to explore innovative financing options to deliver critical infrastructure nationwide.
According to a statement issued by Special Adviser to the President on Information and Strategy, Bayo Onanuga, the successful financial closure ensures that construction on the Lagos–Calabar Coastal Highway will proceed without interruption and reinforces the Federal Government’s commitment to economic growth through infrastructure development.
President Tinubu said the transaction was a significant achievement for his administration, adding that the highway would play a crucial role in boosting trade efficiency, logistics connectivity and economic activities along Nigeria’s coastal corridor.
Phase 1, Section 2 of the project spans about 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. It follows the earlier closure of $747 million financing package for Phase 1, Section 1, underscoring the scalability and bankability of the highway project.
The financing was fully underwritten by First Abu Dhabi Bank, FAB, with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit, ICIEC, marking ICIEC’s first transaction in Nigeria since recent institutional and regulatory reforms.
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The deal has been widely seen as a reflection of growing investor confidence in Nigeria’s reformed investment climate.
SkyKapital served as Lead Financial Adviser, while Earth Active UK provided environmental and social advisory services in line with international ESG standards.
Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the transaction as a defining moment in Nigeria’s infrastructure journey, noting that the funds would be deployed responsibly to deliver the project within set timelines.
Construction is being carried out by Hitech Construction Company Limited, whose progress on site has earned commendation from lenders for engineering quality and execution speed.
The Federal Government also disclosed that a comprehensive Value-for-Money assessment was conducted and independently reviewed to ensure transparency and fiscal discipline.
The successful close of Phase 1, Section 2 according to the Presidency is seen as a further boost to market confidence and a clear demonstration of the Tinubu administration’s Renewed Hope Agenda, moving decisively from reform to delivery.
(Editor: Terverr Tyav)
