President Bola Tinubu has commended the Federal Ministry of Finance for successfully securing $1.26 billion in financing for Phase One, Section Two of the Lagos–Calabar Coastal Highway.
He described the financing as a major boost to one of Africa’s most ambitious infrastructure projects.
In a statement by Presidential spokesperson Bayo Onanuga on Friday, the president also praised the Ministry of Works and the Debt Management Office for their collaboration on the deal.
He stressed that his administration remains committed to innovative funding solutions for critical national projects.
“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.
Phase One, Section Two spans about 55.7 kilometers, linking Eleko in Lekki to Ode-Omi—a stretch expected to strengthen key economic corridors, boost trade efficiency, and improve logistics connectivity nationwide. The deal follows the earlier $747 million financing secured for Phase One, Section One, underscoring the project’s scalability and bankability.
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). The transaction marks ICIEC’s first engagement in Nigeria since recent institutional and regulatory reforms, reflecting growing investor confidence in the country’s reformed investment climate.
Accordingly, SkyKapital served as lead financial adviser, overseeing transaction structuring, lender engagement, and execution. Environmental and social advisory services were provided by Earth Active (UK), ensuring compliance with IFC Performance Standards, the Equator Principles, and global ESG best practices. Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Minister of Finance Wale Edun called the financing a “defining moment in Nigeria’s infrastructure journey,” assuring that the funds would be deployed prudently to deliver the project on schedule.
He noted that the December 19, 2025, signing of the $1.26 billion facility for Phase One, Section Two, followed the successful close of the $747 million financing for Section One on July 9, 2025, together positioning the Lagos–Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda.
“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,” Edun said.
“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.”
Eze Chidiebere Paul
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