FG Secures $747 Million Loan for Lagos-Calabar Coastal Highway

The Federal Government has secured a $747 million loan facility to fund Phase 1, Section 1 of the Lagos-Calabar Coastal Highway project, in what is being described as a milestone for infrastructure financing in Nigeria.

The Ministry of Finance announced on Tuesday that the facility was arranged by Deutsche Bank, covering the stretch of the highway from Victoria Island to Eleko Village in Lagos State. The project is being executed under an Engineering, Procurement, Construction, and Financing (EPC+F) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms.

According to a statement from the Ministry’s Director of Information and Public Relations, Mohammed Manga, the loan marks the first syndicated road infrastructure financing of its scale in Nigeria and signals renewed global investor confidence in the country’s reform efforts and infrastructure development pipeline.

Deutsche Bank is serving as Global Coordinator, Initial Mandated Lead Arranger, Bookrunner, and participating lender. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance, bolstering investor assurance.

The financing arrangement involves a syndicate of development finance institutions, export credit agencies, and international commercial banks. First Abu Dhabi Bank is acting as Agent across all facilities and Intercreditor Agent, underscoring its growing support for Nigeria. Other participating lenders include Afreximbank, the Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development, Nexent Bank N.V., and Zenith Bank, operating through its offices in Nigeria, Paris, and the UK.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the deal is a testament to the current administration’s macroeconomic reforms and the growing interest of international capital in supporting Nigeria’s development goals.

The Lagos-Calabar Coastal Highway, once completed, is expected to significantly enhance trade, tourism, and economic integration across Nigeria’s coastal states.