The Federal Government has secured a $1.26 billion loan facility to advance a strategic section of the Lagos–Calabar Coastal Highway, a development widely seen as a significant step in strengthening Nigeria’s infrastructure financing capacity and accelerating long-delayed economic corridors across the country.
Moreover, the successful transaction signals renewed confidence among international lenders in the government’s fiscal reforms and project delivery framework, particularly as the federal government intensify efforts to mobilise external funding for capital-intensive national projects.
Details of the financing were released on Friday through a State House announcement, which confirmed that the facility was formally signed on December 19, 2025.
The loan will fund Phase One, Section Two of the Lagos–Calabar Coastal Highway, spanning approximately 55.7 kilometres between Eleko in Lekki and Ode-Omi.
Reacting to the development, President Bola Tinubu commended the Ministries of Finance and Works, alongside the Debt Management Office, for what he described as effective inter-agency coordination that ensured the successful completion of the transaction.
According to him, the financing guarantees continuity in the execution of the coastal highway.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded,” Tinubu said.
Furthermore, the Presidency noted that the latest facility builds on the earlier $747 million financing secured for Phase One, Section One of the highway, thereby reinforcing the project’s scale, credibility, and long-term bankability in global financial markets.
Speaking on the broader implications, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the deal as a defining moment for road infrastructure funding in Nigeria, stressing that the funds would be applied with discipline and accountability.
“This financing represents a defining moment in Nigeria’s infrastructure journey and reflects our commitment to bold, transformational projects under the Renewed Hope agenda,” Edun said.
Meanwhile, the government disclosed that the loan was fully underwritten by First Abu Dhabi Bank and Afreximbank, with partial risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit, marking one of the largest such transactions backed by the institution.
In terms of project delivery, construction of the highway section is being handled by Hitech Construction Company Limited, whose ongoing work, according to officials, has attracted positive reviews from lenders due to its engineering standards and execution speed.
Consequently, the Federal Government said a comprehensive value-for-money assessment was conducted and independently validated to ensure transparency and fiscal discipline, noting that the successful close of the financing represents a clear shift from policy intent to tangible infrastructure delivery under the administration’s Renewed Hope agenda.
