From Adanna Nnamani, Abuja
The Federal Government has secured a landmark $747 million syndicated loan to finance Phase 1, Section 1 of the Lagos-Calabar Coastal Highway, a transformative project expected to enhance Nigeria’s infrastructure, boost trade, create jobs, and drive regional integration.
The loan, led by Deutsche Bank, covers the construction of the 47.47-kilometre stretch from Victoria Island to Eleko Village. It is the largest syndicated road infrastructure loan in Nigeria’s history and a major step under President Bola Tinubu’s Renewed Hope Infrastructure Development Agenda.
Deutsche Bank served as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. Other participating lenders include First Abu Dhabi Bank, which also acts as the Agent across all facilities and Intercreditor Agent; the African Export-Import Bank (Afrexim); Abu Dhabi Exports Office (ADEX); ECOWAS Bank for Investment and Development (EBID); Nexent Bank N.V.; and Zenith Bank through its UK, Paris, and Nigeria offices.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance to support the financing structure.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, described the deal as a significant endorsement of Nigeria’s economic trajectory.
This was disclosed in a statement issued by the Minister’s Spokesperson, Mohammad Manga, on Wednesday, July 9, 2025.
According to Edun, “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development.
“We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic, and this transaction is a model of that vision in action.
“The closing of this market-defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development.
“It positions the country as being ready for a full transition to the design, development, financing, as well as operations and management of critical public infrastructure through Public-Private Partnerships.
“It signals to investors and private sector participants the sophistication and maturity of the Nigerian market and the commitment of the Government to the sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”
Also speaking, the Minister of Works, Senator David Umahi, said the transaction shows strong global confidence in the country’s new economic direction.
“This transaction is a vote of confidence in Nigeria’s economic reform agenda. The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships,” he said.
The project is being executed under an EPC+F (Engineering, Procurement, Construction + Financing) model awarded to Hitech Construction Company Limited. This framework is expected to fast-track delivery while ensuring alignment between technical execution and financing.
The Managing Director of Hitech, Mr Dany Abboud, expressed pride in leading the construction of such a vital national project, saying, “We are proud to deliver this historic project. With over 70 per cent of Phase 1, Section 1 complete, we are showing that Nigerian engineering, backed by structured international finance, can meet global standards.
“The use of CRCP technology ensures unmatched durability and cost-efficiency.”
The Lagos-Calabar Coastal Highway is being constructed using Continuously Reinforced Concrete Pavement (CRCP), known for its strength and long lifespan. Officials say the pavement is designed to last at least 50 years with minimal maintenance, making it both resilient and cost-effective.
A tolling strategy for the highway is currently being finalised to ensure operational sustainability, and talks for financing the remaining phases of the project are underway, with growing interest from regional and international partners.