The Federal Government has officially secured a landmark $747 million loan to fund Phase 1, Section 1 of the much-anticipated Lagos-Calabar Coastal Highway project. This initial phase covers the stretch from Victoria Island to Eleko Village in Lagos.
The Ministry of Finance made this announcement on Tuesday, describing it as a major milestone in Nigeria’s quest to modernise its infrastructure. According to the ministry, the deal marks Nigeria’s first-ever syndicated infrastructure loan of this magnitude — a move it says reflects growing confidence in the country’s ongoing economic reforms and investment potential.
“This is not just a loan,” said Mohammed Manga, Director of Information and Public Relations at the ministry. “It is a vote of confidence from global partners who see the future of infrastructure development in Nigeria.”
Leading the syndicate is Deutsche Bank, which served as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. The financing pool includes a mix of international heavyweights and regional development partners such as the African Export-Import Bank (Afrexim), First Abu Dhabi Bank (also serving as Agent and Intercreditor Agent), the 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.
To further strengthen the deal, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance — a key guarantee that protects investors from potential uncertainty.
The highway project is structured under an EPC+F model — Engineering, Procurement, Construction, plus Financing — with Hitech Construction Company taking the lead as contractor. Hitech is widely regarded as one of Nigeria’s top infrastructure firms.
The ministry described this as more than a construction project, calling it a model for how government and private sector players can collaborate for large-scale national development. “This is about building roads, yes — but it’s also about building confidence, jobs, and the foundation for a stronger economy,” Manga stated.
As construction begins, the Lagos-Calabar Coastal Highway is expected to reshape transport, commerce, and tourism along Nigeria’s coastline — a bold step toward the country’s long-term development goals.
