The Federal Government has secured a $747 million Deutsche Bank-led syndicated loan to finance Phase 1 Section 1 (from Victoria Island to Eleko Village, 47.47km) of the Lagos-Calabar Coastal Highway.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, described the transaction as a major milestone for Nigerian and West African infrastructure development, and a flagship project under Nigeria’s Renewed Hope Infrastructure Development Agenda.
He highlighted that this marks the first syndicated road infrastructure loan of its size in Nigeria and is a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.
Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner, and participated in the syndicate alongside other regional and international lenders.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance.
The syndicate includes support from development finance institutions, export credit agencies, and international commercial banks—notably First Abu Dhabi Bank, which is also acting as Agent across all facilities and Intercreditor Agent. Its involvement underscores its strong and growing support for Nigeria.
Other lenders involved are the African Export-Import Bank (Afrexim), the Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.), and Zenith Bank (through its UK, Paris, and Nigeria offices).
In a statement, Mohammad Manga, Director, Information and Public Relations, said the project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms.
This structure aims at a strategic partnership between the Government and the private sector, seamlessly aligning technical execution with financing solutions.
It enables fast-track project delivery while unlocking and maximising private sector appetite for investment in the country’s priority infrastructure, as construction of Phase 1 Section 1 is already over 70 percent complete.
The highway, constructed using Continuously Reinforced Concrete Pavement (CRCP), reflects a commitment to long-term resilience and efficiency. Engineered for a minimum lifespan of 50 years with minimal maintenance, it offers outstanding durability and cost-effectiveness.
The project’s design and implementation have been shaped by comprehensive technical, legal, environmental, and social assessments, ensuring alignment with the highest international standards.
The Lagos-Calabar Coastal Highway will serve as a vital trade and logistics corridor, enhancing regional integration and tourism, reducing transport costs, and creating jobs.
A tolling strategy is currently being finalised to ensure the project’s operational and financial sustainability. These mechanisms will support a self-sustaining, concession-backed framework, helping to ensure long-term viability.
Financing for subsequent phases is already being structured, with strong interest from regional and international investors.