- Lagos–Calabar Coastal Road Advances as Tinubu Commends Landmark $1.26bn Deal
- Tinubu said the successful close of the transaction reflects his administration’s determination to pursue innovative and sustainable funding models
- The facility was fully underwritten by First Abu Dhabi Bank
President Bola Tinubu has commended the Federal Ministry of Finance for securing $1.26 billion in funding for Phase One, Section Two of the Lagos–Calabar Coastal Highway, describing the deal as a significant boost for a project he said is critical to Nigeria’s long-term economic growth.
Eko Hot Blog reports that in a statement released on Friday by his spokesperson, Mr. Bayo Onanuga, the president also praised the Ministry of Works and the Debt Management Office for their collaboration in finalising the financing arrangement.
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Tinubu said the successful close of the transaction reflects his administration’s determination to pursue innovative and sustainable funding models for major infrastructure projects across the country.
“This is a major achievement, and it ensures that work on the Lagos–Calabar Coastal Highway continues without interruption,” the president said. “We will continue to explore diverse funding opportunities to deliver critical economic and infrastructure projects nationwide.”
Phase One, Section Two of the highway stretches about 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi. The section is expected to enhance logistics efficiency, strengthen key economic corridors, and support increased trade along Nigeria’s coastal axis.
The latest financing follows the earlier $747 million secured for Phase One, Section One, reinforcing investor confidence in the project’s viability and positioning it as one of the most bankable road infrastructure developments in the country.
The facility was fully underwritten by First Abu Dhabi Bank, with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit, ICIEC. The deal also marks ICIEC’s return to Nigeria after recent institutional and regulatory reforms, a development seen as a strong signal of renewed confidence in the country’s investment environment.
SkyKapital acted as lead financial adviser on the transaction, overseeing structuring, lender engagement, and execution. Environmental and social advisory services were provided by Earth Active UK to ensure compliance with IFC Performance Standards, the Equator Principles, and global ESG requirements. Legal advisory support was provided by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the transaction as a defining moment for Nigeria’s infrastructure development, noting that the funds would be deployed responsibly to ensure timely delivery.
He said the signing of the $1.26 billion facility on December 19, 2025, followed the successful close of the $747 million financing for Phase One, Section One on July 9, 2025, firmly positioning the Lagos–Calabar Coastal Highway as a flagship project under President Tinubu’s Renewed Hope Agenda.
According to Edun, the deal is particularly significant as it represents the first fully underwritten financing of its size for a Nigerian road infrastructure project, adding that the facility, backed by First Abu Dhabi Bank, Afreximbank, and ICIEC support, is the largest transaction ever supported by ICIEC.
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