Tinubu Celebrates $1.26 Billion Funding for Lagos-Calabar Highway

President Bola Ahmed Tinubu has announced the successful closure of a significant funding deal amounting to $1.26 billion for Phase 1, Section 2 of the Lagos-Calabar Coastal Highway. This milestone is viewed as a critical advancement in Nigeria’s infrastructure development and aims to enhance investor confidence. The announcement was made through a statement from the State House, issued by spokesperson Bayo Onanuga.

In his remarks, President Tinubu commended the collaborative efforts of the Federal Ministry of Finance, the Federal Ministry of Works, and the Debt Management Office (DMO) for their roles in concluding this vital transaction. He emphasized that this funding ensures the continuation of one of Africa’s most ambitious infrastructure projects. “This is a major achievement, and closing this transaction means the Lagos-Calabar Coastal Highway will continue unimpeded,” he stated. The President added that his administration is committed to exploring additional funding avenues for essential economic and infrastructural projects nationwide.

Project Overview and Economic Impact

Phase 1, Section 2 of the highway spans approximately 55.7 kilometers, connecting Eleko in Lekki to Ode-Omi. This strategic corridor is expected to significantly enhance trade efficiency, logistics connectivity, and economic integration along Nigeria’s coastline. This latest financing follows a previous securement of $747 million for Phase 1, Section 1, thereby reinforcing the project’s financial viability and scalability.

The funding package is fully underwritten by First Abu Dhabi Bank (FAB) and includes risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). This marks ICIEC’s inaugural transaction in Nigeria following recent institutional reforms. Officials noted that the structure of this deal reflects an increasing international confidence in Nigeria’s reformed investment climate.

Financial advisory for this transaction was provided by SkyKapital, while Earth Active (UK) offered Environmental and Social advisory services to ensure compliance with the International Finance Corporation (IFC) Performance Standards, the Equator Principles, and global Environmental, Social, and Governance (ESG) best practices. Legal advisory roles were fulfilled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.

Governmental Insights and Construction Progress

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described this financing as a “defining moment in Nigeria’s infrastructure journey.” He highlighted that this is the first fully underwritten road infrastructure transaction of this magnitude in the country. “Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Ahmed Tinubu’s Renewed Hope Agenda,” Edun remarked, assuring that the funds will be utilized responsibly and within agreed timelines.

The construction of the highway is being managed by Hitech Construction Company Limited, which has received praise from lenders for the rapid progress and early opening of key sections, as well as for maintaining high standards in engineering quality and execution speed.

To uphold transparency and fiscal discipline, the Federal Government conducted a comprehensive Value-for-Money (VfM) assessment, which was led by SkyKapital in collaboration with the Ministry of Works and independently reviewed by GIBB. The successful financial closure of Phase 1, Section 2 is seen as a pivotal moment in boosting market confidence and underscores Nigeria’s ability to transform reforms into tangible outcomes under the Renewed Hope Agenda.