Tinubu hails $1.26bn funding deal for Lagos-Calabar coastal highway

FILE: President Bola Tinubu

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President Bola Tinubu has commended the successful closure of a $1.26bn financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing the achievement as a major boost to Nigeria’s infrastructure drive.

In a statement issued on Friday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President praised the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office for their collaboration in securing the funding, noting that the milestone would ensure uninterrupted progress on the project.

Highlighting the transformative potential of the road, Onanuga stated, “The Lagos–Calabar Coastal Highway is one of President Bola Tinubu’s best gifts to Nigeria. Those who have condemned this historic project will be ashamed of themselves when the Tinubu administration completes the road.”

According to the statement, Tinubu noted that the financing milestone demonstrated his administration’s commitment to exploring innovative funding options for critical national projects and emphasised that the highway remains central to the government’s economic and infrastructure agenda. Phase 1, Section 2 of the project spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi.

“This section is expected to strengthen key economic corridors, improve logistics efficiency, and enhance national trade connectivity. The financing follows an earlier $747 million secured for Phase 1, Section 1, reinforcing the project’s scalability and attractiveness to international financiers,“ the statement read.

The funding package was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with partial risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking ICIEC’s largest transaction since the country’s institutional and regulatory reforms.

The statement noted that the structure reflects growing investor confidence in Nigeria’s reformed investment climate.

SkyKapital served as the Lead Financial Adviser on the transaction, while environmental and social advisory services were provided by Earth Active (UK) in line with international ESG standards. Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.

Also quoted in the statement, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the deal as a defining moment in Nigeria’s infrastructure journey.

“The signing on December 19, 2025, of USD1.126 billion financing for Phase one — section two of the Lagos-Calabar Coastal road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the USD 747 million financing for Phase one section one on July 9, 2025. 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, embodying the administration’s commitment to bold, transformational infrastructure.

“This financing is particularly notable as it represents, for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project. The facility was fully underwritten by First Abu Dhabi Bank (USD 626 million) and Afreximbank (USD 500 million), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation,” Edun said.

The Lagos–Calabar Coastal Highway is a proposed 700-kilometre interstate highway designed to connect Lagos (Southwest) to Calabar (South-South). It is a flagship project of the Renewed Hope Agenda under President Bola Tinubu.

By securing funding for Section 2 following the $747 million already secured for Section 1, the government is demonstrating “project scalability”—proving to international markets that the project is financially viable and not just a pipe dream.

Opponents have criticised the project’s high cost, the lack of an open competitive bidding process (it was awarded to Hitech Construction), and the demolition of businesses along the Lagos coastline.

The Tinubu administration argues that the highway will unlock the “Blue Economy”—harnessing the economic potential of Nigeria’s coastline for fishing, tourism, and maritime trade. They estimate that the road will significantly reduce travel time between the Southwest and the South-South, which currently relies on deteriorating inland roads.

Jide, a seasoned journalist with over 12-year experience, reports business-related stories

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