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Significant Milestone as Nigeria Secures $747 Million Syndicated Loan for Lagos-Calabar Coastal Highway
In a significant boost to Nigeria’s infrastructure drive, Deutsche Bank has led a $747 million syndicated loan to fund the first phase of the Lagos-Calabar Coastal Highway project, covering a 47.47 kilometre stretch from Victoria Island to Eleko Village.
This landmark financing deal is the first of its kind for a road infrastructure project in Nigeria at a scale that reflects a growing international investor confidence in the recent reforms of the federal government.
In a statement signed by the Director, Information and Public Relations, Ministry of Finance, Mohammad Manga noted that Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner in the deal, working alongside a syndicate of regional and global lenders.
He added that the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk cover to support the loan.
Other major participants include First Abu Dhabi Bank—serving as Facility Agent and Intercreditor Agent, African Export-Import Bank (Afreximbank), Abu Dhabi Exports Office (ADEX), ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank through its Nigeria, UK, and Paris operations.
Commenting on this development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun said: “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development. We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action. The closing of this market defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development.
“It positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships. It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the Government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”
On his part, Minister of Works, David Umahi added: “This transaction is a vote of confidence in Nigeria’s economic reform agenda. The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships.”
The project is structured as an (Engineering, Procurement, Construction + Financing) EPC+F contract awarded to Hitech Construction Company, 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 maximizing private sector appetite for investment in the country’s priority infrastructure. Construction of Phase 1 Section 1 is already over 70 percent complete.
Furthermore, Managing Director of Hitech Construction Company Limited, Dany Abboud, said, “We are proud to deliver this historic project. With over 70 percent of Phase 1 Section 1 complete, we are showing that Nigerian engineering backed by structured international finance can meet global standards. The use of CRCP technology ensures unmatched durability and cost-efficiency.”
Chief Executive Officer, ICIEC, states: “ICIEC is proud to join the Nigerian government and our co-financiers in realising the Lagos–Calabar Coastal Highway Project. Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth. This initiative will create employment opportunities, build local capacity, and bolster small and medium-sized enterprises, demonstrating our steadfast commitment to sustainable development, multimodal connectivity, and prosperity for communities across West Africa.”
The project is structured as an (Engineering, Procurement, Construction + Financing) EPC+F contract awarded to Hitech Construction Company. 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 maximizing private sector appetite for investment in the country’s priority infrastructure. Construction of Phase 1 Section 1 is already over 70 per cent complete.
Manga further states, “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, and 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, 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. This landmark transaction reflects the renewed engagement of international financial institutions with Nigeria, driven by bold macroeconomic reforms and a commitment to delivering bankable, transformative projects.”
